Public Act 100-0676
 
HB4689 EnrolledLRB100 18371 RJF 33578 b


  
    AN ACT concerning finance.
  
 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:
  
 
 
    Section 5. The Grant Accountability and Transparency Act is 
amended  by changing Sections 20, 25, 45, and 60 as follows:
 
    (30 ILCS 708/20)
    (Section scheduled to be repealed on July 16, 2020)

    Sec. 20. Adoption of federal rules applicable to grants.  
    (a) On or before July 1, 2016, 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, 2016, shall include the 
following:

        (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.

        (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.

        (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 2 CFR 200, Subpart F 
    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 2 CFR 200, Subpart F – 
    Audit Requirements - 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.

(Source: P.A. 98-706, eff. 7-16-14; 99-523, eff. 6-30-16.)
 
    (30 ILCS 708/25)
    (Section scheduled to be repealed on July 16, 2020)

    Sec. 25. Supplemental rules.  On or before July 1, 2017, 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 
        (including 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 Budgeting for Results; 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.

(Source: P.A. 98-706, eff. 7-16-14; 99-523, eff. 6-30-16.)
 
    (30 ILCS 708/45)
    (Section scheduled to be repealed on July 16, 2020)

    Sec. 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) 2 CFR 200.101 specifies how 2 CFR 200 is applicable to 
different types of awards. The same applicability applies to 
this Act. 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) (Blank). 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.

(Source: P.A. 98-706, eff. 7-16-14; revised 9-25-17.)
 
    (30 ILCS 708/60)
    (Section scheduled to be repealed on July 16, 2020)

    Sec. 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 providing technical assistance to guide reviewing and 
approving amendments to the Administrative Code amendments 
proposed by State grant-making grant agencies to comply 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.

(Source: P.A. 98-706, eff. 7-16-14.)
 
    (30 ILCS 708/100 rep.)
    Section 10. The Grant Accountability and Transparency Act 
is amended  by repealing Section 100.
  


Effective Date:  1/1/2019