Section 1001.40  Grant Requirements

a)         A recipient of a non-designated grant shall not be required to execute a grant agreement in order to receive grant funds.

b)         A recipient of a designated grant must execute a grant agreement with the Board that:

1)         Must be executed by the authorized chief executive officer of the recipient within 60 days after receipt of the proposed grant agreement from the Board;

2)         Must contain a representation by the recipient that it will expend all grant funds in accordance with the requirements of the appropriation, the funding source and the grant agreement;

3)         Must contain a provision that the recipient will refund any grant funds that the recipient was not eligible to receive or that were not spent in accordance with this Part;

4)         Must contain a provision that the recipient will expend and disburse all grant funds, except for the audit fee, within the grant period;

5)         Must contain a provision that the recipient will contract with an external auditor who is licensed as a public accountant by the Illinois Department of Professional Regulation to conduct an audit of grant expenditures.

c)         Designated grant funds may not be used to reimburse a recipient for obligations or expenditures prior to the date of the grant agreement, except that otherwise eligible expenditures that occur after the effective date of any appropriation may be reimbursed from grant funds.

d)         Designated grant funds may be distributed by the Board to a recipient prior to the expenditure or obligation by the recipient.

e)         For grants of less than $250,000, interest earned by the recipient may be retained by the recipient since the cost of accounting for the interest or allocating the interest to principal is deemed significant in terms of the amount of interest to be received.  For grants of $250,000 and more, interest earned by the recipient must be accounted for and interest earned shall become a part of the grant principal and used only for those purposes authorized by the grant agreement.  For grants over $250,000, the Board may pay out such grants in installments, with each installment taking into account the purpose of the grant and the rate of anticipated expenditure of the grant funds by the recipient.

f)          For designated grants, grant agreements shall comply with the Grant Funds Recovery Act [30 ILCS 705].