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Full Text of HB0002  98th General Assembly




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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 Illinois Grant Funds Recovery Act is amended
5by adding Section 15 as follows:
6    (30 ILCS 705/15 new)
7    Sec. 15. Illinois Single Audit Commission.
8    (a) There is created the Illinois Single Audit Commission.
9The Commission shall conduct research regarding the practices
10of the federal government in the administration of grants and
11create a report summarizing the Commission's recommendations
12regarding the adoption of uniform standards for the
13administration of grants in this State.
14    (b) The Commission shall be comprised of one representative
15from each of the following grant-making Departments who is an
16expert in grant subject matter, and who shall be appointed by
17the Governor, one of whom shall be designated as Chairperson:
18        (1) Department on Aging;
19        (2) Department of Children and Family Services;
20        (3) Department of Healthcare and Family Services;
21        (4) Department of Human Services;
22        (5) Department of Public Health;
23        (6) Criminal Justice Information Authority;



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1        (7) Department of Commerce and Economic Opportunity;
2        (8) Department of Transportation;
3        (9) Illinois State Board of Education;
4        (10) Illinois Student Assistance Commission;
5        (11)Department of Agriculture;
6        (12) Environmental Protection Agency; and
7        (13) Department of Natural Resources.
8    In addition, a total of 4 representatives of community
9organizations, providers, or associations may be appointed by
10the Departments listed in subsection (b) as follows: 1 member
11may be appointed by the Departments listed in subparagraphs (1)
12through (6); 1 member may be appointed by the Departments
13listed in subparagraphs (7) and (8); 1 member may be appointed
14by the Departments listed in subparagraphs (9) and (10); and 1
15member may be appointed by the Departments listed in
16subparagraphs (11) through (13).
17    Should any of the Departments listed in subparagraphs (1)
18through (13) of subsection (b) deem that additional
19representation by community organizations, providers, or
20associations is necessary, and the Commission as a whole is in
21concurrence with this decision, the Department or Departments
22may appoint additional members, provided, however, that no more
23than a total of 4 such additional members may be appointed to
24the Commission.
25    The Governor may designate representatives of additional
26Departments with grant-making authority to serve as members of



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1the Commission.
2    (c) The Commission shall also include: a representative of
3the Governor's Office of Management and Budget, appointed by
4the Governor; four members of the General Assembly, one from
5the House Democratic Caucus, one from the House Republican
6Caucus, one from the Senate Democratic Caucus, and one from the
7Senate Republican Caucus, all of which shall be appointed by
8the Governor; the Co-Chairs of the relevant subcommittees
9within the Management Initiative Improvement Committee
10(provided for under Section 1-37a of the Department of Human
11Services Act) may be included as members of the Commission if
12the Commission deems their inclusion necessary for the
13coordination of its efforts.
14    (d) The recommendations in the Commission's report shall
15focus primarily on developing a coordinated, non-redundant
16process for the provision of effective and efficient oversight
17of the selection and monitoring of grant recipients, ensuring
18quality programs, and limiting fraud, waste, and abuse. The
19report shall define the purpose, scope, applicability, and
20responsibilities in the life cycle of a grant, including the
21period before a grant is awarded, the period when a grant is
22awarded, and the period after a grant is awarded, as set forth
23in subsections (e) through (g) of this Section. To the extent
24feasible, the Commission's report shall include necessary
25statutory and rule changes required to implement any proposed



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1    (e) The report shall examine and make recommendations for
2the following with regard to a grant before it is awarded:
3        (1) criteria to define mandatory formula-based grants
4    and discretionary grants;
5        (2) whether three-year discretionary grants should
6    exist in a competitive grant environment;
7        (3) the development of uniform grant applications;
8        (4) the development of uniform budget requirements;
9        (5) the development of pre-qualification requirements
10    of applicants, including the fiscal condition of the
11    organization;
12        (6) the development of minimum requirements of
13    applicant staff to manage and execute grant awards for
14    programmatic and administrative purposes;
15        (7) the development of criteria for requiring the
16    retention of a fiscal agent and for becoming a fiscal
17    agent; and
18        (8) the development of disclosure requirements
19    pertaining to related party status between grantees and
20    grant-making agencies.
21    (f) The report shall examine and make recommendations for
22the following with regard to a grant at the time it is awarded:
23        (1) the development of uniform grant agreements;
24        (2) the development of uniform reporting requirements,
25    including budget-to-actual quarterly reports;
26        (3) the implementation of uniform monitoring,



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1    including on-site fiscal and administrative control
2    reviews on a risk-based approach to determine the required
3    frequency of monitoring;
4        (4) the development of payment methods, including
5    advance and reconcile, capital advances, and
6    reimbursement;
7        (5) the development of administrative requirements;
8        (6) the development of allowable cost principles;
9        (7) the development of a conditional exemption
10    process;
11        (8) the development of standardized audit
12    requirements;
13        (9) the development of program performance reporting
14    and budgeting for results;
15        (10) the development of record retention and access
16    requirements; and
17        (11) the development of grant termination and
18    enforcement procedures.
19    (g) The report shall examine and make recommendations for
20the following with regard to a grant after it has been awarded:
21        (1) the development of standardized closeout
22    procedures;
23        (2) the development of standardized audit
24    requirements;
25        (3) the development of subsequent grant adjustments
26    and continuing responsibilities;



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1        (4) the development of a uniform method of grant
2    recovery; and
3        (5) the development of an appeals process.
4    (h) The report shall be filed with the General Assembly by
5January 1, 2014.
6    (i) Definitions. As used in this Section:
7        "Departments" means the agencies, boards, and
8    commissions listed in subparagraph (b) of this Section,
9    including any additional Departments designated by the
10    Governor.
11        "Grant" means an award of financial assistance, the
12    principal purpose of which is to transfer a thing of value
13    from a federal or state agency to a recipient to carry out
14    a public purpose of support or stimulation authorized by a
15    law of the United States or the State of Illinois. A grant
16    is distinguished from a contract, which is used to acquire
17    property or services for the federal or State government's
18    direct benefit or use as defined in Section 210 of Subpart
19    B of federal Office of Management Board Circular A-133.
20    Notwithstanding subparagraph (b) of Section 2 of this Act,
21    fee-for-service purchase of care agreements are grants for
22    purposes of this Section.
23        Technical terms used in subsections (e) through (g)
24    shall have the same meanings as provided for by their usage
25    or definition in federal Office of Management Board
26    Circular A-110.



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1    (j) The Commission shall operate with no direct costs to
2the State. The Office of the Governor shall coordinate with the
3Departments listed under subsection (b) to provide
4administrative support for the Commission.
5    (k) This Section is repealed on April 1, 2014.
6    Section 99. Effective date. This Act takes effect upon
7becoming law.