Section 950.200  Default or Termination of Grant Agreement

a)         If the grantee violates any of the terms of the grant agreement, the Department shall send a written notice to the applicant that he is in default and will be given the opportunity to correct the violations.  If the violation is not corrected within 10 days after receipt of the notification, the Director may do one or more of the following:

1)         Declare due and payable the amount of the grant and cease additional grant payments not yet made to the grantee; and

2)         Take any other action considered appropriate to protect the interest of the project.

b)         Circumstances that will result in the termination of a grant include, but are not necessarily limited to, the following: repeated failure to submit required reports; misapplication of grant funds; failure to provide required percentage Department funds; evidence of fraud and abuse; failure to maintain required records; repeated failure to meet performance timelines or standards; failure to resolve negotiated points of the agreement; and failure to develop and implement a corrective action plan within 30 calendar days after the Department's notice.

c)         A grant may be terminated under, but termination is not limited to, any of the following circumstances:

1)         In the absence of State funding for a specific year, all grants that year will be terminated in full.  In the event of a partial loss of State funding, the Department will make proportionate cuts to all recipients.  In the event the Department suffers such loss of funding in full or part, the Department will give the grantee written notice setting forth the effective date of full or partial termination or, if a change in funding is required, setting forth the change in funding and changes in the approved budget.

2)         If the Department determines that the recipient has failed to comply with the terms and conditions of the grant agreement, the Department shall terminate the grant in whole, or in part, at any time before the date of completion.

3)         The Department may terminate the grant in whole, or in part, when the Department determines that the continuation of the project would not produce beneficial results commensurate with the continual expenditures of funds.

d)         The recipient may refuse or elect not to complete the grant agreement and terminate the grant. The recipient shall notify the Department within 10 days after the date upon which performance ceases.  The Department may declare due and payable the amount of the grant and may cease additional grant payments not yet made to the grantee.  [505 ILCS 19/55]

e)         Any money collected from the default or termination of a grant shall be placed into the fund and expended in the next period after receipt of the money.