100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB3185

 

Introduced 2/15/2018, by Sen. Pamela J. Althoff

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 708/20
30 ILCS 708/25
30 ILCS 708/45
30 ILCS 708/60
30 ILCS 708/100 rep.

    Amends the Grant Accountability and Transparency Act. Modifies a Section concerning the adopting of federal rules applicable to grants and provides that specified provisions do not apply to for-profit subrecipients because for-profit subrecipients are not subject to the requirements of a specified provision of the Code of Federal Regulations. Provides that if a Program Audit Guide is not available, the State awarding agency must prepare a Program Audit Guide in accordance with the audit requirements of specified provisions of the Code of Federal Regulations. Requires the Governor's Office of Management and Budget to adopt supplemental rules pertaining to, among other subjects, specific conditions for individual recipients, including (rather than requiring) the use of a fiscal agent and additional corrective conditions. Applies provisions in the Code of Federal Regulations concerning federal agencies that make federal awards to non-federal entities to State grant-making agencies under the Act. Provides that the Grant Accountability and Transparency Unit shall be responsible for providing technical assistance and assuring the Administrative Code proposed by State grant agencies comply with the Act. Repeals the Section specifying a repeal date for the Act. Makes other changes.


LRB100 19574 RJF 34843 b

 

 

A BILL FOR

 

SB3185LRB100 19574 RJF 34843 b

1    AN ACT concerning finance.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Grant Accountability and Transparency Act is
5amended by changing Sections 20, 25, 45, and 60 as follows:
 
6    (30 ILCS 708/20)
7    (Section scheduled to be repealed on July 16, 2020)
8    Sec. 20. Adoption of federal rules applicable to grants.
9    (a) On or before July 1, 2016, the Governor's Office of
10Management and Budget, with the advice and technical assistance
11of the Illinois Single Audit Commission, shall adopt rules
12which adopt the Uniform Guidance at 2 CFR 200. The rules, which
13shall apply to all State and federal pass-through awards
14effective on and after July 1, 2016, shall include the
15following:
16        (1) Administrative requirements. In accordance with
17    Subparts B through D of 2 CFR 200, the rules shall set
18    forth the uniform administrative requirements for grant
19    and cooperative agreements, including the requirements for
20    the management by State awarding agencies of federal grant
21    programs before State and federal pass-through awards have
22    been made and requirements that State awarding agencies may
23    impose on non-federal entities in State and federal

 

 

SB3185- 2 -LRB100 19574 RJF 34843 b

1    pass-through awards.
2        (2) Cost principles. In accordance with Subpart E of 2
3    CFR 200, the rules shall establish principles for
4    determining the allowable costs incurred by non-federal
5    entities under State and federal pass-through awards. The
6    principles are intended for cost determination, but are not
7    intended to identify the circumstances or dictate the
8    extent of State or federal pass-through participation in
9    financing a particular program or project. The principles
10    shall provide that State and federal awards bear their fair
11    share of cost recognized under these principles, except
12    where restricted or prohibited by State or federal law.
13        (3) Audit and single audit requirements and audit
14    follow-up. In accordance with Subpart F of 2 CFR 200 and
15    the federal Single Audit Act Amendments of 1996, the rules
16    shall set forth standards to obtain consistency and
17    uniformity among State and federal pass-through awarding
18    agencies for the audit of non-federal entities expending
19    State and federal awards. These provisions shall also set
20    forth the policies and procedures for State and federal
21    pass-through entities when using the results of these
22    audits.
23        The provisions of this item (3) do not apply to
24    for-profit subrecipients because for-profit subrecipients
25    are not subject to the requirements of 2 CFR 200, Subpart F
26    OMB Circular A-133, Audits of States, Local and Non-Profit

 

 

SB3185- 3 -LRB100 19574 RJF 34843 b

1    Organizations. Audits of for-profit subrecipients must be
2    conducted pursuant to a Program Audit Guide issued by the
3    Federal awarding agency. If a Program Audit Guide is not
4    available, the State awarding agency must prepare a Program
5    Audit Guide in accordance with the 2 CFR 200, Subpart F –
6    Audit Requirements - OMB Circular A-133 Compliance
7    Supplement. For-profit entities are subject to all other
8    general administrative requirements and cost principles
9    applicable to grants.
10    (b) This Act addresses only State and federal pass-through
11auditing functions and does not address the external audit
12function of the Auditor General.
13    (c) For public institutions of higher education, the
14provisions of this Section apply only to awards funded by State
15appropriations and federal pass-through awards from a State
16agency to public institutions of higher education. Federal
17pass-through awards from a State agency to public institutions
18of higher education are governed by and must comply with
19federal guidelines under 2 CFR 200.
20    (d) The State grant-making agency is responsible for
21establishing requirements, as necessary, to ensure compliance
22by for-profit subrecipients. The agreement with the for-profit
23subrecipient shall describe the applicable compliance
24requirements and the for-profit subrecipient's compliance
25responsibility. Methods to ensure compliance for State and
26federal pass-through awards made to for-profit subrecipients

 

 

SB3185- 4 -LRB100 19574 RJF 34843 b

1shall include pre-award, audits, monitoring during the
2agreement, and post-award audits. The Governor's Office of
3Management and Budget shall provide such advice and technical
4assistance to the State grant-making agency as is necessary or
5indicated.
6(Source: P.A. 98-706, eff. 7-16-14; 99-523, eff. 6-30-16.)
 
7    (30 ILCS 708/25)
8    (Section scheduled to be repealed on July 16, 2020)
9    Sec. 25. Supplemental rules. On or before July 1, 2017, the
10Governor's Office of Management and Budget, with the advice and
11technical assistance of the Illinois Single Audit Commission,
12shall adopt supplemental rules pertaining to the following:
13        (1) Criteria to define mandatory formula-based grants
14    and discretionary grants.
15        (2) The award of one-year grants for new applicants.
16        (3) The award of competitive grants in 3-year terms
17    (one-year initial terms with the option to renew for up to
18    2 additional years) to coincide with the federal award.
19        (4) The issuance of grants, including:
20            (A) public notice of announcements of funding
21        opportunities;
22            (B) the development of uniform grant applications;
23            (C) State agency review of merit of proposals and
24        risk posed by applicants;
25            (D) specific conditions for individual recipients

 

 

SB3185- 5 -LRB100 19574 RJF 34843 b

1        (including requiring the use of a fiscal agent and
2        additional corrective conditions);
3            (E) certifications and representations;
4            (F) pre-award costs;
5            (G) performance measures and statewide prioritized
6        goals under Section 50-25 of the State Budget Law of
7        the Civil Administrative Code of Illinois, commonly
8        referred to as "Budgeting for Results"; and
9            (H) for mandatory formula grants, the merit of the
10        proposal and the risk posed should result in additional
11        reporting, monitoring, or measures such as
12        reimbursement-basis only.
13        (5) The development of uniform budget requirements,
14    which shall include:
15            (A) mandatory submission of budgets as part of the
16        grant application process;
17            (B) mandatory requirements regarding contents of
18        the budget including, at a minimum, common detail line
19        items specified under guidelines issued by the
20        Governor's Office of Management and Budget;
21            (C) a requirement that the budget allow
22        flexibility to add lines describing costs that are
23        common for the services provided as outlined in the
24        grant application;
25            (D) a requirement that the budget include
26        information necessary for analyzing cost and

 

 

SB3185- 6 -LRB100 19574 RJF 34843 b

1        performance for use in Budgeting for Results; and
2            (E) caps on the amount of salaries that may be
3        charged to grants based on the limitations imposed by
4        federal agencies.
5        (6) The development of pre-qualification requirements
6    for applicants, including the fiscal condition of the
7    organization and the provision of the following
8    information:
9            (A) organization name;
10            (B) Federal Employee Identification Number;
11            (C) Data Universal Numbering System (DUNS) number;
12            (D) fiscal condition;
13            (E) whether the applicant is in good standing with
14        the Secretary of State;
15            (F) past performance in administering grants;
16            (G) whether the applicant is or has ever been on
17        the Debarred and Suspended List maintained by the
18        Governor's Office of Management and Budget;
19            (H) whether the applicant is or has ever been on
20        the federal Excluded Parties List; and
21            (I) whether the applicant is or has ever been on
22        the Sanctioned Party List maintained by the Illinois
23        Department of Healthcare and Family Services.
24    Nothing in this Act affects the provisions of the Fiscal
25Control and Internal Auditing Act nor the requirement that the
26management of each State agency is responsible for maintaining

 

 

SB3185- 7 -LRB100 19574 RJF 34843 b

1effective internal controls under that Act.
2    For public institutions of higher education, the
3provisions of this Section apply only to awards funded by State
4appropriations and federal pass-through awards from a State
5agency to public institutions of higher education.
6(Source: P.A. 98-706, eff. 7-16-14; 99-523, eff. 6-30-16.)
 
7    (30 ILCS 708/45)
8    (Section scheduled to be repealed on July 16, 2020)
9    Sec. 45. Applicability.
10    (a) The requirements established under this Act apply to
11State grant-making agencies that make State and federal
12pass-through awards to non-federal entities. These
13requirements apply to all costs related to State and federal
14pass-through awards. The requirements established under this
15Act do not apply to private awards.
16    (a-5) Nothing in this Act shall prohibit the use of State
17funds for purposes of federal match or maintenance of effort.
18    (b) The terms and conditions of State, federal, and
19pass-through awards apply to subawards and subrecipients
20unless a particular Section of this Act or the terms and
21conditions of the State or federal award specifically indicate
22otherwise. Non-federal entities shall comply with requirements
23of this Act regardless of whether the non-federal entity is a
24recipient or subrecipient of a State or federal pass-through
25award. Pass-through entities shall comply with the

 

 

SB3185- 8 -LRB100 19574 RJF 34843 b

1requirements set forth under the rules adopted under subsection
2(a) of Section 20 of this Act, but not to any requirements in
3this Act directed towards State or federal awarding agencies,
4unless the requirements of the State or federal awards indicate
5otherwise.
6    When a non-federal entity is awarded a cost-reimbursement
7contract, only 2 CFR 200.330 through 200.332 are incorporated
8by reference into the contract. However, when the Cost
9Accounting Standards are applicable to the contract, they take
10precedence over the requirements of this Act unless they are in
11conflict with Subpart F of 2 CFR 200. In addition, costs that
12are made unallowable under 10 U.S.C. 2324(e) and 41 U.S.C.
134304(a), as described in the Federal Acquisition Regulations,
14subpart 31.2 and subpart 31.603, are always unallowable. For
15requirements other than those covered in Subpart D of 2 CFR
16200.330 through 200.332, the terms of the contract and the
17Federal Acquisition Regulations apply.
18    With the exception of Subpart F of 2 CFR 200, which is
19required by the Single Audit Act, in any circumstances where
20the provisions of federal statutes or regulations differ from
21the provisions of this Act, the provision of the federal
22statutes or regulations govern. This includes, for agreements
23with Indian tribes, the provisions of the Indian
24Self-Determination and Education and Assistance Act, as
25amended, 25 U.S.C. 450-458ddd-2.
26    (c) State grant-making agencies may apply subparts A

 

 

SB3185- 9 -LRB100 19574 RJF 34843 b

1through E of 2 CFR 200 to for-profit entities, foreign public
2entities, or foreign organizations, except where the awarding
3agency determines that the application of these subparts would
4be inconsistent with the international obligations of the
5United States or the statute or regulations of a foreign
6government.
7    (d) 2 CFR 200.101 specifies how 2 CFR 200 is applicable to
8different types of awards. The same applicability applies to
9this Act. Except for 2 CFR 200.202 and 200.330 through 200.332,
10the requirements in Subparts C, D, and E of 2 CFR 200 do not
11apply to the following programs:
12        (1) The block grant awards authorized by the Omnibus
13    Budget Reconciliation Act of 1981 (including Community
14    Services; Preventive Health and Health Services; Alcohol,
15    Drug Abuse, and Mental Health Services; Maternal and Child
16    Health Services; Social Services; Low-Income Home Energy
17    Assistance; States' Program of Community Development Block
18    Grant Awards for Small Cities; and Elementary and Secondary
19    Education, other than programs administered by the
20    Secretary of Education under Title V, Subtitle D, Chapter
21    2, Section 583 - the Secretary's discretionary award
22    program) and both the Alcohol and Drug Abuse Treatment and
23    Rehabilitation Block Grant Award (42 U.S.C. 300x-21 to
24    300x-35 and 42 U.S.C. 300x-51 to 300x-64) and the Mental
25    Health Service for the Homeless Block Grant Award (42
26    U.S.C. 300x to 300x-9) under the Public Health Services

 

 

SB3185- 10 -LRB100 19574 RJF 34843 b

1    Act.
2        (2) Federal awards to local education agencies under 20
3    U.S.C. 7702 through 7703b (portions of the Impact Aid
4    program).
5        (3) Payments under the Department of Veterans Affairs'
6    State Home Per Diem Program (38 U.S.C. 1741).
7        (4) Federal awards authorized under the Child Care and
8    Development Block Grant Act of 1990, as amended, including
9    the following:
10            (A) Child Care and Development Block Grant (42
11        U.S.C. 9858).
12            (B) Child Care Mandatory and Matching Funds of the
13        Child Care and Development Fund (42 U.S.C. 9858).
14    (e) (Blank). Except for the 2 CFR 200.202 requirement to
15provide public notice of federal financial assistance
16programs, the guidance in Subpart C Pre-federal Award
17Requirements and Contents of Federal Awards does not apply to
18the following programs:
19        (1) Entitlement federal awards to carry out the
20    following programs of the Social Security Act:
21            (A) Temporary Assistance to Needy Families (Title
22        IV-A of the Social Security Act, 42 U.S.C. 601-619);
23            (B) Child Support Enforcement and Establishment of
24        Paternity (Title IV-D of the Social Security Act, 42
25        U.S.C. 651-669b);
26            (C) Foster Care and Adoption Assistance (Title

 

 

SB3185- 11 -LRB100 19574 RJF 34843 b

1        IV-E of the Act, 42 U.S.C. 670-679c);
2            (D) Aid to the Aged, Blind, and Disabled (Titles I,
3        X, XIV, and XVI - AABD of the Act, as amended); and
4            (E) Medical Assistance (Medicaid) (42 U.S.C.
5        1396-1396w-5), not including the State Medicaid Fraud
6        Control program authorized by Section 1903(a)(6)(B) of
7        the Social Security Act (42 U.S.C. 1396b(a)(6)(B)).
8        (2) A federal award for an experimental, pilot, or
9    demonstration project that is also supported by a federal
10    award listed in paragraph (1) of subsection (e) of this
11    Section.
12        (3) Federal awards under subsection 412(e) of the
13    Immigration and Nationality Act of 1965 and Section 501(a)
14    of the Refugee Education Assistance Act of 1980 for cash
15    assistance, medical assistance, and supplemental security
16    income benefits to refugees and entrants and the
17    administrative costs of providing the assistance and
18    benefits under 8 U.S.C. 1522(e).
19        (4) Entitlement awards under the following programs of
20    The National School Lunch Act:
21            (A) National School Lunch Program (42 U.S.C.
22        1753);
23            (B) Commodity Assistance (42 U.S.C. 1755);
24            (C) Special Meal Assistance (42 U.S.C. 1759a);
25            (D) Summer Food Service Program for Children (42
26        U.S.C. 1761); and

 

 

SB3185- 12 -LRB100 19574 RJF 34843 b

1            (E) Child and Adult Care Food Program (42 U.S.C.
2        1766).
3        (5) Entitlement awards under the following programs of
4    The Child Nutrition Act of 1966:
5            (A) Special Milk Program (42 U.S.C. 1772);
6            (B) School Breakfast Program (42 U.S.C. 1773); and
7            (C) State Administrative Expenses (42 U.S.C.
8        1776).
9        (6) Entitlement awards for State Administrative
10    Expenses under The Food and Nutrition Act of 2008 (7 U.S.C.
11    2025).
12        (7) Non-discretionary federal awards under the
13    following non-entitlement programs:
14            (A) Special Supplemental Nutrition Program for
15        Women, Infants and Children under the Child Nutrition
16        Act of 1966 (42 U.S.C. 1786);
17            (B) The Emergency Food Assistance Programs
18        (Emergency Food Assistance Act of 1983) (7 U.S.C.
19        7501); and
20            (C) Commodity Supplemental Food Program (7 U.S.C.
21        612c).
22    (f) For public institutions of higher education, the
23provisions of this Act apply only to awards funded by State
24appropriations and federal pass-through awards from a State
25agency to public institutions of higher education.
26    (g) Each grant-making agency shall enhance its processes to

 

 

SB3185- 13 -LRB100 19574 RJF 34843 b

1monitor and address noncompliance with reporting requirements
2and with program performance standards. Where applicable, the
3process may include a corrective action plan. The monitoring
4process shall include a plan for tracking and documenting
5performance-based contracting decisions.
6(Source: P.A. 98-706, eff. 7-16-14; revised 9-25-17.)
 
7    (30 ILCS 708/60)
8    (Section scheduled to be repealed on July 16, 2020)
9    Sec. 60. Grant Accountability and Transparency Unit
10responsibilities.
11    (a) The Grant Accountability and Transparency Unit within
12the Governor's Office of Management and Budget shall be
13responsible for:
14        (1) The development of minimum requirements applicable
15    to the staff of grant applicants to manage and execute
16    grant awards for programmatic and administrative purposes,
17    including grant management specialists with:
18            (A) general and technical competencies;
19            (B) programmatic expertise;
20            (C) fiscal expertise and systems necessary to
21        adequately account for the source and application of
22        grant funds for each program; and
23            (D) knowledge of compliance requirements.
24        (2) The development of minimum training requirements,
25    including annual training requirements.

 

 

SB3185- 14 -LRB100 19574 RJF 34843 b

1        (3) Accurate, current, and complete disclosure of the
2    financial results of each funded award, as set forth in the
3    financial monitoring and reporting Section of 2 CFR 200.
4        (4) Development of criteria for requiring the
5    retention of a fiscal agent and for becoming a fiscal
6    agent.
7        (5) Development of disclosure requirements in the
8    grant application pertaining to:
9            (A) related-party status between grantees and
10        grant-making agencies;
11            (B) past employment of applicant officers and
12        grant managers;
13            (C) disclosure of current or past employment of
14        members of immediate family; and
15            (D) disclosure of senior management of grantee
16        organization and their relationships with contracted
17        vendors.
18        (6) Implementation of rules prohibiting a grantee from
19    charging any cost allocable to a particular award or cost
20    objective to other State or federal awards to overcome fund
21    deficiencies, to avoid restrictions imposed by law or terms
22    of the federal awards, or for other reasons.
23        (7) Implementation of rules prohibiting a non-federal
24    entity from earning or keeping any profit resulting from
25    State or federal financial assistance, unless prior
26    approval has been obtained from the Governor's Office of

 

 

SB3185- 15 -LRB100 19574 RJF 34843 b

1    Management and Budget and is expressly authorized by the
2    terms and conditions of the award.
3        (8) Maintenance of an Illinois Debarred and Suspended
4    List that contains the names of those individuals and
5    entities that are ineligible, either temporarily or
6    permanently, to receive an award of grant funds from the
7    State.
8        (9) Ensuring the adoption of standardized rules for the
9    implementation of this Act by State grant-making agencies.
10    The Grant Accountability and Transparency Unit shall
11    provide such advice and technical assistance to the State
12    grant-making agencies as is necessary or indicated in order
13    to ensure compliance with this Act.
14        (10) Coordination of financial and Single Audit
15    reviews.
16        (11) Coordination of on-site reviews of grantees and
17    subrecipients.
18        (12) Maintenance of the Catalog of State Financial
19    Assistance, which shall be posted on an Internet website
20    maintained by the Governor's Office of Management and
21    Budget that is available to the public.
22    (b) The Grant Accountability and Transparency Unit shall
23have no power or authority regarding the approval, disapproval,
24management, or oversight of grants entered into or awarded by a
25State agency or by a public institution of higher education.
26The power or authority existing under law to grant or award

 

 

SB3185- 16 -LRB100 19574 RJF 34843 b

1grants by a State agency or by a public institution of higher
2education shall remain with that State agency or public
3institution of higher education. The Unit shall be responsible
4for providing technical assistance and assuring reviewing and
5approving amendments to the Administrative Code proposed by
6State grant agencies comply in connection with the
7implementation of this Act and shall be responsible for
8establishing standardized policies and procedures for State
9grant-making agencies in order to ensure compliance with the
10Uniform Administrative Requirements, Cost Principles and Audit
11Requirements for Federal Awards set forth in 2 CFR Part 200,
12all of which must be adhered to by the State grant-making
13agencies throughout the life cycle of the grant.
14    (c) The powers and functions of grant making by State
15agencies or public institutions of higher education may not be
16transferred to, nor may prior grant approval be transferred to,
17any other person, office, or entity within the executive branch
18of State government.
19(Source: P.A. 98-706, eff. 7-16-14.)
 
20    (30 ILCS 708/100 rep.)
21    Section 10. The Grant Accountability and Transparency Act
22is amended by repealing Section 100.