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Public Act 098-0706 | ||||
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AN ACT concerning government.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 1. Short title. This Act may be cited as the Grant | ||||
Accountability and Transparency Act. | ||||
Section 5. Legislative intent.
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(a) This Act, which is the product of the work of the | ||||
Illinois Single Audit Commission, created by Public Act 98-47, | ||||
is intended to comply with the General Assembly's directives to | ||||
(1) develop a coordinated, non-redundant process for the | ||||
provision of effective and efficient oversight of the selection | ||||
and monitoring of grant recipients, thereby ensuring quality | ||||
programs and limiting fraud, waste, and abuse, and (2) define | ||||
the purpose, scope, applicability, and responsibilities in the | ||||
life cycle of a grant.
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(b) This Act is intended to increase the accountability and | ||||
transparency in the use of grant funds from whatever source and | ||||
to reduce administrative burdens on both State agencies and | ||||
grantees by adopting federal guidance and regulations | ||||
applicable to such grant funds; specifically, the Uniform | ||||
Administrative Requirements, Cost Principles, and Audit | ||||
Requirements for Federal Awards ("Uniform Guidance"), codified | ||||
at 2 CFR 200. |
(c) This Act is consistent with the State's focus on | ||
improving performance and outcomes while ensuring transparency | ||
and the financial integrity of taxpayer dollars through such | ||
initiatives as the Management Improvement Initiative Committee | ||
created by Section 1-37a of the Department of Human Services | ||
Act, the State prioritized goals created under Section 50-25 of | ||
the State Budget Law (also known as "Budgeting for Results"), | ||
and the Grant Information Collection Act. | ||
(d) This Act is not intended to affect the provisions of | ||
the Illinois State Auditing Act and does not address the | ||
external audit function of the Auditor General. | ||
Section 10. Purpose. The purpose of this Act is to | ||
establish uniform administrative requirements, cost | ||
principles, and audit requirements for State and federal | ||
pass-through awards to non-federal entities. State awarding | ||
agencies shall not impose additional or inconsistent | ||
requirements, except as provided in 2 CFR 200.102, unless | ||
specifically required by State or federal statute. This Act and | ||
the rules adopted under this Act do not apply to private | ||
awards. | ||
This Act and the rules adopted under this Act provide the | ||
basis for a systematic and periodic collection and uniform | ||
submission to the Governor's Office of Management and Budget of | ||
information of all State and federal financial assistance | ||
programs by State grant-making agencies. This Act also |
establishes policies related to the delivery of this | ||
information to the public, including through the use of | ||
electronic media. | ||
Section 15. Definitions. As used in this Act:
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"Allowable cost" means a cost allowable to a project if:
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(1) the costs are reasonable and necessary for the | ||
performance of the award;
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(2) the costs are allocable to the specific project;
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(3) the costs are treated consistently in like | ||
circumstances to both federally-financed and other | ||
activities of the non-federal entity; | ||
(4) the costs conform to any limitations of the cost | ||
principles or the sponsored agreement; | ||
(5) the costs are accorded consistent treatment; a cost | ||
may not be assigned to a State or federal award as a direct | ||
cost if any other cost incurred for the same purpose in | ||
like circumstances has been allocated to the award as an | ||
indirect cost;
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(6) the costs are determined to be in accordance with | ||
generally accepted accounting principles;
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(7) the costs are not included as a cost or used to | ||
meet federal cost-sharing or matching requirements of any | ||
other program in either the current or prior period; | ||
(8) the costs of one State or federal grant are not | ||
used to meet the match requirements of another State or |
federal grant; and | ||
(9) the costs are adequately documented. | ||
"Auditee" means any non-federal entity that expends State | ||
or federal awards that must be audited.
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"Auditor" means an auditor who is a public accountant or a | ||
federal, State, or local government audit organization that | ||
meets the general standards specified in generally-accepted | ||
government auditing standards. "Auditor" does not include | ||
internal auditors of nonprofit organizations.
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"Auditor General" means the Auditor General of the State of | ||
Illinois. | ||
"Award" means financial assistance that provides support | ||
or stimulation to accomplish a public purpose. "Awards" include | ||
grants and other agreements in the form of money, or property | ||
in lieu of money, by the State or federal government to an | ||
eligible recipient. "Award" does not include: technical | ||
assistance that provides services instead of money; other | ||
assistance in the form of loans, loan guarantees, interest | ||
subsidies, or insurance; direct payments of any kind to | ||
individuals; or contracts that must be entered into and | ||
administered under State or federal procurement laws and | ||
regulations. | ||
"Budget" means the financial plan for the project or | ||
program that the awarding agency or pass-through entity | ||
approves during the award process or in subsequent amendments | ||
to the award. It may include the State or federal and |
non-federal share or only the State or federal share, as | ||
determined by the awarding agency or pass-through entity. | ||
"Catalog of Federal Domestic Assistance" or "CFDA" means a | ||
database that helps the federal government track all programs | ||
it has domestically funded. | ||
"Catalog of Federal Domestic Assistance number" or "CFDA | ||
number" means the number assigned to a federal program in the | ||
CFDA.
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"Catalog of State Financial Assistance" means the single, | ||
authoritative, statewide, comprehensive source document of | ||
State financial assistance program information maintained by | ||
the Governor's Office of Management and Budget.
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"Catalog of State Financial Assistance Number" means the | ||
number assigned to a State program in the Catalog of State | ||
Financial Assistance. The first 3 digits represent the State | ||
agency number and the last 4 digits represent the program.
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"Cluster of programs" means a grouping of closely related | ||
programs that share common compliance requirements. The types | ||
of clusters of programs are research and development, student | ||
financial aid, and other clusters. A "cluster of programs" | ||
shall be considered as one program for determining major | ||
programs and, with the exception of research and development, | ||
whether a program-specific audit may be elected. | ||
"Cognizant agency for audit" means the federal agency | ||
designated to carry out the responsibilities described in 2 CFR | ||
200.513(a). |
"Contract" means a legal instrument by which a non-federal | ||
entity purchases property or services needed to carry out the | ||
project or program under an award. "Contract" does not include | ||
a legal instrument, even if the non-federal entity considers it | ||
a contract, when the substance of the transaction meets the | ||
definition of an award or subaward.
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"Contractor" means an entity that receives a contract.
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"Cooperative agreement" means a legal instrument of | ||
financial assistance between an awarding agency or | ||
pass-through entity and a non-federal entity that: | ||
(1) is used to enter into a relationship with the | ||
principal purpose of transferring anything of value from | ||
the awarding agency or pass-through entity to the | ||
non-federal entity to carry out a public purpose authorized | ||
by law, but is not used to acquire property or services for | ||
the awarding agency's or pass-through entity's direct | ||
benefit or use; and
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(2) is distinguished from a grant in that it provides | ||
for substantial involvement between the awarding agency or | ||
pass-through entity and the non-federal entity in carrying | ||
out the activity contemplated by the award. | ||
"Cooperative agreement" does not include a
cooperative | ||
research and development agreement, nor
an agreement that | ||
provides only direct cash assistance to an individual, a | ||
subsidy, a loan,
a loan guarantee, or insurance. | ||
"Corrective action" means action taken by the auditee that |
(i) corrects identified deficiencies,
(ii) produces | ||
recommended improvements, or (iii) demonstrates that audit | ||
findings are either invalid or do not warrant auditee action. | ||
"Cost objective" means a program, function, activity, | ||
award, organizational subdivision, contract, or work unit for | ||
which cost data is desired and for which provision is made to | ||
accumulate and measure the cost of processes, products, jobs, | ||
and capital projects. A "cost objective" may be a major | ||
function of the non-federal entity, a particular service or | ||
project, an award, or an indirect cost activity. | ||
"Cost sharing" means the portion of project costs not paid | ||
by State or federal funds, unless otherwise authorized by | ||
statute.
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"Development" is the systematic use of knowledge and | ||
understanding gained from research directed toward the | ||
production of useful materials, devices, systems, or methods, | ||
including design and development of prototypes and processes. | ||
"Data Universal Numbering System number" means the 9-digit | ||
number established and assigned by Dun and Bradstreet, Inc. to | ||
uniquely identify entities and, under federal law, is required | ||
for non-federal entities to apply for, receive, and report on a | ||
federal award. | ||
"Direct costs" means costs that can be identified | ||
specifically with a particular final cost objective, such as a | ||
State or federal or federal pass-through award or a particular | ||
sponsored project, an instructional activity, or any other |
institutional activity, or that can be directly assigned to | ||
such activities relatively easily with a high degree of | ||
accuracy.
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"Equipment" means tangible personal property (including | ||
information technology systems) having a useful life of more | ||
than one year and a per-unit acquisition cost that equals or | ||
exceeds the lesser of the capitalization level established by | ||
the non-federal entity for financial statement purposes, or | ||
$5,000. | ||
"Executive branch" means that branch of State government | ||
that is under the jurisdiction of the Governor. | ||
"Federal agency" has the meaning provided for "agency" | ||
under 5 U.S.C. 551(1) together with the meaning provided for | ||
"agency" by 5 U.S.C. 552(f). | ||
"Federal award" means: | ||
(1) the federal financial assistance that a | ||
non-federal entity receives directly from a federal | ||
awarding agency or indirectly from a pass-through entity;
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(2) the cost-reimbursement contract under the Federal | ||
Acquisition Regulations that a non-federal entity receives | ||
directly from a federal awarding agency or indirectly from | ||
a pass-through entity; or | ||
(3) the instrument setting forth the terms and | ||
conditions when the instrument is the grant agreement, | ||
cooperative agreement, other agreement for assistance | ||
covered in paragraph (b) of 20 CFR 200.40, or the |
cost-reimbursement contract awarded under the Federal | ||
Acquisition Regulations.
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"Federal award" does not include other contracts that a | ||
federal agency uses to buy goods or services from a contractor | ||
or a contract to operate federal government owned, | ||
contractor-operated facilities.
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"Federal awarding agency" means the federal agency that | ||
provides a federal award directly to a non-federal entity.
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"Federal interest" means, for purposes of 2 CFR 200.329 or | ||
when used in connection with the acquisition or improvement of | ||
real property, equipment, or supplies under a federal award, | ||
the dollar amount that is the product of the
federal share of | ||
total project costs and
current fair market value of the | ||
property, improvements, or both, to the extent the costs of | ||
acquiring or improving the property were included as project | ||
costs. | ||
"Federal program" means any of the following:
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(1) All federal awards which are assigned a single | ||
number in the CFDA.
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(2) When no CFDA number is assigned, all federal awards | ||
to non-federal entities from the same agency made for the | ||
same purpose should be combined and considered one program. | ||
(3) Notwithstanding paragraphs (1) and (2) of this | ||
definition, a cluster of programs. The types of clusters of | ||
programs are: | ||
(A) research and development; |
(B) student financial aid; and | ||
(C) "other clusters", as described in the | ||
definition of "cluster of programs". | ||
"Federal share" means the portion of the total project | ||
costs that are paid by federal funds. | ||
"Final cost objective" means a cost objective which has | ||
allocated to it both direct and indirect costs and, in the | ||
non-federal entity's accumulation system, is one of the final | ||
accumulation points, such as a particular award, internal | ||
project, or other direct activity of a non-federal entity. | ||
"Financial assistance" means the following: | ||
(1) For grants and cooperative agreements, "financial | ||
assistance" means assistance that non-federal entities | ||
receive or administer in the form of: | ||
(A) grants;
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(B) cooperative agreements;
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(C) non-cash contributions or donations of | ||
property, including donated surplus property;
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(D) direct appropriations;
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(E) food commodities; and
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(F) other financial assistance, except assistance | ||
listed in paragraph (2) of this definition.
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(2) "Financial assistance" includes assistance that | ||
non-federal entities receive or administer in the form of | ||
loans, loan guarantees, interest subsidies, and insurance.
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(3) "Financial assistance" does not include amounts |
received as reimbursement for services rendered to | ||
individuals.
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"Fixed amount awards" means a type of grant agreement under | ||
which the awarding agency or pass-through entity provides a | ||
specific level of support without regard to actual costs | ||
incurred under the award. "Fixed amount awards" reduce some of | ||
the administrative burden and record-keeping requirements for | ||
both the non-federal entity and awarding agency or pass-through | ||
entity. Accountability is based primarily on performance and | ||
results.
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"Foreign public entity" means:
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(1) a foreign government or foreign governmental | ||
entity; | ||
(2) a public international organization that is | ||
entitled to enjoy privileges, exemptions, and immunities | ||
as an international organization under the International | ||
Organizations Immunities Act (22 U.S.C. 288-288f);
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(3) an entity owned, in whole or in part, or controlled | ||
by a foreign government; or
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(4) any other entity consisting wholly or partially of | ||
one or more foreign governments or foreign governmental | ||
entities. | ||
"Foreign organization" means an entity that is:
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(1) a public or private organization located in a | ||
country other than the United States and its territories | ||
that are subject to the laws of the country in which it is |
located, irrespective of the citizenship of project staff | ||
or place of performance;
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(2) a private nongovernmental organization located in | ||
a country other than the United States that solicits and | ||
receives cash contributions from the general public;
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(3) a charitable organization located in a country | ||
other than the United States that is nonprofit and tax | ||
exempt under the laws of its country of domicile and | ||
operation, but is not a university, college, accredited | ||
degree-granting institution of education, private | ||
foundation, hospital, organization engaged exclusively in | ||
research or scientific activities, church, synagogue, | ||
mosque, or other similar entity organized primarily for | ||
religious purposes; or
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(4) an organization located in a country other than the | ||
United States not recognized as a Foreign Public Entity.
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"Generally Accepted Accounting Principles" has the meaning | ||
provided in accounting standards issued by the Government | ||
Accounting Standards Board and the Financial Accounting | ||
Standards Board.
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"Generally Accepted Government Auditing Standards" means | ||
generally accepted government auditing standards issued by the | ||
Comptroller General of the United States that are applicable to | ||
financial audits.
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"Grant agreement" means a legal instrument of financial | ||
assistance between an awarding agency or pass-through entity |
and a non-federal entity that: | ||
(1) is used to enter into a relationship, the principal | ||
purpose of which is to transfer anything of value from the | ||
awarding agency or pass-through entity to the non-federal | ||
entity to carry out a public purpose authorized by law and | ||
not to acquire property or services for the awarding agency | ||
or pass-through entity's direct benefit or use;
and | ||
(2) is distinguished from a cooperative agreement in | ||
that it does not provide for substantial involvement | ||
between the awarding agency or pass-through entity and the | ||
non-federal entity in carrying out the activity | ||
contemplated by the award. | ||
"Grant agreement" does not include an agreement that | ||
provides only
direct cash assistance to an individual, a | ||
subsidy, a loan, a loan guarantee, or insurance. | ||
"Grant application" means a specified form that is | ||
completed by a non-federal entity in connection with a request | ||
for a specific funding opportunity or a request for financial | ||
support of a project or activity.
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"Hospital" means a facility licensed as a hospital under | ||
the law of any state or a facility operated as a hospital by | ||
the United States, a state, or a subdivision of a state.
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"Illinois Debarred and Suspended List" means the list | ||
maintained by the Governor's Office of Management and Budget | ||
that contains the names of those individuals and entities that | ||
are ineligible, either temporarily or permanently, from |
receiving an award of grant funds from the State.
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"Indian tribe" (or "federally recognized Indian tribe") | ||
means any Indian tribe, band, nation, or other organized group | ||
or community, including any Alaska Native village or regional | ||
or village corporation as defined in or established pursuant to | ||
the federal Alaska Native Claims Settlement Act (43 U.S.C. | ||
1601, et seq.) that is recognized as eligible for the special | ||
programs and services provided by the United States to Indians | ||
because of their status as Indians under 25 U.S.C. 450b(e), as | ||
set forth in the annually published Bureau of Indian Affairs | ||
list of Indian Entities Recognized and Eligible to Receive | ||
Services.
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"Indirect cost" means those costs incurred for a common or | ||
joint purpose benefitting more than one cost objective and not | ||
readily assignable to the cost objectives specifically | ||
benefitted without effort disproportionate to the results | ||
achieved. | ||
"Inspector General" means the Office of the Executive | ||
Inspector General for Executive branch agencies. | ||
"Loan" means a State or federal loan or loan guarantee | ||
received or administered by a non-federal entity. "Loan" does | ||
not include a "program income" as defined in 2 CFR 200.80.
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"Loan guarantee" means any State or federal government | ||
guarantee, insurance, or other pledge with respect to the | ||
payment of all or a part of the principal or interest on any | ||
debt obligation of a non-federal borrower to a non-federal |
lender, but does not include the insurance of deposits, shares, | ||
or other withdrawable accounts in financial institutions. | ||
"Local government" has the meaning provided for the term | ||
"units of local government" under Section 1 of Article VII of | ||
the Illinois Constitution and includes school districts. | ||
"Major program" means a federal program determined by the | ||
auditor to be a major program in accordance with 2 CFR 200.518 | ||
or a program identified as a major program by a federal | ||
awarding agency or pass-through entity in accordance with 2 CFR | ||
200.503(e).
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"Non-federal entity" means a state, local government, | ||
Indian tribe, institution of higher education, or | ||
organization, whether nonprofit or for-profit, that carries | ||
out a State or federal award as a recipient or subrecipient. | ||
"Nonprofit organization" means any corporation, trust, | ||
association, cooperative, or other organization, not including | ||
institutions of higher education, that:
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(1) is operated primarily for scientific, educational, | ||
service, charitable, or similar purposes in the public | ||
interest;
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(2) is not organized primarily for profit; and
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(3) uses net proceeds to maintain, improve, or expand | ||
the operations of the organization.
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"Obligations", when used in connection with a non-federal | ||
entity's utilization of funds under an award, means orders | ||
placed for property and services, contracts and subawards made, |
and similar transactions during a given period that require | ||
payment by the non-federal entity during the same or a future | ||
period.
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"Office of Management and Budget" means the Office of | ||
Management and Budget of the Executive Office of the President. | ||
"Other clusters" has the meaning provided by the federal | ||
Office of Management and Budget in the compliance supplement or | ||
has the meaning as it is designated by a state for federal | ||
awards the state provides to its subrecipients that meet the | ||
definition of a cluster of programs. When designating an "other | ||
cluster", a state must identify the federal awards included in | ||
the cluster and advise the subrecipients of compliance | ||
requirements applicable to the cluster. | ||
"Oversight agency for audit" means the federal awarding | ||
agency that provides the predominant amount of funding directly | ||
to a non-federal entity not assigned a cognizant agency for | ||
audit. When there is no direct funding, the awarding agency | ||
that is the predominant source of pass-through funding must | ||
assume the oversight responsibilities. The duties of the | ||
oversight agency for audit and the process for any | ||
reassignments are described in 2 CFR 200.513(b). | ||
"Pass-through entity" means a non-federal entity that | ||
provides a subaward to a subrecipient to carry out part of a | ||
program.
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"Private award" means an award from a person or entity | ||
other than a State or federal entity. Private awards are not |
subject to the provisions of this Act.
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"Property" means real property or personal property.
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"Project cost" means total allowable costs incurred under | ||
an award and all required cost sharing and voluntary committed | ||
cost sharing, including third-party contributions.
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"Public institutions of higher education" has the meaning | ||
provided in Section 1 of the Board of Higher Education Act.
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"Recipient" means a non-federal entity that receives an | ||
award directly from an awarding agency to carry out an activity | ||
under a program. "Recipient" does not include subrecipients. | ||
"Research and Development" means all research activities, | ||
both basic and applied, and all development activities that are | ||
performed by non-federal entities. | ||
"Single Audit Act" means the federal Single Audit Act | ||
Amendments of 1996 (31 U.S.C. 7501-7507). | ||
"State agency" means an Executive branch agency. For | ||
purposes of this Act, "State agency" does not include public | ||
institutions of higher education. | ||
"State award" means the financial assistance that a | ||
non-federal entity receives from the State and that is funded | ||
with either State funds or federal funds; in the latter case, | ||
the State is acting as a pass-through entity. | ||
"State awarding agency" means a State agency that provides | ||
an award to a non-federal entity. | ||
"State grant-making agency" has the same meaning as "State | ||
awarding agency". |
"State interest" means the acquisition or improvement of | ||
real property, equipment, or supplies under a State award, the | ||
dollar amount that is the product of the State share of the | ||
total project costs and current fair market value of the | ||
property, improvements, or both, to the extent the costs of | ||
acquiring or improving the property were included as project | ||
costs. | ||
"State program" means any of the following: | ||
(1) All State awards which are assigned a single number | ||
in the Catalog of State Financial Assistance. | ||
(2) When no Catalog of State Financial Assistance | ||
number is assigned, all State awards to non-federal | ||
entities from the same agency made for the same purpose are | ||
considered one program. | ||
(3) A cluster of programs as defined in this Section. | ||
"State share" means the portion of the total project costs | ||
that are paid by State funds. | ||
"Student Financial Aid" means federal awards under those | ||
programs of general student assistance, such as those | ||
authorized by Title IV of the Higher Education Act of 1965, as | ||
amended (20 U.S.C. 1070-1099d), that are administered by the | ||
United States Department of Education and similar programs | ||
provided by other federal agencies. "Student Financial Aid" | ||
does not include federal awards under programs that provide | ||
fellowships or similar federal awards to students on a | ||
competitive basis or for specified studies or research. |
"Subaward" means a State or federal award provided by a | ||
pass-through entity to a subrecipient for the subrecipient to | ||
carry out part of a federal award received by the pass-through | ||
entity. "Subaward" does not include payments to a contractor or | ||
payments to an individual that is a beneficiary of a federal | ||
program. A "subaward" may be provided through any form of legal | ||
agreement, including an agreement that the pass-through entity | ||
considers a contract.
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"Subrecipient" means a non-federal entity that receives a | ||
State or federal subaward from a pass-through entity to carry | ||
out part of a federal program. "Subrecipient" does not include | ||
an individual that is a beneficiary of such program. A | ||
"subrecipient" may also be a recipient of other State or | ||
federal awards directly from a State or federal awarding | ||
agency.
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"Suspension" means a post-award action by the State or | ||
federal agency or pass-through entity that temporarily | ||
withdraws the State or federal agency's or pass-through | ||
entity's financial assistance sponsorship under an award, | ||
pending corrective action by the recipient or subrecipient or | ||
pending a decision to terminate the award.
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"Uniform Administrative Requirements, Costs Principles, | ||
and Audit Requirements for Federal Awards" means those rules | ||
applicable to grants contained in 2 CFR 200. | ||
"Voluntary committed cost sharing" means cost sharing | ||
specifically pledged on a voluntary basis in the proposal's |
budget or the award on the part of the non-federal entity and | ||
that becomes a binding requirement of the award. | ||
Section 20. Adoption of federal rules applicable to grants. | ||
(a) On or before July 1, 2015, the Governor's Office of | ||
Management and Budget, with the advice and technical assistance | ||
of the Illinois Single Audit Commission, shall adopt rules | ||
which adopt the Uniform Guidance at 2 CFR 200. The rules, which | ||
shall apply to all State and federal pass-through awards | ||
effective on and after July 1, 2015, shall include the | ||
following:
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(1) Administrative requirements. In accordance with | ||
Subparts B through D of 2 CFR 200, the rules shall set | ||
forth the uniform administrative requirements for grant | ||
and cooperative agreements, including the requirements for | ||
the management by State awarding agencies of federal grant | ||
programs before State and federal pass-through awards have | ||
been made and requirements that State awarding agencies may | ||
impose on non-federal entities in State and federal | ||
pass-through awards.
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(2) Cost principles. In accordance with Subpart E of 2 | ||
CFR 200, the rules shall establish principles for | ||
determining the allowable costs incurred by non-federal | ||
entities under State and federal pass-through awards. The | ||
principles are intended for cost determination, but are not | ||
intended to identify the circumstances or dictate the |
extent of State or federal pass-through participation in | ||
financing a particular program or project. The principles | ||
shall provide that State and federal awards bear their fair | ||
share of cost recognized under these principles, except | ||
where restricted or prohibited by State or federal law.
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(3) Audit and single audit requirements and audit | ||
follow-up. In accordance with Subpart F of 2 CFR 200 and | ||
the federal Single Audit Act Amendments of 1996, the rules | ||
shall set forth standards to obtain consistency and | ||
uniformity among State and federal pass-through awarding | ||
agencies for the audit of non-federal entities expending | ||
State and federal awards. These provisions shall also set | ||
forth the policies and procedures for State and federal | ||
pass-through entities when using the results of these | ||
audits. | ||
The provisions of this item (3) do not apply to | ||
for-profit subrecipients because for-profit subrecipients | ||
are not subject to the requirements of OMB Circular A-133, | ||
Audits of States, Local and Non-Profit Organizations. | ||
Audits of for-profit subrecipients must be conducted | ||
pursuant to a Program Audit Guide issued by the Federal | ||
awarding agency. If a Program Audit Guide is not available, | ||
the State awarding agency must prepare a Program Audit | ||
Guide in accordance with the OMB Circular A-133 Compliance | ||
Supplement. For-profit entities are subject to all other | ||
general administrative requirements and cost principles |
applicable to grants. | ||
(b) This Act addresses only State and federal pass-through | ||
auditing functions and does not address the external audit | ||
function of the Auditor General. | ||
(c) For public institutions of higher education, the | ||
provisions of this Section apply only to awards funded by State | ||
appropriations and federal pass-through awards from a State | ||
agency to public institutions of higher education. Federal | ||
pass-through awards from a State agency to public institutions | ||
of higher education are governed by and must comply with | ||
federal guidelines under 2 CFR 200. | ||
(d) The State grant-making agency is responsible for | ||
establishing requirements, as necessary, to ensure compliance | ||
by for-profit subrecipients. The agreement with the for-profit | ||
subrecipient shall describe the applicable compliance | ||
requirements and the for-profit subrecipient's compliance | ||
responsibility. Methods to ensure compliance for State and | ||
federal pass-through awards made to for-profit subrecipients | ||
shall include pre-award, audits, monitoring during the | ||
agreement, and post-award audits. The Governor's Office of | ||
Management and Budget shall provide such advice and technical | ||
assistance to the State grant-making agency as is necessary or | ||
indicated. | ||
Section 25. Supplemental rules. On or before July 1, 2015, | ||
the Governor's Office of Management and Budget, with the advice |
and technical assistance of the Illinois Single Audit | ||
Commission, shall adopt supplemental rules pertaining to the | ||
following: | ||
(1) Criteria to define mandatory formula-based grants | ||
and discretionary grants.
| ||
(2) The award of one-year grants for new applicants.
| ||
(3) The award of competitive grants in 3-year terms | ||
(one-year initial terms with the option to renew for up to | ||
2 additional years) to coincide with the federal award.
| ||
(4) The issuance of grants, including:
| ||
(A) public notice of announcements of funding | ||
opportunities; | ||
(B) the development of uniform grant applications;
| ||
(C) State agency review of merit of proposals and | ||
risk posed by applicants;
| ||
(D) specific conditions for individual recipients | ||
(requiring the use of a fiscal agent and additional | ||
corrective conditions);
| ||
(E) certifications and representations;
| ||
(F) pre-award costs;
| ||
(G) performance measures and statewide prioritized | ||
goals under Section 50-25 of the State Budget Law of | ||
the Civil Administrative Code of Illinois, commonly | ||
referred to as "Budgeting for Results"; and
| ||
(H) for mandatory formula grants, the merit of the | ||
proposal and the risk posed should result in additional |
reporting, monitoring, or measures such as | ||
reimbursement-basis only.
| ||
(5) The development of uniform budget requirements, | ||
which shall include:
| ||
(A) mandatory submission of budgets as part of the | ||
grant application process;
| ||
(B) mandatory requirements regarding contents of | ||
the budget including, at a minimum, common detail line | ||
items specified under guidelines issued by the | ||
Governor's Office of Management and Budget; | ||
(C) a requirement that the budget allow | ||
flexibility to add lines describing costs that are | ||
common for the services provided as outlined in the | ||
grant application; | ||
(D) a requirement that the budget include | ||
information necessary for analyzing cost and | ||
performance for use in the Budgeting for Results | ||
initiative; and | ||
(E) caps on the amount of salaries that may be | ||
charged to grants based on the limitations imposed by | ||
federal agencies. | ||
(6) The development of pre-qualification requirements | ||
for applicants, including the fiscal condition of the | ||
organization and the provision of the following | ||
information:
| ||
(A) organization name;
|
(B) Federal Employee Identification Number;
| ||
(C) Data Universal Numbering System (DUNS) number;
| ||
(D) fiscal condition;
| ||
(E) whether the applicant is in good standing with | ||
the Secretary of State;
| ||
(F) past performance in administering grants;
| ||
(G) whether the applicant is or has ever been on | ||
the Debarred and Suspended List maintained by the | ||
Governor's Office of Management and Budget;
| ||
(H) whether the applicant is or has ever been on | ||
the federal Excluded Parties List; and | ||
(I) whether the applicant is or has ever been on | ||
the Sanctioned Party List maintained by the Illinois | ||
Department of Healthcare and Family Services.
| ||
Nothing in this Act affects the provisions of the Fiscal | ||
Control and Internal Auditing Act nor the requirement that the | ||
management of each State agency is responsible for maintaining | ||
effective internal controls under that Act. | ||
For public institutions of higher education, the | ||
provisions of this Section apply only to awards funded by State | ||
appropriations and federal pass-through awards from a State | ||
agency to public institutions of higher education. | ||
Section 30. Catalog of State Financial Assistance. | ||
The Catalog of State Financial Assistance is a single, | ||
authoritative, statewide, comprehensive source document of |
State financial assistance program information. The Catalog | ||
shall contain, at a minimum, the following information: | ||
(1) An introductory section that contains Catalog | ||
highlights, an explanation of how to use the Catalog, an | ||
explanation of the Catalog and its contents, and suggested | ||
grant proposal writing methods and grant application | ||
procedures. | ||
(2) A comprehensive indexing system that categorizes | ||
programs by issuing agency, eligible applicant, | ||
application deadlines, function, popular name, and subject | ||
area. | ||
(3) Comprehensive appendices showing State assistance | ||
programs that require coordination through this Act and | ||
regulatory, legislative, and Executive Order authority for | ||
each program, commonly used abbreviations and acronyms, | ||
agency regional and local office addresses, and sources of | ||
additional information. | ||
(4) A list of programs that have been added to or | ||
deleted from the Catalog and the various program numbers | ||
and title changes. | ||
(5) Program number, title, and popular name, if | ||
applicable. | ||
(6) The name of the State department or agency or | ||
independent agency and primary organization sub-unit | ||
administering the program. | ||
(7) The enabling legislation, including popular name |
of the Act, titles and Sections, Public Act number, and | ||
citation to the Illinois Compiled Statutes. | ||
(8) The type or types of financial and nonfinancial | ||
assistance offered by the program. | ||
(9) Uses and restrictions placed upon the program. | ||
(10) Eligibility requirements, including applicant | ||
eligibility criteria, beneficiary eligibility criteria, | ||
and required credentials and documentation. | ||
(11) Objectives and goals of the program. | ||
(12) Information regarding application and award | ||
processing; application deadlines; range of approval or | ||
disapproval time; appeal procedure; and availability of a | ||
renewal or extension of assistance. | ||
(13) Assistance considerations, including an | ||
explanation of the award formula, matching requirements, | ||
and the length and time phasing of the assistance. | ||
(14) Post-assistance requirements, including any | ||
reports, audits, and records that may be required. | ||
(15) Program accomplishments (where available) | ||
describing quantitative measures of program performance. | ||
(16) Regulations, guidelines, and literature | ||
containing citations to the Illinois Administrative Code, | ||
the Code of Federal Regulations, and other pertinent | ||
informational materials. | ||
(17) The names, telephone numbers, and e-mail | ||
addresses of persons to be contacted for detailed program |
information at the headquarters, regional, and local | ||
levels.
| ||
Section 35. Conflicts of interest. The Governor's Office of | ||
Management and Budget shall adopt rules regarding conflict of | ||
interest policies for awards. A non-federal entity must | ||
disclose in writing any potential conflict of interest to the | ||
pass-through entity in accordance with applicable awarding | ||
agency policy. | ||
Section 40. Mandatory disclosures. The Governor's Office | ||
of Management and Budget, with the advice and technical | ||
assistance of the Illinois Single Audit Commission, shall adopt | ||
rules requiring that the applicant for an award disclose, in a | ||
timely manner and in writing to the pass-through entity, all | ||
violations of State or federal criminal law involving fraud, | ||
bribery, or gratuity violations potentially affecting the | ||
award. Failure to make the required disclosures may result in | ||
any of the following remedial actions:
| ||
(1) The temporary withholding of cash payments pending | ||
correction of the deficiency by the awarding agency or | ||
non-federal entity or more severe enforcement action by the | ||
pass-through entity.
| ||
(2) Disallowance of (that is, denial of both use of | ||
funds and any applicable matching credit for) all or part | ||
of the cost of the activity or action not in compliance.
|
(3) Whole or partial suspension or termination of the | ||
award.
| ||
(4) Initiation of suspension or debarment proceedings | ||
as authorized under rules adopted under subsection (a) of | ||
Section 20 of this Act and awarding agency regulations (or, | ||
in the case of a pass-through entity, recommendation that | ||
such a proceeding be initiated by the awarding agency).
| ||
(5) Withholding further awards for the project or | ||
program.
| ||
(6) Taking any other remedial action that may be | ||
legally available.
| ||
Section 45. Applicability.
| ||
(a) The requirements established under this Act apply to | ||
State grant-making agencies that make State and federal | ||
pass-through awards to non-federal entities. These | ||
requirements apply to all costs related to State and federal | ||
pass-through awards.
The requirements established under this | ||
Act do not apply to private awards. | ||
(a-5) Nothing in this Act shall prohibit the use of State | ||
funds for purposes of federal match or maintenance of effort. | ||
(b) The terms and conditions of State, federal, and | ||
pass-through awards apply to subawards and subrecipients | ||
unless a particular Section of this Act or the terms and | ||
conditions of the State or federal award specifically indicate | ||
otherwise. Non-federal entities shall comply with requirements |
of this Act regardless of whether the non-federal entity is a | ||
recipient or subrecipient of a State or federal pass-through | ||
award. Pass-through entities shall comply with the | ||
requirements set forth under the rules adopted under subsection | ||
(a) of Section 20 of this Act, but not to any requirements in | ||
this Act directed towards State or federal awarding agencies, | ||
unless the requirements of the State or federal awards indicate | ||
otherwise.
| ||
When a non-federal entity is awarded a cost-reimbursement | ||
contract, only 2 CFR 200.330 through 200.332 are incorporated | ||
by reference into the contract. However, when the Cost | ||
Accounting Standards are applicable to the contract, they take | ||
precedence over the requirements of this Act unless they are in | ||
conflict with Subpart F of 2 CFR 200. In addition, costs that | ||
are made unallowable under 10 U.S.C. 2324(e) and 41 U.S.C. | ||
4304(a), as described in the Federal Acquisition Regulations, | ||
subpart 31.2 and subpart 31.603, are always unallowable. For | ||
requirements other than those covered in Subpart D of 2 CFR | ||
200.330 through 200.332, the terms of the contract and the | ||
Federal Acquisition Regulations apply.
| ||
With the exception of Subpart F of 2 CFR 200, which is | ||
required by the Single Audit Act, in any circumstances where | ||
the provisions of federal statutes or regulations differ from | ||
the provisions of this Act, the provision of the federal | ||
statutes or regulations govern. This includes, for agreements | ||
with Indian tribes, the provisions of the Indian |
Self-Determination and Education and Assistance Act, as | ||
amended, 25 U.S.C. 450-458ddd-2.
| ||
(c) State grant-making agencies may apply subparts A | ||
through E of 2 CFR 200 to for-profit entities, foreign public | ||
entities, or foreign organizations, except where the awarding | ||
agency determines that the application of these subparts would | ||
be inconsistent with the international obligations of the | ||
United States or the statute or regulations of a foreign | ||
government.
| ||
(d) Except for 2 CFR 200.202 and 200.330 through 200.332, | ||
the requirements in Subparts C, D, and E of 2 CFR 200 do not | ||
apply to the following programs:
| ||
(1) The block grant awards authorized by the Omnibus | ||
Budget Reconciliation Act of 1981 (including Community | ||
Services; Preventive Health and Health Services; Alcohol, | ||
Drug Abuse, and Mental Health Services; Maternal and Child | ||
Health Services; Social Services; Low-Income Home Energy | ||
Assistance; States' Program of Community Development Block | ||
Grant Awards for Small Cities; and Elementary and Secondary | ||
Education, other than programs administered by the | ||
Secretary of Education under Title V, Subtitle D, Chapter | ||
2, Section 583 - the Secretary's discretionary award | ||
program) and both the Alcohol and Drug Abuse Treatment and | ||
Rehabilitation Block Grant Award (42 U.S.C. 300x-21 to | ||
300x-35 and 42 U.S.C. 300x-51 to 300x-64) and the Mental | ||
Health Service for the Homeless Block Grant Award (42 |
U.S.C. 300x to 300x-9) under the Public Health Services | ||
Act.
| ||
(2) Federal awards to local education agencies under 20 | ||
U.S.C. 7702 through 7703b (portions of the Impact Aid | ||
program).
| ||
(3) Payments under the Department of Veterans Affairs' | ||
State Home Per Diem Program (38 U.S.C. 1741).
| ||
(4) Federal awards authorized under the Child Care and | ||
Development Block Grant Act of 1990, as amended, including | ||
the following:
| ||
(A) Child Care and Development Block Grant (42 | ||
U.S.C. 9858). | ||
(B) Child Care Mandatory and Matching Funds of the | ||
Child Care and Development Fund (42 U.S.C. 9858). | ||
(e) Except for the 2 CFR 200.202 requirement to provide | ||
public notice of federal financial assistance programs, the | ||
guidance in Subpart C Pre-federal Award Requirements and | ||
Contents of Federal Awards does not apply to the following | ||
programs: | ||
(1) Entitlement federal awards to carry out the | ||
following programs of the Social Security Act: | ||
(A) Temporary Assistance to Needy Families (Title | ||
IV-A of the Social Security Act, 42 U.S.C. 601-619);
| ||
(B) Child Support Enforcement and Establishment of | ||
Paternity (Title IV-D of the Social Security Act, 42 | ||
U.S.C. 651-669b);
|
(C) Foster Care and Adoption Assistance (Title | ||
IV-E of the Act, 42 U.S.C. 670-679c);
| ||
(D) Aid to the Aged, Blind, and Disabled (Titles I, | ||
X, XIV, and XVI - AABD of the Act, as amended); and
| ||
(E) Medical Assistance (Medicaid) (42 U.S.C. | ||
1396-1396w-5), not including the State Medicaid Fraud | ||
Control program authorized by Section 1903(a)(6)(B) of | ||
the Social Security Act (42 U.S.C. 1396b(a)(6)(B)). | ||
(2) A federal award for an experimental, pilot, or | ||
demonstration project that is also supported by a federal | ||
award listed in paragraph (1) of subsection (e) of this | ||
Section.
| ||
(3) Federal awards under subsection 412(e) of the | ||
Immigration and Nationality Act of 1965 and Section 501(a) | ||
of the Refugee Education Assistance Act of 1980 for cash | ||
assistance, medical assistance, and supplemental security | ||
income benefits to refugees and entrants and the | ||
administrative costs of providing the assistance and | ||
benefits under 8 U.S.C. 1522(e).
| ||
(4) Entitlement awards under the following programs of | ||
The National School Lunch Act: | ||
(A) National School Lunch Program (42 U.S.C. | ||
1753);
| ||
(B) Commodity Assistance (42 U.S.C. 1755);
| ||
(C) Special Meal Assistance (42 U.S.C. 1759a);
| ||
(D) Summer Food Service Program for Children (42 |
U.S.C. 1761); and
| ||
(E) Child and Adult Care Food Program (42 U.S.C. | ||
1766).
| ||
(5) Entitlement awards under the following programs of | ||
The Child Nutrition Act of 1966: | ||
(A) Special Milk Program (42 U.S.C. 1772);
| ||
(B) School Breakfast Program (42 U.S.C. 1773); and
| ||
(C) State Administrative Expenses (42 U.S.C. | ||
1776).
| ||
(6) Entitlement awards for State Administrative | ||
Expenses under The Food and Nutrition Act of 2008 (7 U.S.C. | ||
2025). | ||
(7) Non-discretionary federal awards under the | ||
following non-entitlement programs:
| ||
(A) Special Supplemental Nutrition Program for | ||
Women, Infants and Children under the Child Nutrition | ||
Act of 1966 (42 U.S.C. 1786);
| ||
(B) The Emergency Food Assistance Programs | ||
(Emergency Food Assistance Act of 1983) (7 U.S.C. | ||
7501); and
| ||
(C) Commodity Supplemental Food Program (7 U.S.C. | ||
612c).
| ||
(f) For public institutions of higher education, the | ||
provisions of this Act apply only to awards funded by State | ||
appropriations and federal pass-through awards from a State | ||
agency to public institutions of higher education. |
(g) Each grant-making agency shall enhance its processes to | ||
monitor and address noncompliance with reporting requirements | ||
and with program performance standards. Where applicable, the | ||
process may include a corrective action plan. The monitoring | ||
process shall include a plan for tracking and documenting | ||
performance-based contracting decisions. | ||
Section 50. State grant-making agency responsibilities. | ||
(a) The specific requirements and responsibilities of | ||
State grant-making agencies and non-federal entities are set | ||
forth in this Act. State agencies making State awards to | ||
non-federal entities must adopt by rule the language in 2 CFR | ||
200, Subpart C through Subpart F unless different provisions | ||
are required by law. | ||
(b) Each State grant-making agency shall appoint a Chief | ||
Accountability Officer who shall serve as a liaison to the | ||
Grant Accountability and Transparency Unit and who shall be | ||
responsible for the State agency's implementation of and | ||
compliance with the rules. | ||
(c) In order to effectively measure the performance of its | ||
recipients and subrecipients, each State grant-making agency | ||
shall:
| ||
(1) require its recipients and subrecipients to relate | ||
financial data to performance accomplishments of the award | ||
and, when applicable, must require recipients and | ||
subrecipients to provide cost information to demonstrate |
cost-effective practices. The
recipient's and | ||
subrecipient's performance should be measured in a way that | ||
will help the State agency to improve program outcomes, | ||
share lessons learned, and spread the adoption of promising | ||
practices; and
| ||
(2) provide recipients and subrecipients with clear | ||
performance goals, indicators, and milestones and must | ||
establish performance reporting frequency and content to | ||
not only allow the State agency to understand the | ||
recipient's progress, but also to facilitate
| ||
identification of promising practices among recipients and | ||
subrecipients and build the evidence upon which the State | ||
agency's program and performance decisions are made.
| ||
(d) The Governor's Office of Management and Budget shall | ||
provide such advice and technical assistance to the State | ||
grant-making agencies as is necessary or indicated in order to | ||
ensure compliance with this Act. | ||
Section 55. The Governor's Office of Management and Budget | ||
responsibilities.
| ||
(a) The Governor's Office of Management and Budget shall: | ||
(1) provide technical assistance and interpretations | ||
of policy requirements in order to ensure effective and | ||
efficient implementation of this Act by State grant-making | ||
agencies; and | ||
(2) have authority to approve any exceptions to the |
requirements of this Act and shall adopt rules governing | ||
the criteria to be considered when an exception is | ||
requested; exceptions shall only be made in particular | ||
cases where adequate justification is presented. | ||
(b) The Governor's Office of Management and Budget shall, | ||
on or before July 1, 2014, establish a centralized unit within | ||
the Governor's Office of Management and Budget. The centralized | ||
unit shall be known as the Grant Accountability and | ||
Transparency Unit and shall be funded with a portion of the | ||
administrative funds provided under existing and future State | ||
and federal pass-through grants.
The amounts charged will be | ||
allocated based on the actual cost of the services provided to | ||
State grant-making agencies and public institutions of higher | ||
education in accordance with the applicable federal cost | ||
principles contained in 2 CFR 200 and this Act will not cause | ||
the reduction in the amount of any State or federal grant | ||
awards that have been or will be directed towards State | ||
agencies or public institutions of higher education. | ||
Section 60. Grant Accountability and Transparency Unit | ||
responsibilities. | ||
(a) The Grant Accountability and Transparency Unit within | ||
the Governor's Office of Management and Budget shall be | ||
responsible for:
| ||
(1) The development of minimum requirements applicable | ||
to the staff of grant applicants to manage and execute |
grant awards for programmatic and administrative purposes, | ||
including grant management specialists with:
| ||
(A) general and technical competencies;
| ||
(B) programmatic expertise;
| ||
(C) fiscal expertise and systems necessary to | ||
adequately account for the source and application of | ||
grant funds for each program; and
| ||
(D) knowledge of compliance requirements. | ||
(2) The development of minimum training requirements, | ||
including annual training requirements.
| ||
(3) Accurate, current, and complete disclosure of the | ||
financial results of each funded award, as set forth in the | ||
financial monitoring and reporting Section of 2 CFR 200.
| ||
(4) Development of criteria for requiring the | ||
retention of a fiscal agent and for becoming a fiscal | ||
agent.
| ||
(5) Development of disclosure requirements in the | ||
grant application pertaining to:
| ||
(A) related-party status between grantees and | ||
grant-making agencies;
| ||
(B) past employment of applicant officers and | ||
grant managers;
| ||
(C) disclosure of current or past employment of | ||
members of immediate family; and | ||
(D) disclosure of senior management of grantee | ||
organization and their relationships with contracted |
vendors.
| ||
(6) Implementation of rules prohibiting a grantee from | ||
charging any cost allocable to a particular award or cost | ||
objective to other State or federal awards to overcome fund | ||
deficiencies, to avoid restrictions imposed by law or terms | ||
of the federal awards, or for other reasons.
| ||
(7) Implementation of rules prohibiting a non-federal | ||
entity from earning or keeping any profit resulting from | ||
State or federal financial assistance, unless prior | ||
approval has been obtained from the Governor's Office of | ||
Management and Budget and is expressly authorized by the | ||
terms and conditions of the award.
| ||
(8) Maintenance of an Illinois Debarred and Suspended | ||
List that contains the names of those individuals and | ||
entities that are ineligible, either temporarily or | ||
permanently, to receive an award of grant funds from the | ||
State. | ||
(9) Ensuring the adoption of standardized rules for the | ||
implementation of this Act by State grant-making agencies. | ||
The Grant Accountability and Transparency Unit shall | ||
provide such advice and technical assistance to the State | ||
grant-making agencies as is necessary or indicated in order | ||
to ensure compliance with this Act.
| ||
(10) Coordination of financial and Single Audit | ||
reviews.
| ||
(11) Coordination of on-site reviews of grantees and |
subrecipients.
| ||
(12) Maintenance of the Catalog of State Financial | ||
Assistance, which shall be posted on an Internet website | ||
maintained by the Governor's Office of Management and | ||
Budget that is available to the public.
| ||
(b) The Grant Accountability and Transparency Unit shall | ||
have no power or authority regarding the approval, disapproval, | ||
management, or oversight of grants entered into or awarded by a | ||
State agency or by a public institution of higher education. | ||
The power or authority existing under law to grant or award | ||
grants by a State agency or by a public institution of higher | ||
education shall remain with that State agency or public | ||
institution of higher education. The Unit shall be responsible | ||
for reviewing and approving amendments to the Administrative | ||
Code proposed by State grant agencies in connection with the | ||
implementation of this Act and shall be responsible for | ||
establishing standardized policies and procedures for State | ||
grant-making agencies in order to ensure compliance with the | ||
Uniform Administrative Requirements, Cost Principles and Audit | ||
Requirements for Federal Awards set forth in 2 CFR Part 200, | ||
all of which must be adhered to by the State grant-making | ||
agencies throughout the life cycle of the grant. | ||
(c) The powers and functions of grant making by State | ||
agencies or public institutions of higher education may not be | ||
transferred to, nor may prior grant approval be transferred to, | ||
any other person, office, or entity within the executive branch |
of State government. | ||
Section 65. Audit requirements. | ||
(a) The standards set forth in Subpart F of 2 CFR 200 and | ||
any other standards that apply directly to State or federal | ||
agencies shall apply to audits of fiscal years beginning on or | ||
after December 26, 2014. | ||
(b) Books and records must be available for review or audit | ||
by appropriate officials of the pass-through entity, and the | ||
agency, the Auditor General, the Inspector General, | ||
appropriate officials of the agency, and the federal Government | ||
Accountability Office. | ||
(c) The Governor's Office of Management and Budget, with | ||
the advice and technical assistance of the Illinois Single | ||
Audit Commission, shall adopt rules for audits of grants from a | ||
State or federal pass-through entity that are not subject to | ||
the Single Audit Act because the amount of the federal award is | ||
less than $750,000 or the subrecipient is an exempt entity and | ||
that are reasonably consistent with 2 CFR 200. | ||
(d) This Act does not affect the provisions of the Illinois | ||
State Auditing Act and does not address the external audit | ||
function of the Auditor General. | ||
Section 70. Review date. The Governor's Office of | ||
Management and Budget shall review this Act at least once every | ||
5 years after December 26, 2014 in conjunction with the federal |
review of the Uniform Administrative Requirements, Cost | ||
Principles, and Audit Requirements for Federal Awards as | ||
required by 2 CFR 200.109 in order to determine whether any | ||
existing rules need to be revised or new rules adopted. | ||
Section 75. State program exceptions. | ||
(a) With the exception of the audit requirements set forth | ||
in 2 CFR 200.102, exceptions may be allowed for classes of | ||
State or federal pass-through awards or non-federal entities | ||
subject to the requirements of this Act when such exceptions | ||
are not prohibited by State or federal law. However, in the | ||
interest of maximum uniformity, exceptions from the | ||
requirements of this Act shall be permitted only in unusual or | ||
exceptional circumstances.
| ||
(b) The Governor's Office of Management and Budget, with | ||
the advice and technical assistance of the Illinois Single | ||
Audit Commission, shall adopt rules governing the criteria that | ||
shall be used to determine when an exception may be issued. The | ||
Governor's Office of Management and Budget shall publish any | ||
allowed exceptions in the Catalogue of State Financial | ||
Assistance within 30 days of the exception being allowed. | ||
Section 80. Supersession. On and after July 1, 2015, in the | ||
event of a conflict with the Grant Funds Recovery Act, the | ||
provisions of this Act shall control. |
Section 85. Implementation date. The Governor's Office of | ||
Management and Budget shall adopt all rules required under this | ||
Act on or before July 1, 2015. | ||
Section 90. Agency implementation. All State grant-making | ||
agencies shall implement the rules issued by the Governor's | ||
Office of Management and Budget on or before July 1, 2015. The | ||
standards set forth in this Act, which affect administration of | ||
State and federal pass-through awards issued by State | ||
grant-making agencies, become effective once implemented by | ||
State grant-making agencies. State grant-making agencies shall | ||
implement the policies and procedures applicable to State and | ||
federal pass-through awards by adopting rules for non-federal | ||
entities that shall take effect for fiscal years on and after | ||
December 26, 2014, unless different provisions are required by | ||
State or federal statute or federal rule. | ||
Section 95. Annual report. Effective January 1, 2016 and | ||
each January 1 thereafter, the Governor's Office of Management | ||
and Budget, in conjunction with the Illinois Single Audit | ||
Commission, shall submit to the Governor and the General | ||
Assembly a report that demonstrates the efficiencies, cost | ||
savings, and reductions in fraud, waste, and abuse as a result | ||
of the implementation of this Act and the rules adopted by the | ||
Governor's Office of Management and Budget in accordance with | ||
the provisions of this Act. The report shall include, but not |
be limited to:
| ||
(1) the number of entities placed on the Illinois | ||
Debarred and Suspended List;
| ||
(2) any savings realized as a result of the | ||
implementation of this Act;
| ||
(3) any reduction in the number of duplicative audits;
| ||
(4) the number of persons trained to assist grantees | ||
and subrecipients; and
| ||
(5) the number of grantees and subrecipients to whom a | ||
fiscal agent was assigned.
| ||
Section 100. Repeal. This Act is repealed 5 years after the | ||
effective date of this Act. | ||
Section 505. The Governor's Office of Management and Budget | ||
Act is amended by changing Section 2 and by adding Sections | ||
2.8, 2.9, and 2.10 as follows:
| ||
(20 ILCS 3005/2) (from Ch. 127, par. 412)
| ||
Sec. 2.
There is created in the executive office of the | ||
Governor an Office
to
be known as the Governor's Office of | ||
Management and
Budget. The Office shall be headed by a
| ||
Director, who shall be appointed by the Governor. The functions | ||
of the
Office shall be as prescribed in Sections 2.1 through | ||
2.10 2.7 of
this
Act.
| ||
(Source: P.A. 93-25, eff. 6-20-03.)
|
(20 ILCS 3005/2.8 new) | ||
Sec. 2.8. Pursuant to the Grant Accountability and | ||
Transparency Act, to create, on or before July 1, 2014, the | ||
Grant Accountability and Transparency Unit within the Office. | ||
The Grant Accountability and Transparency Unit shall report | ||
directly to the Director of the Governor's Office of Management | ||
and Budget. | ||
(20 ILCS 3005/2.9 new) | ||
Sec. 2.9. Pursuant to the Grant Accountability and | ||
Transparency Act, to maintain a list of those individuals and | ||
entities that are ineligible, either temporarily or | ||
permanently, to receive an award of grant funds from the State. | ||
(20 ILCS 3005/2.10 new) | ||
Sec. 2.10. To adopt rules on or before July 1, 2015 | ||
necessary to comply with the Grant Accountability and | ||
Transparency Act. Should changes to the rules be required by | ||
the review mandated by Section 65 of the Grant Accountability | ||
and Transparency Act, the Governor's Office of Management and | ||
Budget may adopt such peremptory rules as are necessary to | ||
comply with changes to corresponding federal rules. All other | ||
rules that the Governor's Office of Management and Budget deems | ||
necessary to adopt in connection with the Grant Accountability | ||
and Transparency Act must proceed through the ordinary |
rule-making process. | ||
(30 ILCS 705/4.2 rep.) | ||
Section 510. The Illinois Grant Funds Recovery Act is | ||
amended by repealing Section 4.2. | ||
Section 515. The Illinois Grant Funds Recovery Act is | ||
amended by adding Sections 15.1 and 16 as follows: | ||
(30 ILCS 705/15.1 new) | ||
Sec. 15.1. Illinois Single Audit Commission. | ||
(a) There is created the Illinois Single Audit Commission. | ||
The Commission shall assist the Governor's Office of Management | ||
and Budget in creating its annual report under Section 90 of | ||
the Grant Accountability and Transparency Act. | ||
(b) The Commission shall be comprised of one representative | ||
from each of the following grant-making agencies who is an | ||
expert in grants subject matter, and who shall be appointed by | ||
the Governor, one of whom shall be designated as Chairperson: | ||
Department on Aging; Department of Children and Family | ||
Services; Department of Healthcare and Family Services; | ||
Department of Human Services; Department of Public Health; | ||
Criminal Justice Information Authority; Department of Commerce | ||
and Economic Opportunity; Department of Transportation; | ||
Illinois State Board of Education; Illinois Student Assistance | ||
Commission; Department of Agriculture; Environmental |
Protection Agency; and Department of Natural Resources. | ||
(c) The Governor may, as he or she deems necessary or | ||
appropriate, designate representatives of additional State | ||
agencies with grant-making authority to serve as members of the | ||
Commission. | ||
(d) The Governor may appoint a total of 4 representatives | ||
of community organizations, providers, or associations who are | ||
experts in grants subject matter to serve as members of the | ||
Commission. | ||
(e) The Governor may appoint a total of 3 representatives | ||
of public institutions of higher education who are experts in | ||
grants subject matter to serve as members of the Commission. | ||
(f) Should any of the State agencies listed in subsection | ||
(b) of this Section deem that additional representation by | ||
community organizations, providers, or associations is | ||
necessary or appropriate, and the Commission as a whole is in | ||
concurrence with this decision, the State agency or agencies | ||
may appoint additional members; provided, however, that no more | ||
than a total of 4 such additional members may be appointed to | ||
the Commission. | ||
(g) The Commission shall also include: a representative of | ||
the Governor's Office of Management and Budget, appointed by | ||
the Governor; 4 members of the General Assembly, one from the | ||
House of Representatives Democratic Caucus, one from the House | ||
of Representatives Republican Caucus, one from the Senate | ||
Democratic Caucus, and one from the Senate Republican Caucus, |
all of whom shall be appointed by the Governor. | ||
(h) The Co-chairpersons of the relevant subcommittees | ||
within the Management Initiative Improvement Committee under | ||
Section 1-37b of the Department of Human Services Act may be | ||
included as members of the Commission if the Commission deems | ||
their inclusion necessary for the coordination of its efforts. | ||
(i) The Commission shall provide advice and technical | ||
assistance to the Governor's Office of Management and Budget in | ||
connection with the rules drafted pursuant to the Grant | ||
Accountability and Transparency Act. | ||
(j) This Section is repealed on July 1, 2019. | ||
(30 ILCS 705/16 new) | ||
Sec. 16. Supersession. On and after July 1, 2015, in the | ||
event of a conflict with the Grant Accountability and | ||
Transparency Act, the Grant Accountability and Transparency | ||
Act shall control.
| ||
Section 997. Severability. The provisions of this Act are | ||
severable under Section 1.31 of the Statute on Statutes. | ||
Section 999. Effective date. This Act takes effect upon | ||
becoming law. |