AUTHORITY: Implementing and authorized by the Child Care Act of 1969 [225 ILCS 10] and the Adoption Act [750 ILCS 50].

SOURCE: Adopted and codified at 5 Ill. Reg. 11351, effective November 12, 1981; amended at 7 Ill. Reg. 3428, effective April 4, 1983; amended at 11 Ill. Reg. 17511, effective October 15, 1987; amended at 21 Ill. Reg. 4502, effective April 1, 1997; emergency amendment at 21 Ill. Reg. 9151, effective July 1, 1997, for a maximum of 150 days; emergency amendment modified in response to JCAR Objection at 21 Ill. Reg. 13929 and 14379; emergency expired on November 26, 1997; amended at 22 Ill. Reg. 10329, effective May 26, 1998; amended at 24 Ill. Reg. 9340, effective July 7, 2000; emergency amendment at 26 Ill. Reg. 6857, effective April 17, 2002, for a maximum of 150 days; emergency expired September 13, 2002; amended at 27 Ill. Reg. 494, effective January 15, 2003; amended at 28 Ill. Reg. 10588, effective August 1, 2004; emergency amendment at 29 Ill. Reg. 15562, effective September 30, 2005, for a maximum of 150 days; emergency expired February 26, 2006; amended at 30 Ill. Reg. 2699, effective February 27, 2006; amended at 36 Ill. Reg. 2157, effective January 30, 2012; amended at 37 Ill. Reg. 19115, effective November 30, 2013; emergency amendment at 46 Ill. Reg. 1101, effective December 22, 2021, for a maximum of 150 days; emergency expired May 20, 2022; amended at 46 Ill. Reg. 15230, effective August 26, 2022.

SUBPART A: INTRODUCTION AND DEFINITIONS

 

Section 401.30  Purpose

 

a)         The purpose of this Part is to prescribe the standards for licensure as a child welfare agency and to describe how to apply for a child welfare agency license. This Part also prescribes the duties of a child welfare agency to monitor and supervise child care facilities under its supervisory authority.

 

b)         The licensing standards set forth in this Part are applicable to child welfare agencies as defined in the Child Care Act of 1969 [225 ILCS 10/2.08]. Granting a license to a child welfare agency does not guarantee a contract with the State of Illinois or the Department of Children and Family Services.

 

(Source:  Added at 22 Ill. Reg. 10329, effective May 26, 1998)

 

Section 401.40  Definitions

 

"Adequate assets" means the child welfare agency has sufficient liquid assets in reserve or has other sources of income and a line of credit independent of Department contracts which would allow it to provide continuous agency operations and provide services such as staff, taxes, rent, utilities, and supplies for a period of at least 30 days.

 

"Administrative order of closure" means a severe administrative sanction, approved by the Director of the Department of Children and Family Services, to close immediately an unlicensed child care facility, a child care facility which is exempt from licensure, or a licensed child care facility prior to revocation of the facility's license.  An administrative order of closure is issued only when continued operation of the child care facility jeopardizes the health, safety, morals, or welfare of children served by the facility.

 

"Adoption services" includes any one or more of the following services performed for any type of compensation or thing of value, directly or indirectly:

 

arranging for the placement of or placing out of a child,

 

identifying a child for adoption,

 

matching adoptive parents with biological parents,

 

arranging or facilitating an adoption,

 

taking or acknowledging consents or surrenders for termination of parental rights for purposes of adoption, as defined in the Adoption Act,

 

performing background studies on a child or adoptive parents,

 

making determinations of the best interests of a child and the appropriateness of adoptive placement for the child, or

 

post-placement monitoring of a child prior to adoption.

 

"Adoption services" does not include the following:

 

the provision of legal services by a licensed attorney for which the attorney must be licensed as an attorney under Illinois law,

 

adoption-related services performed by public governmental entities or entities or persons performing investigations by court appointment as described in subsection A of Section 6 of the Adoption Act,

 

prospective adoptive parents operating on their own behalf,

 

the provision of general education and training on adoption-related topics, or

 

post-adoption services, including supportive services to families to promote the well-being of members of adoptive families or birth families. [225 ILCS 10/2.24]

 

"Advertise" means communication by any public medium originating or distributed in this State, including, but not limited to, newspapers, periodicals, telephone book listings, outdoor advertising signs, radio, or television. [225 ILCS 10/12]

 

"Age appropriate safety restraint" means, for a child under four years of age, a child restraint system (infant carrier, infant/toddler seat, or convertible safety seat) which meets the standards of the United States Department of Transportation designed to restrain, seat or position children.  For a child four years of age or older, an age-appropriate safety restraint means a child restraint system or seat belt (lap belt or lap-shoulder belt combination).

 

"Authorized representative of the governing body" means the person authorized by formal action at a meeting of the Board of Directors to act on behalf of the child welfare agency and sign the license renewal application (but not the initial application for license), contracts, and other such documents, on behalf of the governing body.  Such authorization shall be in writing on agency letterhead, submitted to the Department licensing worker, and signed by the president or chairperson of the Board of Directors and the secretary of the Board of Directors.

 

              "Background check" means:

 

a criminal history check via fingerprints of persons age 18 and over which are submitted to the Illinois State Police and the Federal Bureau of Investigation (FBI), for comparison to their criminal history records, as appropriate; and

 

a check of the Statewide Automated Child Welfare Information System (SACWIS) and other state child protection systems, as appropriate, to determine whether an individual is currently alleged or has been indicated as a perpetrator of child abuse or neglect; and

 

                a check of the Illinois Sex Offender Registry.

 

"Chief fiscal officer" means the staff position with primary responsibility for the receipt, distribution and accounting for all financial transactions of the agency.

 

"Child" means any person under 18 years of age. (Section 2.01 of the Child Care Act of 1969 [225 ILCS 10/2.01])

 

"Child care facility" means any person, group of persons, agency, association or organization, whether established for gain or otherwise, who or which receives or arranges for care or placement of one or more children, unrelated to the operator of the facility, apart from the parents, with or without the transfer of the right of custody, in any facility as defined in this Act, established and maintained for the care of children.  "Child care facility" includes a relative who is licensed as a foster family home under Section 4 of the Child Care Act of 1969.  [225 ILCS 10/2.05]

 

"Child welfare agency" means a public or private child care facility, receiving any child or children for the purpose of placing or arranging for the placement or free care of the child or children in foster family homes, unlicensed pre-adoptive and adoptive homes, or other facilities for child care, apart from the custody of the child's or children's parents.  The term "child welfare agency" includes all agencies established and maintained by a municipality or other political subdivision of the State of Illinois to protect, guard, train or care for children outside their own homes and all agencies, persons, groups of persons, associations, organizations, corporations, institutions, centers, or groups providing adoption services, but does not include any circuit court or duly appointed juvenile probation officer or youth counselor of the court, who receives and places children under an order of the court. [225 ILCS 10/2.08]

 

"Complaint", for purposes of this Part, means any oral or written report made to or by the Department or supervising agency or by the public alleging a violation of licensing standards or the Child Care Act of 1969 or relating to the conduct of an agency or its staff.

 

"Conditional license" means a nonrenewable license for a period not to exceed six months which may be granted to a child care facility when the facility has agreed to a corrective plan to amend identified deficiencies and bring the facility into reasonable compliance with all licensing standards.  Conditional licenses may be issued with the approval of the Department only where no threat to the health, safety, morals or welfare of the children served exists.  Any other license held by the facility shall be revoked when the conditional license is issued.

 

"Corporal punishment" means hitting, spanking, beating, shaking, pinching, excessive exercise, exposure to extreme temperatures, and other measures that produce physical pain.  (National Health and Safety Performance Standards, Guidelines for Out-Of-Home Child Care Programs, American Public Health Association and American Academy of Pediatrics, 2002).

 

"Corrective plan" means a written plan approved by the Department's regional licensing administrator which identifies deficiencies in a child care facility's operations and which allows the facility a maximum of six months to correct the identified deficiencies and come into reasonable compliance with all applicable licensing standards.

 

"Deemed compliant" means that an eligible agency, accredited by the Council on Accreditation for Children and Family Services (COA), is presumed to be in compliance with requirements of this Part, provided that the Department has determined that current Council on Accreditation for Children and Family Services (COA) standards are at least substantially equivalent to this Part's requirements.  [225 ILCS 10/2.27]

 

"Deemed status" means the Department has approved a child welfare agency as in compliance with the requirements of this Part because the agency:

 

has received full accreditation status from the Council on Accreditation for Children and Family Services (2001 Standards); and

 

during the past four years, there have been no substantiated licensing violations that affect the health, safety, morals, or welfare of children served by the accredited agency.

 

"Department" means the Illinois Department of Children and Family Services. [225 ILCS 10/2.02]

 

"Eligible agency" means a licensed child welfare agency that is currently fully accredited by the Council on Accreditation for Children and Family Services (COA) for adoption services and has had no Department substantiated licensing violations or COA accrediting violations that affect the health, safety, morals, or welfare of children served by that agency for the 4 years immediately preceding a determination of eligibility.  [225 ILCS 10/2.26]

 

"Excessive fees" means an amount that exceeds what is usual, reasonable and customary in the community for the delivery of adoption services in Illinois and shall take into account the full range and duration of services provided by the agency to birth parents and their children, and to adoptive parents, for expenses paid by the agency for medcial costs and whether the agency providers a program of reduced-fee placements and services and places special needs children for adopttion.  Adoption  service fees must be based on the costs associated with service delivery and clients may be charged only for services provided.

 

"Full license" means the agency is operating under a current child welfare agency license rather than a permit, a provisional license, a conditional license, or a license which has been revoked or which has expired after the agency failed to file a timely and sufficient application for license renewal.

 

              "Governing body" means all members of the board of directors of a corporation.

 

              "Guardian" means the guardian of the person of a minor. [225 ILCS 10/2.03]

 

"Immediate family member" means a person's spouse, son, daughter, mother, father, sibling, brother- or sister-in-law, or other legal dependent.

 

"Inadequate assets" means the child welfare agency has less than 30 days of operating expenses available to them in liquid assets as required by the definition of adequate assets in this Section.

 

"Initial application for license" means the first application for licensure as a child welfare agency submitted by the individual, corporation, or other legal entity.

 

"License" means a document issued by the Department of Children and Family Services which authorizes child care facilities to operate in accordance with applicable standards and the provisions of the Child Care Act of 1969.

 

"License applicant" means those individuals, corporations, or other legal entities who have applied for a license from the Department of Children and Family Services.

 

"Licensee" means those individuals, corporations or other legal entities who hold a license or permit issued by the Department of Children and Family Services.

 

"Licensing worker" means persons authorized by the Department under the Child Care Act of 1969 to examine facilities for licensure.

 

"Minor traffic violation" means a traffic violation under the laws of the State of Illinois or any municipal authority therein or another state or municipal authority which is punishable solely as a petty offense.  (See Section 6-601 of the Illinois Driver Licensing Law [625 ILCS 5/6-601].)

 

"New application for child welfare agency license" means a license is sought to operate a child welfare agency when:

 

the applicant has applied previously for a child welfare agency license and withdrew the license application before a decision was made on the application for license; or

 

the applicant had been licensed previously as a child welfare agency, but voluntarily surrendered the license; or

 

the applicant had been licensed previously as a child welfare agency, but the Department revoked or refused to renew the license.

 

"Permit" means a one-time only document issued by the Department of Children and Family Services to allow the license applicant to become eligible for an initial license.  Permits may be for a maximum six month period, except that permits granted to foster family homes and day care homes are limited to a maximum of two months.

 

"Petty offense" means any offense for which a sentence to a fine only is provided. (Section 5-1-17 of the Unified Code of Corrections [730 ILCS 5/5-1-17])

 

"Preferential treatment" means any action that allows board members, contributors, volunteers, employees, agents, consultants, or independent contractors, or their relatives, to receive consideration with respect to the placement of a child or any matter that relates to adoption services that are different or more favorable than any other similarly situated applicants.

 

"Provisional license" means a license issued for a period not to exceed two years to allow a licensed child welfare agency to demonstrate the ability to operate a business in compliance with applicable standards.  During the provisional license period, the Department may exercise more stringent oversight or place more stringent requirements on the child welfare agency.

 

"Psychotropic medication" means medication whose use for antipsychotic, antidepressant, antimanic, antianxiety, behavioral modification or behavioral management purposes is listed in the AMA Drug Evaluations (Drug Evaluation Subscription, American Medical Association, Vols. I-III, Summer 1993) or Physician's Desk Reference (Medical Economics Data Production Company, 49^th Edition, 1995) or which are administered for any of these purposes. (Section 1-121.1 of the Mental Health and Developmental Disabilities Code [405 ILCS 5/1-121.1])

 

"Reasonable living expenses" means expenses of the biological parents related to activities of daily living and meeting basic needs, including but not limited to lodging, food and clothing. The term does not include expenses of lost wages, gifts or education or other similar expenses of the biological parent.

 

"Refusal to issue license" means the formal decision of the Department to decline to issue a license to the holder of a permit.

 

"Refusal to renew a license" means the formal decision of the Department to decline to issue a succeeding license, although the licensee has submitted a timely and sufficient application for license renewal, to the holder of a child care facility license or permit.

 

"Replacement or supplemental staff" means any paid or unpaid individual who is used to perform essential staff duties as evidenced by being counted in the staff-child ratio or being allowed to be alone with children receiving care in a licensed child care facility outside the visual or auditory supervision of facility staff.

 

"Reputable character" means there is satisfactory evidence that the moral character of the applicant is trustworthy.

 

"Responsible" means trustworthy performance of expected duties in accordance with established professional standards, State and federal law, and the rules of the Department of Children and Family Services.

 

"Revocation" means the termination of a full license or provisional license to operate a child care facility by a formal action of the Department. License revocations shall be conducted in accordance with Section 8 or 8.1 of the Child Care Act of 1969 [225 ILCS 10/8 and 8.1].

 

"Risk management plan" means a document developed in accordance with Appendix D of this Part that outlines the process for identifying and analyzing loss exposures, examining alternative risk control methods, and making and carrying out decisions that will minimize the adverse effects of accidental losses.

 

"SACWIS" means the Statewide Automated Child Welfare Information System operated by the Illinois Department of Children and Family Services that is replacing the Child Abuse and Neglect Tracking System (CANTS).

 

"Surrender for adoption" means a voluntary final and irrevocable act, in writing, by a biological parent to relinquish all parental rights of a child to an agency for the purpose of placing the child for adoption.

 

"Suspension of license" means an action, imposed in writing, by the authorized designee of the Department that requires cessation of all adoption related activities by the adoption agency.

 

"Timely and sufficient application for license renewal" means the child welfare agency submitted the application for renewal of the license at least 90 days before the expiration date, the application was complete, dated, and signed by an authorized party, and the materials required by Section 401.140 were attached to the application for license renewal.  License renewal applications for foster family homes or day care homes under the supervision of the child welfare agency are considered timely if the application was returned to the agency within the time frames required by the respective licensing standards 89 Ill. Adm. Code 402 (Licensing Standards for Foster Family Homes) or 89 Ill. Adm. Code 406 (Licensing Standards for Day Care Homes).

 

"Unlicensed pre-adoptive and adoptive home" means any home that is not licensed by the Department and that receives a child or children for the purpose of adopting the child or children. [225 ILCS 10/2.25]

 

"Valid license" means a license which has not been revoked or expired, or which would have expired except that the child welfare agency submitted a timely and sufficient application for license renewal and the Department has not yet rendered a decision on the application, and the facility has not been issued an administrative order of closure.

 

"Voluntary surrender of license" means that, in writing, the licensee has offered and the Department has accepted the licensee's offer to give up a valid license of his, her or its own free will.  The Department is not required to accept the offer of the license and, in the Department's sole discretion, may decline to accept the license.

 

(Source:  Amended at 30 Ill. Reg. 2699, effective February 27, 2006)

SUBPART B: PERMITS AND LICENSES

 

Section 401.100  Application for License

 

a)         The initial application for license as a child welfare agency shall be completed by the officers of the governing body of the child welfare agency on forms prescribed and furnished by the Department.

 

b)         For the initial application for a license to be complete, the following shall be attached to the application:

 

1)         Agencies not providing adoption services shall include the agency's articles of incorporation and by-laws, indicating that the agency's corporate status is in good standing with the Illinois Secretary of State and, if a not-for-profit corporation under Section 501 of the Internal Revenue Code (26 USCA 501), a copy of the Internal Revenue Service ruling on the agency's exemption status from Federal income tax and registration with the Charitable Trust Bureau of the Attorney General's office (if applicable);

 

2)         Agencies not providing adoption services shall include a list of owners, officers, board members, and principal shareholders owning more than 5% of the stock of the corporation and each person's attestation that he or she has not been convicted of a felony or indicated as a perpetrator of child abuse or child neglect, as defined in Appendix B of 89 Ill. Adm. Code 300 (Reports of Child Abuse and Neglect).  This includes any or all of the above persons who reside outside the State of Illinois.  The board list shall include the board chair's name, home address and telephone number that is in addition to the agency's telephone number; the names of the other officers of the board; names of the other board members; and committees of the governing body;

 

3)         Agencies providing adoption services shall attach to the initial application:

 

A)        A current copy of the Internal Revenue Service's ruling showing that the agency is officially recognized by the United States Internal Revenue Service as a tax-exempt organization under section 501(c)(3) of the Internal Revenue Code of 1986 (26 USC 501);

 

B)        A current copy of registration with the Charitable Trust Bureau of the Illinois Attorney General's office;

 

C)        Copies of 990 reports filed with the Internal Revenue Service in the preceding 3 years (if applicable);

 

D)        Articles of incorporation and by-laws, indicating that the agency's corporate status is in good standing with the Illinois Secretary of State; and

 

E)        A list of officers, board members, and each person's attestation that he or she has not been convicted of a felony or indicated as a perpetrator of child abuse or child neglect, as defined in Appendix B of 89 Ill. Adm. Code 300 (Reports of Child Abuse and Neglect).  This includes any or all of the above persons who reside outside the State of Illinois.  The board list shall include the board chair's name, home address and telephone number that is in addition to the agency's telephone number; the names of the other officers of the board; names of the board other members; and committees of the governing body;

 

4)         A mission statement or statement of purpose including services to be provided and the types of child care facilities to be operated and supervised by the agency, including a plan for recruiting foster family and adoptive homes, as required to fulfill the agency's mission or purpose;

 

5)         Proposed operating budget for the first two years of operation;

 

6)         Range of services to be provided within the first two years of operation;  and

 

7)         A comprehensive staffing plan which includes job descriptions and the qualifications of the staff for all child welfare programs to be provided by the agency.  If the child welfare agency operates within a multi-service agency, those staff positions that perform no functions for the child welfare agency do not need to be included in the staffing plan.  If the child welfare agency intends to operate branch offices, the address, telephone number and staffing plan for each of the branch offices is to be included in the initial application (if known) or reported to the Department within 30 days after the location for a branch office is secured.

 

c)         In addition, the license applicant shall have the following items available for review when the licensing worker visits the agency headquarters.

 

1)         A list of current employees of the child welfare agency, persons the agency has made a commitment to hire and:

 

A)        Certified transcripts of each employee's educational credentials (if obtained from a foreign school or university, the credentials must be translated into English and include a statement of equivalency in the United States educational system);

 

B)        Verification of prior work history, when the work history is required to qualify for the current position;

 

C)        Copy of current professional license or registration, if required. (See Appendix G for a list of professionals commonly used by a licensed child welfare agency who must be licensed or registered.); and

 

D)        If the individual is subject to the background check requirements of 89 Ill. Adm. Code 385 (Background Checks) a copy of each employee's complete, signed authorization to conduct a background check.

 

2)         The agency's written personnel policies, including written compensation policies and salary levels.

 

3)         The agency's written service delivery policies.

 

4)         The agency's risk management plan developed in accordance with Appendix D of this Part.

 

5)         The agency's documentation of current public liability insurance as required by Section 401.220(g).

 

6)         The agency's code of ethics which has been adopted by the governing body which must be at least as stringent as the Code of Ethics for Child Welfare Professionals (published by the Office of Communications, Department of Children and Family Services, 406 East Monroe, Station #65, Springfield, Illinois 62701 (May 1996) or found on the Department's website at www.state.il.us/dcfs).

 

7)         The agency's financial management policies.

 

d)         If the corporate status or ownership of the child welfare agency changes, the new corporate entity must file an initial application for a child welfare agency license as the new corporation.

 

e)         A new application for a child welfare agency license shall be filed when:

 

1)         An application for license as a child welfare agency has been withdrawn before a decision was made on the application and the agency seeks to reapply; or

 

2)         The applicant had been licensed previously as a child welfare agency, but voluntarily surrendered the license, and any waiting period agreed to when the voluntary surrender was accepted has expired; or

 

3)         The applicant had been licensed as a child welfare agency, but the Department revoked or refused to renew the license and the requirements of subsection (f) of this Section have been fulfilled.

 

f)         A new application may be submitted at any time when a license, permit or application has been voluntarily surrendered or withdrawn by the applicant unless the applicant has signed an agreement with the Department not to reapply for a license for a specified period of time.  Once an investigation of the facility has been commenced, the license may be voluntarily surrendered only with the signed, written agreement of the regional licensing administrator on the form prescribed in Appendix F.

 

g)         If the Department has revoked or refused to renew the license of a child welfare agency and the agency seeks to reapply for a license, it may do so if at least 12 months have passed since the effective date of the revocation or refusal to renew.  If a new license is granted to the applicant, the Department shall issue a provisional license to the applicant for a period not to exceed two years.  The denial of a reapplication for a license pursuant to this subsection must be supported by evidence that the prior revocation renders the applicant unqualified or incapable of satisfying the standards and rules promulgated by the Department pursuant to the Child Care Act of 1969, or maintaining a facility which adheres to such standards and rules. [225 ILCS 10/6(c)]

 

h)         The applicant shall submit an original and one copy of the application for license and all required documentation.

 

(Source:  Amended at 30 Ill. Reg. 2699, effective February 27, 2006)

 

Section 401.110  Provisions Pertaining to Permits

 

a)         A permit shall be issued before a provisional license is granted, but shall not be issued prior to the following:

 

1)         Completion of the application for license and submission of the original and one copy of the application and all required supporting documentation to the Department;

 

2)         Employment of an executive director who has passed the background check requirements of 89 Ill. Adm. Code 385 (Background Checks) and who meets the requirements of Section 401.300;

 

3)         Development of a projected staffing plan indicating the time table by which qualified staff shall be hired;

 

4)         Establishment of procedures and forms for required records and reports in Sections 401.260 and 401.270;

 

5)         Submission of a written plan that indicates how requirements for a license shall be met within the permit period;

 

6)         Submission of a projected budget for at least the next two years that has been approved by the governing body. Letters of commitment must be attached for any projected grant or contract;

 

7)         Submission of a risk management plan as outlined in Appendix D, Minimum Requirements for a Risk Management Plan, of this Part; and

 

8)         Documentation of current public liability insurance as required by Section 401.220(g).

 

b)         A permit shall not be issued retroactively.

 

c)         The permit shall not be renewable.

 

d)         The permit shall not be transferred or transmitted to another legal entity.

 

e)         The permit shall not be valid for a name or address different from the name and address shown on the issued permit.

 

f)         The child welfare agency shall adhere to the provisions specified on the permit.

 

g)         A current permit shall be on display at the agency headquarters at all times while the agency is operating under a permit.

 

h)         A provisional license shall be issued any time within the six months period covered by the permit provided the child welfare agency achieves and maintains reasonable compliance with the Department's licensing standards.

 

i)          There shall be no fee or charge for the permit.

 

(Source:  Amended at 30 Ill. Reg. 2699, effective February 27, 2006)

 

Section 401.120  Provisional Licenses

 

a)         The Department may restrict the operation of the child welfare agency by attaching provisions to the license, such as those identified in subsection (c) of this Section.  Provisional licenses shall be issued for the first two years to applicants for initial license as a child welfare agency when the applicant successfully completes the six-month permit period and has achieved and maintained reasonable compliance with the standards in this Part.  In addition, a provisional license may be issued when a former license holder seeks to reapply after the license was voluntarily surrendered or after the Department revoked or refused to renew the former license.

 

b)         Good cause for issuing a provisional license to a former or current holder of a child welfare agency license is evidenced by, but not limited to:

 

1)         an excessive number of indicated child abuse or neglect reports involving agency staff in their professional duties or foster family, relative, day care, and group homes supervised by the child welfare agency; or

 

2)         lack of financial responsibility as evidenced by maintaining inadequate assets or by late payment (more than ten days after the scheduled payment date) of foster parents, tax obligations, bills or other evidence of financial instability; or

 

3)         inadequate or missing records or reports, as required by this Part; or

 

4)         failure to supervise foster family, relative, day care, and group homes, as required by Department of Children and Family Services rules, 89 Ill. Adm. Code 301 (Placement and Visitation Services), 89 Ill. Adm. Code 402 (Licensing Standards for Foster Family Homes), 89 Ill. Adm. Code 403 (Licensing Standards for Group Homes), 89 Ill. Adm. Code 406 (Licensing Standards for Day Care Homes) and 89 Ill. Adm. Code 408 (Licensing Standards for Group Day Care Homes), as applicable;

 

5)         failure to promptly process foster parent licensing applications, provide required training of foster parents and adoptive parents, provide information to foster parents regarding policy and procedures applicable to foster parents and foster children or adoptive parents and adoptable children, or to recruit foster family and adoptive homes to care for the children served;

 

6)         failure to recommend foster family and day care home licenses for renewal before the expiration date of the license when the licensee has made a timely and sufficient application for license renewal;

 

7)         failure to submit an annual implementation plan pursuant to the Foster Parent Law [20 ILCS 505/7.2] and to implement the plan as submitted; or

 

8)         other good cause when supported by adequate documentation that the agency is failing to operate in the interest of its clients or the general public.

 

c)         The child welfare agency shall adhere to the provisions specified on the license which may include, but are not limited to:

 

1)         establishing specific supervisor/child welfare staff ratios that the child welfare agency must maintain; or

 

2)         requiring at least six bi-monthly meetings of the Board of Directors and greater involvement from the Board of Directors in agency operations; or

 

3)         requiring oversight by a certified public auditor who provides periodic reports to the Department; or

 

4)         requiring additional training of staff around specific deficiencies identified in a corrective plan; or

 

5)         requiring other supportive or corrective measures as deemed necessary in writing by the Department.

 

(Source:  Added at 22 Ill. Reg. 10329, effective May 26, 1998)

 

Section 401.130  Provisions Pertaining to Licenses

 

a)         A full child welfare agency license is valid for 4 years unless revoked by the Department or voluntarily surrendered by the licensee.  Provisional licenses are valid for 2 years.

 

b)         The Department shall revoke or refuse to renew the license of any child welfare agency providing adoption services, unless the agency:

 

1)         Is officially recognized by the United States Internal Revenue Service as a tax-exempt organization described in section 501(c)(3) of the Internal Revenue Code of 1986 (or any successor provision of federal tax law); and

 

2)         Is in compliance with all of the standards necessary to maintain its status as an organization described in section 501(c)(3) of the Internal Revenue Code of 1986. [225 ILCS 10/4(e)]

 

c)         A license shall not be transferred or transmitted to another legal entity.

 

d)         A license shall not be valid for a name or address other than the name and address shown on the license.

 

e)         The current license shall be displayed at the agency headquarters at all times.

 

f)         The licensee shall adhere to any and all provisions of the license.

 

g)         There shall be no fee or charge for the license.

 

(Source:  Amended at 30 Ill. Reg. 2699, effective February 27, 2006)

 

Section 401.140  Application for Renewal of License

 

a)         License renewal application forms shall be mailed to the child welfare agency by the Department six months prior to the expiration date of the license.  For a renewal application to be considered complete, the following shall be attached to the application:

 

1)         A complete listing of the names and addresses of  all licensed and license-exempt child care facilities supervised by the child welfare agency and of any pending applications for licensure of a foster family or day care home which will be supervised by the child welfare agency;

 

2)         A current list of names, home addresses or Post Office Box, and contact telephone numbers, other than the agency's telephone number, of owners, officers, board members, and principal shareholders owning more than 5% of the stock of the corporation;

 

3)         A staff list, including name and job title, indicating those who are licensed under 89 Ill. Adm. Code 412.40 to practice as a direct child welfare service employee;

 

4)         Any pending investigations other than the Department investigations;

 

5)         The following documents if changes were made to them since the last application or renewal:

 

            A)        statement of purpose;

 

            B)        range of services; and

 

            C)        code of ethics; and

 

6)         For an agency providing adoption services whose license expires on or after August 15, 2007, documentation from the Internal Revenue Service showing that the agency is in compliance with all of the standards necessary to maintain its status as an tax-exempt organization as described in section 501(c)(3) of the Internal Revenue Code of 1986. In addition, the agency shall attach copies of any form 990 reports filed with the Internal Revenue Service in the preceding 3 years, if applicable. An agency providing adoption services whose license renewal is pending or whose license will expire prior to August 15, 2007, and that is unable to obtain 501(c)(3) status prior to August 15, 2007, may be granted, at the discretion of the Department, up to a one year extension.

 

7)         The extension may be granted by the Department when the adoption agency has demonstrated that it has made substantial progress in the process  of becoming a tax-exempt organization as described in section 501(c)(3) of the Internal Revenue Code of 1986 and there is a likelihood of complying with the requirements within the extended period.

 

b)         The original of the completed application, along with the listing of child care facilities supervised by the agency, and one copy of all materials shall be submitted to the Department no later than 90 days before the date of the expiration of the child welfare agency's license.

 

c)         When a licensee has made timely and sufficient application for renewal of a license and the Department fails to render a decision on the application for renewal of the license prior to the expiration date of the license, the existing license shall continue in full force and effect for up to 30 days until the final Department decision has been made.  The Department may further extend the period in which such decision must be made in individual cases for up to 30 days, but such extensions shall be only upon good cause shown. [225 ILCS 10/5(d)]

 

d)         After receipt of the application for license renewal, the Department shall conduct a license study that shall consist of a comprehensive licensing compliance review.  The study may include unannounced visits if conducted within normal business hours, in order to determine that the child welfare agency continues to meet licensing standards.  The licensing study shall include an examination of the premises and records of the child welfare agency to determine the degree of compliance with these standards and shall include:

 

1)         Random surveys of parents or legal guardians who are consumers of the child welfare agency's services to assess the quality of care given and to determine if the child welfare agency is in compliance with the Foster Parent Law [20 ILCS 520];

 

2)         A review of a representative sample of child care facilities supervised by the child welfare agency, which may include site visits to these facilities;

 

3)         A review of unusual incident reports, child abuse/neglect reports, financial and payment records, and other agency performance indicators to evaluate the quality of care provided through the agency;

 

4)         Interviews of child welfare agency employees, foster parents, biological parents, children receiving care through the licensed child welfare agency, and other clients that receive services from the child welfare agency; and

 

5)         A review of the records, staffing, and operations of any branch offices operated by the child welfare agency.

 

e)         The licensing study shall be in writing and shall be reviewed and signed by the licensing supervisor and the licensing worker performing the study.  If the Department is satisfied that the facility continues to be in compliance with minimum standards which it prescribes and publishes, it shall renew the license to operate the facility.  [225 ILCS 10/6]  A copy of the licensing study will be made available to the license applicant upon payment of all copying costs.

 

(Source:  Amended at 30 Ill. Reg. 2699, effective February 27, 2006)

 

Section 401.141  License Transfer for Agencies Providing Adoption Services Seeking 501(c)(3) Status

 

a)         Licensed child welfare agencies providing adoption services shall  obtain tax-exempt status from the Internal Revenue Service as described in section 501(c)(3) of the Internal Revenue Code of 1986.

 

b)         An existing child welfare agency may retain its current structure and be recognized as a 501(c)(3) organization as required by this Section or complete the process of application as an entity, if the creation of a new entity is required in order to comply with this Section, provided that:

 

1)         The agency provides to the Department a copy of the Internal Revenue Service ruling showing that the agency is officially recognized by the United States Internal Revenue Service as a tax-exempt organization under section 501(c)(3) of the Internal Revenue Code of 1986;

 

2)         The child welfare agency demonstrates that it continues to meet all other licensing requirements; and

 

3)         The principal officers and directors and programs of the converted child welfare agency or newly organized child welfare agency are substantially the same as the original.

 

c)         The Department, at its sole discretion, may grant a one year extension to a child welfare agency unable to obtain 501(c)(3) status prior to August 15, 2007, provided that the agency has demonstrated good faith effort to obtain a 501(c)(3) status with the Internal Revenue Service prior to August 15, 2007 and presents documentation of that status to the Department. 

 

(Source:  Amended at 36 Ill. Reg. 2157, effective January 30, 2012)

 

Section 401.145  Renewal Application Under Deemed Status

 

a)         A child welfare agency in deemed status doing business with the Department shall submit to the Department:

 

1)         Signed and completed renewal application on forms provided by the Department;

 

2)         Written description of any change in the agency's corporate exempt status, charitable trust registration, and range of services provided;

 

3)         List of current employees, including the Executive Director;

 

4)         List of current board members, including their names, home phone numbers, and addresses;

 

5)         List of all child care facilities supervised by the agency, including licensed and unlicensed foster family and day care homes, and all branch offices operated by the agency;

 

6)         Copy of any Corrective Plan currently in place;

 

7)         Copy of information submitted by the agency to the Council on Accreditation, including:

 

A)        Results of/information about the agency's consumer surveys;

 

B)        Information regarding any "hold" on the agency's intake placed by the Council on Accreditation for Children and Family Services (Council on Accreditation), including:  was the hold for any part of the current license sequence; was the agency on hold at the time of renewal; reason for the hold and duration of the hold status; and

 

C)        Copy of the most recent Annual Maintenance of Accreditation Report the agency filed with the Council on Accreditation;

 

8)         Copy of letter the agency has from the Council on Accreditation showing that the agency is fully accredited.

 

b)         The Department shall obtain the following information from other sources about the agency in deemed status that is doing business with the Department:

 

1)         Results of agency's financial audit and any documented financial problems;

 

2)         Number of indicated child abuse/neglect investigations and licensing complaint investigations involving homes and/or facilities supervised by the agency;

 

3)         Council on Accreditation confirmation that the agency is fully accredited and in good standing; and

 

4)         Confirm the hold information provided by the agency with the Agency Performance Team.

 

c)         Agencies not doing business with the Department shall submit to the Department:

 

1)         Signed and completed renewal application on a form provided by the Department;

 

2)         Written description of any change (if applicable) in the agency's corporate exempt status, charitable trust status and range of services provided;

 

3)         List of current employees, including the Executive Director;

 

4)         List of current board members, including their names, home phone numbers and addresses;

 

5)         List of all child care facilities supervised by the agency, including licensed and unlicensed foster family and day care homes;

 

6)         Copy of information the agency submitted to the Council on Accreditation regarding results of/information about the agency's consumer surveys;

 

7)         Copy of the last Annual Maintenance of Accreditation Report the agency filed with the Council on Accreditation;

 

8)         Copy of letter the agency has from the Council on Accreditation showing that the agency is fully accredited; and

 

9)         Copy of most recent audit.

 

d)         The Department shall obtain the following information from other sources about the agency in deemed status that is not doing business with the Department:

 

1)         Number of indicated child abuse/neglect investigations and licensing complaint investigations involving homes and/or facilities supervised by the agency; and

 

2)         Confirm with the Council on Accreditation that the agency is fully accredited and in good standing.

 

(Source:  Added at 27 Ill. Reg. 494, effective January 15, 2003)

 

Section 401.150  Acceptance of Accreditation through Deemed Status

 

a)         When a child welfare agency is fully accredited by the Council on Accreditation for Children and Family Services, Inc. (Council on Accreditation), 120 Wall Street, 11^th Floor, New York, NY 10005 (2001 Standards) and there have been no substantiated licensing violations that affect the health, safety, morals, or welfare of children served by that agency for the last four years, that child welfare agency is deemed to be in compliance with the program requirements of this Part. 

 

b)         The Department shall verify in writing with the Council on Accreditation that the agency's accreditation continues to be in good standing and shall conduct annual monitoring visits to verify the continued compliance of the child welfare agency with the requirements of this Part.

 

c)         If a licensing complaint is substantiated against an accredited child welfare agency, the Department licensing worker shall notify in writing the Council on Accreditation of the substantiated violations.  The child welfare agency shall receive a copy of this notice.

 

d)         If a substantiated licensing violation may affect the health, safety, morals, or welfare of the children served by the child welfare program, the agency shall be removed from "deemed status" and a full license study shall be conducted as part of the license renewal process.

 

(Source:  Amended at 27 Ill. Reg. 494, effective January 15, 2003)

 

Section 401.155  Removal of Agency from Deemed Status

 

The following shall occur before the Department is to remove an agency from Deemed Status:

 

a)         The Department shall have documentation of one or more substantiated violations that affect the health, safety, morals or welfare of children served by the agency's program.

 

b)         After review and confirmation of the substantiated violation by the licensing supervisor and manager, the Central Office of Licensing shall submit a recommendation for removing the agency from deemed status to a 5-member panel comprised of representatives from the Divisions of Quality Assurance, Purchase of Service Monitoring, and Program Operations, and the Offices of Child and Family Policy and Licensing.

 

c)         The 5-member panel shall review the recommendation for removing the agency's deemed status.

 

1)         If the panel concurs with the recommendation, the panel shall forward the recommendation to the Director for final approval.

 

2)         If the panel does not concur with the recommendation, the agency will maintain its deemed status.

 

d)         The Department shall notify the agency in writing  of the Director's decision to remove or maintain the agency in deemed status.

 

(Source:  Added at 27 Ill. Reg. 494, effective January 15, 2003)

 

Section 401.160  Voluntary Surrender of License

 

a)         At any time, a licensee may offer to voluntarily surrender a valid license.  The licensee must verify whether:

 

1)         the Department is investigating the child welfare agency for any licensing complaint or report of suspected abuse or neglect involving the agency;

 

2)         litigation is pending between the child welfare agency and the Department; or

 

3)         the child welfare agency suspects that it or facilities supervised by it are under investigation by any state agency of any state, their respective inspectors general, or any local, State or federal law enforcement agency.

 

b)         The child welfare agency shall attach to the offer of voluntary surrender a complete listing of the names and addresses of  all licensed child care facilities supervised by the agency, of any pending license applications which have not yet been determined by the agency, and of any license exempt day care homes, relative care homes, independent living facilities, or other programs operated by the child welfare agency.

 

c)         Before accepting a voluntary surrender of license, the regional licensing administrator shall review the listing of the names and addresses of the facilities and programs supervised by the child welfare agency to determine whether it is complete and correct. In addition, the regional licensing administrator shall determine whether:

 

1)         the Department is investigating the child welfare agency for any licensing complaint or report of suspected abuse or neglect involving the agency;

 

2)         litigation is pending between the child welfare agency and the Department; and

 

3)         the Department has been notified by another state agency, their respective inspectors general, or any local, State or federal law enforcement agency that the child welfare agency is under investigation.

 

d)         The Department may discharge its obligation to determine whether an investigation is pending and whether the Department has received notice of an investigation by the DCFS-Office of the Inspector General or any local, State or federal law enforcement agency, by examining local licensing records, reviewing the voluntary offer of surrender signed by the child welfare agency, checking with the Central Office of Licensing, the State Central Register, the DCFS-Office of Inspector General, the Office of Legal Services, the Division of Purchase of Service Monitoring, and the Office of Internal Audits.

 

e)         If the licensee has verified and the Department has determined that the child welfare agency is not under investigation and not engaged in litigation with the Department, a licensing administrator may, but is not required to, accept the offered voluntary surrender of the license.  Such voluntary surrenders must be executed on the form prescribed in Appendix E of this Part.

 

f)         If the licensee has verified and the Department has determined that the child welfare agency is under investigation or is engaged in litigation against the Department, only a DCFS licensing administrator may, but is not required to, accept the offered voluntary surrender of the license.  Such voluntary surrenders must be executed on the form prescribed in Appendix F of this Part.

 

g)         If, at any time after the acceptance of a voluntary surrender of license, the Department discovers that the child welfare agency knew or should have known that it was under investigation at the time it offered to surrender its license and failed to disclose the information to the Department, the Department at its option may set aside its acceptance of the surrender and proceed to take appropriate action against the licensee and the license, including, but not limited to, the revocation of the license or refusal to renew the license.

 

(Source:  Added at 22 Ill. Reg. 10329, effective May 26, 1998)

SUBPART C: ADMINISTRATION AND FINANCIAL MANAGEMENT

 

Section 401.200  Agency Corporate Status

 

a)                  Tax Exempt

A child welfare agency providing adoption services after August 15, 2007 shall be officially recognized by the United States Internal Revenue Service as a tax-exempt organization described in section 501(c)(3) of the Internal Revenue Code of 1986.

 

b)         Incorporation

The child welfare agency shall be incorporated, either for profit or not for profit.  The Board of Directors of the corporation shall consist of at least five members, at least one of whom shall be an Illinois resident.  A copy of the certificate and articles of incorporation shall be filed with the Department at the time of application.  A copy of any later amendment to the articles of incorporation or a copy of a certificate of dissolution shall be filed with the Department no later than 30 days after the amendment or dissolution occurs.  If the child welfare agency which claims tax exemption under section 501 of the Internal Revenue Code is incorporated as a not-for-profit agency, the agency also must submit proof of the Internal Revenue Service ruling on its tax exempt status and proof whether it has registered as a charitable organization with the Illinois Attorney General. The child welfare agency shall notify the Department in writing of any change in its not-for-profit or charitable organization status within 30 days after notice from the Internal Revenue Service or Illinois Attorney General, respectively.

 

(Source:  Amended at 30 Ill. Reg. 2699, effective February 27, 2006)

 

Section 401.210  Composition and Responsibilities of the Governing Body

 

a)         The governing body of a child welfare agency shall be all the members of the board of directors of the corporation.

 

b)         Each member of the governing body of the child welfare agency and principal shareholders (owning 5% or more of the corporate stock) shall be of reputable and responsible character who shall certify that they have never been convicted of a felony or indicated as a perpetrator in a child abuse or neglect report, as defined in Appendix B of 89 Ill. Adm. Code 300 (Reports of Child Abuse and Neglect).

 

c)         The governing body may create an executive committee or a child welfare committee that has been delegated limited decision making authority.  The executive committee may act on behalf of the governing body in emergency matters.

 

d)         The governing body shall:

 

1)         Establish written by-laws that govern the major operations of the agency and that outline the duties of the officers of the board of directors and committees to be established by the board of directors;

 

2)         Set long range goals for the agency;

 

3)         If incorporated as a not-for-profit corporation, adopt a conflict of interest policy that requires, at a minimum:

 

A)        That no member of the board of directors may derive any personal profit, directly, by reason of his or her membership on the board of directors or because of services provided to the board (the restriction against deriving profit from a transaction does not apply as long as the goods or services provided to the agency are priced at or below market value and are documented in the agency's financial reports);

 

B)        That each board member must disclose to the board any personal interest that he or she or any member of his or her immediate family may have in any current or potential matter before the board and refrain from participating in any decision on those matters;

 

C)        That no member of the executive director's or the chief financial officer's immediate family shall serve on the board of directors for the child welfare agency and no member of any board member's immediate family may serve as executive director, the chief financial officer, or an independent contractor of the agency;

 

D)        That there shall be no familial relationship between the executive director and the chief financial officer;

 

4)         If incorporated as a for-profit corporation, adopt a code of conduct for the board;

 

5)         Insure that the child welfare agency operates at all times with a qualified, full-time executive director who, by official written notice, is made known to the Department.  The governing body shall:

 

A)        Approve a written job description for the agency executive director that delineates the executive director's responsibilities and authority and the governing body's expectations of the agency executive director;

 

B)        Review and authorize all compensation for the agency executive director, including salary, allowances, memberships or other benefits;

 

C)        Evaluate the agency executive director in writing at least annually;

 

6)         Insure that an adequate process is in place for recruiting, hiring, and maintaining qualified child welfare supervisors and other staff required by this Part;

 

7)         Hold at least quarterly meetings, unless the agency holds a provisional license, thus requiring a minimum of bi-monthly meetings of the board of directors.  Unless specifically prohibited by the articles of incorporation or bylaws, directors or non-director committee members may participate in and act at any meeting of such board or committee through the use of a conference telephone or other communications equipment by means of which all persons participating in the meeting can communicate with each other.  Participation in such meeting shall constitute attendance and presence in person at the meeting of the person or persons so participating [805 ILCS 105/108.15];

 

8)         Keep written records or minutes of all board meetings reflecting official actions of the board that shall contain, at a minimum, the date of each board meeting, the persons who were in attendance, the issues discussed in the meeting, any committee reports made to the board, the decisions made and actions taken.  The minutes shall be available for review by the Department's licensing worker, upon request;

 

9)         Officially notify the Department in writing within 30 days after a change in the executive director or chief financial officer of the child welfare agency or of any major changes in the corporate structure, including, but not limited to:

 

A)        Changes in the articles of incorporation or by-laws;

 

B)        Changes in the not-for-profit status or tax exempt status as determined by the Internal Revenue Service (if applicable) or its charitable organization status as determined by the Illinois Attorney General;

 

C)        Addition of any principal shareholder owning at least 5% of the stock of the corporation; or

 

D)        Changes in the governing body or its officers;

 

10)         Establish written policies of the child welfare agency that shall be made available to all board members, employees, and agency clientele, including services to be provided by the agency, admissions, care of children, and other policies as needed to direct the agency, such as family visitation and community contacts with children;

 

11)         Provide and maintain permanent offices accessible to the public and appropriate for the administrative program and supportive services.  These offices, including all branch offices, shall be staffed during the business hours established by the agency, shall be equipped with telephones, shall have a permanent mailing address, shall not be in a private residence and shall have space available for confidential meetings;

 

12)         Maintain and keep all records and documents required by this Part in the State of Illinois where they shall be readily available for review by authorized persons;

 

13)         Insure fidelity bonding of fiscally responsible officers and employees against breach of fiduciary duty or the loss of monies, securities, or other property the agency may sustain through any fraudulent or dishonest act committed by an officer or employee acting alone or in collusion with others.  These officers or employees must be bonded regardless of whether elected or appointed or whether compensated by salary;

 

14)         Insure that the child welfare agency maintains adequate assets, as defined in Section 401.40, for responsible fiscal operation of the agency; and

 

15)         Insure that all persons working directly with children are of reputable and responsible character, as verified by their employment history of at least the past three years, the status of any professional license they hold, and completion of the background checks required by 89 Ill. Adm. Code 385 (Background Checks).

 

(Source:  Amended at 36 Ill. Reg. 2157, effective January 30, 2012)

 

Section 401.220  Organization and Administration

 

a)         The members of the governing body are responsible for maintaining the standards set forth in this Part.  The governing body may delegate responsibility for day-to-day compliance with these standards to the agency executive director.

 

b)         The Office of Legal Services, Department of Children and Family Services, 100 W. Randolph, Chicago, Illinois 60601 shall be notified in writing within ten business days after receipt of any notice of legal action which may affect the child welfare operations of the agency.  The notice shall include a copy of all complaints, notices, demands, orders and other relevant materials received by the agency.  The Office of Legal Services shall forward a copy of all materials to the Central Office of Licensing.

 

c)         A complete, current set of licensing standards for child welfare agencies and all types of child care facilities supervised by the child welfare agency shall be available at all times in an area that is accessible to agency employees.

 

d)         The executive director and child welfare supervisors and staff shall have a working knowledge of the Child Care Act of 1969 [225 ILCS 10], the Abused and Neglected Child Reporting Act [325 ILCS 5], the Children and Family Services Act [20 ILCS 505], the Juvenile Court Act of 1987 [705 ILCS 405], the Adoption Act [750 ILCS 50], and the Foster Parent Law [20 ILCS 520].

 

e)         Employees of a child welfare agency are mandated to report suspected child abuse or neglect directly to the State Central Register and are required to acknowledge their status as mandated reporters by signing a form prescribed by the Department when they begin their employment.  Such reports shall be made immediately to the State Central Register as required by the Abused and Neglected Child Reporting Act.  The telephone number for reporting is 800-252-2873.

 

f)         The child welfare agency shall develop a risk management plan, as described in Appendix D of this Part, that identifies potential financial and operational risks, specifies ways to reduce or eliminate the risks, and establishes procedures to be followed in an emergency or crisis.

 

g)         The child welfare agency shall carry public liability insurance in the single limit minimum amount of $300,000 per occurrence.

 

(Source:  Added at 22 Ill. Reg. 10329, effective May 26, 1998)

 

Section 401.230  Finances

 

a)         The agency shall maintain a degree of financial solvency that insures adequate care of the children for whom it has assumed responsibility. An agency is considered insolvent if its financial condition is such that the sum of its debts is greater than all of its property, at a fair valuation, exclusive of property transferred, concealed or removed with intent to hinder, delay or defraud its creditors.  (This definition of "insolvency" is based on the definition contained in the United States Bankruptcy Code of 1978, 11 USC 101(26).)

 

b)         The agency shall designate a chief fiscal officer who is responsible for the management of financial operations and the development of an annual operating budget.  The board shall review and vote whether to accept, modify, or reject the proposed annual operating budget prior to the beginning of the agency's fiscal year.  A copy of the approved annual operating budget shall be appended to the minutes of the meeting during which the budget was approved.

 

c)         At least once per quarter, a report shall be submitted to the Board of Directors comparing budgeted revenues and expenses with actual revenues and expenses to the board of directors for their review and acceptance, request for modification, or rejection as insufficient.

 

d)         The agency shall maintain fiscal records that shall include:

 

1)         current and projected operating budget;

 

2)         quarterly analysis of projected versus actual revenues and expenses;

 

3)         records of a corrective plan to reduce the agency's deficit, if any, and progress toward complying with that plan; and

 

4)         financial records annually audited and certified by public accountants not otherwise affiliated with the agency.

 

e)         The above records shall be maintained and kept in the State of Illinois where they shall be readily available for review by authorized representatives of the Department.  If the agency contracts with an outside accounting service, the agency must include in its contract the required availability of fiscal records to the Department.

 

f)         A certified copy of the agency's annual audit as performed by an independent auditor shall be submitted to authorized Department staff upon request.

 

g)         The agency shall submit the management representations regarding agency financial condition and operations, as required by Appendix C of this Part, to the Department within 180 days after the end of the agency's fiscal year.

 

(Source:  Amended at 24 Ill. Reg. 9340, effective July 7, 2000)

 

Section 401.240  Background Checks

 

The agency shall have appropriate personnel procedures in place to insure that all persons subject to the background checks required by 89 Ill. Adm. Code 385 (Background Checks) authorize such checks and submit to fingerprinting (when required). The agency shall insure that only designated personnel review the background check information and make decisions about the suitability of the individual for licensure or employment.  All background check information shall be maintained separately in a confidential file, apart from the employee's personnel records, which may be accessed only by authorized child welfare agency and Department staff.

 

(Source:  Added at 22 Ill. Reg. 10329, effective May 26, 1998)

 

Section 401.250  Required Reporting to the Department

 

a)         Staff, Volunteers and Adoption Contractors

           

1)         The child welfare agency shall maintain and submit reports on staff, volunteers and independent adoption contractors to the Department on forms prescribed by the Department:

 

A)        An individual report on each new employee or member of the governing body (including the owner, operator, principal shareholder owning at least 5% of the stock of the corporation or director) shall be filed with the Department within 30 days after the employment of the new employee or appointment of a new member of the governing body.  A copy of this report shall be kept at the agency.

 

B)        Copies of documentation of verification of educational achievement and documentation of prior work history (when required to qualify for the current position).

 

2)         Staff changes shall be reported monthly to the Department.

 

b)         License Status of Child Care Facilities Supervised by the Child Welfare Agency

The child welfare agency shall report in writing to the Department licensing office when the license status changes for a foster family home or day care home supervised by the agency.  The reports shall be received within five days after the last day of each month for all license status changes in the month.  Reportable changes in license status may include, but are not limited to:

 

1)         failure or refusal to renew the license;

 

2)         revocation or voluntary surrender of the license;

 

3)         change in the status of licensees (death, divorce or separation of a husband and wife, change in not-for-profit status);

 

4)         change of address of the licensee;

 

5)         change in license capacity;

 

6)         transfer of license supervision to another supervising child welfare agency; or

 

7)         foster or adoptive family moves out-of-state.

 

c)         Semiannual Monitoring of Licensed Facilities Supervised by the Agency

The agency shall maintain and submit to the regional licensing office a list of the licensed facilities subject to monitoring, noting both the date that the agency has performed a semiannual monitoring visit at the facility and those facilities with violations or corrective plans, as documentation of compliance with Section 401.420(c) requiring semiannual monitoring.

 

d)         Reports of Child Abuse and Neglect

When there has been a report of child abuse or neglect in a foster family home or day care home that is supervised by the agency and a formal child abuse and neglect investigation begins, the agency shall send a complete copy of the licensing record and any other requested information to the Department's agency and institution licensing representative within 5 days after a request for the information.

 

e)         Licensing Complaint Investigation

The agency shall send a copy of the licensing complaint investigation file to the Department's licensing unit within 5 days after the conclusion of the complaint investigation.

 

f)         Monthly Visits with Children in Placement

The agency shall submit written quarterly reports to the regional licensing office listing the names of all children served by the agency, with the dates on which an agency child welfare worker visited each child, as documentation of compliance with Section 401.420(b) requiring monthly visits with foster parents and children in care.

 

g)         Unusual Incident Reports

            The agency shall report to the Department unusual incidents as defined in 89 Ill. Adm. Code 331 (Unusual Incidents).

 

1)         Involving Children

            The governing body or its designee shall orally report any unusual incidents involving children at the earliest reasonable time, but no later than the next business day after the incident, to the child's parent or guardian and the Department licensing worker.  If the agency is unable to contact the parent or guardian and the Department immediately, it shall document this fact in the child's record.  Unusual incidents include accident or injury requiring hospitalization, death, arrest, or other emergency situations.  Oral reports shall be confirmed in writing within two business days after the occurrence.

 

2)         Involving Employees, Foster Parents, or Relative Caregivers

The governing body or its designee shall report to the Department licensing worker any work or service related unusual incident that results in the death, accident or injury resulting in hospitalization, or alleged commission of a felony involving any child welfare agency employee, foster parent, day care provider, or relative caregiver.  A verbal report shall be made within 24 hours after the occurrence and shall be confirmed in writing within two business days after the occurrence.

 

h)         Complete Copy of the Licensing File

Upon request, the agency shall provide the Department's licensing unit, within 5 calendar days, a complete copy of the licensing file for a foster home or day care home that is supervised by the agency.

 

(Source:  Amended at 37 Ill. Reg. 19115, effective November 30, 2013)

 

Section 401.260  Required Record Keeping

 

a)         The child welfare agency shall maintain current records that shall be available for inspection by authorized persons from the Department and that shall include:

 

1)         records of board membership and minutes of board meetings, as required by Section 401.210;

 

2)         financial records, as required by Section 401.230;

 

3)         personnel records, as required by Section 401.380;

 

4)         children's case records, as required by Section 401.420; and

 

5)         licensing records for foster family and day care homes supervised by the agency, as required by Section 401.460.

 

b)         Records shall be kept in safe, locked places within the State of Illinois. Access to records shall be limited to authorized persons only.

 

c)         Department licensing workers shall have access to all records and reports pertaining to day care, foster care, relative care, adoption, independent living and residential care programs for minors operated by or supervised by the child welfare agency, even if the Department is not legally responsible for the children involved in those programs.  All persons who have access to the records and reports shall respect their confidential nature.

 

(Source:  Amended at 36 Ill. Reg. 2157, effective January 30, 2012)

 

Section 401.270  Records Retention

 

a)         General and financial records required of the child welfare agency shall be maintained for at least 5 years.

 

b)         Personnel records shall be retained for at least 5 years after termination of the person's employment.

 

c)         Licensing Records

 

1)         The child welfare agency shall maintain in its office the licensing records of the foster family or day care home license for 4 years after any one of the following occurrences:

 

A)        The license has expired and has not been renewed;

 

B)        The official denial or withdrawal of the application for the license or permit;

 

C)        The date of closure or revocation of the license or permit.

 

2)         After the 4 years, the agency shall transfer the licensing record to the Department, which shall keep it for 5 additional years.

 

d)         If any litigation, claim, financial management review, or audit is started before the expiration of the 5-year period, the records shall be retained for at least 3 years after all litigation, claims or audit findings involving the records have been resolved and final action taken.  (See 45 CFR 74.53.)

 

e)         At the date of file closing, adoption case records and child welfare case records shall be retained permanently on paper or microfilm in a Department storage facility, and during the time period that the case is active, a hard copy of all electronic records shall be made on a ten year cycle.  

 

f)         When an agency license is revoked, the Department refuses to renew the license,  or for any other reason the agency ceases operations, the child welfare agency shall provide the Department with the original or a complete copy of all child case records and licensing records for the children and families it has served and for the foster family and day care homes that had been under its supervision.

 

(Source:  Amended at 36 Ill. Reg. 2157, effective January 30, 2012)

SUBPART D: PERSONNEL REQUIREMENTS