Section 555.130  Grant Administrative Requirements

a)         Grant Termination

1)       Termination Due to Loss of Funding. In the absence of State funding for a Fiscal Year, all grants for that year will be terminated in full.  In the event of a partial loss of State funding, the Department will make proportionate cuts to all Grants.  In the event the Department suffers such a loss of funding in full or in part, the Department will give the Grantee written notice setting forth the effective date of full or partial termination or, if a change in funding is required, setting forth the change in funding and changes in the approved budget.

2)         Termination for Cause

A)        If the Department determines that the Grantee failed to comply with the terms and conditions of the Grant Agreement or this Part, the Department may terminate the grant in whole or in part at any time before the date of completion.  Circumstances that will result in the termination of a grant include, but are not limited to: consistent failure to submit required reports; failure to maintain required books and records; evidence of fraud and/or abuse; and consistent failure to meet performance standards.  These circumstances are further explained in the Grant Agreement.

B)        The Department shall notify the Grantee in writing, within 10 working days after the determination to terminate is made, of the reasons for termination and the effective termination date.  Distribution of Grant Funds or recovery of Grant Funds shall be made in accordance with the legal rights and liabilities in the Grant Agreement and the Illinois Grant Funds Recovery Act [30 ILCS 705].

3)       Termination by Agreement.  The Department and the Grantee may terminate the grant in whole or in part if the Department and the Grantee agree that continuation of the Program objectives would not produce beneficial results commensurate with the future expenditure of Grant Funds.  The Department and the Grantee shall agree upon termination conditions, including the effective date and, in case of partial termination, the portion of funding to be terminated.  The Grantee shall not incur new obligations for the terminated portion of the grant after the effective date, and shall cancel as many outstanding obligations as possible.  The Department shall allow full credit to the Grantee for the Department's share of the noncancelable obligations properly incurred by the Grantee prior to termination.

b)         Interest on Grant Funds.  In accordance with Section 10 of the Illinois Grant Funds Recovery Act, all interest earned on Grant Funds held by the Grantee under the grant shall become part of the grant when earned.  Any interest earned under the grant and not expended as grant principal during the term of the grant shall be returned to the Department as directed by the grant close-out process described in subsection (c).

c)         Grant Close-out.  In accordance with Section 5 of the Illinois Grant Funds Recovery Act, Grant Funds not expended or legally obligated, including any interest, remaining at the end of the grant term or upon termination of the grant shall be returned to the Department within 45 days after the end of the grant term or termination.

d)         Audits.  A Grantee shall be responsible for securing an audit for any grant award exceeding $500,000.  Additionally, an audit may be required when certain risk conditions exist, including, but not limited to, a negative compliance history and previous material audit findings.  The audit shall be performed by an independent certified public accountant, licensed by the authority of the State of Illinois pursuant to the Illinois Public Accounting Act [225 ILCS 450].  The audit shall be conducted in accordance with current generally accepted auditing standards as contained in the most current publication entitled AICPA Professional Standards, American Institute of Certified Public Accountants, 1211 Avenue of the Americas, New York NY 10036.

e)         Special Audits.  The Department reserves the right to conduct special audits, including but not limited to an agency wide audit of grant funds expended under any of the Department's grant programs.  A special audit shall be conducted during normal working hours (8:30 a.m. to 5:00 p.m.) with at least 24 hours notice.

f)         Monitoring and Evaluation.  Grantee shall permit any agency authorized by the Department, the Office of Inspector General, the Auditor General of the State of Illinois, the Illinois Attorney General, or any of their duly authorized representatives, upon presentation of credentials, in accordance with the constitutional limitation on administrative searches, to have full access to and the right to examine any of the Grantee's documents, papers and records involving transactions related to a grant awarded by the Department.  Once the Department concludes its monitoring activities, the Department will notify the Grantee of the Department's determination and findings, if any.  If a determination contains a finding of noncompliance, the Grantee will be allowed an opportunity to cure any and all noncompliance issues.  If any noncompliance issues cannot be resolved, the Department will issue a final determination requesting the Grantee to repay any funds that the Department determined to have been spent in violation of the Grant Agreement.  In the event the noncompliance issue pertains to a grant covenant that does not have a corresponding expenditure amount, the Department has the discretion to disallow all Grant Funds for the noncompliance.  If the Grantee fails to comply with the Department's final determination, the Department shall issue a final notice to the Grantee providing it the opportunity to invoke its rights under the Illinois Grant Funds Recovery Act.

g)         Complaint Process.  An administrative hearing may be initiated by an Applicant or Grantee by serving a petition for hearing on the Department.  The Department may initiate the administrative hearing process by serving a notice of charges on the Grantee.  In any case, the Applicant, Grantee or Department shall follow the Department's administrative hearing rules set forth in 56 Ill. Adm. Code 2605.

h)         Certifications.  The Grantee shall certify that it has not been barred from contracting with a unit of local government or with any agency of the State of Illinois as a result of a violation of Sections 33E-3 or 33E-4 of the Criminal Code of 1961 (Bid-rigging or bid rotating) [720 ILCS 5/33E-3 or 33E-4].

i)          Reports.  The Grantee shall submit reports on the Project's financial status and outcome/results, as required by the Department in the Grant Agreement.  The Grantee's failure to comply with any reporting requirements will be considered a violation of the Grant Agreement and the Department may seek recovery of all Grant Funds as described in subsection (f). 

(Source:  Amended at 38 Ill. Reg. 3577, effective January 23, 2014)