HB0002ham001 98TH GENERAL ASSEMBLY

Rep. Patricia R. Bellock

Filed: 3/13/2013

09800HB0002ham001 LRB098 02559 OMW 42442 a

AMENDMENT TO HOUSE BILL 2

AMENDMENT NO. ______. Amend House Bill 2 by replacing everything after the enacting clause with the following:

"Section 5. The Illinois Grant Funds Recovery Act is amended by adding Section 15 as follows:

(30 ILCS 705/15 new)

Sec. 15. Illinois Single Audit Commission.

(a) As used in this Section, "Departments" means the agencies, boards, and commissions designated by the Governor.

(b) There is created the Illinois Single Audit Commission. The Commission shall conduct research regarding the practices of other states in the administration of grants and create a report summarizing the Commission's recommendations regarding the adoption of uniform standards for the administration of grants in this State.

(c) The Commission shall be comprised of one representative from each of the top 10 grant-making Departments who is an expert in grant subject matter and who shall be appointed by the Governor, one of whom shall be designated as Chairperson. The Commission shall also be comprised of 10 members, one designed by each of those Departments, to represent community organizations, providers, and associations. These members shall be charged with overseeing the implementation of the Commission's objectives under this Section.

(d) The recommendations in the report shall primarily focus on developing a coordinated, non-redundant process for the provision of effective and efficient oversight of grant recipients, ensuring quality programs, and limiting fraud, waste, and abuse. The report shall define the purpose, scope, applicability, and responsibilities in the life cycle of a grant related to subsections (e) through (g). To the extent feasible, the Commission's report shall include necessary statutory and rule changes required to implement proposed actions.

(e) The report shall examine and make recommendations for the following with regard to a grant before it is awarded:

(1) criteria to define formula-based grants and discretionary grants;

(2) discretionary grants and whether they should exist in a competitive grant environment in alternating 3-year cycles;

(3) uniform grant applications;

(4) uniform budget requirements;

(5) pre-qualification requirements of applicants, including the fiscal condition of the organization;

(6) minimum requirements of applicant staff for programmatic and administrative purposes;

(7) criteria for requiring a fiscal agent and for becoming a fiscal agent; and

(8) disclosure requirements of Related Parties between grantees and grant-making agencies.

(f) The report shall examine and make recommendations for the following with regard to a grant at the time it is awarded:

(1) uniform grant agreements;

(2) uniform reporting requirements, including budget to actual quarterly reports;

(3) uniform monitoring, including on-site fiscal and administrative control reviews on a risk-based approach to determine the required frequency of monitoring;

(4) payment methods, including advance and reconcile, capital advances, and reimbursement;

(5) administrative requirements;

(6) allowable cost principles;

(7) conditional exemption process;

(8) standardized audit requirements;

(9) program performance reporting;

(10) retention of records and access requirements; and

(11) grant termination and enforcement procedures.

(g) The report shall examine and make recommendations for the following with regard to a grant after it has been awarded:

(1) standardized closeout procedures;

(2) standardized audit requirements;

(3) subsequent grant adjustments and continuing responsibilities;

(4) grant recovery; and

(5) the appeal process.

(h) The report shall be filed with the General Assembly by January 1, 2014.

(i) This Section is repealed on January 1, 2015.

Section 99. Effective date. This Act takes effect upon becoming law.".