HB2747 EnrolledLRB098 10557 JDS 40802 b

1    AN ACT concerning government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the Grant
5Accountability and Transparency Act.
 
6    Section 5. Legislative intent.
7    (a) This Act, which is the product of the work of the
8Illinois Single Audit Commission, created by Public Act 98-47,
9is intended to comply with the General Assembly's directives to
10(1) develop a coordinated, non-redundant process for the
11provision of effective and efficient oversight of the selection
12and monitoring of grant recipients, thereby ensuring quality
13programs and limiting fraud, waste, and abuse, and (2) define
14the purpose, scope, applicability, and responsibilities in the
15life cycle of a grant.
16    (b) This Act is intended to increase the accountability and
17transparency in the use of grant funds from whatever source and
18to reduce administrative burdens on both State agencies and
19grantees by adopting federal guidance and regulations
20applicable to such grant funds; specifically, the Uniform
21Administrative Requirements, Cost Principles, and Audit
22Requirements for Federal Awards ("Uniform Guidance"), codified
23at 2 CFR 200.

 

 

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1    (c) This Act is consistent with the State's focus on
2improving performance and outcomes while ensuring transparency
3and the financial integrity of taxpayer dollars through such
4initiatives as the Management Improvement Initiative Committee
5created by Section 1-37a of the Department of Human Services
6Act, the State prioritized goals created under Section 50-25 of
7the State Budget Law (also known as "Budgeting for Results"),
8and the Grant Information Collection Act.
9    (d) This Act is not intended to affect the provisions of
10the Illinois State Auditing Act and does not address the
11external audit function of the Auditor General.
 
12    Section 10. Purpose. The purpose of this Act is to
13establish uniform administrative requirements, cost
14principles, and audit requirements for State and federal
15pass-through awards to non-federal entities. State awarding
16agencies shall not impose additional or inconsistent
17requirements, except as provided in 2 CFR 200.102, unless
18specifically required by State or federal statute. This Act and
19the rules adopted under this Act do not apply to private
20awards.
21    This Act and the rules adopted under this Act provide the
22basis for a systematic and periodic collection and uniform
23submission to the Governor's Office of Management and Budget of
24information of all State and federal financial assistance
25programs by State grant-making agencies. This Act also

 

 

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1establishes policies related to the delivery of this
2information to the public, including through the use of
3electronic media.
 
4    Section 15. Definitions. As used in this Act:
5    "Allowable cost" means a cost allowable to a project if:
6        (1) the costs are reasonable and necessary for the
7    performance of the award;
8        (2) the costs are allocable to the specific project;
9        (3) the costs are treated consistently in like
10    circumstances to both federally-financed and other
11    activities of the non-federal entity;
12        (4) the costs conform to any limitations of the cost
13    principles or the sponsored agreement;
14        (5) the costs are accorded consistent treatment; a cost
15    may not be assigned to a State or federal award as a direct
16    cost if any other cost incurred for the same purpose in
17    like circumstances has been allocated to the award as an
18    indirect cost;
19        (6) the costs are determined to be in accordance with
20    generally accepted accounting principles;
21        (7) the costs are not included as a cost or used to
22    meet federal cost-sharing or matching requirements of any
23    other program in either the current or prior period;
24        (8) the costs of one State or federal grant are not
25    used to meet the match requirements of another State or

 

 

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1    federal grant; and
2        (9) the costs are adequately documented.
3    "Auditee" means any non-federal entity that expends State
4or federal awards that must be audited.
5    "Auditor" means an auditor who is a public accountant or a
6federal, State, or local government audit organization that
7meets the general standards specified in generally-accepted
8government auditing standards. "Auditor" does not include
9internal auditors of nonprofit organizations.
10    "Auditor General" means the Auditor General of the State of
11Illinois.
12    "Award" means financial assistance that provides support
13or stimulation to accomplish a public purpose. "Awards" include
14grants and other agreements in the form of money, or property
15in lieu of money, by the State or federal government to an
16eligible recipient. "Award" does not include: technical
17assistance that provides services instead of money; other
18assistance in the form of loans, loan guarantees, interest
19subsidies, or insurance; direct payments of any kind to
20individuals; or contracts that must be entered into and
21administered under State or federal procurement laws and
22regulations.
23    "Budget" means the financial plan for the project or
24program that the awarding agency or pass-through entity
25approves during the award process or in subsequent amendments
26to the award. It may include the State or federal and

 

 

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1non-federal share or only the State or federal share, as
2determined by the awarding agency or pass-through entity.
3    "Catalog of Federal Domestic Assistance" or "CFDA" means a
4database that helps the federal government track all programs
5it has domestically funded.
6    "Catalog of Federal Domestic Assistance number" or "CFDA
7number" means the number assigned to a federal program in the
8CFDA.
9    "Catalog of State Financial Assistance" means the single,
10authoritative, statewide, comprehensive source document of
11State financial assistance program information maintained by
12the Governor's Office of Management and Budget.
13    "Catalog of State Financial Assistance Number" means the
14number assigned to a State program in the Catalog of State
15Financial Assistance. The first 3 digits represent the State
16agency number and the last 4 digits represent the program.
17    "Cluster of programs" means a grouping of closely related
18programs that share common compliance requirements. The types
19of clusters of programs are research and development, student
20financial aid, and other clusters. A "cluster of programs"
21shall be considered as one program for determining major
22programs and, with the exception of research and development,
23whether a program-specific audit may be elected.
24    "Cognizant agency for audit" means the federal agency
25designated to carry out the responsibilities described in 2 CFR
26200.513(a).

 

 

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1    "Contract" means a legal instrument by which a non-federal
2entity purchases property or services needed to carry out the
3project or program under an award. "Contract" does not include
4a legal instrument, even if the non-federal entity considers it
5a contract, when the substance of the transaction meets the
6definition of an award or subaward.
7    "Contractor" means an entity that receives a contract.
8    "Cooperative agreement" means a legal instrument of
9financial assistance between an awarding agency or
10pass-through entity and a non-federal entity that:
11        (1) is used to enter into a relationship with the
12    principal purpose of transferring anything of value from
13    the awarding agency or pass-through entity to the
14    non-federal entity to carry out a public purpose authorized
15    by law, but is not used to acquire property or services for
16    the awarding agency's or pass-through entity's direct
17    benefit or use; and
18        (2) is distinguished from a grant in that it provides
19    for substantial involvement between the awarding agency or
20    pass-through entity and the non-federal entity in carrying
21    out the activity contemplated by the award.
22    "Cooperative agreement" does not include a cooperative
23research and development agreement, nor an agreement that
24provides only direct cash assistance to an individual, a
25subsidy, a loan, a loan guarantee, or insurance.
26    "Corrective action" means action taken by the auditee that

 

 

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1(i) corrects identified deficiencies, (ii) produces
2recommended improvements, or (iii) demonstrates that audit
3findings are either invalid or do not warrant auditee action.
4    "Cost objective" means a program, function, activity,
5award, organizational subdivision, contract, or work unit for
6which cost data is desired and for which provision is made to
7accumulate and measure the cost of processes, products, jobs,
8and capital projects. A "cost objective" may be a major
9function of the non-federal entity, a particular service or
10project, an award, or an indirect cost activity.
11    "Cost sharing" means the portion of project costs not paid
12by State or federal funds, unless otherwise authorized by
13statute.
14    "Development" is the systematic use of knowledge and
15understanding gained from research directed toward the
16production of useful materials, devices, systems, or methods,
17including design and development of prototypes and processes.
18    "Data Universal Numbering System number" means the 9-digit
19number established and assigned by Dun and Bradstreet, Inc. to
20uniquely identify entities and, under federal law, is required
21for non-federal entities to apply for, receive, and report on a
22federal award.
23    "Direct costs" means costs that can be identified
24specifically with a particular final cost objective, such as a
25State or federal or federal pass-through award or a particular
26sponsored project, an instructional activity, or any other

 

 

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1institutional activity, or that can be directly assigned to
2such activities relatively easily with a high degree of
3accuracy.
4    "Equipment" means tangible personal property (including
5information technology systems) having a useful life of more
6than one year and a per-unit acquisition cost that equals or
7exceeds the lesser of the capitalization level established by
8the non-federal entity for financial statement purposes, or
9$5,000.
10    "Executive branch" means that branch of State government
11that is under the jurisdiction of the Governor.
12    "Federal agency" has the meaning provided for "agency"
13under 5 U.S.C. 551(1) together with the meaning provided for
14"agency" by 5 U.S.C. 552(f).
15    "Federal award" means:
16        (1) the federal financial assistance that a
17    non-federal entity receives directly from a federal
18    awarding agency or indirectly from a pass-through entity;
19        (2) the cost-reimbursement contract under the Federal
20    Acquisition Regulations that a non-federal entity receives
21    directly from a federal awarding agency or indirectly from
22    a pass-through entity; or
23        (3) the instrument setting forth the terms and
24    conditions when the instrument is the grant agreement,
25    cooperative agreement, other agreement for assistance
26    covered in paragraph (b) of 20 CFR 200.40, or the

 

 

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1    cost-reimbursement contract awarded under the Federal
2    Acquisition Regulations.
3    "Federal award" does not include other contracts that a
4federal agency uses to buy goods or services from a contractor
5or a contract to operate federal government owned,
6contractor-operated facilities.
7    "Federal awarding agency" means the federal agency that
8provides a federal award directly to a non-federal entity.
9    "Federal interest" means, for purposes of 2 CFR 200.329 or
10when used in connection with the acquisition or improvement of
11real property, equipment, or supplies under a federal award,
12the dollar amount that is the product of the federal share of
13total project costs and current fair market value of the
14property, improvements, or both, to the extent the costs of
15acquiring or improving the property were included as project
16costs.
17    "Federal program" means any of the following:
18        (1) All federal awards which are assigned a single
19    number in the CFDA.
20        (2) When no CFDA number is assigned, all federal awards
21    to non-federal entities from the same agency made for the
22    same purpose should be combined and considered one program.
23        (3) Notwithstanding paragraphs (1) and (2) of this
24    definition, a cluster of programs. The types of clusters of
25    programs are:
26            (A) research and development;

 

 

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1            (B) student financial aid; and
2            (C) "other clusters", as described in the
3        definition of "cluster of programs".
4    "Federal share" means the portion of the total project
5costs that are paid by federal funds.
6    "Final cost objective" means a cost objective which has
7allocated to it both direct and indirect costs and, in the
8non-federal entity's accumulation system, is one of the final
9accumulation points, such as a particular award, internal
10project, or other direct activity of a non-federal entity.
11    "Financial assistance" means the following:
12        (1) For grants and cooperative agreements, "financial
13    assistance" means assistance that non-federal entities
14    receive or administer in the form of:
15            (A) grants;
16            (B) cooperative agreements;
17            (C) non-cash contributions or donations of
18        property, including donated surplus property;
19            (D) direct appropriations;
20            (E) food commodities; and
21            (F) other financial assistance, except assistance
22        listed in paragraph (2) of this definition.
23        (2) "Financial assistance" includes assistance that
24    non-federal entities receive or administer in the form of
25    loans, loan guarantees, interest subsidies, and insurance.
26        (3) "Financial assistance" does not include amounts

 

 

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1    received as reimbursement for services rendered to
2    individuals.
3    "Fixed amount awards" means a type of grant agreement under
4which the awarding agency or pass-through entity provides a
5specific level of support without regard to actual costs
6incurred under the award. "Fixed amount awards" reduce some of
7the administrative burden and record-keeping requirements for
8both the non-federal entity and awarding agency or pass-through
9entity. Accountability is based primarily on performance and
10results.
11    "Foreign public entity" means:
12        (1) a foreign government or foreign governmental
13    entity;
14        (2) a public international organization that is
15    entitled to enjoy privileges, exemptions, and immunities
16    as an international organization under the International
17    Organizations Immunities Act (22 U.S.C. 288-288f);
18        (3) an entity owned, in whole or in part, or controlled
19    by a foreign government; or
20        (4) any other entity consisting wholly or partially of
21    one or more foreign governments or foreign governmental
22    entities.
23    "Foreign organization" means an entity that is:
24        (1) a public or private organization located in a
25    country other than the United States and its territories
26    that are subject to the laws of the country in which it is

 

 

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1    located, irrespective of the citizenship of project staff
2    or place of performance;
3        (2) a private nongovernmental organization located in
4    a country other than the United States that solicits and
5    receives cash contributions from the general public;
6        (3) a charitable organization located in a country
7    other than the United States that is nonprofit and tax
8    exempt under the laws of its country of domicile and
9    operation, but is not a university, college, accredited
10    degree-granting institution of education, private
11    foundation, hospital, organization engaged exclusively in
12    research or scientific activities, church, synagogue,
13    mosque, or other similar entity organized primarily for
14    religious purposes; or
15        (4) an organization located in a country other than the
16    United States not recognized as a Foreign Public Entity.
17    "Generally Accepted Accounting Principles" has the meaning
18provided in accounting standards issued by the Government
19Accounting Standards Board and the Financial Accounting
20Standards Board.
21    "Generally Accepted Government Auditing Standards" means
22generally accepted government auditing standards issued by the
23Comptroller General of the United States that are applicable to
24financial audits.
25    "Grant agreement" means a legal instrument of financial
26assistance between an awarding agency or pass-through entity

 

 

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1and a non-federal entity that:
2        (1) is used to enter into a relationship, the principal
3    purpose of which is to transfer anything of value from the
4    awarding agency or pass-through entity to the non-federal
5    entity to carry out a public purpose authorized by law and
6    not to acquire property or services for the awarding agency
7    or pass-through entity's direct benefit or use; and
8        (2) is distinguished from a cooperative agreement in
9    that it does not provide for substantial involvement
10    between the awarding agency or pass-through entity and the
11    non-federal entity in carrying out the activity
12    contemplated by the award.
13    "Grant agreement" does not include an agreement that
14provides only direct cash assistance to an individual, a
15subsidy, a loan, a loan guarantee, or insurance.
16    "Grant application" means a specified form that is
17completed by a non-federal entity in connection with a request
18for a specific funding opportunity or a request for financial
19support of a project or activity.
20    "Hospital" means a facility licensed as a hospital under
21the law of any state or a facility operated as a hospital by
22the United States, a state, or a subdivision of a state.
23    "Illinois Debarred and Suspended List" means the list
24maintained by the Governor's Office of Management and Budget
25that contains the names of those individuals and entities that
26are ineligible, either temporarily or permanently, from

 

 

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1receiving an award of grant funds from the State.
2    "Indian tribe" (or "federally recognized Indian tribe")
3means any Indian tribe, band, nation, or other organized group
4or community, including any Alaska Native village or regional
5or village corporation as defined in or established pursuant to
6the federal Alaska Native Claims Settlement Act (43 U.S.C.
71601, et seq.) that is recognized as eligible for the special
8programs and services provided by the United States to Indians
9because of their status as Indians under 25 U.S.C. 450b(e), as
10set forth in the annually published Bureau of Indian Affairs
11list of Indian Entities Recognized and Eligible to Receive
12Services.
13    "Indirect cost" means those costs incurred for a common or
14joint purpose benefitting more than one cost objective and not
15readily assignable to the cost objectives specifically
16benefitted without effort disproportionate to the results
17achieved.
18    "Inspector General" means the Office of the Executive
19Inspector General for Executive branch agencies.
20    "Loan" means a State or federal loan or loan guarantee
21received or administered by a non-federal entity. "Loan" does
22not include a "program income" as defined in 2 CFR 200.80.
23    "Loan guarantee" means any State or federal government
24guarantee, insurance, or other pledge with respect to the
25payment of all or a part of the principal or interest on any
26debt obligation of a non-federal borrower to a non-federal

 

 

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1lender, but does not include the insurance of deposits, shares,
2or other withdrawable accounts in financial institutions.
3    "Local government" has the meaning provided for the term
4"units of local government" under Section 1 of Article VII of
5the Illinois Constitution and includes school districts.
6    "Major program" means a federal program determined by the
7auditor to be a major program in accordance with 2 CFR 200.518
8or a program identified as a major program by a federal
9awarding agency or pass-through entity in accordance with 2 CFR
10200.503(e).
11    "Non-federal entity" means a state, local government,
12Indian tribe, institution of higher education, or
13organization, whether nonprofit or for-profit, that carries
14out a State or federal award as a recipient or subrecipient.
15    "Nonprofit organization" means any corporation, trust,
16association, cooperative, or other organization, not including
17institutions of higher education, that:
18        (1) is operated primarily for scientific, educational,
19    service, charitable, or similar purposes in the public
20    interest;
21        (2) is not organized primarily for profit; and
22        (3) uses net proceeds to maintain, improve, or expand
23    the operations of the organization.
24    "Obligations", when used in connection with a non-federal
25entity's utilization of funds under an award, means orders
26placed for property and services, contracts and subawards made,

 

 

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1and similar transactions during a given period that require
2payment by the non-federal entity during the same or a future
3period.
4    "Office of Management and Budget" means the Office of
5Management and Budget of the Executive Office of the President.
6    "Other clusters" has the meaning provided by the federal
7Office of Management and Budget in the compliance supplement or
8has the meaning as it is designated by a state for federal
9awards the state provides to its subrecipients that meet the
10definition of a cluster of programs. When designating an "other
11cluster", a state must identify the federal awards included in
12the cluster and advise the subrecipients of compliance
13requirements applicable to the cluster.
14    "Oversight agency for audit" means the federal awarding
15agency that provides the predominant amount of funding directly
16to a non-federal entity not assigned a cognizant agency for
17audit. When there is no direct funding, the awarding agency
18that is the predominant source of pass-through funding must
19assume the oversight responsibilities. The duties of the
20oversight agency for audit and the process for any
21reassignments are described in 2 CFR 200.513(b).
22    "Pass-through entity" means a non-federal entity that
23provides a subaward to a subrecipient to carry out part of a
24program.
25    "Private award" means an award from a person or entity
26other than a State or federal entity. Private awards are not

 

 

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1subject to the provisions of this Act.
2    "Property" means real property or personal property.
3    "Project cost" means total allowable costs incurred under
4an award and all required cost sharing and voluntary committed
5cost sharing, including third-party contributions.
6    "Public institutions of higher education" has the meaning
7provided in Section 1 of the Board of Higher Education Act.
8    "Recipient" means a non-federal entity that receives an
9award directly from an awarding agency to carry out an activity
10under a program. "Recipient" does not include subrecipients.
11    "Research and Development" means all research activities,
12both basic and applied, and all development activities that are
13performed by non-federal entities.
14    "Single Audit Act" means the federal Single Audit Act
15Amendments of 1996 (31 U.S.C. 7501-7507).
16    "State agency" means an Executive branch agency. For
17purposes of this Act, "State agency" does not include public
18institutions of higher education.
19    "State award" means the financial assistance that a
20non-federal entity receives from the State and that is funded
21with either State funds or federal funds; in the latter case,
22the State is acting as a pass-through entity.
23    "State awarding agency" means a State agency that provides
24an award to a non-federal entity.
25    "State grant-making agency" has the same meaning as "State
26awarding agency".

 

 

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1    "State interest" means the acquisition or improvement of
2real property, equipment, or supplies under a State award, the
3dollar amount that is the product of the State share of the
4total project costs and current fair market value of the
5property, improvements, or both, to the extent the costs of
6acquiring or improving the property were included as project
7costs.
8    "State program" means any of the following:
9        (1) All State awards which are assigned a single number
10    in the Catalog of State Financial Assistance.
11        (2) When no Catalog of State Financial Assistance
12    number is assigned, all State awards to non-federal
13    entities from the same agency made for the same purpose are
14    considered one program.
15        (3) A cluster of programs as defined in this Section.
16    "State share" means the portion of the total project costs
17that are paid by State funds.
18    "Student Financial Aid" means federal awards under those
19programs of general student assistance, such as those
20authorized by Title IV of the Higher Education Act of 1965, as
21amended (20 U.S.C. 1070-1099d), that are administered by the
22United States Department of Education and similar programs
23provided by other federal agencies. "Student Financial Aid"
24does not include federal awards under programs that provide
25fellowships or similar federal awards to students on a
26competitive basis or for specified studies or research.

 

 

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1    "Subaward" means a State or federal award provided by a
2pass-through entity to a subrecipient for the subrecipient to
3carry out part of a federal award received by the pass-through
4entity. "Subaward" does not include payments to a contractor or
5payments to an individual that is a beneficiary of a federal
6program. A "subaward" may be provided through any form of legal
7agreement, including an agreement that the pass-through entity
8considers a contract.
9    "Subrecipient" means a non-federal entity that receives a
10State or federal subaward from a pass-through entity to carry
11out part of a federal program. "Subrecipient" does not include
12an individual that is a beneficiary of such program. A
13"subrecipient" may also be a recipient of other State or
14federal awards directly from a State or federal awarding
15agency.
16    "Suspension" means a post-award action by the State or
17federal agency or pass-through entity that temporarily
18withdraws the State or federal agency's or pass-through
19entity's financial assistance sponsorship under an award,
20pending corrective action by the recipient or subrecipient or
21pending a decision to terminate the award.
22    "Uniform Administrative Requirements, Costs Principles,
23and Audit Requirements for Federal Awards" means those rules
24applicable to grants contained in 2 CFR 200.
25    "Voluntary committed cost sharing" means cost sharing
26specifically pledged on a voluntary basis in the proposal's

 

 

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1budget or the award on the part of the non-federal entity and
2that becomes a binding requirement of the award.
 
3    Section 20. Adoption of federal rules applicable to grants.
4    (a) On or before July 1, 2015, the Governor's Office of
5Management and Budget, with the advice and technical assistance
6of the Illinois Single Audit Commission, shall adopt rules
7which adopt the Uniform Guidance at 2 CFR 200. The rules, which
8shall apply to all State and federal pass-through awards
9effective on and after July 1, 2015, shall include the
10following:
11        (1) Administrative requirements. In accordance with
12    Subparts B through D of 2 CFR 200, the rules shall set
13    forth the uniform administrative requirements for grant
14    and cooperative agreements, including the requirements for
15    the management by State awarding agencies of federal grant
16    programs before State and federal pass-through awards have
17    been made and requirements that State awarding agencies may
18    impose on non-federal entities in State and federal
19    pass-through awards.
20        (2) Cost principles. In accordance with Subpart E of 2
21    CFR 200, the rules shall establish principles for
22    determining the allowable costs incurred by non-federal
23    entities under State and federal pass-through awards. The
24    principles are intended for cost determination, but are not
25    intended to identify the circumstances or dictate the

 

 

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1    extent of State or federal pass-through participation in
2    financing a particular program or project. The principles
3    shall provide that State and federal awards bear their fair
4    share of cost recognized under these principles, except
5    where restricted or prohibited by State or federal law.
6        (3) Audit and single audit requirements and audit
7    follow-up. In accordance with Subpart F of 2 CFR 200 and
8    the federal Single Audit Act Amendments of 1996, the rules
9    shall set forth standards to obtain consistency and
10    uniformity among State and federal pass-through awarding
11    agencies for the audit of non-federal entities expending
12    State and federal awards. These provisions shall also set
13    forth the policies and procedures for State and federal
14    pass-through entities when using the results of these
15    audits.
16        The provisions of this item (3) do not apply to
17    for-profit subrecipients because for-profit subrecipients
18    are not subject to the requirements of OMB Circular A-133,
19    Audits of States, Local and Non-Profit Organizations.
20    Audits of for-profit subrecipients must be conducted
21    pursuant to a Program Audit Guide issued by the Federal
22    awarding agency. If a Program Audit Guide is not available,
23    the State awarding agency must prepare a Program Audit
24    Guide in accordance with the OMB Circular A-133 Compliance
25    Supplement. For-profit entities are subject to all other
26    general administrative requirements and cost principles

 

 

HB2747 Enrolled- 22 -LRB098 10557 JDS 40802 b

1    applicable to grants.
2    (b) This Act addresses only State and federal pass-through
3auditing functions and does not address the external audit
4function of the Auditor General.
5    (c) For public institutions of higher education, the
6provisions of this Section apply only to awards funded by State
7appropriations and federal pass-through awards from a State
8agency to public institutions of higher education. Federal
9pass-through awards from a State agency to public institutions
10of higher education are governed by and must comply with
11federal guidelines under 2 CFR 200.
12    (d) The State grant-making agency is responsible for
13establishing requirements, as necessary, to ensure compliance
14by for-profit subrecipients. The agreement with the for-profit
15subrecipient shall describe the applicable compliance
16requirements and the for-profit subrecipient's compliance
17responsibility. Methods to ensure compliance for State and
18federal pass-through awards made to for-profit subrecipients
19shall include pre-award, audits, monitoring during the
20agreement, and post-award audits. The Governor's Office of
21Management and Budget shall provide such advice and technical
22assistance to the State grant-making agency as is necessary or
23indicated.
 
24    Section 25. Supplemental rules. On or before July 1, 2015,
25the Governor's Office of Management and Budget, with the advice

 

 

HB2747 Enrolled- 23 -LRB098 10557 JDS 40802 b

1and technical assistance of the Illinois Single Audit
2Commission, shall adopt supplemental rules pertaining to the
3following:
4        (1) Criteria to define mandatory formula-based grants
5    and discretionary grants.
6        (2) The award of one-year grants for new applicants.
7        (3) The award of competitive grants in 3-year terms
8    (one-year initial terms with the option to renew for up to
9    2 additional years) to coincide with the federal award.
10        (4) The issuance of grants, including:
11            (A) public notice of announcements of funding
12        opportunities;
13            (B) the development of uniform grant applications;
14            (C) State agency review of merit of proposals and
15        risk posed by applicants;
16            (D) specific conditions for individual recipients
17        (requiring the use of a fiscal agent and additional
18        corrective conditions);
19            (E) certifications and representations;
20            (F) pre-award costs;
21            (G) performance measures and statewide prioritized
22        goals under Section 50-25 of the State Budget Law of
23        the Civil Administrative Code of Illinois, commonly
24        referred to as "Budgeting for Results"; and
25            (H) for mandatory formula grants, the merit of the
26        proposal and the risk posed should result in additional

 

 

HB2747 Enrolled- 24 -LRB098 10557 JDS 40802 b

1        reporting, monitoring, or measures such as
2        reimbursement-basis only.
3        (5) The development of uniform budget requirements,
4    which shall include:
5            (A) mandatory submission of budgets as part of the
6        grant application process;
7            (B) mandatory requirements regarding contents of
8        the budget including, at a minimum, common detail line
9        items specified under guidelines issued by the
10        Governor's Office of Management and Budget;
11            (C) a requirement that the budget allow
12        flexibility to add lines describing costs that are
13        common for the services provided as outlined in the
14        grant application;
15            (D) a requirement that the budget include
16        information necessary for analyzing cost and
17        performance for use in the Budgeting for Results
18        initiative; and
19            (E) caps on the amount of salaries that may be
20        charged to grants based on the limitations imposed by
21        federal agencies.
22        (6) The development of pre-qualification requirements
23    for applicants, including the fiscal condition of the
24    organization and the provision of the following
25    information:
26            (A) organization name;

 

 

HB2747 Enrolled- 25 -LRB098 10557 JDS 40802 b

1            (B) Federal Employee Identification Number;
2            (C) Data Universal Numbering System (DUNS) number;
3            (D) fiscal condition;
4            (E) whether the applicant is in good standing with
5        the Secretary of State;
6            (F) past performance in administering grants;
7            (G) whether the applicant is or has ever been on
8        the Debarred and Suspended List maintained by the
9        Governor's Office of Management and Budget;
10            (H) whether the applicant is or has ever been on
11        the federal Excluded Parties List; and
12            (I) whether the applicant is or has ever been on
13        the Sanctioned Party List maintained by the Illinois
14        Department of Healthcare and Family Services.
15    Nothing in this Act affects the provisions of the Fiscal
16Control and Internal Auditing Act nor the requirement that the
17management of each State agency is responsible for maintaining
18effective internal controls under that Act.
19    For public institutions of higher education, the
20provisions of this Section apply only to awards funded by State
21appropriations and federal pass-through awards from a State
22agency to public institutions of higher education.
 
23    Section 30. Catalog of State Financial Assistance.
24    The Catalog of State Financial Assistance is a single,
25authoritative, statewide, comprehensive source document of

 

 

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1State financial assistance program information. The Catalog
2shall contain, at a minimum, the following information:
3        (1) An introductory section that contains Catalog
4    highlights, an explanation of how to use the Catalog, an
5    explanation of the Catalog and its contents, and suggested
6    grant proposal writing methods and grant application
7    procedures.
8        (2) A comprehensive indexing system that categorizes
9    programs by issuing agency, eligible applicant,
10    application deadlines, function, popular name, and subject
11    area.
12        (3) Comprehensive appendices showing State assistance
13    programs that require coordination through this Act and
14    regulatory, legislative, and Executive Order authority for
15    each program, commonly used abbreviations and acronyms,
16    agency regional and local office addresses, and sources of
17    additional information.
18        (4) A list of programs that have been added to or
19    deleted from the Catalog and the various program numbers
20    and title changes.
21        (5) Program number, title, and popular name, if
22    applicable.
23        (6) The name of the State department or agency or
24    independent agency and primary organization sub-unit
25    administering the program.
26        (7) The enabling legislation, including popular name

 

 

HB2747 Enrolled- 27 -LRB098 10557 JDS 40802 b

1    of the Act, titles and Sections, Public Act number, and
2    citation to the Illinois Compiled Statutes.
3        (8) The type or types of financial and nonfinancial
4    assistance offered by the program.
5        (9) Uses and restrictions placed upon the program.
6        (10) Eligibility requirements, including applicant
7    eligibility criteria, beneficiary eligibility criteria,
8    and required credentials and documentation.
9        (11) Objectives and goals of the program.
10        (12) Information regarding application and award
11    processing; application deadlines; range of approval or
12    disapproval time; appeal procedure; and availability of a
13    renewal or extension of assistance.
14        (13) Assistance considerations, including an
15    explanation of the award formula, matching requirements,
16    and the length and time phasing of the assistance.
17        (14) Post-assistance requirements, including any
18    reports, audits, and records that may be required.
19        (15) Program accomplishments (where available)
20    describing quantitative measures of program performance.
21        (16) Regulations, guidelines, and literature
22    containing citations to the Illinois Administrative Code,
23    the Code of Federal Regulations, and other pertinent
24    informational materials.
25        (17) The names, telephone numbers, and e-mail
26    addresses of persons to be contacted for detailed program

 

 

HB2747 Enrolled- 28 -LRB098 10557 JDS 40802 b

1    information at the headquarters, regional, and local
2    levels.
 
3    Section 35. Conflicts of interest. The Governor's Office of
4Management and Budget shall adopt rules regarding conflict of
5interest policies for awards. A non-federal entity must
6disclose in writing any potential conflict of interest to the
7pass-through entity in accordance with applicable awarding
8agency policy.
 
9    Section 40. Mandatory disclosures. The Governor's Office
10of Management and Budget, with the advice and technical
11assistance of the Illinois Single Audit Commission, shall adopt
12rules requiring that the applicant for an award disclose, in a
13timely manner and in writing to the pass-through entity, all
14violations of State or federal criminal law involving fraud,
15bribery, or gratuity violations potentially affecting the
16award. Failure to make the required disclosures may result in
17any of the following remedial actions:
18        (1) The temporary withholding of cash payments pending
19    correction of the deficiency by the awarding agency or
20    non-federal entity or more severe enforcement action by the
21    pass-through entity.
22        (2) Disallowance of (that is, denial of both use of
23    funds and any applicable matching credit for) all or part
24    of the cost of the activity or action not in compliance.

 

 

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1        (3) Whole or partial suspension or termination of the
2    award.
3        (4) Initiation of suspension or debarment proceedings
4    as authorized under rules adopted under subsection (a) of
5    Section 20 of this Act and awarding agency regulations (or,
6    in the case of a pass-through entity, recommendation that
7    such a proceeding be initiated by the awarding agency).
8        (5) Withholding further awards for the project or
9    program.
10        (6) Taking any other remedial action that may be
11    legally available.
 
12    Section 45. Applicability.
13    (a) The requirements established under this Act apply to
14State grant-making agencies that make State and federal
15pass-through awards to non-federal entities. These
16requirements apply to all costs related to State and federal
17pass-through awards. The requirements established under this
18Act do not apply to private awards.
19    (a-5) Nothing in this Act shall prohibit the use of State
20funds for purposes of federal match or maintenance of effort.
21    (b) The terms and conditions of State, federal, and
22pass-through awards apply to subawards and subrecipients
23unless a particular Section of this Act or the terms and
24conditions of the State or federal award specifically indicate
25otherwise. Non-federal entities shall comply with requirements

 

 

HB2747 Enrolled- 30 -LRB098 10557 JDS 40802 b

1of this Act regardless of whether the non-federal entity is a
2recipient or subrecipient of a State or federal pass-through
3award. Pass-through entities shall comply with the
4requirements set forth under the rules adopted under subsection
5(a) of Section 20 of this Act, but not to any requirements in
6this Act directed towards State or federal awarding agencies,
7unless the requirements of the State or federal awards indicate
8otherwise.
9    When a non-federal entity is awarded a cost-reimbursement
10contract, only 2 CFR 200.330 through 200.332 are incorporated
11by reference into the contract. However, when the Cost
12Accounting Standards are applicable to the contract, they take
13precedence over the requirements of this Act unless they are in
14conflict with Subpart F of 2 CFR 200. In addition, costs that
15are made unallowable under 10 U.S.C. 2324(e) and 41 U.S.C.
164304(a), as described in the Federal Acquisition Regulations,
17subpart 31.2 and subpart 31.603, are always unallowable. For
18requirements other than those covered in Subpart D of 2 CFR
19200.330 through 200.332, the terms of the contract and the
20Federal Acquisition Regulations apply.
21    With the exception of Subpart F of 2 CFR 200, which is
22required by the Single Audit Act, in any circumstances where
23the provisions of federal statutes or regulations differ from
24the provisions of this Act, the provision of the federal
25statutes or regulations govern. This includes, for agreements
26with Indian tribes, the provisions of the Indian

 

 

HB2747 Enrolled- 31 -LRB098 10557 JDS 40802 b

1Self-Determination and Education and Assistance Act, as
2amended, 25 U.S.C. 450-458ddd-2.
3    (c) State grant-making agencies may apply subparts A
4through E of 2 CFR 200 to for-profit entities, foreign public
5entities, or foreign organizations, except where the awarding
6agency determines that the application of these subparts would
7be inconsistent with the international obligations of the
8United States or the statute or regulations of a foreign
9government.
10    (d) Except for 2 CFR 200.202 and 200.330 through 200.332,
11the requirements in Subparts C, D, and E of 2 CFR 200 do not
12apply to the following programs:
13        (1) The block grant awards authorized by the Omnibus
14    Budget Reconciliation Act of 1981 (including Community
15    Services; Preventive Health and Health Services; Alcohol,
16    Drug Abuse, and Mental Health Services; Maternal and Child
17    Health Services; Social Services; Low-Income Home Energy
18    Assistance; States' Program of Community Development Block
19    Grant Awards for Small Cities; and Elementary and Secondary
20    Education, other than programs administered by the
21    Secretary of Education under Title V, Subtitle D, Chapter
22    2, Section 583 - the Secretary's discretionary award
23    program) and both the Alcohol and Drug Abuse Treatment and
24    Rehabilitation Block Grant Award (42 U.S.C. 300x-21 to
25    300x-35 and 42 U.S.C. 300x-51 to 300x-64) and the Mental
26    Health Service for the Homeless Block Grant Award (42

 

 

HB2747 Enrolled- 32 -LRB098 10557 JDS 40802 b

1    U.S.C. 300x to 300x-9) under the Public Health Services
2    Act.
3        (2) Federal awards to local education agencies under 20
4    U.S.C. 7702 through 7703b (portions of the Impact Aid
5    program).
6        (3) Payments under the Department of Veterans Affairs'
7    State Home Per Diem Program (38 U.S.C. 1741).
8        (4) Federal awards authorized under the Child Care and
9    Development Block Grant Act of 1990, as amended, including
10    the following:
11            (A) Child Care and Development Block Grant (42
12        U.S.C. 9858).
13            (B) Child Care Mandatory and Matching Funds of the
14        Child Care and Development Fund (42 U.S.C. 9858).
15    (e) Except for the 2 CFR 200.202 requirement to provide
16public notice of federal financial assistance programs, the
17guidance in Subpart C Pre-federal Award Requirements and
18Contents of Federal Awards does not apply to the following
19programs:
20        (1) Entitlement federal awards to carry out the
21    following programs of the Social Security Act:
22            (A) Temporary Assistance to Needy Families (Title
23        IV-A of the Social Security Act, 42 U.S.C. 601-619);
24            (B) Child Support Enforcement and Establishment of
25        Paternity (Title IV-D of the Social Security Act, 42
26        U.S.C. 651-669b);

 

 

HB2747 Enrolled- 33 -LRB098 10557 JDS 40802 b

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

 

 

HB2747 Enrolled- 34 -LRB098 10557 JDS 40802 b

1        U.S.C. 1761); and
2            (E) Child and Adult Care Food Program (42 U.S.C.
3        1766).
4        (5) Entitlement awards under the following programs of
5    The Child Nutrition Act of 1966:
6            (A) Special Milk Program (42 U.S.C. 1772);
7            (B) School Breakfast Program (42 U.S.C. 1773); and
8            (C) State Administrative Expenses (42 U.S.C.
9        1776).
10        (6) Entitlement awards for State Administrative
11    Expenses under The Food and Nutrition Act of 2008 (7 U.S.C.
12    2025).
13        (7) Non-discretionary federal awards under the
14    following non-entitlement programs:
15            (A) Special Supplemental Nutrition Program for
16        Women, Infants and Children under the Child Nutrition
17        Act of 1966 (42 U.S.C. 1786);
18            (B) The Emergency Food Assistance Programs
19        (Emergency Food Assistance Act of 1983) (7 U.S.C.
20        7501); and
21            (C) Commodity Supplemental Food Program (7 U.S.C.
22        612c).
23    (f) For public institutions of higher education, the
24provisions of this Act apply only to awards funded by State
25appropriations and federal pass-through awards from a State
26agency to public institutions of higher education.

 

 

HB2747 Enrolled- 35 -LRB098 10557 JDS 40802 b

1    (g) Each grant-making agency shall enhance its processes to
2monitor and address noncompliance with reporting requirements
3and with program performance standards. Where applicable, the
4process may include a corrective action plan. The monitoring
5process shall include a plan for tracking and documenting
6performance-based contracting decisions.
 
7    Section 50. State grant-making agency responsibilities.
8    (a) The specific requirements and responsibilities of
9State grant-making agencies and non-federal entities are set
10forth in this Act. State agencies making State awards to
11non-federal entities must adopt by rule the language in 2 CFR
12200, Subpart C through Subpart F unless different provisions
13are required by law.
14    (b) Each State grant-making agency shall appoint a Chief
15Accountability Officer who shall serve as a liaison to the
16Grant Accountability and Transparency Unit and who shall be
17responsible for the State agency's implementation of and
18compliance with the rules.
19    (c) In order to effectively measure the performance of its
20recipients and subrecipients, each State grant-making agency
21shall:
22        (1) require its recipients and subrecipients to relate
23    financial data to performance accomplishments of the award
24    and, when applicable, must require recipients and
25    subrecipients to provide cost information to demonstrate

 

 

HB2747 Enrolled- 36 -LRB098 10557 JDS 40802 b

1    cost-effective practices. The recipient's and
2    subrecipient's performance should be measured in a way that
3    will help the State agency to improve program outcomes,
4    share lessons learned, and spread the adoption of promising
5    practices; and
6        (2) provide recipients and subrecipients with clear
7    performance goals, indicators, and milestones and must
8    establish performance reporting frequency and content to
9    not only allow the State agency to understand the
10    recipient's progress, but also to facilitate
11    identification of promising practices among recipients and
12    subrecipients and build the evidence upon which the State
13    agency's program and performance decisions are made.
14    (d) The Governor's Office of Management and Budget shall
15provide such advice and technical assistance to the State
16grant-making agencies as is necessary or indicated in order to
17ensure compliance with this Act.
 
18    Section 55. The Governor's Office of Management and Budget
19responsibilities.
20    (a) The Governor's Office of Management and Budget shall:
21        (1) provide technical assistance and interpretations
22    of policy requirements in order to ensure effective and
23    efficient implementation of this Act by State grant-making
24    agencies; and
25        (2) have authority to approve any exceptions to the

 

 

HB2747 Enrolled- 37 -LRB098 10557 JDS 40802 b

1    requirements of this Act and shall adopt rules governing
2    the criteria to be considered when an exception is
3    requested; exceptions shall only be made in particular
4    cases where adequate justification is presented.
5    (b) The Governor's Office of Management and Budget shall,
6on or before July 1, 2014, establish a centralized unit within
7the Governor's Office of Management and Budget. The centralized
8unit shall be known as the Grant Accountability and
9Transparency Unit and shall be funded with a portion of the
10administrative funds provided under existing and future State
11and federal pass-through grants. The amounts charged will be
12allocated based on the actual cost of the services provided to
13State grant-making agencies and public institutions of higher
14education in accordance with the applicable federal cost
15principles contained in 2 CFR 200 and this Act will not cause
16the reduction in the amount of any State or federal grant
17awards that have been or will be directed towards State
18agencies or public institutions of higher education.
 
19    Section 60. Grant Accountability and Transparency Unit
20responsibilities.
21    (a) The Grant Accountability and Transparency Unit within
22the Governor's Office of Management and Budget shall be
23responsible for:
24        (1) The development of minimum requirements applicable
25    to the staff of grant applicants to manage and execute

 

 

HB2747 Enrolled- 38 -LRB098 10557 JDS 40802 b

1    grant awards for programmatic and administrative purposes,
2    including grant management specialists with:
3            (A) general and technical competencies;
4            (B) programmatic expertise;
5            (C) fiscal expertise and systems necessary to
6        adequately account for the source and application of
7        grant funds for each program; and
8            (D) knowledge of compliance requirements.
9        (2) The development of minimum training requirements,
10    including annual training requirements.
11        (3) Accurate, current, and complete disclosure of the
12    financial results of each funded award, as set forth in the
13    financial monitoring and reporting Section of 2 CFR 200.
14        (4) Development of criteria for requiring the
15    retention of a fiscal agent and for becoming a fiscal
16    agent.
17        (5) Development of disclosure requirements in the
18    grant application pertaining to:
19            (A) related-party status between grantees and
20        grant-making agencies;
21            (B) past employment of applicant officers and
22        grant managers;
23            (C) disclosure of current or past employment of
24        members of immediate family; and
25            (D) disclosure of senior management of grantee
26        organization and their relationships with contracted

 

 

HB2747 Enrolled- 39 -LRB098 10557 JDS 40802 b

1        vendors.
2        (6) Implementation of rules prohibiting a grantee from
3    charging any cost allocable to a particular award or cost
4    objective to other State or federal awards to overcome fund
5    deficiencies, to avoid restrictions imposed by law or terms
6    of the federal awards, or for other reasons.
7        (7) Implementation of rules prohibiting a non-federal
8    entity from earning or keeping any profit resulting from
9    State or federal financial assistance, unless prior
10    approval has been obtained from the Governor's Office of
11    Management and Budget and is expressly authorized by the
12    terms and conditions of the award.
13        (8) Maintenance of an Illinois Debarred and Suspended
14    List that contains the names of those individuals and
15    entities that are ineligible, either temporarily or
16    permanently, to receive an award of grant funds from the
17    State.
18        (9) Ensuring the adoption of standardized rules for the
19    implementation of this Act by State grant-making agencies.
20    The Grant Accountability and Transparency Unit shall
21    provide such advice and technical assistance to the State
22    grant-making agencies as is necessary or indicated in order
23    to ensure compliance with this Act.
24        (10) Coordination of financial and Single Audit
25    reviews.
26        (11) Coordination of on-site reviews of grantees and

 

 

HB2747 Enrolled- 40 -LRB098 10557 JDS 40802 b

1    subrecipients.
2        (12) Maintenance of the Catalog of State Financial
3    Assistance, which shall be posted on an Internet website
4    maintained by the Governor's Office of Management and
5    Budget that is available to the public.
6    (b) The Grant Accountability and Transparency Unit shall
7have no power or authority regarding the approval, disapproval,
8management, or oversight of grants entered into or awarded by a
9State agency or by a public institution of higher education.
10The power or authority existing under law to grant or award
11grants by a State agency or by a public institution of higher
12education shall remain with that State agency or public
13institution of higher education. The Unit shall be responsible
14for reviewing and approving amendments to the Administrative
15Code proposed by State grant agencies in connection with the
16implementation of this Act and shall be responsible for
17establishing standardized policies and procedures for State
18grant-making agencies in order to ensure compliance with the
19Uniform Administrative Requirements, Cost Principles and Audit
20Requirements for Federal Awards set forth in 2 CFR Part 200,
21all of which must be adhered to by the State grant-making
22agencies throughout the life cycle of the grant.
23    (c) The powers and functions of grant making by State
24agencies or public institutions of higher education may not be
25transferred to, nor may prior grant approval be transferred to,
26any other person, office, or entity within the executive branch

 

 

HB2747 Enrolled- 41 -LRB098 10557 JDS 40802 b

1of State government.
 
2    Section 65. Audit requirements.
3    (a) The standards set forth in Subpart F of 2 CFR 200 and
4any other standards that apply directly to State or federal
5agencies shall apply to audits of fiscal years beginning on or
6after December 26, 2014.
7    (b) Books and records must be available for review or audit
8by appropriate officials of the pass-through entity, and the
9agency, the Auditor General, the Inspector General,
10appropriate officials of the agency, and the federal Government
11Accountability Office.
12    (c) The Governor's Office of Management and Budget, with
13the advice and technical assistance of the Illinois Single
14Audit Commission, shall adopt rules for audits of grants from a
15State or federal pass-through entity that are not subject to
16the Single Audit Act because the amount of the federal award is
17less than $750,000 or the subrecipient is an exempt entity and
18that are reasonably consistent with 2 CFR 200.
19    (d) This Act does not affect the provisions of the Illinois
20State Auditing Act and does not address the external audit
21function of the Auditor General.
 
22    Section 70. Review date. The Governor's Office of
23Management and Budget shall review this Act at least once every
245 years after December 26, 2014 in conjunction with the federal

 

 

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1review of the Uniform Administrative Requirements, Cost
2Principles, and Audit Requirements for Federal Awards as
3required by 2 CFR 200.109 in order to determine whether any
4existing rules need to be revised or new rules adopted.
 
5    Section 75. State program exceptions.
6    (a) With the exception of the audit requirements set forth
7in 2 CFR 200.102, exceptions may be allowed for classes of
8State or federal pass-through awards or non-federal entities
9subject to the requirements of this Act when such exceptions
10are not prohibited by State or federal law. However, in the
11interest of maximum uniformity, exceptions from the
12requirements of this Act shall be permitted only in unusual or
13exceptional circumstances.
14    (b) The Governor's Office of Management and Budget, with
15the advice and technical assistance of the Illinois Single
16Audit Commission, shall adopt rules governing the criteria that
17shall be used to determine when an exception may be issued. The
18Governor's Office of Management and Budget shall publish any
19allowed exceptions in the Catalogue of State Financial
20Assistance within 30 days of the exception being allowed.
 
21    Section 80. Supersession. On and after July 1, 2015, in the
22event of a conflict with the Grant Funds Recovery Act, the
23provisions of this Act shall control.
 

 

 

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1    Section 85. Implementation date. The Governor's Office of
2Management and Budget shall adopt all rules required under this
3Act on or before July 1, 2015.
 
4    Section 90. Agency implementation. All State grant-making
5agencies shall implement the rules issued by the Governor's
6Office of Management and Budget on or before July 1, 2015. The
7standards set forth in this Act, which affect administration of
8State and federal pass-through awards issued by State
9grant-making agencies, become effective once implemented by
10State grant-making agencies. State grant-making agencies shall
11implement the policies and procedures applicable to State and
12federal pass-through awards by adopting rules for non-federal
13entities that shall take effect for fiscal years on and after
14December 26, 2014, unless different provisions are required by
15State or federal statute or federal rule.
 
16    Section 95. Annual report. Effective January 1, 2016 and
17each January 1 thereafter, the Governor's Office of Management
18and Budget, in conjunction with the Illinois Single Audit
19Commission, shall submit to the Governor and the General
20Assembly a report that demonstrates the efficiencies, cost
21savings, and reductions in fraud, waste, and abuse as a result
22of the implementation of this Act and the rules adopted by the
23Governor's Office of Management and Budget in accordance with
24the provisions of this Act. The report shall include, but not

 

 

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1be limited to:
2        (1) the number of entities placed on the Illinois
3    Debarred and Suspended List;
4        (2) any savings realized as a result of the
5    implementation of this Act;
6        (3) any reduction in the number of duplicative audits;
7        (4) the number of persons trained to assist grantees
8    and subrecipients; and
9        (5) the number of grantees and subrecipients to whom a
10    fiscal agent was assigned.
 
11    Section 100. Repeal. This Act is repealed 5 years after the
12effective date of this Act.
 
13    Section 505. The Governor's Office of Management and Budget
14Act is amended by changing Section 2 and by adding Sections
152.8, 2.9, and 2.10 as follows:
 
16    (20 ILCS 3005/2)  (from Ch. 127, par. 412)
17    Sec. 2. There is created in the executive office of the
18Governor an Office to be known as the Governor's Office of
19Management and Budget. The Office shall be headed by a
20Director, who shall be appointed by the Governor. The functions
21of the Office shall be as prescribed in Sections 2.1 through
222.10 2.7 of this Act.
23(Source: P.A. 93-25, eff. 6-20-03.)
 

 

 

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1    (20 ILCS 3005/2.8 new)
2    Sec. 2.8. Pursuant to the Grant Accountability and
3Transparency Act, to create, on or before July 1, 2014, the
4Grant Accountability and Transparency Unit within the Office.
5The Grant Accountability and Transparency Unit shall report
6directly to the Director of the Governor's Office of Management
7and Budget.
 
8    (20 ILCS 3005/2.9 new)
9    Sec. 2.9. Pursuant to the Grant Accountability and
10Transparency Act, to maintain a list of those individuals and
11entities that are ineligible, either temporarily or
12permanently, to receive an award of grant funds from the State.
 
13    (20 ILCS 3005/2.10 new)
14    Sec. 2.10. To adopt rules on or before July 1, 2015
15necessary to comply with the Grant Accountability and
16Transparency Act. Should changes to the rules be required by
17the review mandated by Section 65 of the Grant Accountability
18and Transparency Act, the Governor's Office of Management and
19Budget may adopt such peremptory rules as are necessary to
20comply with changes to corresponding federal rules. All other
21rules that the Governor's Office of Management and Budget deems
22necessary to adopt in connection with the Grant Accountability
23and Transparency Act must proceed through the ordinary

 

 

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1rule-making process.
 
2    (30 ILCS 705/4.2 rep.)
3    Section 510. The Illinois Grant Funds Recovery Act is
4amended by repealing Section 4.2.
 
5    Section 515. The Illinois Grant Funds Recovery Act is
6amended by adding Sections 15.1 and 16 as follows:
 
7    (30 ILCS 705/15.1 new)
8    Sec. 15.1. Illinois Single Audit Commission.
9    (a) There is created the Illinois Single Audit Commission.
10The Commission shall assist the Governor's Office of Management
11and Budget in creating its annual report under Section 90 of
12the Grant Accountability and Transparency Act.
13    (b) The Commission shall be comprised of one representative
14from each of the following grant-making agencies who is an
15expert in grants subject matter, and who shall be appointed by
16the Governor, one of whom shall be designated as Chairperson:
17Department on Aging; Department of Children and Family
18Services; Department of Healthcare and Family Services;
19Department of Human Services; Department of Public Health;
20Criminal Justice Information Authority; Department of Commerce
21and Economic Opportunity; Department of Transportation;
22Illinois State Board of Education; Illinois Student Assistance
23Commission; Department of Agriculture; Environmental

 

 

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1Protection Agency; and Department of Natural Resources.
2    (c) The Governor may, as he or she deems necessary or
3appropriate, designate representatives of additional State
4agencies with grant-making authority to serve as members of the
5Commission.
6    (d) The Governor may appoint a total of 4 representatives
7of community organizations, providers, or associations who are
8experts in grants subject matter to serve as members of the
9Commission.
10    (e) The Governor may appoint a total of 3 representatives
11of public institutions of higher education who are experts in
12grants subject matter to serve as members of the Commission.
13    (f) Should any of the State agencies listed in subsection
14(b) of this Section deem that additional representation by
15community organizations, providers, or associations is
16necessary or appropriate, and the Commission as a whole is in
17concurrence with this decision, the State agency or agencies
18may appoint additional members; provided, however, that no more
19than a total of 4 such additional members may be appointed to
20the Commission.
21    (g) The Commission shall also include: a representative of
22the Governor's Office of Management and Budget, appointed by
23the Governor; 4 members of the General Assembly, one from the
24House of Representatives Democratic Caucus, one from the House
25of Representatives Republican Caucus, one from the Senate
26Democratic Caucus, and one from the Senate Republican Caucus,

 

 

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1all of whom shall be appointed by the Governor.
2    (h) The Co-chairpersons of the relevant subcommittees
3within the Management Initiative Improvement Committee under
4Section 1-37b of the Department of Human Services Act may be
5included as members of the Commission if the Commission deems
6their inclusion necessary for the coordination of its efforts.
7    (i) The Commission shall provide advice and technical
8assistance to the Governor's Office of Management and Budget in
9connection with the rules drafted pursuant to the Grant
10Accountability and Transparency Act.
11    (j) This Section is repealed on July 1, 2019.
 
12    (30 ILCS 705/16 new)
13    Sec. 16. Supersession. On and after July 1, 2015, in the
14event of a conflict with the Grant Accountability and
15Transparency Act, the Grant Accountability and Transparency
16Act shall control.
 
17    Section 997. Severability. The provisions of this Act are
18severable under Section 1.31 of the Statute on Statutes.
 
19    Section 999. Effective date. This Act takes effect upon
20becoming law.