ADMINISTRATIVE CODE

TITLE 20: CORRECTIONS, CRIMINAL JUSTICE, AND LAW ENFORCEMENT
CHAPTER VI: ILLINOIS MOTOR VEHICLE THEFT PREVENTION COUNCIL
PART 1810 RULES FOR THE AWARD AND MONITORING OF TRUST FUNDS

SUBPART A: GENERAL PROVISIONS

Section 1810.100 Applicability

Section 1810.110 Definitions

SUBPART B: AWARD CRITERIA AND PROCEDURES

Section 1810.200 Eligible Recipients

Section 1810.210 Eligible Programs and Activities

Section 1810.220 Award Process

Section 1810.230 Award Document

Section 1810.240 Special Conditions

Section 1810.250 Modification or Amendment of the Award Agreement

SUBPART C: APPROVAL FOR PROGRAMMATIC OR BUDGET REVISIONS

Section 1810.300 Requests for Programmatic or Budget Revisions

SUBPART D: GENERAL PROVISIONS REGARDING AWARDS

Section 1810.400 Non-Supplanting

Section 1810.410 Personnel Administration

Section 1810.420 Procurement Standards

Section 1810.430 Project Income

Section 1810.440 Publicity and Publications

SUBPART E: COST PRINCIPLES

Section 1810.500 Applicable Legal Guidelines

Section 1810.510 Trust Fund Disbursements

Section 1810.520 Cash Balances

Section 1810.530 Allowable Costs

Section 1810.540 Unallowable Costs

Section 1810.550 Indirect Costs

SUBPART F: IMPLEMENTING ENTITY RECORD KEEPING

Section 1810.600 Financial Records

Section 1810.610 Program Records

Section 1810.620 Retention and Access Requirements for Records

SUBPART G: IMPLEMENTING ENTITY REPORTING REQUIREMENTS

Section 1810.700 Fiscal Reports

Section 1810.710 Program Performance Reports

Section 1810.720 Due Dates of Reports

Section 1810.730 Final Program Report

SUBPART H: PROPERTY MANAGEMENT

Section 1810.800 Requirements for Use and Disposition of Property

SUBPART I: MONITORING PROGRAM PERFORMANCE

Section 1810.900 Site Visits

Section 1810.910 Audits

SUBPART J: SUSPENSION AND TERMINATION

Section 1810.1000 Suspension

Section 1810.1010 Extension

Section 1810.1020 Termination

SUBPART K: APPEALS

Section 1810.1100 Applicable Legal Guidelines

Section 1810.1110 Appeal Procedures

SUBPART A: GENERAL PROVISIONS

TITLE 20: CORRECTIONS, CRIMINAL JUSTICE, AND LAW ENFORCEMENT
CHAPTER VI: ILLINOIS MOTOR VEHICLE THEFT PREVENTION COUNCIL
PART 1810 RULES FOR THE AWARD AND MONITORING OF TRUST FUNDS
SECTION 1810.100 APPLICABILITY

Section 1810.100 Applicability

The rules contained in this Part are applicable to Illinois Motor Vehicle Theft Prevention Council provision of financial support to eligible recipients to improve and support the administration of motor vehicle theft laws in Illinois.

Section 1810.110 Definitions

"Act" – the Illinois Motor Vehicle Theft Prevention Act [20 ILCS 4005].

"Adverse Action" – any or all of the following:

The suspension by the Executive Director of the performance of an award agreement for more than twenty-eight (28) calendar days aggregated within a twelve (12) month period, exclusive of any period of extension that may be granted;

The termination of an award agreement by the Executive Director;

The denial by the Executive Director of a request for a material revision to an award agreement.

"Authority" – the Illinois Criminal Justice Information Authority.

"Award" – financial support in the form of money, property, or services made available by the Council to an eligible recipient through the use of Illinois Motor Vehicle Theft Prevention Trust Funds.

"Award Agreement" – the award contract between the Council and an implementing entity whereby the Council provides financial support to carry out specified programs, services, or activities pursuant to the Act.

"Business Organization" – any business entity or association of business entities duly authorized to conduct business in the State of Illinois.

"Chairman" – the Chairman of the Illinois Motor Vehicle Theft Prevention Council.

"Council" – the Illinois Motor Vehicle Theft Prevention Council.

"Eligible Recipient" – A federal or State agency, unit of local government, corporation, neighborhood, community, or business organization entitled to receive Illinois Motor Vehicle Theft Prevention Trust Funds pursuant to the Act.

"Executive Director" – the Executive Director of the Illinois Criminal Justice Information Authority.

"Expendable Property" – tangible property other than nonexpendable property.

"Grant Review Committee" – the Grant Review Committee of the Illinois Motor Vehicle Theft Prevention Council.

"Implementing Entity" – the party seeking or designated to receive funds awarded by the Council pursuant to this Part.

"Nonexpendable Property" – tangible property having a useful life of more than one (1) year and an acquisition cost of $300 or more per unit.

"Property" – property of any kind including real property. It may be tangible (having physical existence) or intangible (having no physical existence, such as patents, inventions, or copyrights).

"Trust Funds" – funds from the Illinois Motor Vehicle Theft Prevention Trust Fund established by the Act.

SUBPART B: AWARD CRITERIA AND PROCEDURES

Section 1810.200 Eligible Recipients

a) Consistent with the Act, Awards can be made to federal and State agencies, units of local government, corporations, and neighborhood, community, and business organizations.

b) To be eligible for an award under the Act, nongovernmental recipients must provide the Council, along with a program proposal, either of the following:

1) Proof of nonprofit status by presenting all of the following, when applicable:

A) A reference to the applicant organization's listing in the Internal Revenue Service's most recent list of tax-exempt organizations described in the Internal Revenue Code, Title 26 U.S.C.A. 501(c);

B) A copy of a currently valid Internal Revenue Service tax exemption letter;

C) A statement from the Illinois Department of Revenue, the Illinois Secretary of State, or the Illinois Attorney General certifying that the applicant organization has a current nonprofit status; and

D) A certified copy of the organization's certificate of incorporation filed with the Illinois Secretary of State that clearly establishes nonprofit status, and a copy of the most recent annual report required by the Illinois Attorney General or Secretary of State; or

2) Proof of authorized business activity in the State of Illinois by presenting:

A) A certified copy of a certificate of incorporation or other appropriate and necessary authorization to conduct business in Illinois filed with the State of Illinois or a unit of local government;

B) A taxpayer identification number; and

C) When applicable, a copy of any annual report required by law for the most recent year.

c) The Council may require additional documentation to verify the legitimacy of a nongovernmental recipient. Such documentation may include, but is not limited to:

1) Any brochures or publications explaining the activities of the organization;

2) A copy of the recipient's Articles of Incorporation;

3) A copy of the recipient's By-laws; and

4) A copy of the recipient's Partnership Agreement.

Section 1810.210 Eligible Programs and Activities

The following programs and activities are eligible for funding:

a) Programs designed to reduce motor vehicle theft or to improve the administration of motor vehicle theft laws;

b) Programs designed to inform vehicle owners about the financial and social costs of motor vehicle theft and to suggest to those owners methods for preventing motor vehicle theft; and

c) Programs, plans, activities, strategies, and projects consistent with the purposes of the Act.

Section 1810.220 Award Process

a) The Council will annually review the eligible purposes for the Trust Funds, and, based upon an analysis of statistical data, empirical material, and the needs and requests of federal and State agencies, units of local government, corporations and neighborhood, community, or business organizations made pursuant to oral and written comment and testimony received at public meetings conducted pursuant to the Open Meetings Act [5 ILCS 120], shall develop and approve a statewide motor vehicle theft prevention strategy.

b) The statewide strategy shall include:

1) An overview of the motor vehicle theft problem in Illinois including discussions of the nature and extent of the problem, current efforts to address the problem, resource needs, and areas of greatest need within the State; and

2) A description of the strategy for addressing the problem including the identification of eligible program areas.

c) Consistent with the statewide strategy, the Council shall solicit and negotiate program proposals from eligible recipients.

d) The Council shall give priority to those eligible recipients with the greatest need. To that end, and based upon the statewide strategy, the following criteria shall be used to identify those eligible recipients with the greatest need:

1) An analysis of demographic, insurance, and appropriate criminal justice data;

2) Comments from the general public, federal, State, and local officials; and

3) Current research findings.

e) The Council shall, at a public meeting, designate programs, implementing entities, and amounts of funding that address one or more of the purposes consistent with the Act and the statewide strategy. The Council's decision to designate these proposed programs, implementing entities, and fund amounts shall be based upon equal consideration of the following factors:

1) The recommendations of the Executive Director;

2) Comments from the general public, federal, State and local officials;

3) The proven effectiveness of a similar program, by making a prudent assessment of the problem to be addressed by the proposed program;

4) The likelihood that a proposed program will achieve the desired objectives, by making a prudent assessment of the concepts and implementation plans included in a proposed program and by the results of any evaluations, previous tests, or demonstrations;

5) The availability of funds;

6) The overall cost of the proposed program;

7) The implementing entity's ability to effectively and efficiently carry out the program; and

8) The relation of the proposed program to and impact on other agencies, proposals or funded programs.

f) The Council shall direct the Executive Director to enter into award agreements on behalf of the Council with those implementing entities designated by the Council pursuant to subsection (e) above, specifying the terms and conditions under which the programs, services, or activities are to be conducted and the Trust Funds are to be received.

g) If the Council or the Authority is the designated implementing entity, then the Executive Director shall document such terms and conditions, which, to become effective, must be accepted in writing by the Chairman or the Chairman of the Authority.

Section 1810.230 Award Document

The award document is the award agreement. It provides the basis for Council financial support to the implementing entity. The agreement shall incorporate the program proposal and budget, and, when fully executed, shall formalize the contractual relationship between the Council and implementing entity. The agreement shall also specify the terms and conditions of the award including, but not limited to, reporting requirements that reflect fiscal expenditures and progress toward program objectives, compliance with applicable laws and regulations, the prohibition of subcontracting or assignment of agreements without prior written approval of the Council, and the status of the implementing entity as an independent contractor.

Section 1810.240 Special Conditions

a) Special conditions shall be imposed by the Council to accomplish the purposes of the Act if the Council has need to impose such conditions in order to fulfill its duties, agreements with other entities, or reasonably deems such to be in the best interests of the people of the State of Illinois.

b) Special conditions that are imposed at the time of the award will be included in the award agreement.

Section 1810.250 Modification or Amendment of the Award Agreement

a) Revisions or amendments to an award agreement shall begin on the effective date of the amendment and may be retroactive to a date agreed upon by the implementing entity and the Council.

b) Except as provided in Section 1810.240 of this Subpart, no alteration, variation, modification, termination, addition to, or attempted waiver of any of the provisions of an award agreement shall be valid or binding unless in writing, dated, and signed by the parties, and attached to the original agreement. The parties shall agree to renegotiate, modify, or amend the award agreement should federal or State law or regulations require alteration of the award agreement.

SUBPART C: APPROVAL FOR PROGRAMMATIC OR BUDGET REVISIONS

Section 1810.300 Requests for Programmatic or Budget Revisions

a) Requests for programmatic or budget revisions shall be in writing and addressed to the Executive Director.

b) Response to the request shall be in writing and signed by the Executive Director or a designee and mailed within two weeks after receipt of the recipient's request.

c) The Executive Director shall approve any revision to an award agreement if such action is necessary to fulfill the terms of the agreement.

d) Material revisions shall be reported to the Council members at or before the next Council meeting. However, if a request by an implementing entity for a material revision to an award agreement is denied by the Executive Director, written notice of such denial shall be submitted to the implementing entity and members of the Council as soon as possible, but no more than seven calendar days after such denial.

SUBPART D: GENERAL PROVISIONS REGARDING AWARDS

Section 1810.400 Non-Supplanting

Illinois Motor Vehicle Theft Prevention Trust Funds are intended to increase the amount of revenue available to eligible recipients for specified activities. The Trust Funds may not be used to supplant other funds allocated or budgeted for such activities. Every recipient of Trust Funds must maintain a level of financial support for activities exclusive of any Trust Funds and capital expenditures that is equal to or greater than the level existing prior to the receipt of the Trust Funds.

Section 1810.410 Personnel Administration

The personnel policies and procedures of an implementing entity shall be set forth in writing and be available for review by the Council. They shall reflect sound and prudent business judgement, and comply with all applicable State and federal laws and regulations.

Section 1810.420 Procurement Standards

All procurement transactions shall be conducted by the implementing entity in a manner to provide, to the maximum extent practicable, open and free competition. Implementing entities may use their own procurement regulations which reflect applicable State and local law, rules, and regulations, provided that all procurements made with Trust Funds minimally adhere to the Illinois State Purchasing Act [30 ILCS 505].

Section 1810.430 Project Income

a) Project Income shall consist of all gross income (including the acquisition of forfeited property and assets) earned by the implementing entity during the award agreement period as a direct result of the award of Trust Funds, regardless of when the income is realized. "Direct result" shall be determined by the Executive Director and means a specific act or set of activities that are directly attributable to Trust Funds and which are directly related to the goals and objectives of the funded project. All project income earned during the award agreement period shall, regardless of when the income is realized, be retained by the implementing entity, and, in accordance with the agreement and with the prior approval of the Council, shall be added to the Trust Funds committed to the project by the Council and implementing entity and be used only to further eligible program goals or objectives.

b) Implementing entities shall account for all project income. Project income shall be reported in the fiscal reports required under Subpart G of this Part.

Section 1810.440 Publicity and Publications

Any publication of the results or accomplishments of any Council-funded activity or program shall clearly state:

a) the percentage of the total cost of the program or project financed with Trust Funds;

b) the dollar amount of Trust Funds awarded for the project or program; and

c) the following or a comparable acknowledgement:

"This project was supported by a grant from the Illinois Motor Vehicle Theft Prevention Council. The opinions and views expressed in this report are not necessarily those of the State of Illinois or the Illinois Motor Vehicle Theft Prevention Council."

All implementing entities shall make this statement when issuing press releases, requests for proposals, bid solicitations, and other documents describing projects or programs funded in whole or in part with Trust Funds.

SUBPART E: COST PRINCIPLES

Section 1810.500 Applicable Legal Guidelines

The Council and all implementing entities shall operate in conformance with the following State laws and any rules, regulations and guidelines issued pursuant thereto: the Illinois Motor Vehicle Theft Prevention Act [20 ILCS 4005]; the Illinois Grant Funds Recovery Act [30 ILCS 705]; the Illinois Purchasing Act [30 ILCS 505]; the Drug Free Workplace Act [30 ILCS 505]; and the State Comptroller Act [15 ILCS 405].

Section 1810.510 Trust Fund Disbursements

a) Cash Advances. Implementing entities shall normally be reimbursed for expenses incurred upon submission of a monthly fiscal report. The Council recognizes that in some instances the implementing entity may not possess sufficient resources to support the program described in the award agreement on a reimbursable basis and that individual programs may require substantial start-up costs. Consequently, implementing entities may request a cash advance to cover the initial period of the agreement. Such requests must be in writing to the Executive Director within 30 days prior to the anticipated start date of the funded program and should include the purpose of the proposed expenditure and the reasons necessitating the advance.

b) Expenditure Reimbursements. Disbursement of Trust Funds shall be made on the basis of expenses and obligations reported on a monthly fiscal report. Obligations reported on the Fiscal Report will be disbursed only if the payment is to be liquidated within 30 calendar days after receipt of the State warrant. This report shall be submitted monthly unless otherwise specified in the award agreement. Requests for disbursement of Trust Funds made on fiscal reports that are submitted later than the specified deadline will be paid at the discretion of the Council. Requests for final reimbursement must be received by the Council no later than 45 calendar days after the termination of the agreement.

c) Timing of Disbursement. Implementing entities should anticipate a delay of approximately 4-6 weeks from the submission of the request for disbursement until the receipt of the State warrant. Implementing entities should consider this delay when calculating the disbursal request by projecting which obligations will need to be liquidated upon receipt of the State warrant.

d) Final Disbursement. The final disbursement of Trust Funds shall be made on the basis of expenditures reported in the final financial status report. This disbursement shall be made on the basis of total agreement costs and shall not be made until the implementing entity has satisfied any applicable match requirements of the award agreement. Should the implementing entity fail to meet the match required in the agreement, an appropriate adjustment shall be made in the final disbursement.

Section 1810.520 Cash Balances

Implementing entities shall request only the minimum amounts of cash necessary to pay their bills in a timely fashion. The Council reserves the prerogative to adjust cash requests on the basis of reported expenditures and cash balance. If the implementing entity anticipates an inordinate expenditure of implementing entity funds during a particular period, this expense should be explained on the monthly fiscal report.

Section 1810.530 Allowable Costs

Trust Funds may be used for costs which are directly attributable to, necessary for, and essential to, the program as evidenced by the award agreement except for those costs enumerated in Section 1810.540. However, the use of Trust Funds for the following costs requires prior written approval by the Council before such costs shall be deemed allowable:

a) Expenditures incurred before or after the program period;

b) Office space rental;

c) Office equipment purchase or rental costs for desks, chairs, tables, file cabinets, book shelves, typewriters, electronic data processing equipment, or adding machines;

d) Construction or remodeling costs;

e) Liens;

f) Audit costs, pursuant to Section 1810.910;

g) Buy money.

Section 1810.540 Unallowable Costs

Trust Funds may not be used for the following expenditures:

a) Liability insurance;

b) Professional memberships/dues;

c) First class travel;

d) Entertainment;

e) Expenditures in excess of approved budget;

f) Bad debts;

g) Fines and penalties;

h) Contributions and donations;

i) Premium items and souvenirs;

j) Lobbying.

Section 1810.550 Indirect Costs

The Council shall not provide implementing entities funds for the indirect costs of an award agreement. The intent of this policy is to achieve broader and more concentrated application of Trust Funds to direct program costs and funded activities.

SUBPART F: IMPLEMENTING ENTITY RECORD KEEPING

Section 1810.600 Financial Records

All recipients of Trust Funds from the Council must maintain:

a) Records which fully disclose the total cost of the project for which the Trust Funds were awarded;

b) Records which fully disclose the disposition of all Trust Funds for the project, including a current property inventory;

c) Records which fully disclose the amount of money supplied to the project by sources other than the Council; and

d) Any other records requested by the Council to facilitate an effective audit.

These records shall be the basis for monthly fiscal reports submitted by the recipient of funds to the Council. They shall also be subject to review by Council staff during site visits.

Section 1810.610 Program Records

Every recipient of Trust Funds from the Council must maintain records which document the programmatic activities performed pursuant to the award agreement. These records shall be the basis for monthly program performance reports submitted by the recipient of funds to the Council. They shall also be subject to review by Council staff during site visits.

Section 1810.620 Retention and Access Requirements for Records

All financial and program records, supporting documents and all other books and records pertaining to and required to be maintained by the terms of any Council award shall be maintained and retained by the implementing entity for a period of five years after conclusion or termination of the grant to allow for audit by the Council, the State of Illinois, the federal government, and any person duly authorized by the Council. Records shall be retained beyond the five year period if an audit is in progress or if the findings of a completed audit and if any claim, litigation or other action begun before the expiration of the five year period have not been resolved satisfactorily. If any of these preceding conditions occurs, then the records shall be retained until the audit is completed or the matters at issue are resolved.

SUBPART G: IMPLEMENTING ENTITY REPORTING REQUIREMENTS

Section 1810.700 Fiscal Reports

Implementing entities shall submit monthly fiscal reports to the Council detailing program expenditures in a form and manner required by the Council.

Section 1810.710 Program Performance Reports

Implementing entities shall submit monthly performance reports to the Council detailing achievement relative to the performance measures contained in the award document in a form and manner required by the Council.

Section 1810.720 Due Dates of Reports

Monthly fiscal reports and program performance reports are due on or before the (15^th) fifteenth of the following month.

Section 1810.730 Final Program Report

Upon termination of the award agreement, the implementing entity shall submit to the Council, within 60 days and in the form and manner required by the Council, a final program report consisting of the following:

a) Final financial status report;

b) Final program performance report;

c) Property inventory report; and

d) Any other information or documentation pursuant to terms or special conditions specified in the award agreement or as otherwise required by the Council.

SUBPART H: PROPERTY MANAGEMENT

Section 1810.800 Requirements for Use and Disposition of Property

a) Property acquired by an implementing entity wholly or in part with Trust Funds shall, consistent with the law and subject to the Council's approval, be used and managed to ensure that the property is used for purposes consistent with the Act. Title to the property will not be taken by the Council, but shall be vested in the implementing entity subject to the following restrictions on use and disposition of the property:

1) Use by an Implementing Entity. The implementing entity shall retain and use the property acquired with Trust Funds as long as there is a need for the property to accomplish the purpose of the program, whether or not the program continues to be supported by Trust Funds.

2) Disposition by a State Implementing Entity. If it is determined that a need still exists but the property originally acquired by a State agency to accomplish the purpose of the program is no longer capable of fulfilling this need or is no longer needed to accomplish the purpose of the program and must be sold, traded in or replaced, the State agency must notify the Council in writing of its proposed plans to dispose of the property 30 calendar days prior to selling, trading-in or replacing the property in conformance with requirements of the State Property Control Act [30 ILCS 605] and rules issued pursuant thereto. Replacement property shall be used to further purposes of the program. The Executive Director on behalf of the Council shall, upon receiving notice of the proposed disposition plans, inform the Director of the Department of Central Management Services as to the need for the property to accomplish the purpose of the program or the Act by another implementing entity and make appropriate recommendations as to the disposition of the property.

3) Disposition by an Implementing Entity other than a State Agency.

A) If it is determined that a need still exists but the property originally acquired by an implementing entity other than a State agency to accomplish the purpose of the program is no longer capable of fulfilling this need and must be traded-in or replaced, the implementing entity other than a State agency may use the property as a trade-in or may sell the property and use the proceeds to offset the cost of replacing the property, provided, for property with a value in excess of $1000, it notifies the Council in writing of its proposed plans to dispose of the property 30 calendar days prior to selling, trading-in or replacing the property and obtains the approval of the Executive Director on behalf of the Council. Replacement property shall be used to further purposes of the program.

B) When an implementing entity other than a State agency no longer needs the property to accomplish the purpose of the program, and the value of the property exceeds $1000, it shall notify the Council and request disposition instructions. The Council reserves the right to make a final determination whether the property is needed to accomplish the purpose of the program and to take possession and control of the property or to transfer or assign the property to any other implementing entity that has a need or use for the property.

C) If, at the expiration of the need for funded purposes, the total inventory of any unused expendable personal property exceeds $500 in value, the implementing entity other than a State agency may, with the approval of the Executive Director, retain the property or sell the property as long as the implementing entity compensates the Council for its share of the cost. However, if the value of the property is less than $500, the implementing entity other than a State agency may sell or dispose of the property in accordance with its own procedures without compensating the Council, provided it notifies the Council within seven calendar days of the transaction.

b) Property records shall include a current property inventory report which is updated as property is acquired or disposed of. Property records shall be maintained accurately and provide for: a description of the property; manufacturers serial number or other identification number; acquisition date and cost; source of property; percentage of Trust Funds used in the purchase of property; location, use, and condition of the property; and ultimate disposition information.

c) The property inventory report shall be updated by the implementing entity as property is acquired and maintained accordingly. In addition, a complete physical inventory of property shall be taken and the results reconciled with the property records at least annually to verify existence, current use, and continued need for the property.

d) The implementing entity shall employ a property control system to insure adequate safeguards to prevent loss, damage, or theft to the property. Any loss, damage, or theft of nonexpendable property shall be investigated and fully documented. Any loss, damage, or theft of items purchased with Trust Funds in excess of $500 shall be reported to the Executive Director within seven calendar days after the loss, damage, or theft.

e) The implementing entity shall employ adequate maintenance procedures to keep the property in good condition.

f) If the implementing entity is authorized or required by the Council to sell the property, proper sale procedures shall be established for unneeded property which would provide for competition to the extent practicable and result in the highest possible return.

g) Specific standards for control of intangible property are provided as follows:

1) If any program produces processes or inventions that could result in patents or patent rights, in the course of work aided by a Council-funded program, such fact shall be promptly and fully reported to the Executive Director, who shall determine whether protection of such invention or discovery shall be sought and how the rights in the invention or discovery (including rights under any patent issued thereon) shall be allocated and administered in order to protect the public interest.

2) Where the award agreement results in a book or other material which could be copyrighted, the author or implementing entity is free to copyright the work, but the Council reserves a royalty-free, nonexclusive and irrevocable license to reproduce, publish, or otherwise use, and to authorize others to use, the work for government purposes.

h) Records for property acquired with Trust Funds shall be retained for five years after the final disposition of the property.

SUBPART I: MONITORING PROGRAM PERFORMANCE

Section 1810.900 Site Visits

Council staff shall be responsible for monitoring program performance. Site visits of each funded program will be conducted on at least an annual basis. Site visits shall, at a minimum, include examinations of financial and program records.

Section 1810.910 Audits

Implementing entities shall be responsible for the performance of an independent audit of the fiscal policies, procedures, and practices employed in connection with the awarded program. With the prior written approval of the Council, awarded funds may be used by the implementing entity for this purpose.

SUBPART J: SUSPENSION AND TERMINATION

Section 1810.1000 Suspension

Notwithstanding Section 1810.1010 below, the Executive Director shall suspend performance of any award agreement for a period not to exceed 28 calendar days when there has been a determination of noncompliance with any State or federal statute, rule or regulation, or with guidelines specified in the award agreement. The Executive Director shall reinstate performance of an agreement that has been so suspended if the noncompliance is corrected within 28 calendar days from the date of suspension. However, notwithstanding Section 1810.1010 below, an award agreement, for which performance has been suspended, shall be terminated by the Executive Director if performance of the award agreement is not reinstated within 28 calendar days from its suspension. Written notice of all such actions by the Executive Director shall be submitted to the implementing entity and members of the Council as soon as possible, but within seven calendar days.

Section 1810.1010 Extension

Upon the request of an implementing entity, the Executive Director shall extend the length of time performance of an award agreement may be suspended beyond 28 calendar days for an additional period not to exceed 14 calendar days, if the noncompliance for which performance of the agreement was suspended can be corrected within such extension period and such correction would result in fulfillment of the terms of the agreement. Such an extension shall be granted by the Executive Director only with the consent of the Chairman of the Council. Since an extension granted by the Executive Director pursuant to this subsection is initiated by the implementing entity, it shall not be deemed an adverse action under these rules. However, an award agreement, for which the period of suspended performance has been extended pursuant to this subsection, shall be terminated by the Executive Director if performance of the award agreement has not been reinstated by the Executive Director before the extension period has expired. Such termination may then be appealed as provided in this Part. Written notice of all such actions by the Executive Director shall be submitted to the implementing entity and members of the Council as soon as possible, but within seven calendar days.

Section 1810.1020 Termination

The Executive Director shall immediately terminate any award agreement for any reason of noncompliance specified in Section 1810.1000 above, if performance of the agreement has been suspended on at least one prior occasion or if such noncompliance cannot be corrected by the implementing entity within 28 calendar days from the date of suspension. Written notice of such termination by the Executive Director shall be submitted to the implementing entity and members of the Council as soon as possible, but within seven calendar days.

SUBPART K: APPEALS

Section 1810.1100 Applicable Legal Guidelines

The appeals procedures of the Council shall be subject to the provisions of Article 10 of the Illinois Administrative Procedure Act [5 ILCS 100/Art. 10].

Section 1810.1110 Appeal Procedures

a) An implementing entity may appeal any adverse action by writing to the Council within 14 calendar days from the date the notice of the adverse action is mailed to the implementing entity. This written appeal shall contain specific reasons stating why the action taken by the Executive Director should be modified and the action requested of the Council, and shall be signed and dated by the implementing entity's authorized official.

b) If no timely appeal is taken from an adverse action, such action of the Executive Director will be deemed the final action of the Council, and Council members shall be notified by telephone, mail, or equivalent written means within seven calendar days of the action of the Executive Director or before the next Council meeting, whichever is sooner.

c) When an appeal is timely filed, the Chairman of the Council shall arrange for the Council to hear and decide the appeal within 49 calendar days after the receipt of the written appeal. The implementing entity shall have the right to appear before the Council and to present oral or written testimony, to be represented at the hearing by counsel, and shall be notified of the hearing date at least seven calendar days prior to the hearing.

d) At the hearing, the Council shall consider the written appeal to the adverse action submitted pursuant to subsection (b) above, any written or oral response to that appeal by Council staff, and any testimony given by the implementing entity or Council staff to questions posed by Council members.

e) The Council shall render a decision on the appeal before adjourning the hearing.