Section 1037.10  Purpose

 

The purpose of this Part is to provide for the distribution of capital improvement grants to nonpublic Illinois institutions of higher learning for the purposes of laboratory, research and instructional area renovation.

 

Section 1037.20  Definitions

 

            "Eligible gross square feet" means the total amount of gross square feet less:

 

            any space used as sectarian facilities;

 

            space owned by the institution but leased to a second party;

 

            space not owned by the institution; and

 

            space which is not used primarily to support education or educational services.

 

            "Grant period" means the twenty-four month period specified in the grant agreement during which an institution may expend grant funds.

 

            "Gross square feet" means the on-campus nonresidential space as determined by the Board of Higher Education based upon the most recent submission for the Board's Statewide Space Survey and other documentation as requested by the Board for clarification or substantiation in the event that material submitted by an applicant institution is incomplete or not of sufficient detail to provide an understanding of the proposed project or its justification.

 

            "Institution" means a nonpublic institution of higher learning located in this State which offers associate, baccalaureate or post-baccalaureate degrees, and which is operating privately, not-for-profit and in conformity with standards substantially equivalent to those of the state-supported institutions of higher learning, for example as evidenced by the transferability of credits to state-supported institutions.

 

            "Institution" does not include any educational organization used for sectarian instruction, as a place of religious teaching or worship or for any religious denomination or the training of ministers, priests, rabbis or other professional persons in the field of religion. (Section 2 of "The Illinois Financial Assistance Act for Nonpublic Institutions of Higher Learning" (the Act), Ill. Rev. Stat. 1987, ch. 144, par. 1332.)

 

            "Renovation project" means a capital improvement project directly related to laboratory use, research or instruction and which falls into one of the following categories:

 

            "Remodeling" which means a capital improvement that has the primary objective of restoring or upgrading a structure or facility to its original operating condition or improving the existing functional capability or capacity of the structure or facility.

 

            "Utilities" which means a system for distributing or disbursing utility services from beyond the boundary line of existing buildings, additions or structures.

 

            "Sectarian facilities" means facilities used to further the religious interests of specific religions, denominations or sects and may include but are not limited to campus churches, chapels or temples.

 

Section 1037.30  Eligibility for Institutional Renovation Grants

 

a)         Institutions eligible to apply for institutional renovation grants are those defined in Section 1037.20.

 

b)         Grants will be awarded only for renovation projects.

 

c)         To be eligible for a renovation grant, the space to be renovated must be on-campus nonresidential space owned and used by the institution and not leased to a second party.

 

d)         Grants shall not be awarded for any renovation project on real property or facilities used for sectarian purposes.

 

e)         No grant will be made to any institution that has not submitted required application documents, including audits, and that has not made required refunds, if any, for any grants made under either this or other grant programs administered by the Illinois Board of Higher Education.

 

Section 1037.40  Application Requirements

 

a)         Applications for renovation project(s) shall include the following:

 

1)         a list of proposed projects with a description and estimated cost for each project;

 

2)         an accounting of the total gross square feet of space;

 

3)         an accounting of the total eligible gross square feet of space; and

 

4)         an explanation of how the project(s) will enhance current instruction and research.

 

b)         The Board of Higher Education shall review application documents of all institutions for compliance with the application and eligibility requirements.  The Board of Higher Education may request additional documents or a meeting between its staff and institutional representatives to discuss questions about application documents.  In the event that material submitted by an applicant institution is incomplete or not of sufficient detail to provide an understanding of the proposed project or its justification, the Board would request additional information  for clarification or substantiation.

 

Section 1037.50  Grant Agreement

 

a)         Once the Board of Higher Education has approved a grant, the institution and the Board shall execute a grant agreement.

 

b)         Such grant agreement shall:

 

1)         be signed by the chief executive officer or chairman of the institution's board;

 

2)         specify the two-year period of time for which the grant is valid and during which grant funds may be expended by the institution;

 

3)         provide that construction on any renovation project funded under the grant shall not commence prior to the date specified in the grant agreement;

 

4)         provide that the institution shall contract with external auditors to conduct an audit of the expenditure of grant funds provided under this program; to verify the eligible gross square feet upon which the grant is based; and to verify that funds were expended pursuant to the grant agreement and not for sectarian purposes.  The audits shall be conducted upon termination of the grant period and certified reports of such audits shall be filed with the Board of Higher Education;

 

5)         provide that all funds remaining at the end of the period of the grant agreement, or any funds that are spent for purposes not listed in the grant agreement or any grant funds received by the grantee for which the grantee is subsequently determined not to be eligible shall be returned to the State of Illinois; and

 

6)         comply with the terms of the Illinois Grant Funds Recovery Act (Ill. Rev. Stat. 1987, ch. 127, pars. 2301 et seq., as amended by Public Act 86-602, effective January 1, 1990).

 

Section 1037.60  Funding Formula

 

A minimum grant of $10,000 will be allocated to each institution determined to be eligible for a grant under this Part.  The remainder of funds appropriated for this program will be allocated among eligible institutions in accordance with a formula based on the ratio of the individual applicant institution's eligible gross square feet to the combined total of all applicant institutions' total eligible gross square feet.

 

Section 1037.70  Audit Guidelines

 

a)         To fulfill audit requirements in Section 1037.50(b)(4), institutions shall contract with an external auditor who is registered as a public accountant by the Illinois Department of Professional Regulation.  The cost of the audit is an authorized use of grant funds.

 

b)         The auditors shall obtain copies of the following grant documents: the institution's application; the executed grant agreement; a copy of the most recent Board of Higher Education Statewide Space Survey document submitted by the institution; and a copy of this Part.

 

c)         The auditors shall verify the claim of eligible gross square feet.

 

d)         The auditors shall verify the expenditure of funds as provided for in this Part, and shall ensure that funds were expended on projects listed in the grant agreement.

 

e)         The auditors shall verify that renovation of sectarian facilities has not been supported by grant funds.

 

f)         The auditors shall provide an audit including a description of the tests performed and the audit findings to the Board within 90 days of the termination of the grant period or within 90 days of the end of an institution's fiscal year for institutions electing to fulfill the audit requirements in Section 1037.50(b)(4) as part of their annual audit as provided by the Illinois Grant Funds Recovery Act (Ill. Rev. Stat. 1987, ch. 127, par. 2032, as amended by Public Act 86-602, effective January 1, 1990).

 

g)         Refunds shall be made to the State by the institutions for the following reasons:

 

1)         Grant funds not expended;

 

2)         Grant funds expended for purposes not covered under the grant agreement.

 

3)         Any grant funds received by the grantee for which the grantee is subsequently determined not to be eligible.