Section 545.30  Administrative Requirements

a)         Record Retention and Review – An entity receiving financial assistance shall, as deemed necessary by the Department, permit the Department, its representatives, or its designee, to have full access to and the right to examine any pertinent documents, papers, and records of the recipient involving transactions related to financial assistance received under the Act for such a period of time as specified in the agreement between the Department and the recipient.

b)         Financial Management Standards – An entity receiving financial assistance shall maintain a financial management system structured to provide for accurate, current, and complete disclosure of the expenditures of such financial assistance. The entity is accountable for financial assistance received under the Act and shall maintain effective control and accountability over all funds, equipment, property, and other assets obtained through such financial assistance.  Records shall be sufficient to permit the tracking of funds to a level of expenditure adequate to ensure that funds have not been spent unlawfully.

c)         Audits – Audit requirements shall be specified in the agreement (e.g., grant, investment, or loan agreement) between the entity receiving financial assistance and the Department or between the entity receiving financial assistance and an intermediary organization.

d)         Complaint Process – In the case of a complaint by an entity receiving financial assistance, the Department shall follow the procedures outlined in the Department's Administrative Hearing Rules (56 Ill. Adm. Code 2605).

e)         Patent and Technical Information – Copyright and patent policies of an entity receiving financial assistance must provide for protection of technical information, and identify ownership and control of patents.  Except when specified to the contrary in the agreement between the Department and the recipient, the State of Illinois shall be granted a no charge license to use the technology or materials covered by any patent or copyright for which the technology or material was either conceived or reduced to practice with such financial assistance.

f)         Interest on Grant Funds – In accordance with Section 10 of the Illinois Grant Funds Recovery Act [30 ILCS 705/10], all interest earned on funds held by the recipient of a grant awarded pursuant to the requirements of the Act shall become part of the grant principal when earned unless the grant agreement provides otherwise.  However, any interest earned on funds subject to a Department grant after the grant's expiration date shall become part of the grant principal and shall be so treated for all purposes.

g)         Reporting – Unless otherwise specified in the agreement between the Department and the recipient, an entity receiving financial assistance shall report financial and programmatic data to the Department on a regular basis using formats provided by the Department.  Report formats and content shall be customized to the specific program and form of financial assistance. Generally, the Department requires quarterly reporting of expenditures and program achievements at a level of detail sufficient to provide for program accountability.

1)         Expenditures – Unless otherwise specified in the agreement with the Department or an intermediary organization, an entity receiving financial assistance shall report actual expenditure of financial assistance using expenditure formats supplied by the Department.  Expenditure summaries are to be submitted to the Department by the 15^th day following the end of each fiscal quarter in which any expenditure of financial assistance is made.

2)         Program Report – Unless otherwise specified in the agreement with the Department or an intermediary organization, an entity receiving financial assistance shall submit a program report in a format provided by the Department.  Generally, the program report shall include a narrative describing the entity's progress towards achieving objectives and activities as specified in the agreement with the Department or an intermediary organization.  Program reports shall be submitted to the Department by the 15^th day following the end of each fiscal quarter.

h)         Confidentiality of Trade Secrets and Commercial or Financial Information – Protections relating to the confidentiality of trade secrets, commercial, or financial information regarding the operation of any enterprise are specified at Section 4002 of the Act.  The protections apply to any information provided by an entity applying for, or receiving, financial assistance under the Act.  To the extent authorized by the Freedom of Information Act [5 ILCS 140], the Department shall not make public any information disclosing  program supported technical information if such disclosure would affect the commercialization potential of the project, service, or process being promoted.

i)          Suspension and Termination – The Department shall, after notice to the entity, suspend the financial assistance and withhold further payments or prohibit the entity from incurring additional obligations against such financial assistance:

1)         if the General Assembly does not appropriate funding at a level sufficient to fund the program or activity;

2)         if the Department determines that the entity has failed to comply with the terms and conditions of the agreement in whole or in part;

3)         if an entity receiving financial assistance consistently fails to submit required reports, fails to maintain required records, fails to protect inventory, or misuses equipment;

4)         if there are findings of fraud and abuse; or

5)         if the Department and the entity receiving financial assistance agree that the continuation of the program objectives would not produce beneficial results commensurate with the future expenditures.

j)          Right to Verify Information – At the sole discretion of the Department or an intermediary organization acting on behalf of the Department, staff of the Department and/or an intermediary organization may conduct phone interviews or field visitations to evaluate and verify information submitted as part of an application for financial assistance.

k)         Access to Project Site – During the application process, or during the conduct of a technology or business project, the sponsoring organization and/or applicants shall provide the Department and/or an intermediary organization access to the place of business and site where the business project will be undertaken.  The Department and/or the intermediary organization shall provide notice to the business prior to requesting such access and shall request access only during the business' normal working hours.

l)          Director's Waiver of Limitations – The Director may waive the limitations cited at Sections 545.220(c)(2), 545.320(d), and 545.330(d).  A waiver may be granted when the Director of the Department determines that a waiver of these limits is required to meet the purposes of the Act [20 ILCS 700/3004(a), 3004(b), 3004(c), and 3515(c)].  In determining whether to grant such a waiver, the Director may consider factors, if applicable, including, but not limited to:

1)         the project would not go forward but for the State's participation;

2)         the business is located in a distressed community;

3)         there is a strong likelihood of generating significant new or increased business or investment within the State; and

4)         there are sufficient program funds available, in view of competing requests.