101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB3845

 

Introduced 2/14/2020, by Sen. Pat McGuire

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 708/20
30 ILCS 708/25
30 ILCS 708/45

    Amends the Grant Accountability and Transparency Act. Provides that for public institutions of higher education, specified provisions of the Act apply only to awards funded by federal pass-through awards from a State agency to public institutions of higher education (currently, also applies to awards funded by State appropriations). Provides that the Act shall recognize specified provisions of the Code of Federal Regulations as applicable to public institutions of higher education. Effective immediately.


LRB101 20124 RJF 69659 b

 

 

A BILL FOR

 

SB3845LRB101 20124 RJF 69659 b

1    AN ACT concerning finance.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Grant Accountability and Transparency Act is
5amended by changing Sections 20, 25, and 45 as follows:
 
6    (30 ILCS 708/20)
7    Sec. 20. Adoption of federal rules applicable to grants.
8    (a) On or before July 1, 2016, the Governor's Office of
9Management and Budget, with the advice and technical assistance
10of the Illinois Single Audit Commission, shall adopt rules
11which adopt the Uniform Guidance at 2 CFR 200. The rules, which
12shall apply to all State and federal pass-through awards
13effective on and after July 1, 2016, shall include the
14following:
15        (1) Administrative requirements. In accordance with
16    Subparts B through D of 2 CFR 200, the rules shall set
17    forth the uniform administrative requirements for grant
18    and cooperative agreements, including the requirements for
19    the management by State awarding agencies of federal grant
20    programs before State and federal pass-through awards have
21    been made and requirements that State awarding agencies may
22    impose on non-federal entities in State and federal
23    pass-through awards.

 

 

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1        (2) Cost principles. In accordance with Subpart E of 2
2    CFR 200, the rules shall establish principles for
3    determining the allowable costs incurred by non-federal
4    entities under State and federal pass-through awards. The
5    principles are intended for cost determination, but are not
6    intended to identify the circumstances or dictate the
7    extent of State or federal pass-through participation in
8    financing a particular program or project. The principles
9    shall provide that State and federal awards bear their fair
10    share of cost recognized under these principles, except
11    where restricted or prohibited by State or federal law.
12        (3) Audit and single audit requirements and audit
13    follow-up. In accordance with Subpart F of 2 CFR 200 and
14    the federal Single Audit Act Amendments of 1996, the rules
15    shall set forth standards to obtain consistency and
16    uniformity among State and federal pass-through awarding
17    agencies for the audit of non-federal entities expending
18    State and federal awards. These provisions shall also set
19    forth the policies and procedures for State and federal
20    pass-through entities when using the results of these
21    audits.
22        The provisions of this item (3) do not apply to
23    for-profit subrecipients because for-profit subrecipients
24    are not subject to the requirements of 2 CFR 200, Subpart
25    F, Audits of States, Local and Non-Profit Organizations.
26    Audits of for-profit subrecipients must be conducted

 

 

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1    pursuant to a Program Audit Guide issued by the Federal
2    awarding agency. If a Program Audit Guide is not available,
3    the State awarding agency must prepare a Program Audit
4    Guide in accordance with the 2 CFR 200, Subpart F – Audit
5    Requirements - Compliance Supplement. For-profit entities
6    are subject to all other general administrative
7    requirements and cost principles applicable to grants.
8    (b) This Act addresses only State and federal pass-through
9auditing functions and does not address the external audit
10function of the Auditor General.
11    (c) For public institutions of higher education, the
12provisions of this Section apply only to awards funded by State
13appropriations and federal pass-through awards from a State
14agency to public institutions of higher education. Federal
15pass-through awards from a State agency to public institutions
16of higher education are governed by and must comply with
17federal guidelines under 2 CFR 200.
18    (d) The State grant-making agency is responsible for
19establishing requirements, as necessary, to ensure compliance
20by for-profit subrecipients. The agreement with the for-profit
21subrecipient shall describe the applicable compliance
22requirements and the for-profit subrecipient's compliance
23responsibility. Methods to ensure compliance for State and
24federal pass-through awards made to for-profit subrecipients
25shall include pre-award, audits, monitoring during the
26agreement, and post-award audits. The Governor's Office of

 

 

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1Management and Budget shall provide such advice and technical
2assistance to the State grant-making agency as is necessary or
3indicated.
4(Source: P.A. 99-523, eff. 6-30-16; 100-676, eff. 1-1-19.)
 
5    (30 ILCS 708/25)
6    Sec. 25. Supplemental rules. On or before July 1, 2017, the
7Governor's Office of Management and Budget, with the advice and
8technical assistance of the Illinois Single Audit Commission,
9shall adopt supplemental rules pertaining to the following:
10        (1) Criteria to define mandatory formula-based grants
11    and discretionary grants.
12        (2) The award of one-year grants for new applicants.
13        (3) The award of competitive grants in 3-year terms
14    (one-year initial terms with the option to renew for up to
15    2 additional years) to coincide with the federal award.
16        (4) The issuance of grants, including:
17            (A) public notice of announcements of funding
18        opportunities;
19            (B) the development of uniform grant applications;
20            (C) State agency review of merit of proposals and
21        risk posed by applicants;
22            (D) specific conditions for individual recipients
23        (including the use of a fiscal agent and additional
24        corrective conditions);
25            (E) certifications and representations;

 

 

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1            (F) pre-award costs;
2            (G) performance measures and statewide prioritized
3        goals under Section 50-25 of the State Budget Law of
4        the Civil Administrative Code of Illinois, commonly
5        referred to as "Budgeting for Results"; and
6            (H) for mandatory formula grants, the merit of the
7        proposal and the risk posed should result in additional
8        reporting, monitoring, or measures such as
9        reimbursement-basis only.
10        (5) The development of uniform budget requirements,
11    which shall include:
12            (A) mandatory submission of budgets as part of the
13        grant application process;
14            (B) mandatory requirements regarding contents of
15        the budget including, at a minimum, common detail line
16        items specified under guidelines issued by the
17        Governor's Office of Management and Budget;
18            (C) a requirement that the budget allow
19        flexibility to add lines describing costs that are
20        common for the services provided as outlined in the
21        grant application;
22            (D) a requirement that the budget include
23        information necessary for analyzing cost and
24        performance for use in Budgeting for Results; and
25            (E) caps on the amount of salaries that may be
26        charged to grants based on the limitations imposed by

 

 

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1        federal agencies.
2        (6) The development of pre-qualification requirements
3    for applicants, including the fiscal condition of the
4    organization and the provision of the following
5    information:
6            (A) organization name;
7            (B) Federal Employee Identification Number;
8            (C) Data Universal Numbering System (DUNS) number;
9            (D) fiscal condition;
10            (E) whether the applicant is in good standing with
11        the Secretary of State;
12            (F) past performance in administering grants;
13            (G) whether the applicant is on the Debarred and
14        Suspended List maintained by the Governor's Office of
15        Management and Budget;
16            (H) whether the applicant is on the federal
17        Excluded Parties List; and
18            (I) whether the applicant is on the Sanctioned
19        Party List maintained by the Illinois Department of
20        Healthcare and Family Services.
21    Nothing in this Act affects the provisions of the Fiscal
22Control and Internal Auditing Act nor the requirement that the
23management of each State agency is responsible for maintaining
24effective internal controls under that Act.
25    For public institutions of higher education, the
26provisions of this Section apply only to awards funded by State

 

 

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1appropriations and federal pass-through awards from a State
2agency to public institutions of higher education.
3(Source: P.A. 100-676, eff. 1-1-19; 100-997, eff. 8-20-18;
4101-81, eff. 7-12-19.)
 
5    (30 ILCS 708/45)
6    Sec. 45. Applicability.
7    (a) The requirements established under this Act apply to
8State grant-making agencies that make State and federal
9pass-through awards to non-federal entities. These
10requirements apply to all costs related to State and federal
11pass-through awards. The requirements established under this
12Act do not apply to private awards.
13    (a-5) Nothing in this Act shall prohibit the use of State
14funds for purposes of federal match or maintenance of effort.
15    (b) The terms and conditions of State, federal, and
16pass-through awards apply to subawards and subrecipients
17unless a particular Section of this Act or the terms and
18conditions of the State or federal award specifically indicate
19otherwise. Non-federal entities shall comply with requirements
20of this Act regardless of whether the non-federal entity is a
21recipient or subrecipient of a State or federal pass-through
22award. Pass-through entities shall comply with the
23requirements set forth under the rules adopted under subsection
24(a) of Section 20 of this Act, but not to any requirements in
25this Act directed towards State or federal awarding agencies,

 

 

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1unless the requirements of the State or federal awards indicate
2otherwise.
3    When a non-federal entity is awarded a cost-reimbursement
4contract, only 2 CFR 200.330 through 200.332 are incorporated
5by reference into the contract. However, when the Cost
6Accounting Standards are applicable to the contract, they take
7precedence over the requirements of this Act unless they are in
8conflict with Subpart F of 2 CFR 200. In addition, costs that
9are made unallowable under 10 U.S.C. 2324(e) and 41 U.S.C.
104304(a), as described in the Federal Acquisition Regulations,
11subpart 31.2 and subpart 31.603, are always unallowable. For
12requirements other than those covered in Subpart D of 2 CFR
13200.330 through 200.332, the terms of the contract and the
14Federal Acquisition Regulations apply.
15    With the exception of Subpart F of 2 CFR 200, which is
16required by the Single Audit Act, in any circumstances where
17the provisions of federal statutes or regulations differ from
18the provisions of this Act, the provision of the federal
19statutes or regulations govern. This includes, for agreements
20with Indian tribes, the provisions of the Indian
21Self-Determination and Education and Assistance Act, as
22amended, 25 U.S.C. 450-458ddd-2.
23    (c) State grant-making agencies may apply subparts A
24through E of 2 CFR 200 to for-profit entities, foreign public
25entities, or foreign organizations, except where the awarding
26agency determines that the application of these subparts would

 

 

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1be inconsistent with the international obligations of the
2United States or the statute or regulations of a foreign
3government.
4    (d) 2 CFR 200.101 specifies how 2 CFR 200 is applicable to
5different types of awards. The same applicability applies to
6this Act.
7    (e) (Blank).
8    (f) For public institutions of higher education, the
9provisions of this Act apply only to awards funded by State
10appropriations and federal pass-through awards from a State
11agency to public institutions of higher education. This Act
12shall recognize provisions in 2 CFR 200 as applicable to public
13institutions of higher education, including Appendix III of
14Part 200 and the cost principles under Subpart E.
15    (g) Each grant-making agency shall enhance its processes to
16monitor and address noncompliance with reporting requirements
17and with program performance standards. Where applicable, the
18process may include a corrective action plan. The monitoring
19process shall include a plan for tracking and documenting
20performance-based contracting decisions.
21(Source: P.A. 100-676, eff. 1-1-19; 100-863, eff. 8-14-18;
22101-81, eff. 7-12-19.)
 
23    Section 99. Effective date. This Act takes effect upon
24becoming law.