TITLE 92: TRANSPORTATION
CHAPTER I: DEPARTMENT OF TRANSPORTATION
SUBCHAPTER h: PUBLIC TRANSPORTATION
PART 653
STATE OPERATING ASSISTANCE TO DOWNSTATE AREAS
SECTION 653.10 PROGRAM OVERVIEW
Section 653.10 Program
Overview
a) Articles I and II of the Downstate Public Transportation Act [30
ILCS 740/Arts. I and II] (Act), establish a continuing program of State
operating assistance for public transportation services outside the areas
served by the Regional Transportation Authority (Cook, DuPage, Will, McHenry,
Lake and Kane Counties). (See Section 2-2.04 of the Act.)
b) The funds for this program are appropriated annually by the
Illinois General Assembly. Operating assistance grants are made by the
Illinois Department of Transportation (Department) on an annual basis.
Operating assistance funds may be used only for the purposes, and subject to
the conditions, set forth in the Act and this Part.
(Source: Amended at 34 Ill.
Reg. 13142, effective August 24, 2010)
 | TITLE 92: TRANSPORTATION
CHAPTER I: DEPARTMENT OF TRANSPORTATION
SUBCHAPTER h: PUBLIC TRANSPORTATION
PART 653
STATE OPERATING ASSISTANCE TO DOWNSTATE AREAS
SECTION 653.20 PURPOSE
Section 653.20 Purpose
The purpose of this Part is to
implement Articles I and II of the Act by providing the procedures, conditions
and limitations applicable to operating assistance grants for eligible downstate
applicants and participants. (See Section 2-2.04 of the Act.)
(Source: Amended at 34 Ill.
Reg. 13142, effective August 24, 2010)
| TITLE 92: TRANSPORTATION
CHAPTER I: DEPARTMENT OF TRANSPORTATION
SUBCHAPTER h: PUBLIC TRANSPORTATION
PART 653
STATE OPERATING ASSISTANCE TO DOWNSTATE AREAS
SECTION 653.30 DEFINITIONS
Section 653.30 Definitions
The following words and phrases
as used in this Part shall have the meanings ascribed to them in this Section.
"Act"
means the Downstate Public Transportation Act [30 ILCS 740/Arts. I and II].
"AICPA" means the American Institute of Certified
Public Accountants.
"Applicant"
means any eligible participant who applies for an operating assistance grant
under the Act and this Part.
"Application"
means those materials and forms required by the Department to be submitted by
an applicant in support of its request for operating assistance. (See Sections
2-5 and 2-5.1 of the Act.)
"Department"
means the Illinois Department of Transportation, Division of Public and
Intermodal Transportation. (Section 2-2.01 of the Act)
"Demand
Response Service" means a non-fixed route shared use service operating in
response to pre-arranged time and location requests from passengers, or their
agents, to the transit operator.
"Deviated
Fixed Route Service" means transit service that operates along a fixed
alignment or path at generally fixed times but may deviate from the route
alignment to collect or drop off passengers who have requested the deviation.
"Eligible
Operating Expenses" means all expenses required for public
transportation, as defined in Section 2-2.04 of the Act and Section 653.111
of this Part.
"Fiscal
Year" means the fiscal year of the State of Illinois that begins on July
1 and ends on June 30. (Section 2-2.06 of the Act)
"Fixed
Route Service" means public transportation service provided on a
repetitive, fixed-schedule basis along a specific route, stopping to pick up
and deliver passengers to specific locations.
"FTA"
means the Federal Transit Administration of the United States Department of
Transportation, or its successor.
"Grant
Contract" means the written agreement between the applicant and the
Department defining the program, funding limits and terms of the grant.
"Ineligible
Operating Expenses" means those expenses ineligible for State operating
assistance, as defined in Section 2-2.04 of the Act and Section 653.112 of this
Part.
"OMB"
means the U.S. Office of Management and Budget.
"Operating
Deficit" means operating deficits as defined in Section 2-2.03 of the Act.
"Participant"
means any eligible participant as defined in Section 2-2.02 of the Act who has received
an appropriation from the Illinois General Assembly for downstate operating
assistance.
"Preliminary
Application" means those materials and forms prescribed by the Department
to be submitted by an applicant in support of its projected request for
operating assistance in the next fiscal year.
"Program
of Proposed Expenditures" or "POPE" means those activities,
services and proposed eligible operating expenditures to be provided by the
applicant that directly relate to the operation, maintenance or improvement of
general public transportation service benefiting the residents of the
applicant.
"Public
Transportation" means the transportation or conveyance of persons by
means available to the general public including groups of the general public
with special needs:
within the
urbanized area; or
in the
nonurbanized areas within the service area of each participant as
approved by the Department, except for transportation by automobiles not used
for conveyance of the general public as passengers. (Section 2-2.05 of the
Act)
Service in a
participant's service area may be provided by either:
another
eligible participant through an intergovernmental agreement; or
a private for-profit operator through a third party contract or a private
non-profit operator through a pass through agreement or third party contract.
"Purchased
Transportation" means those public transportation activities procured by a
participant and provided by a third party through contracts.
"Service
Area" means a participant's territorial boundaries plus service extensions
or contiguous service areas approved by the Department.
"State"
means the State of Illinois.
"Territorial
boundaries" means:
the municipal
boundaries of a municipal participant plus the boundaries of any contiguous
city, village, incorporated town, and/or county that has agreed by
intergovernmental agreement to be included in the territorial boundaries of the
municipal participant;
the county
boundaries of a county participant plus the boundaries of any contiguous city,
village, incorporated town, and/or county that has agreed by intergovernmental
agreement to be included in the territorial boundaries of the county
participant;
the boundaries
of the municipalities, villages, incorporated towns, counties, and/or
participating areas having created a mass transit district, plus the boundaries
of any contiguous city, village, incorporated town, and/or county that has
agreed by intergovernmental agreement to be included in the territorial
boundaries of the mass transit district participant.
Any boundary
established by intergovernmental agreement must be approved by ordinance and/or
resolution by the appropriate and requisite governing bodies. Establishment of
the boundary shall not be in conflict with the Act and/or the Local Mass
Transit District Act [70 ILCS 3610]. Additionally, a participant cannot
establish as part of its territorial boundary any area that is already included
in another participant's territorial boundary.
(Source: Amended
at 34 Ill. Reg. 13142, effective August 24, 2010)
| TITLE 92: TRANSPORTATION
CHAPTER I: DEPARTMENT OF TRANSPORTATION
SUBCHAPTER h: PUBLIC TRANSPORTATION
PART 653
STATE OPERATING ASSISTANCE TO DOWNSTATE AREAS
SECTION 653.40 EFFECTIVE DATE
Section 653.40 Effective
Date
This Part applies to grants made for the fiscal year
beginning July 1, 2010 and each year thereafter.
(Source: Amended at 34 Ill.
Reg. 13142, effective August 24, 2010)
SUBPART B: GRANT APPLICATION REQUIREMENTS
| TITLE 92: TRANSPORTATION
CHAPTER I: DEPARTMENT OF TRANSPORTATION
SUBCHAPTER h: PUBLIC TRANSPORTATION
PART 653
STATE OPERATING ASSISTANCE TO DOWNSTATE AREAS
SECTION 653.90 PRELIMINARY GRANT APPLICATION
Section 653.90 Preliminary
Grant Application
At the discretion of the
Department and no later than September 1 of each fiscal year, the Department
will distribute preliminary grant applications for the following fiscal year to
all participants. The preliminary grant application will contain information
about the operating assistance program and required forms that must be filed
with the Department. The completed preliminary grant application shall be
submitted to the Department no later than 30 days after receipt and shall
include certain identified preliminary revenue and expense budget information
for the next fiscal year.
(Source: Added at 34 Ill.
Reg. 13142, effective August 24, 2010)
| TITLE 92: TRANSPORTATION
CHAPTER I: DEPARTMENT OF TRANSPORTATION
SUBCHAPTER h: PUBLIC TRANSPORTATION
PART 653
STATE OPERATING ASSISTANCE TO DOWNSTATE AREAS
SECTION 653.100 NOTIFICATION OF GRANT CYCLE
Section 653.100 Notification
of Grant Cycle
No later than March 1 prior to
the start of any fiscal year, the Department will send operating assistance
grant applications to all participants. The grant application will contain
information and instructions regarding the operating assistance program and will
also include forms that must be filed with the Department. Operating assistance
applications are available by writing:
Illinois
Department of Transportation
Division of
Public and Intermodal Transportation
100 West
Randolph Street, Suite 6-600
Chicago,
Illinois 60601
Phone: 312/793-2111.
(Source: Amended at 34 Ill.
Reg. 13142, effective August 24, 2010)
| TITLE 92: TRANSPORTATION
CHAPTER I: DEPARTMENT OF TRANSPORTATION
SUBCHAPTER h: PUBLIC TRANSPORTATION
PART 653
STATE OPERATING ASSISTANCE TO DOWNSTATE AREAS
SECTION 653.110 APPLICATION CONTENTS
Section 653.110 Application
Contents
a) Operating assistance applications shall include, at a minimum,
the following information:
1) A cover letter stating that the applicant is applying for
operating assistance funds. The cover letter shall contain the applicant's
name, address and certification that the information provided is true and
correct.
2) A description of the applicant including, but not limited to,
service area, service characteristics, transit system management, transit and
special taxing authority, year and means created, e.g., by statute, home rule
or interstate compact, the name and title of the person directly responsible
for supervising the applicant's proposed expenditures, the name and title of
the person authorized to submit and execute the application, and name and title
of the person authorized to certify financial reports.
3) A summary consisting of total estimated operating expenses,
revenues, income and deficits for the next fiscal year, 65% of the estimated eligible
operating expenses for the next fiscal year and a certification that the
expenses will be for public transportation in Illinois or the service area
approved by the Department. (See Section 2-7(b) of the Act.)
4) A summary consisting of projected total operating revenues and
expenses including, but not limited to, those associated with passenger fares;
special transit fares; school bus service revenues; freight tariffs; charter
service revenues; auxiliary transportation revenues; non-transportation
revenues; taxes levied directly by transit system, local cash grants and
reimbursement; local special fare assistance; State cash grants and
reimbursements; State special fare assistance, federal grants and
reimbursements; contributed services; labor costs; salaries and wages; fringe
benefits; services; materials and supplies; utility, casualty and liability
costs; taxes; purchased transportation services; miscellaneous expenses; debt
service, including principal and interest, on publicly-owned equipment or
facilities; interest expenses for short-term operating loans; and lease and
rentals. (See Section 2-2.04 of the Act.)
5) Operating information, itemized according to fixed route
service and demand response service (including deviated fixed route service),
including, but not limited to, total service miles and hours, number of
vehicles, passenger trips, and facilities and equipment inventory.
6) Passenger trips shall be broken out by service type and by the
following categories: general public; seniors who are at least 65 years old and
who are receiving free or reduced fare transportation; people with disabilities
who are receiving free or reduced fare transportation; and students who are receiving
reduced-fare transportation.
7) Information regarding purchased transportation, including, but
not limited to, a description of the public transportation services and
products to be purchased, relevant information regarding the provider of the purchased
services, the number and type of revenue and non-revenue vehicles, and operating
revenues and expenses as detailed in Subpart B of this Part.
(Source: Amended at 34 Ill.
Reg. 13142, effective August 24, 2010)
| TITLE 92: TRANSPORTATION
CHAPTER I: DEPARTMENT OF TRANSPORTATION
SUBCHAPTER h: PUBLIC TRANSPORTATION
PART 653
STATE OPERATING ASSISTANCE TO DOWNSTATE AREAS
SECTION 653.111 ELIGIBLE OPERATING EXPENSES
Section 653.111 Eligible Operating Expenses
a) Operating
assistance grants will be made only for the reimbursement of eligible operating
expenses. In all instances, operating expenses shall be deemed eligible to the
degree that they are required for public transportation, are subject to
independent documentation and audit verification, are consistent with State or
federal program eligibility requirements, and are the net of all applicable
credits, as determined by the Department to be in accordance with standard
accounting practices. Eligible operating expenses include, but are not limited
to:
1) employee
wages;
2) employee
benefits;
3) materials,
fuels and supplies;
4) rental
of facilities;
5) taxes
other than income taxes;
6) payment
made for debt service (including principal and interest) on equipment or
facilities owned by the applicant, to the degree that the participant's
governing board, through resolution, certifies that the public transportation
portion of the equipment or facilities is required for the day-to-day provision
of public transportation within the next 24 months, provided that, in
undertaking and administering the acquisition and ownership of the equipment
and facilities, the participant complies with the Department's "Public
Transportation Capital Improvement Grants Manual" and "Supplemental
Operating Assistance Guidelines";
7) non-rolling-stock
equipment purchases that are less than $10,000;
8) administrative
costs, i.e., costs incurred in capital grant record keeping, grant management,
and the preparation of status reports required by the Department under its
capital grant program, associated with capital projects that are not reimbursed
elsewhere;
9) routine
maintenance and repairs to buildings, equipment or vehicles that do not extend
their useful life for replacement eligibility purposes;
10) reasonable
expenses and compensation for applicant's board members or trustees as provided
for under the Local Mass Transit District Act [70 ILCS 3610/4];
11) established
reserves for self-insurance programs; and
12) any
other expenditure that an independent auditor retained by the participant's
governing board determines is required for the provision of public
transportation according to the most current version of AICPA's generally
accepted accounting principles for public transportation operations.
b) Eligible
operating expenses also include the costs associated with the audit
requirements set forth in Section 653.410.
c) Eighty
percent of the dues paid by the applicant to the Illinois Public Transportation
Association and 90% of the dues paid by the applicant to the American Public
Transportation Association or the Community Transportation Association of
America are also eligible operating expenses. (See Section 2-2.04 of the Act.)
(Source: Added at 34 Ill.
Reg. 13142, effective August 24, 2010)
| TITLE 92: TRANSPORTATION
CHAPTER I: DEPARTMENT OF TRANSPORTATION
SUBCHAPTER h: PUBLIC TRANSPORTATION
PART 653
STATE OPERATING ASSISTANCE TO DOWNSTATE AREAS
SECTION 653.112 INELIGIBLE OPERATING EXPENSES
Section 653.112 Ineligible Operating Expenses
a) Operating
assistance grants will not be made for ineligible operating expenses, as
defined in Section 2-2.04 of the Act, Section 653.30 of this Part and this
Section. Ineligible operating expenses include, but are not limited to, the
following:
1) depreciation,
whether funded or unfunded;
2) amortization
of any intangible costs, which means depreciation of an asset that is without
physical qualities, e.g., patents, copyrights and goodwill;
3) debt
service on capital assets acquired with the assistance of State capital grant
funds provided by the State;
4) profit
or return on investments;
5) excessive
payment to associated entities, such as payments made by a participant to any
entity that is owned or controlled by the participant or that controls or owns
the participant;
6) expenses
associated with the Workforce Investment Act (29 USC Chapter 30), or its
successor;
7) costs
reimbursed under Sections 5303, 5304 and 5305 of the Federal Mass Transit Act (49
USC Chapter 53);
8) travel
and entertainment expenses incurred in attending non-public
transportation-related activities;
9) charter,
school bus and sightseeing expenses as defined by the FTA;
10) fines
and penalties;
11) charitable
donations;
12) interest
expense on long-term borrowing and debt retirement other than on that portion
of publicly-owned equipment and facilities required for public transportation;
13) income
taxes;
14) that
portion of any eligible operating expenses for which the participant has or
will receive reimbursement from any other federal or State capital grant
program absent a specific federal or State directive allowing the capital
expense to be treated as an operating expense, e.g., federal preventative
maintenance expense;
15) expenses
associated with compliance with OMB Circular A-133 (Audits of States, Local
Governments, and Non-Profit Organizations);
16) any
expense that is reimbursed from insurance proceeds;
17) maintenance
or operation of vehicles that are not used by a participant or its contractors
for public transportation or to support public transportation operations;
18) any
other expense determined by the Department to be inconsistent with federal
regulations or requirements.
b) If a
participant receives federal operating assistance funds through the Department,
and federal law prohibits the participant from using those funds to pay for any
expense that is an eligible operating expense under the Act or this Part, then
that expense shall be ineligible for reimbursement. (See Section 2-2.04 of the
Act.)
(Source: Added at 34 Ill.
Reg. 13142, effective August 24, 2010)
| TITLE 92: TRANSPORTATION
CHAPTER I: DEPARTMENT OF TRANSPORTATION
SUBCHAPTER h: PUBLIC TRANSPORTATION
PART 653
STATE OPERATING ASSISTANCE TO DOWNSTATE AREAS
SECTION 653.113 REPORTABLE INCOME
Section 653.113 Reportable Income
a) Revenues
that reduce the operating deficit under standard accounting practices and,
therefore, must be reported to the Department include, but are not limited to,
revenues from the following sources:
1) passenger
fares for transit services;
2) special
transit fares;
3) charter
service revenues;
4) auxiliary
transportation revenues;
5) non-transportation
revenues; and
6) federal
cash grants and reimbursements.
(Source: Added at 34 Ill.
Reg. 13142, effective August 24, 2010)
| TITLE 92: TRANSPORTATION
CHAPTER I: DEPARTMENT OF TRANSPORTATION
SUBCHAPTER h: PUBLIC TRANSPORTATION
PART 653
STATE OPERATING ASSISTANCE TO DOWNSTATE AREAS
SECTION 653.114 ACCOUNTING AND DOCUMENTATION
Section 653.114 Accounting and Documentation
a) Applicants
shall use the accrual method of accounting in accordance with generally accepted
accounting principles when submitting the operating expense and revenue
information called for in the application utilizing the same line items on
which the actual expenses and revenues will eventually be reported to the
Department in all quarterly and final fiscal year financial statements.
b) All
expenses shall be documented by cancelled check, by paid bills, invoices or
purchase orders, or by electronic records that clearly show when the expense
was incurred, when the vendor was paid, and what was purchased.
c) If
the Department questions the eligibility of a particular expense, the
participant shall provide certification by an independent auditor that the
expense is eligible under applicable State and federal law and the
certification will be considered by the Department in determining whether the
particular expense is eligible for reimbursement.
(Source: Added at 34 Ill.
Reg. 13142, effective August 24, 2010)
| TITLE 92: TRANSPORTATION
CHAPTER I: DEPARTMENT OF TRANSPORTATION
SUBCHAPTER h: PUBLIC TRANSPORTATION
PART 653
STATE OPERATING ASSISTANCE TO DOWNSTATE AREAS
SECTION 653.120 APPLICATION FILING DEADLINE
Section 653.120 Application Filing
Deadline
Grant applications shall be
submitted to the Department no later than April 1 prior to the fiscal year for
which operating assistance is requested. (See Section 2-5 of the Act.)
(Source: Amended at 34 Ill.
Reg. 13142, effective August 24, 2010)
| TITLE 92: TRANSPORTATION
CHAPTER I: DEPARTMENT OF TRANSPORTATION
SUBCHAPTER h: PUBLIC TRANSPORTATION
PART 653
STATE OPERATING ASSISTANCE TO DOWNSTATE AREAS
SECTION 653.130 PLACE OF FILING
Section 653.130 Place of
Filing
Grant applications and all forms
submitted under the State operating assistance program shall be filed with the
Department at the following address:
Illinois
Department of Transportation
100 West
Randolph Street, Suite 6-600
Chicago,
Illinois 60601
Attn:
Division of Public and Intermodal Transportation, Bureau of Downstate Area
Programs.
(Source: Amended at 34 Ill.
Reg. 13142, effective August 24, 2010)
SUBPART C: REVIEW AND APPROVAL OF APPLICATION
| TITLE 92: TRANSPORTATION
CHAPTER I: DEPARTMENT OF TRANSPORTATION
SUBCHAPTER h: PUBLIC TRANSPORTATION
PART 653
STATE OPERATING ASSISTANCE TO DOWNSTATE AREAS
SECTION 653.200 REVIEW OF APPLICATION
Section 653.200 Review of
Application
Review of Application. The
Department will date stamp the application upon receipt. The Department will perform
an initial examination of the application to determine if the application is
complete, in accordance with the criteria contained in the Act and Subpart B,
and will notify the applicant of any missing information, any issues that
require clarification, any errors or inaccuracies that exist in the application
and any expenses that are listed as eligible by the applicant but that are
ineligible under Section 653.112. The Department will begin its review process
after the application is complete. An application is complete if all required
information is included, is accurate if all calculations are correct, and is clear
if the application is legible.
(Source: Amended at 34 Ill.
Reg. 13142, effective August 24, 2010)
| TITLE 92: TRANSPORTATION
CHAPTER I: DEPARTMENT OF TRANSPORTATION
SUBCHAPTER h: PUBLIC TRANSPORTATION
PART 653
STATE OPERATING ASSISTANCE TO DOWNSTATE AREAS
SECTION 653.205 APPROVAL/DISAPPROVAL OF APPLICANT'S PROGRAM OF PROPOSED EXPENDITURES
Section 653.205 Approval/Disapproval of Applicant's
Program of Proposed Expenditures
a) Within
45 days after the Department's receipt of the application, the Department will
notify the applicant in writing of its approval or disapproval of the Program
of Proposed Expenditures (POPE). (See Section 2-11 of the Act.)
b) Disapproval
of Applicant's Program of Proposed Expenditures. The Department will
disapprove an applicant's POPE that contains:
1) a
finding that expenditures are being proposed for projects or purposes that are
not in compliance with Section 2-5 of the Act; i.e., proposed expenditures are
not related to the actual operation, maintenance or improvement of the
applicant's proposed public transportation service; or
2) a
finding that expenditures are being proposed for projects or purposes that are
in conflict with established comprehensive transportation plans, where
applicable; or
3) proposed
expenditures that are not, or other information that is not, in compliance with
the Act and Section 653.111 of this Part.
c) The
Department will notify the applicant, in writing, of deficiencies in the
applicant's POPE that result in disapproval and will include the reasons for
disapproval. The applicant may, within 45 days after receipt of the
disapproval, submit an amended application for that part of the application
that was disapproved. The Department will then review the amended application
in the same manner as provided in subsections (a) and (b) and, within 45 days
after the Department's receipt of the amended application, the Department will
notify the applicant in writing of its approval or disapproval of the amended
POPE. The Department's decision concerning the amended application is final.
(See Sections 2-11 and 2-12 of the Act.)
(Source: Added at 34 Ill.
Reg. 13142, effective August 24, 2010)
| TITLE 92: TRANSPORTATION
CHAPTER I: DEPARTMENT OF TRANSPORTATION
SUBCHAPTER h: PUBLIC TRANSPORTATION
PART 653
STATE OPERATING ASSISTANCE TO DOWNSTATE AREAS
SECTION 653.210 APPROVAL OF APPLICATION
Section 653.210 Approval of
Application
The Department will approve the
application within 45 days after determining that all additional information
requested from a participant regarding the application has been provided, that
the initial or amended application, including the POPE, is in compliance with
the Act and this Part, and that an appropriation sufficient to support the
participant's application and POPE has been signed into law.
(Source: Amended at 34 Ill.
Reg. 13142, effective August 24, 2010)
| TITLE 92: TRANSPORTATION
CHAPTER I: DEPARTMENT OF TRANSPORTATION
SUBCHAPTER h: PUBLIC TRANSPORTATION
PART 653
STATE OPERATING ASSISTANCE TO DOWNSTATE AREAS
SECTION 653.220 GRANT CONTRACT REQUIREMENTS AND PROCEDURES
Section 653.220 Grant
Contract Requirements and Procedures
a) As a condition for receiving operating assistance, the
applicant shall enter into a grant contract with the Department. The
Department will send two copies of the grant contract to the applicant as soon
as possible following notification that the application has been approved.
b) The grant contract shall include, at a minimum, the following
terms and conditions:
1) funding amounts and limitations;
2) payment procedures and conditions;
3) the Department's attendance at the participant's FTA triennial
reviews;
4) records maintenance and access requirements;
5) participant's authority to contract;
6) inspection rights of the State;
7) indemnification of the State;
8) audit scope, procedures and requirements;
9) provisions governing the legal relationships between the
participant and the State, and other provisions as required by State or local
laws; and
10) provisions regarding ethics, prohibited interests, a drug
free workplace, non-discrimination, school bus operations, and other provisions
as required by State law.
c) The applicant shall execute both copies of the grant contract
and return both copies to the Department together with a resolution of the
applicant's governing board and an opinion of counsel as described in subsections
(d) and (e).
d) The applicant shall submit, with the executed grant contract,
a certified resolution or ordinance adopted by the applicant's governing body that
authorizes the execution of the grant contract and identifies the person, by
position, authorized to sign the grant contract and payment requisitions and to
provide official information to the Department.
e) The applicant shall submit, with the executed grant contract,
a legal opinion from an attorney licensed to practice law in the State and
authorized to represent the applicant in the matter of the grant contract,
stating that:
1) the applicant is lawfully organized;
2) the applicant is an eligible participant under the Act;
3) the applicant is legally authorized to enter into the grant
contract; and
4) the grant contract will be legally binding on the applicant.
f) Upon receipt of the applicant's executed grant contract, the
applicant's governing body resolution or ordinance and the legal opinion, the
Department will execute the grant contract on behalf of the State and will
return one executed copy to the applicant.
g) The application and all other documents or materials requested
by the Department, submitted by the applicant and accepted by the Department
before and after grant contract execution, shall become a part of and
incorporated into the grant contract.
(Source: Amended at 34 Ill.
Reg. 13142, effective August 24, 2010)
| TITLE 92: TRANSPORTATION
CHAPTER I: DEPARTMENT OF TRANSPORTATION
SUBCHAPTER h: PUBLIC TRANSPORTATION
PART 653
STATE OPERATING ASSISTANCE TO DOWNSTATE AREAS
SECTION 653.230 AMOUNTS OF AND LIMITATIONS ON GRANTS
Section 653.230 Amounts of
and Limitations on Grants
a) For fiscal year 2008 and thereafter, the Department is
authorized under the continuing appropriation language of Sections 2-3(d) and
2-7(b) of the Act to pay a participant in an amount equal to 65% of the
participant's actual eligible operating expenses up to the amount set forth in
the State's annual budget or the formula amount required under Section
2-7(b-10) of the Act, whichever is greater. If a participant's actual eligible
operating expenses for a particular fiscal year are unknown at the time the
grant agreement is executed for the year, the Department will, as soon as
practicable at the beginning of that fiscal year, enter into a grant contract
for the amount set forth in the State's annual budget or for the formula amount
required under Section 2-7(b-10) of the Act, depending on which is greater.
(See Section 2-7 of the Act.)
b) The amount of operating assistance received from the State
under the Act, together with any other operating assistance received from any federal,
State or local agency, shall not exceed the participant's operating deficit for
that fiscal year.
(Source: Amended at 34 Ill.
Reg. 13142, effective August 24, 2010)
| TITLE 92: TRANSPORTATION
CHAPTER I: DEPARTMENT OF TRANSPORTATION
SUBCHAPTER h: PUBLIC TRANSPORTATION
PART 653
STATE OPERATING ASSISTANCE TO DOWNSTATE AREAS
SECTION 653.240 DISAPPROVAL OF APPLICATION (REPEALED)
Section 653.240 Disapproval
of Application (Repealed)
(Source: Repealed at 34 Ill.
Reg. 13142, effective August 24, 2010)
SUBPART D: PROGRAM MANAGEMENT
| TITLE 92: TRANSPORTATION
CHAPTER I: DEPARTMENT OF TRANSPORTATION
SUBCHAPTER h: PUBLIC TRANSPORTATION
PART 653
STATE OPERATING ASSISTANCE TO DOWNSTATE AREAS
SECTION 653.300 QUARTERLY REPORTS/REQUISITIONS FOR ADVANCE PAYMENT
Section 653.300 Quarterly
Reports/Requisitions for Advance Payment
a) Thirty calendar days before the end of a current quarter, the
participant may file, on a form prescribed by the Department, the Quarterly
Financial Report request for advance payment of estimated eligible operating
expenses and revenues for the next quarter. This report shall contain a
description of and amounts of estimated revenues and expenses and any other
information required by the Department.
b) The earliest date that requisitions for payments based on
estimates may be processed by the Department are detailed in this subsection
(b); however, no payments will be made until the State's annual budget has been
passed and grant contracts are fully executed by both the Department and the
participant and filed with the Office of the Comptroller.
1) June 1 – for the 1st quarter (July, Aug., Sept.)
2) Sept. 1 – for the 2nd quarter (Oct., Nov., Dec.)
3) Dec. 1 – for the 3rd quarter (Jan., Feb., Mar.)
4) March 1 – for the 4th quarter (Apr., May, June)
(See Section 2-7(b) of the Act.)
(Source: Amended at 34 Ill.
Reg. 13142, effective August 24, 2010)
| TITLE 92: TRANSPORTATION
CHAPTER I: DEPARTMENT OF TRANSPORTATION
SUBCHAPTER h: PUBLIC TRANSPORTATION
PART 653
STATE OPERATING ASSISTANCE TO DOWNSTATE AREAS
SECTION 653.310 REPORTING OF ACTUAL EXPENSES FOR ALL QUARTERS
Section 653.310 Reporting of
Actual Expenses for all Quarters
By December 1,
March 1, May 1 and August 1, the participant shall file, on a form prescribed
by the Department, a statement of actual eligible expenses incurred in the 1st,
2nd, 3rd and 4th quarters respectively, known
as the Quarterly Financial Report – Actual Revenues and Expenses.
(Source: Amended at 34 Ill.
Reg. 13142, effective August 24, 2010)
| TITLE 92: TRANSPORTATION
CHAPTER I: DEPARTMENT OF TRANSPORTATION
SUBCHAPTER h: PUBLIC TRANSPORTATION
PART 653
STATE OPERATING ASSISTANCE TO DOWNSTATE AREAS
SECTION 653.320 PAYMENT
Section 653.320 Payment
a) Participants may requisition based on estimated or actual
expenses and revenues, or any combination of the two. Requisitions shall be
filed with the Department, quarterly, on forms prescribed by the Department.
b) All payments by the Department are contingent upon the General
Assembly's passing legislation, signed by the Governor, that appropriates and
provides for the release of funds to the participant for operating assistance
under the Act and this Part.
(Source: Amended at 34 Ill.
Reg. 13142, effective August 24, 2010)
| TITLE 92: TRANSPORTATION
CHAPTER I: DEPARTMENT OF TRANSPORTATION
SUBCHAPTER h: PUBLIC TRANSPORTATION
PART 653
STATE OPERATING ASSISTANCE TO DOWNSTATE AREAS
SECTION 653.330 NOTIFICATION OF CHANGE IN SERVICES
Section 653.330 Notification
of Change in Services
a) The participant shall file a Notification of Change in
Services on a form prescribed by the Department at least 30 days prior to the
participant's implementation of a proposed change in services when the change
in services was not included in the application. If the participant does not
file a Notification of Change in Services form at least 30 days prior to the
implementation of the proposed change in services, the participant must not
implement the change in services. The Notification of Change in Services shall
include, but not be limited to, the following information:
1) the nature of the proposed change;
2) whether the proposed change is in an approved planning
document; and
3) a description of, and the budgetary impact of, the proposed
change that includes an estimate of the increase or decrease in operational
expenses, revenues and ridership and an indication of the extent to which the
service change will require additional equipment acquisition or reduction in
equipment usage or needs.
b) A change in service means any of the following:
1) new service areas;
2) discontinuance of routes and/or service areas;
3) a structural revision of routes;
4) a change in hours or days of service; or
5) execution or termination of a purchased transportation
contract.
c) A change in service does not mean:
1) temporary changes, e.g., routing due to temporary road
closures, seasonal adjustments, natural disasters or emergencies; or
2) any changes described in subsection (b) that result in less than
a 20% increase or decrease in total service provided or fares collected.
(Source: Amended at 34 Ill.
Reg. 13142, effective August 24, 2010)
| TITLE 92: TRANSPORTATION
CHAPTER I: DEPARTMENT OF TRANSPORTATION
SUBCHAPTER h: PUBLIC TRANSPORTATION
PART 653
STATE OPERATING ASSISTANCE TO DOWNSTATE AREAS
SECTION 653.335 NOTIFICATION OF CHANGE IN FARES
Section 653.335 Notification
of Change in Fares
The participant shall file a
Notification of Change in Fares on a form, prescribed by the Department, at
least 90 days prior to the participant's implementation of any proposed
increase in fares when an increase in fares was not included in the
application. If the participant does not file a Notification of Change in
Fares form at least 90 days prior to the implementation of the proposed
increase in fares, the participant must not implement the fare increase. When
submitting the required notification, the participant shall, at a minimum,
explain in detail why the fare increase is necessary and why other approaches
to financial and operational management will not eliminate the need for an
increase in fares.
(Source: Added at 34 Ill.
Reg. 13142, effective August 24, 2010)
| TITLE 92: TRANSPORTATION
CHAPTER I: DEPARTMENT OF TRANSPORTATION
SUBCHAPTER h: PUBLIC TRANSPORTATION
PART 653
STATE OPERATING ASSISTANCE TO DOWNSTATE AREAS
SECTION 653.340 FILING OF RECONCILIATION REPORT FOR ACTUAL EXPENSES ACCRUED IN FISCAL YEAR
Section 653.340 Filing of
Reconciliation Report for Actual Expenses Accrued in Fiscal Year
a) On or before August 1 following each fiscal year for which the
participant has received operating assistance, the participant shall file with
the Department, on a form prescribed by the Department, a reconciliation
statement and final requisition for actual but unaudited revenues and expenses
accrued during that fiscal year.
b) Upon receipt of the documents referenced in subsection (a),
the Department will reconcile the actual amounts paid to the participant with
the total eligible reimbursement owed based on actual eligible expenses accrued
for the fiscal year and will make payment to the participant for any amounts
due.
c) Payment to the participant under this Section is contingent
upon submission of the fiscal year final requisition and reconciliation report
by August 1 as provided for in subsection (a). All funds in the Downstate
Public Transportation Fund, except funds designated for payment of audit
adjustments and 1st quarter estimated expenses for the succeeding
fiscal year, revert to the Downstate Transit Improvement Fund on September 30
following the fiscal year for which the funds were appropriated. Failure to
timely file the fiscal year final requisition and reconciliation report under
this Section may jeopardize the Comptroller's ability to make a payment during
the lapse period. In the event that the late filing by participant does not
allow time for the Department to process payment under this Section, any funds
due the participant upon completion of the State audit shall be paid to the
participant as provided in Section 653.450.
(Source: Amended at 34 Ill.
Reg. 13142, effective August 24, 2010)
| TITLE 92: TRANSPORTATION
CHAPTER I: DEPARTMENT OF TRANSPORTATION
SUBCHAPTER h: PUBLIC TRANSPORTATION
PART 653
STATE OPERATING ASSISTANCE TO DOWNSTATE AREAS
SECTION 653.350 DOWNSTATE TRANSIT IMPROVEMENT FUND
Section 653.350 Downstate Transit Improvement Fund
a) Except
as otherwise provided in Section 2-15 of the Act, all funds that remain
in the Downstate Public Transportation Fund or the Metro-East Public
Transportation Fund after the payment of the fourth quarterly payment to
participants other than Metro-East Transit District participants and the last
monthly payment to Metro-East Transit participants in each fiscal year shall be
transferred to the Downstate Transit Improvement Fund. Transfers shall be made
no later than 90 days following the end of the fiscal year. Beginning fiscal
year 2010, all moneys each year in the Downstate Transit Improvement Fund, held
solely for the benefit of the participants in the Downstate Public
Transportation Fund, shall be appropriated to the Department to make
competitive capital grants to the participants of the respective funds. However,
such amount as the Department determines to be necessary for allocation to
participants for the purposes of Section 2-7 of the Act for the
first quarter of the succeeding fiscal year and an amount equal to 2% of the
total allocations to participants in the fiscal year that just ended to
be used for the purpose of audit adjustments shall be retained in such funds to
be used by the Department for such purposes. (Section 2-15 of the Act)
b) Competitive
capital grants shall not be available for projects, purchases or purposes that
are not:
1) required
for the provision of public transportation;
2) identified
in the Department's annual Capital Needs Assessment, which can be obtained from
the Division of Public and Intermodal Transportation;
3) identified
in the comprehensive long range or short range planning documents in the region
for which the applicant is a part; and
4) in
accordance with the guidelines set forth in the Department's Procedural
Handbook for Public Transportation Capital Improvement Grants, which can be
obtained from the Division of Public and Intermodal Transportation.
(Source: Added at 34 Ill. Reg. 13142,
effective August 24, 2010)
SUBPART E: AUDIT PROCEDURES/GRANT CLOSEOUT
| TITLE 92: TRANSPORTATION
CHAPTER I: DEPARTMENT OF TRANSPORTATION
SUBCHAPTER h: PUBLIC TRANSPORTATION
PART 653
STATE OPERATING ASSISTANCE TO DOWNSTATE AREAS
SECTION 653.400 YEAR END OPERATING DATA REPORT
Section 653.400 Year End
Operating Data Report
On or before August 1 following
the fiscal year for which the participant has received State operating
assistance under the Act, the participant shall file the Year End Operating
Data Report with the Department. The report shall be on a form prescribed by
the Department and shall include at a minimum:
a) operators' and other employees' salary and wages by position;
b) vehicle use; and
c) passenger trips by service type, passenger category and fare
category. (See Section 2-4 of the Act.)
(Source: Amended at 34 Ill.
Reg. 13142, effective August 24, 2010)
| TITLE 92: TRANSPORTATION
CHAPTER I: DEPARTMENT OF TRANSPORTATION
SUBCHAPTER h: PUBLIC TRANSPORTATION
PART 653
STATE OPERATING ASSISTANCE TO DOWNSTATE AREAS
SECTION 653.410 INDEPENDENT AUDIT REQUIREMENTS AND PROCEDURES
Section 653.410 Independent
Audit Requirements and Procedures
a) Deadline for Submission of Audit
No later than
180 days following the last day of the fiscal year, the participant shall
provide the Department with an independent audit prepared by a licensed certified
public accountant. This deadline may be changed, at the discretion of the
Department, to accommodate the participant's fiscal year periods or due to
unforeseen circumstances. (See Section 2-7(c) of the Act.)
b) Selection of Auditor
The selection
of the licensed certified public accountant shall be made by the participant.
However, any licensed certified public accountant selected by the participant
shall be independent and shall not have a relationship with the participant that
would create a conflict of interest. A conflict of interest will be deemed by
the Department to exist where the licensed certified public accountant serves
the participant in any capacity other than that of auditor for the participant
or where the licensed certified public accountant has a relationship,
contractual or otherwise, with the participant that would inhibit the ability
to perform an independent audit.
c) Audit Requirements
1) The independent auditor shall review the following materials
in preparing the audit report:
A) the Act;
B) the grant contract between the Department and participant;
C) this Part and pertinent forms prescribed by the Department; and
D) the appropriation legislation relating to the operating
assistance grant.
2) The independent auditor shall examine the systems of internal
control, systems established to ensure compliance with laws and regulations
affecting the expenditure of State funds, financial transactions and accounts,
and financial statements and reports of the participant. "Examine"
means all that is necessary for the auditor to make the determinations required
in this subsection (c)(2). These examinations are to determine whether:
A) There is effective control over and proper accounting for
revenues, expenditures, assets, and liabilities.
B) The financial statements are presented fairly in accordance
with generally accepted accounting principles adopted by AICPA.
C) The financial reports contain accurate and reliable financial
data.
D) State funds are being expended in accordance with the terms of
the grant contract and those applicable provisions of state law and
regulations.
3) Compliance with Audit Standards
The audit
shall be made in accordance with generally accepted auditing standards established
by AICPA.
d) Requirements for Independent Audit Reports
1) Audit Report Elements
The audit
report shall contain the following elements:
A) Scope of audit
B) A description of audit procedures used
C) Opinion
D) Findings
E) Recommendations
F) Financial statements and analyses
G) On forms prescribed by the Department, a schedule of operating
revenues and expenses for the participant's grant contract period. (See Section
2-4 of the Act.)
2) Contents of Report
The audit
report shall consist of the following:
A) Financial statements, including footnotes, of the participant.
B) The auditor's comments on the financial statements, which:
i) Identify the statements examined and the period covered.
ii) Express an opinion as to whether the financial statements are
fairly presented in accordance with generally accepted accounting principles.
If an unqualified opinion cannot be expressed, the nature of the qualification
shall be stated.
C) Calculations, assurances (i.e., positive or negative assurances
that something has been done) and certifications (i.e., statements by which it
is declared that a fact is true or a requirement has been met), stating whether
the requirements of subsection (c)(2) have been met by the Department,
including, but not limited to, the following:
i) A determination and calculation of eligible and ineligible
operating expenses.
ii) A determination and calculation that the State operating
assistance, when added to the federal operating assistance, does not exceed the
total operating deficit. Operating deficit shall be calculated as eligible
expenses less revenues. In determining deficit, the definition of eligible
expenses in the Act and this Part and the definition of revenue in the Act
shall govern.
D) The auditor's assurances that:
i) The financial statements of the participant were prepared in
accordance with generally accepted accounting principles adopted by the AICPA.
ii) Applicable laws were complied with by the participant.
iii) The participant's system of internal accounting controls and
procedures were adequate relating to funds received and costs chargeable to the
grant contract.
iv) State funds were expended in accordance with the grant
contract.
E) The auditor's comments on compliance and internal control,
which shall include:
i) Comments on weaknesses in and noncompliance with the systems
of internal control, separately identifying material weaknesses.
ii) Identification of instances of noncompliances with the terms
of the grant contract, State law or this Part, and the effect of the
noncompliance, if any, on the reliability or accuracy of the financial
statements and reports filed under this Part.
F) Comments on the accuracy and completeness of financial reports
and claims for advances or reimbursement.
G) Comments on corrective action taken or planned by the
participant relative to the audit findings of the previous year and
recommendations for current year corrective action.
e) Access to and Retention of Auditor's Records
1) The participant shall require the independent auditor, in the
letter of engagement or other contract for services document between the
participant and the independent auditor, to give authorized representatives of
the Department access to the independent auditor's working papers pertaining to
the audit of the participant at reasonable times convenient to the Department
and the independent auditor.
2) Work papers and reports shall be retained by the auditor for a
minimum of three years from the date of the audit report unless the auditor is
notified in writing by the Department of the need to extend the retention
period. The three year period will be extended under the following conditions:
A) When the State audit is not conducted within the three year
period; and
B) When there is litigation involving the provision of funds to
the grantee.
(Source: Amended at 34 Ill.
Reg. 13142, effective August 24, 2010)
| TITLE 92: TRANSPORTATION
CHAPTER I: DEPARTMENT OF TRANSPORTATION
SUBCHAPTER h: PUBLIC TRANSPORTATION
PART 653
STATE OPERATING ASSISTANCE TO DOWNSTATE AREAS
SECTION 653.420 REVIEW OF INDEPENDENT AUDIT
Section 653.420 Review of
Independent Audit
The Department will review the
independent audit to assure that the requirements of Subpart E have been met
and will notify the participant and the independent auditor of any errors or
omissions in the audit and any issues raised by the independent audit requiring
clarification or revision.
| TITLE 92: TRANSPORTATION
CHAPTER I: DEPARTMENT OF TRANSPORTATION
SUBCHAPTER h: PUBLIC TRANSPORTATION
PART 653
STATE OPERATING ASSISTANCE TO DOWNSTATE AREAS
SECTION 653.430 STATE REVIEW
Section 653.430 State Review
a) The Department shall perform a reconciliation, known as the
State reconciliation, of the participant's financial records and the audit
performed by the independent auditor submitted by the participant with its own
forces or by contracting with an independent licensed certified public
accountant solely at the expense of the Department. Any reconciliation under
this Section shall begin no later than three years following the last day of
the fiscal year that is being audited. The Department will perform a State reconciliation
on all grants. The State reconciliation will be done after the Department
receives the independent audit. The Department will give written notice to the
participant of the dates scheduled for the State reconciliation, which shall be
a time agreed upon by the grantee and the Department.
b) The independent auditor and the participant shall work with
the Department in resolving any issues raised by the State reconciliation. Any
issues that cannot be resolved to the mutual agreement of the Department, the
participant and/or independent auditor shall be decided by the Department
consistent with the Act, this Part and the Department's application and
interpretation of generally accepted accounting principles adopted by the
AICPA.
c) Upon resolution of the issues according to the procedures
provided in subsection (b), the Department will issue a final State reconciliation
report to the participant. Except for cases of fraud, the final State
reconciliation report shall represent the final decision of the Department.
(Source: Amended at 47 Ill.
Reg. 1718, effective January 20, 2023)
| TITLE 92: TRANSPORTATION
CHAPTER I: DEPARTMENT OF TRANSPORTATION
SUBCHAPTER h: PUBLIC TRANSPORTATION
PART 653
STATE OPERATING ASSISTANCE TO DOWNSTATE AREAS
SECTION 653.440 CORRECTIVE ACTION BY PARTICIPANT
Section 653.440 Corrective
Action by Participant
Whenever the independent audit,
reconciliation process, or State Compliance Review discloses significant
weaknesses, irregularities and areas of noncompliance (i.e., failure by the
grantee to act in accordance with any of the terms and conditions of the grant
contract or State law, including by way of example and information only and not
by way of limitation, conflicts of interest, falsification of records or
reports and inadequate internal controls), the participant shall correct the
weaknesses, irregularities and noncompliance consistent with the corrective
recommendations of the independent audit or State reconciliation.
"Inadequate" means unable to meet the requirements of State laws,
this Part, and the terms of the grant contract.
(Source:
Amended at 47 Ill. Reg. 1718, effective January 20, 2023)
| TITLE 92: TRANSPORTATION
CHAPTER I: DEPARTMENT OF TRANSPORTATION
SUBCHAPTER h: PUBLIC TRANSPORTATION
PART 653
STATE OPERATING ASSISTANCE TO DOWNSTATE AREAS
SECTION 653.450 RECONCILIATION OF PAYMENTS
Section 653.450
Reconciliation of Payments
The Department will reconcile
the amounts paid to the participant consistent with the participant’s audit and
the Department’s final State reconciliation report. The Department will take
the necessary steps to pay the participant any amounts due to the participant
for the reconciled fiscal year. If the reconciliation reflects that the
Department has overpaid the participant, then the Department shall notify the participant
in writing of the amount due and request remittance. If the participant
received actual payments that are less than the amount specified by the State reconciliation
then the Department will pay the difference.
(Source:
Amended at 47 Ill. Reg. 1718, effective January 20, 2023)
| TITLE 92: TRANSPORTATION
CHAPTER I: DEPARTMENT OF TRANSPORTATION
SUBCHAPTER h: PUBLIC TRANSPORTATION
PART 653
STATE OPERATING ASSISTANCE TO DOWNSTATE AREAS
SECTION 653.460 GRANT CLOSEOUT
Section 653.460 Grant
Closeout
The Department shall consider
the grant closed when the final reconciliation payment is made, either by the
Department or the participant, as provided in Section 653.440. The Department
shall send notification to the participant that the grant is closed. At the
discretion of the Department, several years of audit reconciliation balances
may be combined to allow for one payment to reconcile minor annual
reconciliation balances.
(Source: Amended at 34 Ill.
Reg. 13142, effective August 24, 2010)
| TITLE 92: TRANSPORTATION
CHAPTER I: DEPARTMENT OF TRANSPORTATION
SUBCHAPTER h: PUBLIC TRANSPORTATION
PART 653
STATE OPERATING ASSISTANCE TO DOWNSTATE AREAS
SECTION 653.470 FINALITY OF PRIOR GRANT RELATED DECISIONS (REPEALED)
Section 653.470 Finality of
Prior Grant Related Decisions (Repealed)
(Source: Repealed at 34 Ill.
Reg. 13142, effective August 24, 2010)
SUBPART F: MISCELLANEOUS PROVISIONS
| TITLE 92: TRANSPORTATION
CHAPTER I: DEPARTMENT OF TRANSPORTATION
SUBCHAPTER h: PUBLIC TRANSPORTATION
PART 653
STATE OPERATING ASSISTANCE TO DOWNSTATE AREAS
SECTION 653.500 ACCESS TO AND RETENTION OF RECORDS
Section 653.500 Access to
and Retention of Records
a) The participant shall make available to any authorized
representatives of the Department any and all checks, payrolls, invoices,
contracts, vouchers, accounting and financial documents, correspondence, bills,
accounts payable and receivable and data pertaining to the participant's
operating expenses and revenues.
b) The participant shall maintain all financial records and
documents pertaining to public transportation operating expenses and revenues
for a minimum period of three years following the last day of the fiscal year
or until notification by the Department that the grant is closed, whichever is
later.
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