Section 501.70  Contents of Grant Agreement and Dispersement of Block Grant Funds

a)         The Director shall execute a grant agreement with each local government to whom a grant is awarded.  The grant agreement shall specify the parties to the grant, the term of the grant, the amount of the grant, method of payment of the block grant funds, permissible uses of the block grant funds, that documentation of expenditures be maintained by the grantee, that unspent block grant funds shall be returned to the State as required by the Illinois Grant Funds Recovery Act [30 ILCS 705], that the Department may audit records required to be maintained to verify that grant monies were used for permissible uses under the grant, and that the grant agreement shall cease if funds for the grant are not appropriated by the General Assembly, and any other standard provisions required by the Comptroller to be included in grant agreements entered into by the State.

b)         Upon execution of the grant agreement, the Department shall allocate funds to a grant account established for the participating local government in an amount equal to the grant award.  On July 1 of each year, or as soon thereafter as is practicable, the Department shall disburse to the local government an amount equal to the approved grant expenses.

            AGENCY NOTE:  It is the Department's intent that block grant funds will be disbursed on July 1 of each year.  However, such disbursement might be delayed for reasons beyond the Department's control (e.g., failure of the General Assembly to make appropriations before July 1).