Full Text of HB2747 98th General Assembly
HB2747sam003 98TH GENERAL ASSEMBLY | Sen. Dan Kotowski Filed: 5/26/2014
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| 1 | | AMENDMENT TO HOUSE BILL 2747
| 2 | | AMENDMENT NO. ______. Amend House Bill 2747 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 1. Short title. This Act may be cited as the Grant | 5 | | Accountability and Transparency Act. | 6 | | Section 5. Legislative intent.
| 7 | | (a) This Act, which is the product of the work of the | 8 | | Illinois Single Audit Commission, created by Public Act 98-47, | 9 | | is intended to comply with the General Assembly's directives to | 10 | | (1) develop a coordinated, non-redundant process for the | 11 | | provision of effective and efficient oversight of the selection | 12 | | and monitoring of grant recipients, thereby ensuring quality | 13 | | programs and limiting fraud, waste, and abuse, and (2) define | 14 | | the purpose, scope, applicability, and responsibilities in the | 15 | | life cycle of a grant.
| 16 | | (b) This Act is intended to increase the accountability and |
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| 1 | | transparency in the use of grant funds from whatever source and | 2 | | to reduce administrative burdens on both State agencies and | 3 | | grantees by adopting federal guidance and regulations | 4 | | applicable to such grant funds; specifically, the Uniform | 5 | | Administrative Requirements, Cost Principles, and Audit | 6 | | Requirements for Federal Awards ("Uniform Guidance"), codified | 7 | | at 2 CFR 200. | 8 | | (c) This Act is consistent with the State's focus on | 9 | | improving performance and outcomes while ensuring transparency | 10 | | and the financial integrity of taxpayer dollars through such | 11 | | initiatives as the Management Improvement Initiative Committee | 12 | | created by Section 1-37a of the Department of Human Services | 13 | | Act, the State prioritized goals created under Section 50-25 of | 14 | | the State Budget Law (also known as "Budgeting for Results"), | 15 | | and the Grant Information Collection Act. | 16 | | (d) This Act is not intended to affect the provisions of | 17 | | the Illinois State Auditing Act and does not address the | 18 | | external audit function of the Auditor General. | 19 | | Section 10. Purpose. The purpose of this Act is to | 20 | | establish uniform administrative requirements, cost | 21 | | principles, and audit requirements for State and federal | 22 | | pass-through awards to non-federal entities. State awarding | 23 | | agencies shall not impose additional or inconsistent | 24 | | requirements, except as provided in 2 CFR 200.102, unless | 25 | | specifically required by State or federal statute. This Act and |
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| 1 | | the rules adopted under this Act do not apply to private | 2 | | awards. | 3 | | This Act and the rules adopted under this Act provide the | 4 | | basis for a systematic and periodic collection and uniform | 5 | | submission to the Governor's Office of Management and Budget of | 6 | | information of all State and federal financial assistance | 7 | | programs by State grant-making agencies. This Act also | 8 | | establishes policies related to the delivery of this | 9 | | information to the public, including through the use of | 10 | | electronic media. | 11 | | Section 15. Definitions. As used in this Act:
| 12 | | "Allowable cost" means a cost allowable to a project if:
| 13 | | (1) the costs are reasonable and necessary for the | 14 | | performance of the award;
| 15 | | (2) the costs are allocable to the specific project;
| 16 | | (3) the costs are treated consistently in like | 17 | | circumstances to both federally-financed and other | 18 | | activities of the non-federal entity; | 19 | | (4) the costs conform to any limitations of the cost | 20 | | principles or the sponsored agreement; | 21 | | (5) the costs are accorded consistent treatment; a cost | 22 | | may not be assigned to a State or federal award as a direct | 23 | | cost if any other cost incurred for the same purpose in | 24 | | like circumstances has been allocated to the award as an | 25 | | indirect cost;
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| 1 | | (6) the costs are determined to be in accordance with | 2 | | generally accepted accounting principles;
| 3 | | (7) the costs are not included as a cost or used to | 4 | | meet federal cost-sharing or matching requirements of any | 5 | | other program in either the current or prior period; | 6 | | (8) the costs of one State or federal grant are not | 7 | | used to meet the match requirements of another State or | 8 | | federal grant; and | 9 | | (9) the costs are adequately documented. | 10 | | "Auditee" means any non-federal entity that expends State | 11 | | or federal awards that must be audited.
| 12 | | "Auditor" means an auditor who is a public accountant or a | 13 | | federal, State, or local government audit organization that | 14 | | meets the general standards specified in generally-accepted | 15 | | government auditing standards. "Auditor" does not include | 16 | | internal auditors of nonprofit organizations.
| 17 | | "Auditor General" means the Auditor General of the State of | 18 | | Illinois. | 19 | | "Award" means financial assistance that provides support | 20 | | or stimulation to accomplish a public purpose. "Awards" include | 21 | | grants and other agreements in the form of money, or property | 22 | | in lieu of money, by the State or federal government to an | 23 | | eligible recipient. "Award" does not include: technical | 24 | | assistance that provides services instead of money; other | 25 | | assistance in the form of loans, loan guarantees, interest | 26 | | subsidies, or insurance; direct payments of any kind to |
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| 1 | | individuals; or contracts that must be entered into and | 2 | | administered under State or federal procurement laws and | 3 | | regulations. | 4 | | "Budget" means the financial plan for the project or | 5 | | program that the awarding agency or pass-through entity | 6 | | approves during the award process or in subsequent amendments | 7 | | to the award. It may include the State or federal and | 8 | | non-federal share or only the State or federal share, as | 9 | | determined by the awarding agency or pass-through entity. | 10 | | "Catalog of Federal Domestic Assistance" or "CFDA" means a | 11 | | database that helps the federal government track all programs | 12 | | it has domestically funded. | 13 | | "Catalog of Federal Domestic Assistance number" or "CFDA | 14 | | number" means the number assigned to a federal program in the | 15 | | CFDA.
| 16 | | "Catalog of State Financial Assistance" means the single, | 17 | | authoritative, statewide, comprehensive source document of | 18 | | State financial assistance program information maintained by | 19 | | the Governor's Office of Management and Budget.
| 20 | | "Catalog of State Financial Assistance Number" means the | 21 | | number assigned to a State program in the Catalog of State | 22 | | Financial Assistance. The first 3 digits represent the State | 23 | | agency number and the last 4 digits represent the program.
| 24 | | "Cluster of programs" means a grouping of closely related | 25 | | programs that share common compliance requirements. The types | 26 | | of clusters of programs are research and development, student |
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| 1 | | financial aid, and other clusters. A "cluster of programs" | 2 | | shall be considered as one program for determining major | 3 | | programs and, with the exception of research and development, | 4 | | whether a program-specific audit may be elected. | 5 | | "Cognizant agency for audit" means the federal agency | 6 | | designated to carry out the responsibilities described in 2 CFR | 7 | | 200.513(a). | 8 | | "Contract" means a legal instrument by which a non-federal | 9 | | entity purchases property or services needed to carry out the | 10 | | project or program under an award. "Contract" does not include | 11 | | a legal instrument, even if the non-federal entity considers it | 12 | | a contract, when the substance of the transaction meets the | 13 | | definition of an award or subaward.
| 14 | | "Contractor" means an entity that receives a contract.
| 15 | | "Cooperative agreement" means a legal instrument of | 16 | | financial assistance between an awarding agency or | 17 | | pass-through entity and a non-federal entity that: | 18 | | (1) is used to enter into a relationship with the | 19 | | principal purpose of transferring anything of value from | 20 | | the awarding agency or pass-through entity to the | 21 | | non-federal entity to carry out a public purpose authorized | 22 | | by law, but is not used to acquire property or services for | 23 | | the awarding agency's or pass-through entity's direct | 24 | | benefit or use; and
| 25 | | (2) is distinguished from a grant in that it provides | 26 | | for substantial involvement between the awarding agency or |
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| 1 | | pass-through entity and the non-federal entity in carrying | 2 | | out the activity contemplated by the award. | 3 | | "Cooperative agreement" does not include a
cooperative | 4 | | research and development agreement, nor
an agreement that | 5 | | provides only direct cash assistance to an individual, a | 6 | | subsidy, a loan,
a loan guarantee, or insurance. | 7 | | "Corrective action" means action taken by the auditee that | 8 | | (i) corrects identified deficiencies,
(ii) produces | 9 | | recommended improvements, or (iii) demonstrates that audit | 10 | | findings are either invalid or do not warrant auditee action. | 11 | | "Cost objective" means a program, function, activity, | 12 | | award, organizational subdivision, contract, or work unit for | 13 | | which cost data is desired and for which provision is made to | 14 | | accumulate and measure the cost of processes, products, jobs, | 15 | | and capital projects. A "cost objective" may be a major | 16 | | function of the non-federal entity, a particular service or | 17 | | project, an award, or an indirect cost activity. | 18 | | "Cost sharing" means the portion of project costs not paid | 19 | | by State or federal funds, unless otherwise authorized by | 20 | | statute.
| 21 | | "Development" is the systematic use of knowledge and | 22 | | understanding gained from research directed toward the | 23 | | production of useful materials, devices, systems, or methods, | 24 | | including design and development of prototypes and processes. | 25 | | "Data Universal Numbering System number" means the 9-digit | 26 | | number established and assigned by Dun and Bradstreet, Inc. to |
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| 1 | | uniquely identify entities and, under federal law, is required | 2 | | for non-federal entities to apply for, receive, and report on a | 3 | | federal award. | 4 | | "Direct costs" means costs that can be identified | 5 | | specifically with a particular final cost objective, such as a | 6 | | State or federal or federal pass-through award or a particular | 7 | | sponsored project, an instructional activity, or any other | 8 | | institutional activity, or that can be directly assigned to | 9 | | such activities relatively easily with a high degree of | 10 | | accuracy.
| 11 | | "Equipment" means tangible personal property (including | 12 | | information technology systems) having a useful life of more | 13 | | than one year and a per-unit acquisition cost that equals or | 14 | | exceeds the lesser of the capitalization level established by | 15 | | the non-federal entity for financial statement purposes, or | 16 | | $5,000. | 17 | | "Executive branch" means that branch of State government | 18 | | that is under the jurisdiction of the Governor. | 19 | | "Federal agency" has the meaning provided for "agency" | 20 | | under 5 U.S.C. 551(1) together with the meaning provided for | 21 | | "agency" by 5 U.S.C. 552(f). | 22 | | "Federal award" means: | 23 | | (1) the federal financial assistance that a | 24 | | non-federal entity receives directly from a federal | 25 | | awarding agency or indirectly from a pass-through entity;
| 26 | | (2) the cost-reimbursement contract under the Federal |
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| 1 | | Acquisition Regulations that a non-federal entity receives | 2 | | directly from a federal awarding agency or indirectly from | 3 | | a pass-through entity; or | 4 | | (3) the instrument setting forth the terms and | 5 | | conditions when the instrument is the grant agreement, | 6 | | cooperative agreement, other agreement for assistance | 7 | | covered in paragraph (b) of 20 CFR 200.40, or the | 8 | | cost-reimbursement contract awarded under the Federal | 9 | | Acquisition Regulations.
| 10 | | "Federal award" does not include other contracts that a | 11 | | federal agency uses to buy goods or services from a contractor | 12 | | or a contract to operate federal government owned, | 13 | | contractor-operated facilities.
| 14 | | "Federal awarding agency" means the federal agency that | 15 | | provides a federal award directly to a non-federal entity.
| 16 | | "Federal interest" means, for purposes of 2 CFR 200.329 or | 17 | | when used in connection with the acquisition or improvement of | 18 | | real property, equipment, or supplies under a federal award, | 19 | | the dollar amount that is the product of the
federal share of | 20 | | total project costs and
current fair market value of the | 21 | | property, improvements, or both, to the extent the costs of | 22 | | acquiring or improving the property were included as project | 23 | | costs. | 24 | | "Federal program" means any of the following:
| 25 | | (1) All federal awards which are assigned a single | 26 | | number in the CFDA.
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| 1 | | (2) When no CFDA number is assigned, all federal awards | 2 | | to non-federal entities from the same agency made for the | 3 | | same purpose should be combined and considered one program. | 4 | | (3) Notwithstanding paragraphs (1) and (2) of this | 5 | | definition, a cluster of programs. The types of clusters of | 6 | | programs are: | 7 | | (A) research and development; | 8 | | (B) student financial aid; and | 9 | | (C) "other clusters", as described in the | 10 | | definition of "cluster of programs". | 11 | | "Federal share" means the portion of the total project | 12 | | costs that are paid by federal funds. | 13 | | "Final cost objective" means a cost objective which has | 14 | | allocated to it both direct and indirect costs and, in the | 15 | | non-federal entity's accumulation system, is one of the final | 16 | | accumulation points, such as a particular award, internal | 17 | | project, or other direct activity of a non-federal entity. | 18 | | "Financial assistance" means the following: | 19 | | (1) For grants and cooperative agreements, "financial | 20 | | assistance" means assistance that non-federal entities | 21 | | receive or administer in the form of: | 22 | | (A) grants;
| 23 | | (B) cooperative agreements;
| 24 | | (C) non-cash contributions or donations of | 25 | | property, including donated surplus property;
| 26 | | (D) direct appropriations;
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| 1 | | (E) food commodities; and
| 2 | | (F) other financial assistance, except assistance | 3 | | listed in paragraph (2) of this definition.
| 4 | | (2) "Financial assistance" includes assistance that | 5 | | non-federal entities receive or administer in the form of | 6 | | loans, loan guarantees, interest subsidies, and insurance.
| 7 | | (3) "Financial assistance" does not include amounts | 8 | | received as reimbursement for services rendered to | 9 | | individuals.
| 10 | | "Fixed amount awards" means a type of grant agreement under | 11 | | which the awarding agency or pass-through entity provides a | 12 | | specific level of support without regard to actual costs | 13 | | incurred under the award. "Fixed amount awards" reduce some of | 14 | | the administrative burden and record-keeping requirements for | 15 | | both the non-federal entity and awarding agency or pass-through | 16 | | entity. Accountability is based primarily on performance and | 17 | | results.
| 18 | | "Foreign public entity" means:
| 19 | | (1) a foreign government or foreign governmental | 20 | | entity; | 21 | | (2) a public international organization that is | 22 | | entitled to enjoy privileges, exemptions, and immunities | 23 | | as an international organization under the International | 24 | | Organizations Immunities Act (22 U.S.C. 288-288f);
| 25 | | (3) an entity owned, in whole or in part, or controlled | 26 | | by a foreign government; or
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| 1 | | (4) any other entity consisting wholly or partially of | 2 | | one or more foreign governments or foreign governmental | 3 | | entities. | 4 | | "Foreign organization" means an entity that is:
| 5 | | (1) a public or private organization located in a | 6 | | country other than the United States and its territories | 7 | | that are subject to the laws of the country in which it is | 8 | | located, irrespective of the citizenship of project staff | 9 | | or place of performance;
| 10 | | (2) a private nongovernmental organization located in | 11 | | a country other than the United States that solicits and | 12 | | receives cash contributions from the general public;
| 13 | | (3) a charitable organization located in a country | 14 | | other than the United States that is nonprofit and tax | 15 | | exempt under the laws of its country of domicile and | 16 | | operation, but is not a university, college, accredited | 17 | | degree-granting institution of education, private | 18 | | foundation, hospital, organization engaged exclusively in | 19 | | research or scientific activities, church, synagogue, | 20 | | mosque, or other similar entity organized primarily for | 21 | | religious purposes; or
| 22 | | (4) an organization located in a country other than the | 23 | | United States not recognized as a Foreign Public Entity.
| 24 | | "Generally Accepted Accounting Principles" has the meaning | 25 | | provided in accounting standards issued by the Government | 26 | | Accounting Standards Board and the Financial Accounting |
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| 1 | | Standards Board.
| 2 | | "Generally Accepted Government Auditing Standards" means | 3 | | generally accepted government auditing standards issued by the | 4 | | Comptroller General of the United States that are applicable to | 5 | | financial audits.
| 6 | | "Grant agreement" means a legal instrument of financial | 7 | | assistance between an awarding agency or pass-through entity | 8 | | and a non-federal entity that: | 9 | | (1) is used to enter into a relationship, the principal | 10 | | purpose of which is to transfer anything of value from the | 11 | | awarding agency or pass-through entity to the non-federal | 12 | | entity to carry out a public purpose authorized by law and | 13 | | not to acquire property or services for the awarding agency | 14 | | or pass-through entity's direct benefit or use;
and | 15 | | (2) is distinguished from a cooperative agreement in | 16 | | that it does not provide for substantial involvement | 17 | | between the awarding agency or pass-through entity and the | 18 | | non-federal entity in carrying out the activity | 19 | | contemplated by the award. | 20 | | "Grant agreement" does not include an agreement that | 21 | | provides only
direct cash assistance to an individual, a | 22 | | subsidy, a loan, a loan guarantee, or insurance. | 23 | | "Grant application" means a specified form that is | 24 | | completed by a non-federal entity in connection with a request | 25 | | for a specific funding opportunity or a request for financial | 26 | | support of a project or activity.
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| 1 | | "Hospital" means a facility licensed as a hospital under | 2 | | the law of any state or a facility operated as a hospital by | 3 | | the United States, a state, or a subdivision of a state.
| 4 | | "Illinois Debarred and Suspended List" means the list | 5 | | maintained by the Governor's Office of Management and Budget | 6 | | that contains the names of those individuals and entities that | 7 | | are ineligible, either temporarily or permanently, from | 8 | | receiving an award of grant funds from the State.
| 9 | | "Indian tribe" (or "federally recognized Indian tribe") | 10 | | means any Indian tribe, band, nation, or other organized group | 11 | | or community, including any Alaska Native village or regional | 12 | | or village corporation as defined in or established pursuant to | 13 | | the federal Alaska Native Claims Settlement Act (43 U.S.C. | 14 | | 1601, et seq.) that is recognized as eligible for the special | 15 | | programs and services provided by the United States to Indians | 16 | | because of their status as Indians under 25 U.S.C. 450b(e), as | 17 | | set forth in the annually published Bureau of Indian Affairs | 18 | | list of Indian Entities Recognized and Eligible to Receive | 19 | | Services.
| 20 | | "Indirect cost" means those costs incurred for a common or | 21 | | joint purpose benefitting more than one cost objective and not | 22 | | readily assignable to the cost objectives specifically | 23 | | benefitted without effort disproportionate to the results | 24 | | achieved. | 25 | | "Inspector General" means the Office of the Executive | 26 | | Inspector General for Executive branch agencies. |
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| 1 | | "Loan" means a State or federal loan or loan guarantee | 2 | | received or administered by a non-federal entity. "Loan" does | 3 | | not include a "program income" as defined in 2 CFR 200.80.
| 4 | | "Loan guarantee" means any State or federal government | 5 | | guarantee, insurance, or other pledge with respect to the | 6 | | payment of all or a part of the principal or interest on any | 7 | | debt obligation of a non-federal borrower to a non-federal | 8 | | lender, but does not include the insurance of deposits, shares, | 9 | | or other withdrawable accounts in financial institutions. | 10 | | "Local government" has the meaning provided for the term | 11 | | "units of local government" under Section 1 of Article VII of | 12 | | the Illinois Constitution and includes school districts. | 13 | | "Major program" means a federal program determined by the | 14 | | auditor to be a major program in accordance with 2 CFR 200.518 | 15 | | or a program identified as a major program by a federal | 16 | | awarding agency or pass-through entity in accordance with 2 CFR | 17 | | 200.503(e).
| 18 | | "Non-federal entity" means a state, local government, | 19 | | Indian tribe, institution of higher education, or | 20 | | organization, whether nonprofit or for-profit, that carries | 21 | | out a State or federal award as a recipient or subrecipient. | 22 | | "Nonprofit organization" means any corporation, trust, | 23 | | association, cooperative, or other organization, not including | 24 | | institutions of higher education, that:
| 25 | | (1) is operated primarily for scientific, educational, | 26 | | service, charitable, or similar purposes in the public |
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| 1 | | interest;
| 2 | | (2) is not organized primarily for profit; and
| 3 | | (3) uses net proceeds to maintain, improve, or expand | 4 | | the operations of the organization.
| 5 | | "Obligations", when used in connection with a non-federal | 6 | | entity's utilization of funds under an award, means orders | 7 | | placed for property and services, contracts and subawards made, | 8 | | and similar transactions during a given period that require | 9 | | payment by the non-federal entity during the same or a future | 10 | | period.
| 11 | | "Office of Management and Budget" means the Office of | 12 | | Management and Budget of the Executive Office of the President. | 13 | | "Other clusters" has the meaning provided by the federal | 14 | | Office of Management and Budget in the compliance supplement or | 15 | | has the meaning as it is designated by a state for federal | 16 | | awards the state provides to its subrecipients that meet the | 17 | | definition of a cluster of programs. When designating an "other | 18 | | cluster", a state must identify the federal awards included in | 19 | | the cluster and advise the subrecipients of compliance | 20 | | requirements applicable to the cluster. | 21 | | "Oversight agency for audit" means the federal awarding | 22 | | agency that provides the predominant amount of funding directly | 23 | | to a non-federal entity not assigned a cognizant agency for | 24 | | audit. When there is no direct funding, the awarding agency | 25 | | that is the predominant source of pass-through funding must | 26 | | assume the oversight responsibilities. The duties of the |
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| 1 | | oversight agency for audit and the process for any | 2 | | reassignments are described in 2 CFR 200.513(b). | 3 | | "Pass-through entity" means a non-federal entity that | 4 | | provides a subaward to a subrecipient to carry out part of a | 5 | | program.
| 6 | | "Private award" means an award from a person or entity | 7 | | other than a State or federal entity. Private awards are not | 8 | | subject to the provisions of this Act.
| 9 | | "Property" means real property or personal property.
| 10 | | "Project cost" means total allowable costs incurred under | 11 | | an award and all required cost sharing and voluntary committed | 12 | | cost sharing, including third-party contributions.
| 13 | | "Public institutions of higher education" has the meaning | 14 | | provided in Section 1 of the Board of Higher Education Act.
| 15 | | "Recipient" means a non-federal entity that receives an | 16 | | award directly from an awarding agency to carry out an activity | 17 | | under a program. "Recipient" does not include subrecipients. | 18 | | "Research and Development" means all research activities, | 19 | | both basic and applied, and all development activities that are | 20 | | performed by non-federal entities. | 21 | | "Single Audit Act" means the federal Single Audit Act | 22 | | Amendments of 1996 (31 U.S.C. 7501-7507). | 23 | | "State agency" means an Executive branch agency. For | 24 | | purposes of this Act, "State agency" does not include public | 25 | | institutions of higher education. | 26 | | "State award" means the financial assistance that a |
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| 1 | | non-federal entity receives from the State and that is funded | 2 | | with either State funds or federal funds; in the latter case, | 3 | | the State is acting as a pass-through entity. | 4 | | "State awarding agency" means a State agency that provides | 5 | | an award to a non-federal entity. | 6 | | "State grant-making agency" has the same meaning as "State | 7 | | awarding agency". | 8 | | "State interest" means the acquisition or improvement of | 9 | | real property, equipment, or supplies under a State award, the | 10 | | dollar amount that is the product of the State share of the | 11 | | total project costs and current fair market value of the | 12 | | property, improvements, or both, to the extent the costs of | 13 | | acquiring or improving the property were included as project | 14 | | costs. | 15 | | "State program" means any of the following: | 16 | | (1) All State awards which are assigned a single number | 17 | | in the Catalog of State Financial Assistance. | 18 | | (2) When no Catalog of State Financial Assistance | 19 | | number is assigned, all State awards to non-federal | 20 | | entities from the same agency made for the same purpose are | 21 | | considered one program. | 22 | | (3) A cluster of programs as defined in this Section. | 23 | | "State share" means the portion of the total project costs | 24 | | that are paid by State funds. | 25 | | "Student Financial Aid" means federal awards under those | 26 | | programs of general student assistance, such as those |
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| 1 | | authorized by Title IV of the Higher Education Act of 1965, as | 2 | | amended (20 U.S.C. 1070-1099d), that are administered by the | 3 | | United States Department of Education and similar programs | 4 | | provided by other federal agencies. "Student Financial Aid" | 5 | | does not include federal awards under programs that provide | 6 | | fellowships or similar federal awards to students on a | 7 | | competitive basis or for specified studies or research. | 8 | | "Subaward" means a State or federal award provided by a | 9 | | pass-through entity to a subrecipient for the subrecipient to | 10 | | carry out part of a federal award received by the pass-through | 11 | | entity. "Subaward" does not include payments to a contractor or | 12 | | payments to an individual that is a beneficiary of a federal | 13 | | program. A "subaward" may be provided through any form of legal | 14 | | agreement, including an agreement that the pass-through entity | 15 | | considers a contract.
| 16 | | "Subrecipient" means a non-federal entity that receives a | 17 | | State or federal subaward from a pass-through entity to carry | 18 | | out part of a federal program. "Subrecipient" does not include | 19 | | an individual that is a beneficiary of such program. A | 20 | | "subrecipient" may also be a recipient of other State or | 21 | | federal awards directly from a State or federal awarding | 22 | | agency.
| 23 | | "Suspension" means a post-award action by the State or | 24 | | federal agency or pass-through entity that temporarily | 25 | | withdraws the State or federal agency's or pass-through | 26 | | entity's financial assistance sponsorship under an award, |
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| 1 | | pending corrective action by the recipient or subrecipient or | 2 | | pending a decision to terminate the award.
| 3 | | "Uniform Administrative Requirements, Costs Principles, | 4 | | and Audit Requirements for Federal Awards" means those rules | 5 | | applicable to grants contained in 2 CFR 200. | 6 | | "Voluntary committed cost sharing" means cost sharing | 7 | | specifically pledged on a voluntary basis in the proposal's | 8 | | budget or the award on the part of the non-federal entity and | 9 | | that becomes a binding requirement of the award. | 10 | | Section 20. Adoption of federal rules applicable to grants. | 11 | | (a) On or before July 1, 2015, the Governor's Office of | 12 | | Management and Budget, with the advice and technical assistance | 13 | | of the Illinois Single Audit Commission, shall adopt rules | 14 | | which adopt the Uniform Guidance at 2 CFR 200. The rules, which | 15 | | shall apply to all State and federal pass-through awards | 16 | | effective on and after July 1, 2015, shall include the | 17 | | following:
| 18 | | (1) Administrative requirements. In accordance with | 19 | | Subparts B through D of 2 CFR 200, the rules shall set | 20 | | forth the uniform administrative requirements for grant | 21 | | and cooperative agreements, including the requirements for | 22 | | the management by State awarding agencies of federal grant | 23 | | programs before State and federal pass-through awards have | 24 | | been made and requirements that State awarding agencies may | 25 | | impose on non-federal entities in State and federal |
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| 1 | | pass-through awards.
| 2 | | (2) Cost principles. In accordance with Subpart E of 2 | 3 | | CFR 200, the rules shall establish principles for | 4 | | determining the allowable costs incurred by non-federal | 5 | | entities under State and federal pass-through awards. The | 6 | | principles are intended for cost determination, but are not | 7 | | intended to identify the circumstances or dictate the | 8 | | extent of State or federal pass-through participation in | 9 | | financing a particular program or project. The principles | 10 | | shall provide that State and federal awards bear their fair | 11 | | share of cost recognized under these principles, except | 12 | | where restricted or prohibited by State or federal law.
| 13 | | (3) Audit and single audit requirements and audit | 14 | | follow-up. In accordance with Subpart F of 2 CFR 200 and | 15 | | the federal Single Audit Act Amendments of 1996, the rules | 16 | | shall set forth standards to obtain consistency and | 17 | | uniformity among State and federal pass-through awarding | 18 | | agencies for the audit of non-federal entities expending | 19 | | State and federal awards. These provisions shall also set | 20 | | forth the policies and procedures for State and federal | 21 | | pass-through entities when using the results of these | 22 | | audits. | 23 | | The provisions of this item (3) do not apply to | 24 | | for-profit subrecipients because for-profit subrecipients | 25 | | are not subject to the requirements of OMB Circular A-133, | 26 | | Audits of States, Local and Non-Profit Organizations. |
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| 1 | | Audits of for-profit subrecipients must be conducted | 2 | | pursuant to a Program Audit Guide issued by the Federal | 3 | | awarding agency. If a Program Audit Guide is not available, | 4 | | the State awarding agency must prepare a Program Audit | 5 | | Guide in accordance with the OMB Circular A-133 Compliance | 6 | | Supplement. For-profit entities are subject to all other | 7 | | general administrative requirements and cost principles | 8 | | applicable to grants. | 9 | | (b) This Act addresses only State and federal pass-through | 10 | | auditing functions and does not address the external audit | 11 | | function of the Auditor General. | 12 | | (c) For public institutions of higher education, the | 13 | | provisions of this Section apply only to awards funded by State | 14 | | appropriations and federal pass-through awards from a State | 15 | | agency to public institutions of higher education. Federal | 16 | | pass-through awards from a State agency to public institutions | 17 | | of higher education are governed by and must comply with | 18 | | federal guidelines under 2 CFR 200. | 19 | | (d) The State grant-making agency is responsible for | 20 | | establishing requirements, as necessary, to ensure compliance | 21 | | by for-profit subrecipients. The agreement with the for-profit | 22 | | subrecipient shall describe the applicable compliance | 23 | | requirements and the for-profit subrecipient's compliance | 24 | | responsibility. Methods to ensure compliance for State and | 25 | | federal pass-through awards made to for-profit subrecipients | 26 | | shall include pre-award, audits, monitoring during the |
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| 1 | | agreement, and post-award audits. The Governor's Office of | 2 | | Management and Budget shall provide such advice and technical | 3 | | assistance to the State grant-making agency as is necessary or | 4 | | indicated. | 5 | | Section 25. Supplemental rules. On or before July 1, 2015, | 6 | | the Governor's Office of Management and Budget, with the advice | 7 | | and technical assistance of the Illinois Single Audit | 8 | | Commission, shall adopt supplemental rules pertaining to the | 9 | | following: | 10 | | (1) Criteria to define mandatory formula-based grants | 11 | | and discretionary grants.
| 12 | | (2) The award of one-year grants for new applicants.
| 13 | | (3) The award of competitive grants in 3-year terms | 14 | | (one-year initial terms with the option to renew for up to | 15 | | 2 additional years) to coincide with the federal award.
| 16 | | (4) The issuance of grants, including:
| 17 | | (A) public notice of announcements of funding | 18 | | opportunities; | 19 | | (B) the development of uniform grant applications;
| 20 | | (C) State agency review of merit of proposals and | 21 | | risk posed by applicants;
| 22 | | (D) specific conditions for individual recipients | 23 | | (requiring the use of a fiscal agent and additional | 24 | | corrective conditions);
| 25 | | (E) certifications and representations;
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| 1 | | (F) pre-award costs;
| 2 | | (G) performance measures and statewide prioritized | 3 | | goals under Section 50-25 of the State Budget Law of | 4 | | the Civil Administrative Code of Illinois, commonly | 5 | | referred to as "Budgeting for Results"; and
| 6 | | (H) for mandatory formula grants, the merit of the | 7 | | proposal and the risk posed should result in additional | 8 | | reporting, monitoring, or measures such as | 9 | | reimbursement-basis only.
| 10 | | (5) The development of uniform budget requirements, | 11 | | which shall include:
| 12 | | (A) mandatory submission of budgets as part of the | 13 | | grant application process;
| 14 | | (B) mandatory requirements regarding contents of | 15 | | the budget including, at a minimum, common detail line | 16 | | items specified under guidelines issued by the | 17 | | Governor's Office of Management and Budget; | 18 | | (C) a requirement that the budget allow | 19 | | flexibility to add lines describing costs that are | 20 | | common for the services provided as outlined in the | 21 | | grant application; | 22 | | (D) a requirement that the budget include | 23 | | information necessary for analyzing cost and | 24 | | performance for use in the Budgeting for Results | 25 | | initiative; and | 26 | | (E) caps on the amount of salaries that may be |
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| 1 | | charged to grants based on the limitations imposed by | 2 | | federal agencies. | 3 | | (6) The development of pre-qualification requirements | 4 | | for applicants, including the fiscal condition of the | 5 | | organization and the provision of the following | 6 | | information:
| 7 | | (A) organization name;
| 8 | | (B) Federal Employee Identification Number;
| 9 | | (C) Data Universal Numbering System (DUNS) number;
| 10 | | (D) fiscal condition;
| 11 | | (E) whether the applicant is in good standing with | 12 | | the Secretary of State;
| 13 | | (F) past performance in administering grants;
| 14 | | (G) whether the applicant is or has ever been on | 15 | | the Debarred and Suspended List maintained by the | 16 | | Governor's Office of Management and Budget;
| 17 | | (H) whether the applicant is or has ever been on | 18 | | the federal Excluded Parties List; and | 19 | | (I) whether the applicant is or has ever been on | 20 | | the Sanctioned Party List maintained by the Illinois | 21 | | Department of Healthcare and Family Services.
| 22 | | Nothing in this Act affects the provisions of the Fiscal | 23 | | Control and Internal Auditing Act nor the requirement that the | 24 | | management of each State agency is responsible for maintaining | 25 | | effective internal controls under that Act. | 26 | | For public institutions of higher education, the |
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| 1 | | provisions of this Section apply only to awards funded by State | 2 | | appropriations and federal pass-through awards from a State | 3 | | agency to public institutions of higher education. | 4 | | Section 30. Catalog of State Financial Assistance. | 5 | | The Catalog of State Financial Assistance is a single, | 6 | | authoritative, statewide, comprehensive source document of | 7 | | State financial assistance program information. The Catalog | 8 | | shall contain, at a minimum, the following information: | 9 | | (1) An introductory section that contains Catalog | 10 | | highlights, an explanation of how to use the Catalog, an | 11 | | explanation of the Catalog and its contents, and suggested | 12 | | grant proposal writing methods and grant application | 13 | | procedures. | 14 | | (2) A comprehensive indexing system that categorizes | 15 | | programs by issuing agency, eligible applicant, | 16 | | application deadlines, function, popular name, and subject | 17 | | area. | 18 | | (3) Comprehensive appendices showing State assistance | 19 | | programs that require coordination through this Act and | 20 | | regulatory, legislative, and Executive Order authority for | 21 | | each program, commonly used abbreviations and acronyms, | 22 | | agency regional and local office addresses, and sources of | 23 | | additional information. | 24 | | (4) A list of programs that have been added to or | 25 | | deleted from the Catalog and the various program numbers |
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| 1 | | and title changes. | 2 | | (5) Program number, title, and popular name, if | 3 | | applicable. | 4 | | (6) The name of the State department or agency or | 5 | | independent agency and primary organization sub-unit | 6 | | administering the program. | 7 | | (7) The enabling legislation, including popular name | 8 | | of the Act, titles and sections, Public Act number, and | 9 | | citation to the Illinois Compiled Statutes. | 10 | | (8) The type or types of financial and nonfinancial | 11 | | assistance offered by the program. | 12 | | (9) Uses and restrictions placed upon the program. | 13 | | (10) Eligibility requirements, including applicant | 14 | | eligibility criteria, beneficiary eligibility criteria, | 15 | | and required credentials and documentation. | 16 | | (11) Objectives and goals of the program. | 17 | | (12) Information regarding application and award | 18 | | processing; application deadlines; range of approval or | 19 | | disapproval time; appeal procedure; and availability of a | 20 | | renewal or extension of assistance. | 21 | | (13) Assistance considerations, including an | 22 | | explanation of the award formula, matching requirements, | 23 | | and the length and time phasing of the assistance. | 24 | | (14) Post-assistance requirements, including any | 25 | | reports, audits, and records that may be required. | 26 | | (15) Program accomplishments (where available) |
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| 1 | | describing quantitative measures of program performance. | 2 | | (16) Regulations, guidelines, and literature | 3 | | containing citations to the Illinois Administrative Code, | 4 | | the Code of Federal Regulations, and other pertinent | 5 | | informational materials. | 6 | | (17) The names, telephone numbers, and e-mail | 7 | | addresses of persons to be contacted for detailed program | 8 | | information at the headquarters, regional, and local | 9 | | levels.
| 10 | | Section 35. Conflicts of interest. The Governor's Office of | 11 | | Management and Budget shall adopt rules regarding conflict of | 12 | | interest policies for awards. A non-federal entity must | 13 | | disclose in writing any potential conflict of interest to the | 14 | | pass-through entity in accordance with applicable awarding | 15 | | agency policy. | 16 | | Section 40. Mandatory disclosures. The Governor's Office | 17 | | of Management and Budget, with the advice and technical | 18 | | assistance of the Illinois Single Audit Commission, shall adopt | 19 | | rules requiring that the applicant for an award disclose, in a | 20 | | timely manner and in writing to the pass-through entity, all | 21 | | violations of State or federal criminal law involving fraud, | 22 | | bribery, or gratuity violations potentially affecting the | 23 | | award. Failure to make the required disclosures may result in | 24 | | any of the following remedial actions:
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| 1 | | (1) The temporary withholding of cash payments pending | 2 | | correction of the deficiency by the awarding agency or | 3 | | non-federal entity or more severe enforcement action by the | 4 | | pass-through entity.
| 5 | | (2) Disallowance of (that is, denial of both use of | 6 | | funds and any applicable matching credit for) all or part | 7 | | of the cost of the activity or action not in compliance.
| 8 | | (3) Whole or partial suspension or termination of the | 9 | | award.
| 10 | | (4) Initiation of suspension or debarment proceedings | 11 | | as authorized under rules adopted under subsection (a) of | 12 | | Section 20 of this Act and awarding agency regulations (or, | 13 | | in the case of a pass-through entity, recommendation that | 14 | | such a proceeding be initiated by the awarding agency).
| 15 | | (5) Withholding further awards for the project or | 16 | | program.
| 17 | | (6) Taking any other remedial action that may be | 18 | | legally available.
| 19 | | Section 45. Applicability.
| 20 | | (a) The requirements established under this Act apply to | 21 | | State grant-making agencies that make State and federal | 22 | | pass-through awards to non-federal entities. These | 23 | | requirements apply to all costs related to State and federal | 24 | | pass-through awards.
The requirements established under this | 25 | | Act do not apply to private awards. |
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| 1 | | (a-5) Nothing in this Act shall prohibit the use of State | 2 | | funds for purposes of federal match or maintenance of effort. | 3 | | (b) The terms and conditions of State, federal, and | 4 | | pass-through awards apply to subawards and subrecipients | 5 | | unless a particular Section of this Act or the terms and | 6 | | conditions of the State or federal award specifically indicate | 7 | | otherwise. Non-federal entities shall comply with requirements | 8 | | of this Act regardless of whether the non-federal entity is a | 9 | | recipient or subrecipient of a State or federal pass-through | 10 | | award. Pass-through entities shall comply with the | 11 | | requirements set forth under the rules adopted under subsection | 12 | | (a) of Section 20 of this Act, but not to any requirements in | 13 | | this Act directed towards State or federal awarding agencies, | 14 | | unless the requirements of the State or federal awards indicate | 15 | | otherwise.
| 16 | | When a non-federal entity is awarded a cost-reimbursement | 17 | | contract, only 2 CFR 200.330 through 200.332 are incorporated | 18 | | by reference into the contract. However, when the Cost | 19 | | Accounting Standards are applicable to the contract, they take | 20 | | precedence over the requirements of this Act unless they are in | 21 | | conflict with Subpart F of 2 CFR 200. In addition, costs that | 22 | | are made unallowable under 10 U.S.C. 2324(e) and 41 U.S.C. | 23 | | 4304(a), as described in the Federal Acquisition Regulations, | 24 | | subpart 31.2 and subpart 31.603, are always unallowable. For | 25 | | requirements other than those covered in Subpart D of 2 CFR | 26 | | 200.330 through 200.332, the terms of the contract and the |
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| 1 | | Federal Acquisition Regulations apply.
| 2 | | With the exception of Subpart F of 2 CFR 200, which is | 3 | | required by the Single Audit Act, in any circumstances where | 4 | | the provisions of federal statutes or regulations differ from | 5 | | the provisions of this Act, the provision of the federal | 6 | | statutes or regulations govern. This includes, for agreements | 7 | | with Indian tribes, the provisions of the Indian | 8 | | Self-Determination and Education and Assistance Act, as | 9 | | amended, 25 U.S.C. 450-458ddd-2.
| 10 | | (c) State grant-making agencies may apply subparts A | 11 | | through E of 2 CFR 200 to for-profit entities, foreign public | 12 | | entities, or foreign organizations, except where the awarding | 13 | | agency determines that the application of these subparts would | 14 | | be inconsistent with the international obligations of the | 15 | | United States or the statute or regulations of a foreign | 16 | | government.
| 17 | | (d) Except for 2 CFR 200.202 and 200.330 through 200.332, | 18 | | the requirements in Subparts C, D, and E of 2 CFR 200 do not | 19 | | apply to the following programs:
| 20 | | (1) The block grant awards authorized by the Omnibus | 21 | | Budget Reconciliation Act of 1981 (including Community | 22 | | Services; Preventive Health and Health Services; Alcohol, | 23 | | Drug Abuse, and Mental Health Services; Maternal and Child | 24 | | Health Services; Social Services; Low-Income Home Energy | 25 | | Assistance; States' Program of Community Development Block | 26 | | Grant Awards for Small Cities; and Elementary and Secondary |
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| 1 | | Education, other than programs administered by the | 2 | | Secretary of Education under Title V, Subtitle D, Chapter | 3 | | 2, Section 583 - the Secretary's discretionary award | 4 | | program) and both the Alcohol and Drug Abuse Treatment and | 5 | | Rehabilitation Block Grant Award (42 U.S.C. 300x-21 to | 6 | | 300x-35 and 42 U.S.C. 300x-51 to 300x-64) and the Mental | 7 | | Health Service for the Homeless Block Grant Award (42 | 8 | | U.S.C. 300x to 300x-9) under the Public Health Services | 9 | | Act.
| 10 | | (2) Federal awards to local education agencies under 20 | 11 | | U.S.C. 7702 through 7703b (portions of the Impact Aid | 12 | | program).
| 13 | | (3) Payments under the Department of Veterans Affairs' | 14 | | State Home Per Diem Program (38 U.S.C. 1741).
| 15 | | (4) Federal awards authorized under the Child Care and | 16 | | Development Block Grant Act of 1990, as amended, including | 17 | | the following:
| 18 | | (A) Child Care and Development Block Grant (42 | 19 | | U.S.C. 9858). | 20 | | (B) Child Care Mandatory and Matching Funds of the | 21 | | Child Care and Development Fund (42 U.S.C. 9858). | 22 | | (e) Except for the 2 CFR 200.202 requirement to provide | 23 | | public notice of federal financial assistance programs, the | 24 | | guidance in Subpart C Pre-federal Award Requirements and | 25 | | Contents of Federal Awards does not apply to the following | 26 | | programs: |
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| 1 | | (1) Entitlement federal awards to carry out the | 2 | | following programs of the Social Security Act: | 3 | | (A) Temporary Assistance to Needy Families (Title | 4 | | IV-A of the Social Security Act, 42 U.S.C. 601-619);
| 5 | | (B) Child Support Enforcement and Establishment of | 6 | | Paternity (Title IV-D of the Social Security Act, 42 | 7 | | U.S.C. 651-669b);
| 8 | | (C) Foster Care and Adoption Assistance (Title | 9 | | IV-E of the Act, 42 U.S.C. 670-679c);
| 10 | | (D) Aid to the Aged, Blind, and Disabled (Titles I, | 11 | | X, XIV, and XVI - AABD of the Act, as amended); and
| 12 | | (E) Medical Assistance (Medicaid) (42 U.S.C. | 13 | | 1396-1396w-5), not including the State Medicaid Fraud | 14 | | Control program authorized by Section 1903(a)(6)(B) of | 15 | | the Social Security Act (42 U.S.C. 1396b(a)(6)(B)). | 16 | | (2) A federal award for an experimental, pilot, or | 17 | | demonstration project that is also supported by a federal | 18 | | award listed in paragraph (1) of subsection (e) of this | 19 | | Section.
| 20 | | (3) Federal awards under subsection 412(e) of the | 21 | | Immigration and Nationality Act of 1965 and Section 501(a) | 22 | | of the Refugee Education Assistance Act of 1980 for cash | 23 | | assistance, medical assistance, and supplemental security | 24 | | income benefits to refugees and entrants and the | 25 | | administrative costs of providing the assistance and | 26 | | benefits under 8 U.S.C. 1522(e).
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| 1 | | (4) Entitlement awards under the following programs of | 2 | | The National School Lunch Act: | 3 | | (A) National School Lunch Program (42 U.S.C. | 4 | | 1753);
| 5 | | (B) Commodity Assistance (42 U.S.C. 1755);
| 6 | | (C) Special Meal Assistance (42 U.S.C. 1759a);
| 7 | | (D) Summer Food Service Program for Children (42 | 8 | | U.S.C. 1761); and
| 9 | | (E) Child and Adult Care Food Program (42 U.S.C. | 10 | | 1766).
| 11 | | (5) Entitlement awards under the following programs of | 12 | | The Child Nutrition Act of 1966: | 13 | | (A) Special Milk Program (42 U.S.C. 1772);
| 14 | | (B) School Breakfast Program (42 U.S.C. 1773); and
| 15 | | (C) State Administrative Expenses (42 U.S.C. | 16 | | 1776).
| 17 | | (6) Entitlement awards for State Administrative | 18 | | Expenses under The Food and Nutrition Act of 2008 (7 U.S.C. | 19 | | 2025). | 20 | | (7) Non-discretionary federal awards under the | 21 | | following non-entitlement programs:
| 22 | | (A) Special Supplemental Nutrition Program for | 23 | | Women, Infants and Children under the Child Nutrition | 24 | | Act of 1966 (42 U.S.C. 1786);
| 25 | | (B) The Emergency Food Assistance Programs | 26 | | (Emergency Food Assistance Act of 1983) (7 U.S.C. |
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| 1 | | 7501); and
| 2 | | (C) Commodity Supplemental Food Program (7 U.S.C. | 3 | | 612c).
| 4 | | (f) For public institutions of higher education, the | 5 | | provisions of this Act apply only to awards funded by State | 6 | | appropriations and federal pass-through awards from a State | 7 | | agency to public institutions of higher education. | 8 | | (g) Each grant-making agency shall enhance its processes to | 9 | | monitor and address noncompliance with reporting requirements | 10 | | and with program performance standards. Where applicable, the | 11 | | process may include a corrective action plan. The monitoring | 12 | | process shall include a plan for tracking and documenting | 13 | | performance-based contracting decisions. | 14 | | Section 50. State grant-making agency responsibilities. | 15 | | (a) The specific requirements and responsibilities of | 16 | | State grant-making agencies and non-federal entities are set | 17 | | forth in this Act. State agencies making State awards to | 18 | | non-federal entities must adopt by rule the language in 2 CFR | 19 | | 200, Subpart C through Subpart F unless different provisions | 20 | | are required by law. | 21 | | (b) Each State grant-making agency shall appoint a Chief | 22 | | Accountability Officer who shall serve as a liaison to the | 23 | | Grant Accountability and Transparency Unit and who shall be | 24 | | responsible for the State agency's implementation of and | 25 | | compliance with the rules. |
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| 1 | | (c) In order to effectively measure the performance of its | 2 | | recipients and subrecipients, each State grant-making agency | 3 | | shall:
| 4 | | (1) require its recipients and subrecipients to relate | 5 | | financial data to performance accomplishments of the award and, | 6 | | when applicable, must require recipients and subrecipients to | 7 | | provide cost information to demonstrate cost-effective | 8 | | practices. The
recipient's and subrecipient's performance | 9 | | should be measured in a way that will help the State agency to | 10 | | improve program outcomes, share lessons learned, and spread the | 11 | | adoption of promising practices; and
| 12 | | (2) provide recipients and subrecipients with clear | 13 | | performance goals, indicators, and milestones and must | 14 | | establish performance reporting frequency and content to not | 15 | | only allow the State agency to understand the recipient's | 16 | | progress, but also to facilitate
identification of promising | 17 | | practices among recipients and subrecipients and build the | 18 | | evidence upon which the State agency's program and performance | 19 | | decisions are made.
| 20 | | (d) The Governor's Office of Management and Budget shall | 21 | | provide such advice and technical assistance to the State | 22 | | grant-making agencies as is necessary or indicated in order to | 23 | | ensure compliance with this Act. | 24 | | Section 55. The Governor's Office of Management and Budget | 25 | | responsibilities.
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| 1 | | (a) The Governor's Office of Management and Budget shall: | 2 | | (1) provide technical assistance and interpretations | 3 | | of policy requirements in order to ensure effective and | 4 | | efficient implementation of this Act by State grant-making | 5 | | agencies; and | 6 | | (2) have authority to approve any exceptions to the | 7 | | requirements of this Act and shall adopt rules governing | 8 | | the criteria to be considered when an exception is | 9 | | requested; exceptions shall only be made in particular | 10 | | cases where adequate justification is presented. | 11 | | (b) The Governor's Office of Management and Budget shall, | 12 | | on or before July 1, 2014, establish a centralized unit within | 13 | | the Governor's Office of Management and Budget. The centralized | 14 | | unit shall be known as the Grant Accountability and | 15 | | Transparency Unit and shall be funded with a portion of the | 16 | | administrative funds provided under existing and future State | 17 | | and federal pass-through grants.
The amounts charged will be | 18 | | allocated based on the actual cost of the services provided to | 19 | | State grant-making agencies and public institutions of higher | 20 | | education in accordance with the applicable federal cost | 21 | | principles contained in 2 CFR 200 and this Act will not cause | 22 | | the reduction in the amount of any State or federal grant | 23 | | awards that have been or will be directed towards State | 24 | | agencies or public institutions of higher education. | 25 | | Section 60. Grant Accountability and Transparency Unit |
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| 1 | | responsibilities. | 2 | | (a) The Grant Accountability and Transparency Unit within | 3 | | the Governor's Office of Management and Budget shall be | 4 | | responsible for:
| 5 | | (1) The development of minimum requirements applicable | 6 | | to the staff of grant applicants to manage and execute | 7 | | grant awards for programmatic and administrative purposes, | 8 | | including grant management specialists with:
| 9 | | (A) general and technical competencies;
| 10 | | (B) programmatic expertise;
| 11 | | (C) fiscal expertise and systems necessary to | 12 | | adequately account for the source and application of | 13 | | grant funds for each program; and
| 14 | | (D) knowledge of compliance requirements. | 15 | | (2) The development of minimum training requirements, | 16 | | including annual training requirements.
| 17 | | (3) Accurate, current, and complete disclosure of the | 18 | | financial results of each funded award, as set forth in the | 19 | | financial monitoring and reporting Section of 2 CFR 200.
| 20 | | (4) Development of criteria for requiring the | 21 | | retention of a fiscal agent and for becoming a fiscal | 22 | | agent.
| 23 | | (5) Development of disclosure requirements in the | 24 | | grant application pertaining to:
| 25 | | (A) related-party status between grantees and | 26 | | grant-making agencies;
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| 1 | | (B) past employment of applicant officers and | 2 | | grant managers;
| 3 | | (C) disclosure of current or past employment of | 4 | | members of immediate family; and | 5 | | (D) disclosure of senior management of grantee | 6 | | organization and their relationships with contracted | 7 | | vendors.
| 8 | | (6) Implementation of rules prohibiting a grantee from | 9 | | charging any cost allocable to a particular award or cost | 10 | | objective to other State or federal awards to overcome fund | 11 | | deficiencies, to avoid restrictions imposed by law or terms | 12 | | of the federal awards, or for other reasons.
| 13 | | (7) Implementation of rules prohibiting a non-federal | 14 | | entity from earning or keeping any profit resulting from | 15 | | State or federal financial assistance, unless prior | 16 | | approval has been obtained from the Governor's Office of | 17 | | Management and Budget and is expressly authorized by the | 18 | | terms and conditions of the award.
| 19 | | (8) Maintenance of an Illinois Debarred and Suspended | 20 | | List that contains the names of those individuals and | 21 | | entities that are ineligible, either temporarily or | 22 | | permanently, to receive an award of grant funds from the | 23 | | State. | 24 | | (9) Ensuring the adoption of standardized rules for the | 25 | | implementation of this Act by State grant-making agencies. | 26 | | The Grant Accountability and Transparency Unit shall |
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| 1 | | provide such advice and technical assistance to the State | 2 | | grant-making agencies as is necessary or indicated in order | 3 | | to ensure compliance with this Act.
| 4 | | (10) Coordination of financial and Single Audit | 5 | | reviews.
| 6 | | (11) Coordination of on-site reviews of grantees and | 7 | | subrecipients.
| 8 | | (12) Maintenance of the Catalog of State Financial | 9 | | Assistance, which shall be posted on an Internet website | 10 | | maintained by the Governor's Office of Management and | 11 | | Budget that is available to the public.
| 12 | | (b) The Grant Accountability and Transparency Unit shall | 13 | | have no power or authority regarding the approval, disapproval, | 14 | | management, or oversight of grants entered into or awarded by a | 15 | | State agency or by a public institution of higher education. | 16 | | The power or authority existing under law to grant or award | 17 | | grants by a State agency or by a public institution of higher | 18 | | education shall remain with that State agency or public | 19 | | institution of higher education. The Unit shall be responsible | 20 | | for reviewing and approving amendments to the Administrative | 21 | | Code proposed by State grant agencies in connection with the | 22 | | implementation of this Act and shall be responsible for | 23 | | establishing standardized policies and procedures for State | 24 | | grant-making agencies in order to ensure compliance with the | 25 | | Uniform Administrative Requirements, Cost Principles and Audit | 26 | | Requirements for Federal Awards set forth in 2 CFR Part 200, |
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| 1 | | all of which must be adhered to by the State grant-making | 2 | | agencies throughout the life cycle of the grant. | 3 | | (c) The powers and functions of grant making by State | 4 | | agencies or public institutions of higher education may not be | 5 | | transferred to, nor may prior grant approval be transferred to, | 6 | | any other person, office, or entity within the executive branch | 7 | | of State government. | 8 | | Section 65. Audit requirements. | 9 | | (a) The standards set forth in Subpart F of 2 CFR 200 and | 10 | | any other standards that apply directly to State or federal | 11 | | agencies shall apply to audits of fiscal years beginning on or | 12 | | after December 26, 2014. | 13 | | (b) Books and records must be available for review or audit | 14 | | by appropriate officials of the pass-through entity, and the | 15 | | agency, the Auditor General, the Inspector General, | 16 | | appropriate officials of the agency, and the federal Government | 17 | | Accountability Office. | 18 | | (c) The Governor's Office of Management and Budget, with | 19 | | the advice and technical assistance of the Illinois Single | 20 | | Audit Commission, shall adopt rules for audits of grants from a | 21 | | State or federal pass-through entity that are not subject to | 22 | | the Single Audit Act because the amount of the federal award is | 23 | | less than $750,000 or the subrecipient is an exempt entity and | 24 | | that are reasonably consistent with 2 CFR 200. | 25 | | (d) This Act does not affect the provisions of the Illinois |
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| 1 | | State Auditing Act and does not address the external audit | 2 | | function of the Auditor General. | 3 | | Section 70. Review date. The Governor's Office of | 4 | | Management and Budget shall review this Act at least once every | 5 | | 5 years after December 26, 2014 in conjunction with the federal | 6 | | review of the Uniform Administrative Requirements, Cost | 7 | | Principles, and Audit Requirements for Federal Awards as | 8 | | required by 2 CFR 200.109 in order to determine whether any | 9 | | existing rules need to be revised or new rules adopted. | 10 | | Section 75. State program exceptions. | 11 | | (a) With the exception of the audit requirements set forth | 12 | | in 2 CFR 200.102, exceptions may be allowed for classes of | 13 | | State or federal pass-through awards or non-federal entities | 14 | | subject to the requirements of this Act when such exceptions | 15 | | are not prohibited by State or federal law. However, in the | 16 | | interest of maximum uniformity, exceptions from the | 17 | | requirements of this Act shall be permitted only in unusual or | 18 | | exceptional circumstances.
| 19 | | (b) The Governor's Office of Management and Budget, with | 20 | | the advice and technical assistance of the Illinois Single | 21 | | Audit Commission, shall adopt rules governing the criteria that | 22 | | shall be used to determine when an exception may be issued. The | 23 | | Governor's Office of Management and Budget shall publish any | 24 | | allowed exceptions in the Catalogue of State Financial |
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| 1 | | Assistance within 30 days of the exception being allowed. | 2 | | Section 80. Supersession. On and after July 1, 2015, in the | 3 | | event of a conflict with the Grant Funds Recovery Act, the | 4 | | provisions of this Act shall control. | 5 | | Section 85. Implementation date. The Governor's Office of | 6 | | Management and Budget shall adopt all rules required under this | 7 | | Act on or before July 1, 2015. | 8 | | Section 90. Agency implementation. All State grant-making | 9 | | agencies shall implement the rules issued by the Governor's | 10 | | Office of Management and Budget on or before July 1, 2015. The | 11 | | standards set forth in this Act, which affect administration of | 12 | | State and federal pass-through awards issued by State | 13 | | grant-making agencies, become effective once implemented by | 14 | | State grant-making agencies. State grant-making agencies shall | 15 | | implement the policies and procedures applicable to State and | 16 | | federal pass-through awards by adopting rules for non-federal | 17 | | entities that shall take effect for fiscal years on and after | 18 | | December 26, 2014, unless different provisions are required by | 19 | | State or federal statute or federal rule. | 20 | | Section 95. Annual report. Effective January 1, 2016 and | 21 | | each January 1 thereafter, the Governor's Office of Management | 22 | | and Budget, in conjunction with the Illinois Single Audit |
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| 1 | | Commission, shall submit to the Governor and the General | 2 | | Assembly a report that demonstrates the efficiencies, cost | 3 | | savings, and reductions in fraud, waste, and abuse as a result | 4 | | of the implementation of this Act and the rules adopted by the | 5 | | Governor's Office of Management and Budget in accordance with | 6 | | the provisions of this Act. The report shall include, but not | 7 | | be limited to:
| 8 | | (1) the number of entities placed on the Illinois | 9 | | Debarred and Suspended List;
| 10 | | (2) any savings realized as a result of the | 11 | | implementation of this Act;
| 12 | | (3) any reduction in the number of duplicative audits;
| 13 | | (4) the number of persons trained to assist grantees | 14 | | and subrecipients; and
| 15 | | (5) the number of grantees and subrecipients to whom a | 16 | | fiscal agent was assigned.
| 17 | | Section 100. Repeal. This Act is repealed 5 years after the | 18 | | effective date of this Act. | 19 | | Section 505. The Governor's Office of Management and Budget | 20 | | Act is amended by changing Section 2 and by adding Sections | 21 | | 2.8, 2.9, and 2.10 as follows:
| 22 | | (20 ILCS 3005/2) (from Ch. 127, par. 412)
| 23 | | Sec. 2.
There is created in the executive office of the |
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| 1 | | Governor an Office
to
be known as the Governor's Office of | 2 | | Management and
Budget. The Office shall be headed by a
| 3 | | Director, who shall be appointed by the Governor. The functions | 4 | | of the
Office shall be as prescribed in Sections 2.1 through | 5 | | 2.10 2.7 of
this
Act.
| 6 | | (Source: P.A. 93-25, eff. 6-20-03.)
| 7 | | (20 ILCS 3005/2.8 new) | 8 | | Sec. 2.8. Pursuant to the Grant Accountability and | 9 | | Transparency Act, to create, on or before July 1, 2014, the | 10 | | Grant Accountability and Transparency Unit within the Office. | 11 | | The Grant Accountability and Transparency Unit shall report | 12 | | directly to the Director of the Governor's Office of Management | 13 | | and Budget. | 14 | | (20 ILCS 3005/2.9 new) | 15 | | Sec. 2.9. Pursuant to the Grant Accountability and | 16 | | Transparency Act, to maintain a list of those individuals and | 17 | | entities that are ineligible, either temporarily or | 18 | | permanently, to receive an award of grant funds from the State. | 19 | | (20 ILCS 3005/2.10 new) | 20 | | Sec. 2.10. To adopt rules on or before July 1, 2015 | 21 | | necessary to comply with the Grant Accountability and | 22 | | Transparency Act. Should changes to the rules be required by | 23 | | the review mandated by Section 65 of the Grant Accountability |
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| 1 | | and Transparency Act, the Governor's Office of Management and | 2 | | Budget may adopt such peremptory rules as are necessary to | 3 | | comply with changes to corresponding federal rules. All other | 4 | | rules that the Governor's Office of Management and Budget deems | 5 | | necessary to adopt in connection with the Grant Accountability | 6 | | and Transparency Act must proceed through the ordinary | 7 | | rule-making process. | 8 | | (30 ILCS 705/4.2 rep.) | 9 | | Section 510. The Illinois Grant Funds Recovery Act is | 10 | | amended by repealing Section 4.2. | 11 | | Section 515. The Illinois Grant Funds Recovery Act is | 12 | | amended by adding Sections 15.1 and 16 as follows: | 13 | | (30 ILCS 705/15.1 new) | 14 | | Sec. 15.1. Illinois Single Audit Commission. | 15 | | (a) There is created the Illinois Single Audit Commission. | 16 | | The Commission shall assist the Governor's Office of Management | 17 | | and Budget in creating its annual report under Section 90 of | 18 | | the Grant Accountability and Transparency Act. | 19 | | (b) The Commission shall be comprised of one representative | 20 | | from each of the following grant-making agencies who is an | 21 | | expert in grants subject matter, and who shall be appointed by | 22 | | the Governor, one of whom shall be designated as Chairperson: | 23 | | Department on Aging; Department of Children and Family |
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| 1 | | Services; Department of Healthcare and Family Services; | 2 | | Department of Human Services; Department of Public Health; | 3 | | Criminal Justice Information Authority; Department of Commerce | 4 | | and Economic Opportunity; Department of Transportation; | 5 | | Illinois State Board of Education; Illinois Student Assistance | 6 | | Commission; Department of Agriculture; Environmental | 7 | | Protection Agency; and Department of Natural Resources. | 8 | | (c) The Governor may, as he or she deems necessary or | 9 | | appropriate, designate representatives of additional State | 10 | | agencies with grant-making authority to serve as members of the | 11 | | Commission. | 12 | | (d) The Governor may appoint a total of 4 representatives | 13 | | of community organizations, providers, or associations who are | 14 | | experts in grants subject matter to serve as members of the | 15 | | Commission. | 16 | | (e) The Governor may appoint a total of 3 representatives | 17 | | of public institutions of higher education who are experts in | 18 | | grants subject matter to serve as members of the Commission. | 19 | | (f) Should any of the State agencies listed in subsection | 20 | | (b) of this Section deem that additional representation by | 21 | | community organizations, providers, or associations is | 22 | | necessary or appropriate, and the Commission as a whole is in | 23 | | concurrence with this decision, the State agency or agencies | 24 | | may appoint additional members; provided, however, that no more | 25 | | than a total of 4 such additional members may be appointed to | 26 | | the Commission. |
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| 1 | | (g) The Commission shall also include: a representative of | 2 | | the Governor's Office of Management and Budget, appointed by | 3 | | the Governor; 4 members of the General Assembly, one from the | 4 | | House of Representatives Democratic Caucus, one from the House | 5 | | of Representatives Republican Caucus, one from the Senate | 6 | | Democratic Caucus, and one from the Senate Republican Caucus, | 7 | | all of whom shall be appointed by the Governor. | 8 | | (h) The Co-chairpersons of the relevant subcommittees | 9 | | within the Management Initiative Improvement Committee under | 10 | | Section 1-37b of the Department of Human Services Act may be | 11 | | included as members of the Commission if the Commission deems | 12 | | their inclusion necessary for the coordination of its efforts. | 13 | | (i) The Commission shall provide advice and technical | 14 | | assistance to the Governor's Office of Management and Budget in | 15 | | connection with the rules drafted pursuant to the Grant | 16 | | Accountability and Transparency Act. | 17 | | (j) This Section is repealed on July 1, 2019. | 18 | | (30 ILCS 705/16 new) | 19 | | Sec. 16. Supersession. On and after July 1, 2015, in the | 20 | | event of a conflict with the Grant Accountability and | 21 | | Transparency Act, the Grant Accountability and Transparency | 22 | | Act shall control.
| 23 | | Section 997. Severability. The provisions of this Act are | 24 | | severable under Section 1.31 of the Statute on Statutes. |
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| 1 | | Section 999. Effective date. This Act takes effect upon | 2 | | becoming law.".
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