Illinois Compiled Statutes
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FINANCE30 ILCS 705/1
(30 ILCS 705/) Illinois Grant Funds Recovery Act.
(30 ILCS 705/1)
(from Ch. 127, par. 2301)
This Act may be cited as the "Illinois Grant
Funds Recovery Act".
(Source: P.A. 83-640.)
30 ILCS 705/2
(30 ILCS 705/2)
(from Ch. 127, par. 2302)
The following terms when used in this Act shall
have the meanings ascribed to them in this Section:
(a) "Grantor agency" is any agency of State government which dispenses
(b) "Grant funds" are any public funds dispensed by a grantor agency to
any person or entity for obligation, expenditure, or use by that person
or entity for a specific purpose or purposes. Funds disbursed by the State
Comptroller pursuant to an appropriation made by the General Assembly to
a named entity or person are not grant funds for purposes of this Act.
Funds disbursed in accordance with a fee for service purchase of care
contract are not grant funds for purposes of this Act.
Neither the method by which funds are dispensed whether by contract,
agreement, grant subsidy, letter of credit, or any other method nor the
purpose for which the funds are used can change the character of funds
which otherwise would be considered grant funds as defined in this Section.
(c) "Grantee" means the person or entity which may use grant funds.
(d) "Institution of higher education" means any institution which is
authorized to grant degrees within the State of Illinois.
(Source: P.A. 86-602.)
30 ILCS 705/3
(30 ILCS 705/3)
(from Ch. 127, par. 2303)
Except as otherwise provided by this Section,
all grant funds are subject to the provisions of this Act. This Act does
not empower any grantor agency to make grants.
This Act does not apply to grant funds that are granted without limitation
or condition imposed by law, other than the general limitation that such
funds be used for public purposes.
This Act does not apply to funds disbursed pursuant to a statutory formula
This Act does not apply to grants made pursuant to Sections 1.25 and 3.31
of "An Act making appropriations to various agencies", Public Act 84-110,
approved July 25, 1985.
This Act does not apply to funds disbursed pursuant to a contract between the Department of Transportation and any other highway authority for the purposes set forth in Section 4-409 of the Illinois Highway Code or any airport owner, operator, or controller as set forth in Section 34 of the Illinois Aeronautics Act.
(Source: P.A. 96-1487, eff. 12-30-10.)
30 ILCS 705/4
(30 ILCS 705/4)
(from Ch. 127, par. 2304)
Grant Application and Agreement Requirements.
(a) Any person or organization, public or private, desiring to receive grant funds must submit a grant application to the appropriate grantor agency. Applications for grant funds shall be made on prescribed forms developed by the grantor agency, and shall include, without being limited to, the following provisions:
(1) the name, address, chief officers, and general
description of the applicant;
(2) a general description of the program, project, or
use for which grant funding is requested;
(3) such plans, equipment lists, and other documents
as may be required to show the type, structure, and general character of the program, project, or use for which grant funding is requested;
(4) cost estimates of developing, constructing,
operating, or completing the program, project, or use for which grant funding is requested; and
(5) a program of proposed expenditures for the grant
(b) Grant funds may not be used except
pursuant to a written grant agreement, and any disbursement of grant funds
without a grant agreement is void. At a minimum, a grant agreement must:
(1) describe the purpose of the grant and be signed
by the grantor agency making the grant and all grantees of the grant;
(2) specify how payments shall be made, what
constitutes permissible expenditure of the grant funds, and the financial controls applicable to the grant, including, for those grants in excess of $25,000, the filing of quarterly reports describing the progress of the program, project, or use and the expenditure of the grant funds related thereto;
(3) specify the period of time for which the grant is
valid and, subject to the limitation of Section 5, the period of time during which grant funds may be expended by the grantee;
(4) contain a provision that any grantees receiving
grant funds are required to permit the grantor agency, the Auditor General, or the Attorney General to inspect and audit any books, records, or papers related to the program, project, or use for which grant funds were provided;
(5) contain a provision that all funds remaining at
the end of the grant agreement or at the expiration of the period of time grant funds are available for expenditure or obligation by the grantee shall be returned to the State within 45 days; and
(6) contain a provision in which the grantee
certifies under oath that all information in the grant agreement is true and correct to the best of the grantee's knowledge, information, and belief; that the funds shall be used only for the purposes described in the grant agreement; and that the award of grant funds is conditioned upon such certification.
(Source: P.A. 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793 for the effective date of changes made by P.A. 96-795)
30 ILCS 705/4.1
(30 ILCS 705/4.1)
Grant Fund Distribution Suspension.
Grantor agencies may withhold or suspend the distribution of grant funds for failure to file required reports.
(Source: P.A. 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793 for the effective date of P.A. 96-795)
30 ILCS 705/4.2
(30 ILCS 705/4.2)
Suspension of grant making authority.
Any grant funds and any grant program administered by a grantor agency subject to this Act are indefinitely suspended on June 30, 2014, and on July 1st of every 5th year thereafter, unless the General Assembly, by law, authorizes that grantor agency to make grants or lifts the suspension of the authorization of that grantor agency to make grants. In the case of a suspension of the authorization of a grantor agency to make grants, the authority of that grantor agency to make grants is suspended until the suspension is explicitly lifted by law by the General Assembly, even if an appropriation has been made for the explicit purpose of such grants. This suspension of grant making authority supersedes any other law or rule to the contrary.
(Source: P.A. 97-732, eff. 6-30-12; 97-1144, eff. 12-28-12; 98-24, eff. 6-19-13.)
30 ILCS 705/4.3
(30 ILCS 705/4.3)
Prohibition on use of grant funds for prohibited political activities.
(a) For the purposes of this Section, "prohibited political activity" has the meaning established in Section 1-5 of the State Officials and Employees Ethics Act.
(b) Grantees and employees of grantees shall not knowingly use grant funds, or goods or services purchased with grant funds, to engage, either directly or indirectly, in a prohibited political activity.
(c) Grantees and employees of grantees shall not be knowingly compensated from grant funds for time spent engaging in a prohibited political activity.
(d) Nothing in this Section shall prohibit any 501(c)(3) or 501(c)(4) organization receiving a grant from the State from engaging in any federally permissible activity regarding advocacy, indirect and direct lobbying, and political activity, provided that the specific funds acquired by a grant from the State shall not be knowingly used for those activities that are permitted by federal law but prohibited by this Section.
(e) A grantee who knowingly violates this Section is guilty of a business offense and is subject to a fine of up to $5,000.
(Source: P.A. 98-588, eff. 1-1-14.)
30 ILCS 705/5
(30 ILCS 705/5)
(from Ch. 127, par. 2305)
Time Limit on Expenditure of Grant Funds.
Subject to the restriction
of Section 35 of "An Act in relation to State finance", approved June 10,
1919, as amended, no grant funds may be made available for expenditure by
a grantee for a period longer than 2 years except where such grant funds
are disbursed in reimbursement of costs previously incurred by the grantee.
Any grant funds not expended or legally obligated by the end of the grant
agreement, or during the time limitation to grant fund expenditures set
forth in this Section, must be returned to the grantor agency within 45
days, if the funds are not already on deposit with the grantor agency or
the State Treasurer. Such returned funds shall be deposited into the fund
from which the original
grant disbursement to the grantee was made.
(Source: P.A. 83-640.)
30 ILCS 705/6
(30 ILCS 705/6)
(from Ch. 127, par. 2306)
Recovery of Grant Funds.
Any grant funds which have been misspent
or are being improperly held are subject to recovery by the grantor agency
which made the grant or alternatively by the Attorney General. The grantor
agency making the grant shall take affirmative and timely action to recover
all misspent or improperly held grant funds. In order to effectuate the
recovery of such grant funds, the grantor agency making the grant is authorized
to use any one or a combination of the following:
(a) offset against existing grants of, or future grants to be made by,
the grantor agency making the recovery;
(b) authorize the offset from existing grants or grants to be made by
other grantor agencies;
(c) authorize the Comptroller to offset any payment from any funds
administered by the Comptroller for payment to the grantee, including, but not
limited to, distributions of appropriated funds and payment of refunds;
(d) initiate any debt collection method authorized by law to any private
(e) remove the grantee from any of the grantor agency's programs and forbid
the grantee's participation in any such future grant programs for a period
not to exceed 2 years.
The provisions of this Section are subject to Section 14.
(Source: P.A. 87-1262.)
30 ILCS 705/7
(30 ILCS 705/7)
(from Ch. 127, par. 2307)
Whenever a grantor agency believes that
grant funds are subject to recovery, the grantor agency shall provide the
grantee the opportunity for at least one informal hearing to determine the
facts and issues and to resolve any conflicts as amicably as possible before
taking any formal recovery actions.
(Source: P.A. 83-640.)
30 ILCS 705/8
(30 ILCS 705/8)
(from Ch. 127, par. 2308)
Formal Procedures for Recovery.
(a) If a grantor agency determines
that certain grant funds are to be recovered, then, prior to taking any
action to recover the grant funds, the grantor agency shall provide the
grantee of the funds a written notice of the intended recovery. This notice
shall identify the funds and the amount to be recovered and the specific
facts which permit recovery.
(b) A grantee shall have 35 days from the receipt of the notice required
in paragraph (a) of this Section to request a hearing to show why recovery
is not justified or proper.
(c) If a grantee requests a hearing pursuant to paragraph (b) of this Section, then:
(1) the grantor agency shall hold a hearing at which the grantee (or his
representative) may present evidence and witnesses to show why recovery
should not be permitted; and
(2) after the conclusion of the hearing, the grantor agency shall issue
a written final recovery order and send a copy of the order to the grantee.
(d) A grantee may seek judicial review of any final recovery order, pursuant
to the provisions of the Administrative Review Law.
(e) If a grantee requests a hearing pursuant to paragraph (b) of this
Section then the grantor agency may not take any action of recovery until
at least 35 days after the grantor agency has issued a final recovery order
pursuant to the requirements of paragraph (c) of this Section.
If a grantee does not request a hearing as permitted in paragraph (b) of
this Section, then the grantor agency may proceed with recovery of the grant
funds identified in the notice issued pursuant to the requirements of paragraph
(a) of this Section, at any time after the expiration of the 35-day request
period established in paragraph (b) of this Section.
(f) Any notice or mailing required or permitted by this Section shall
be deemed received 5 days after the notice or mailing is deposited in the
United States mail, properly addressed with the grantee's current business
address and with sufficient U.S. postage affixed.
(Source: P.A. 83-640.)
30 ILCS 705/9
(30 ILCS 705/9)
(from Ch. 127, par. 2309)
Recovery of Grant Funds by Attorney General.
Except as otherwise
provided by Section 14, the Attorney General, on his own volition, may act to
recover any grant funds which have been misapplied or are being improperly held
and, when doing so, has all the powers of collection established in this Act in
addition to any other powers authorized by law or the Constitution.
(Source: P.A. 87-1262.)
30 ILCS 705/10
(30 ILCS 705/10)
(from Ch. 127, par. 2310)
Interest on Grant Funds.
All interest earned on grant funds
held by a grantee shall become part of the grant principal when earned and be
treated accordingly for all purposes, unless the grant agreement provides otherwise.
The grantor agency may provide in the grant agreement that interest earned
on grant funds may be retained by the grantee when the cost of accounting
for the interest or allocating the interest to principal is significant
in terms of the amount of interest to be received.
When the grantor agency is granting funds made available from the
federal government or other third party sources, and such funds require or
permit different treatment of interest which the grantee may earn on the
grant funds, the grantor agency may provide in the grant agreement that
such earned interest may be treated as required or permitted by the source of the funds.
However, any interest earned on grant funds subject to the grant
agreement held after the expiration of
the period of time specified in Section 4 shall become a part of the grant
principal and shall be so treated for all purposes.
(Source: P.A. 85-1214.)
30 ILCS 705/11
(30 ILCS 705/11)
(from Ch. 127, par. 2311)
Each grantee is under an affirmative
duty to keep proper, complete and accurate accounting records of all grant
funds the grantee administers.
(Source: P.A. 83-640.)
30 ILCS 705/12
(30 ILCS 705/12)
(from Ch. 127, par. 2312)
Subgrant of Grant Funds.
If any person or entity that obtains
grant funds dispenses any part or all of those funds to another person or
entity for obligation, expenditure or use by that other person or entity
for a specific purpose or purposes, then those funds so dispensed shall
be treated as grant funds.
(Source: P.A. 83-640.)
30 ILCS 705/13
(30 ILCS 705/13)
(from Ch. 127, par. 2313)
Notwithstanding the requirements of any other State law or
regulation, an institution of higher education which conducts annual audits
of its own operations may elect to fulfill any audit requirements with
respect to any or all State grants which it receives by having such audit
conducted at the time of its own annual audit at its own cost.
The institution of higher education shall make such election at the time
that it receives each grant. The institution of higher education shall not
be required to elect that all State grants be included in its annual audit.
Such election may be for either financial or compliance audits, or both.
In the event of such election, such audits shall fulfill the audit
requirements of the applicable State law or regulation authorizing such
grants except for the reporting dates required for such audits. Such
audits shall be conducted in accordance with generally accepted auditing
standards by licensed Certified Public Accountants permitted to perform audits under the Illinois Public Accounting Act.
The provisions of this Section do not limit the authority of any State agency
to conduct, or enter into contracts for the conduct of, audits and
evaluations of State grant programs, nor limit the authority of the Auditor
General. Such State agency shall fund the cost of any such additional audits.
(Source: P.A. 94-465, eff. 8-4-05.)
30 ILCS 705/14
(30 ILCS 705/14)
(from Ch. 127, par. 2314)
Nonrecovery of Grant Funds.
Notwithstanding any other provisions
of this Act, the State Board of Education is authorized to forgo any action to
recover from the Regional Office of Education of Champaign-Ford Counties
and from any school district situated in that educational service region
any State grant funds, not exceeding $18,000 in the aggregate, that were
dispensed during the 1990-1991 and 1991-1992 school years by the State
Board of Education as the grantor agency to that educational service region
or any school district therein as a grantee or subgrantee and that were
used for any purpose or purposes other than the purpose or purposes for
which the grants were made. If the State Board of Education determines to
forgo any action to recover State grant funds under the authority of this
Section, the Attorney General shall not act to recover those grant funds
from the grantee or subgrantee, and all liability or other obligation of
the Regional Office of Education of Champaign-Ford Counties and any school
district therein as the grantee or subgrantee of those State grant funds to
repay the same shall be deemed unenforceable by operation of law.
(Source: P.A. 87-1262.)
30 ILCS 705/15
(30 ILCS 705/15)
(Section scheduled to be repealed on April 1, 2014)
Illinois Single Audit Commission.
(a) There is created the Illinois Single Audit Commission. The Commission shall conduct research regarding the practices of the federal government in the administration of grants and create a report summarizing the Commission's recommendations regarding the adoption of uniform standards for the administration of grants in this State.
(b) The Commission shall be comprised of one representative from each of the following grant-making Departments who is an expert in grant subject matter, and who shall be appointed by the Governor, one of whom shall be designated as Chairperson:
(1) Department on Aging;
(2) Department of Children and Family Services;
(3) Department of Healthcare and Family Services;
(4) Department of Human Services;
(5) Department of Public Health;
(6) Criminal Justice Information Authority;
(7) Department of Commerce and Economic Opportunity;
(8) Department of Transportation;
(9) Illinois State Board of Education;
(10) Illinois Student Assistance Commission;
(11)Department of Agriculture;
(12) Environmental Protection Agency; and
(13) Department of Natural Resources.
In addition, a total of 4 representatives of community organizations, providers, or associations may be appointed by the Departments listed in subsection (b) as follows: 1 member may be appointed by the Departments listed in subparagraphs (1) through (6); 1 member may be appointed by the Departments listed in subparagraphs (7) and (8); 1 member may be appointed by the Departments listed in subparagraphs (9) and (10); and 1 member may be appointed by the Departments listed in subparagraphs (11) through (13).
Should any of the Departments listed in subparagraphs (1) through (13) of subsection (b) deem that additional representation by community organizations, providers, or associations is necessary, and the Commission as a whole is in concurrence with this decision, the Department or Departments may appoint additional members, provided, however, that no more than a total of 4 such additional members may be appointed to the Commission.
The Governor may designate representatives of additional Departments with grant-making authority to serve as members of the Commission.
(c) The Commission shall also include: a representative of the Governor's Office of Management and Budget, appointed by the Governor; four members of the General Assembly, one from the House Democratic Caucus, one from the House Republican Caucus, one from the Senate Democratic Caucus, and one from the Senate Republican Caucus, all of which shall be appointed by the Governor; the Co-Chairs of the relevant subcommittees within the Management Initiative Improvement Committee (provided for under Section 1-37a of the Department of Human Services Act) may be included as members of the Commission if the Commission deems their inclusion necessary for the coordination of its efforts.
(d) The recommendations in the Commission's report shall focus primarily on developing a coordinated, non-redundant process for the provision of effective and efficient oversight of the selection and monitoring of grant recipients, ensuring quality programs, and limiting fraud, waste, and abuse. The report shall define the purpose, scope, applicability, and responsibilities in the life cycle of a grant, including the period before a grant is awarded, the period when a grant is awarded, and the period after a grant is awarded, as set forth in subsections (e) through (g) of this Section. To the extent feasible, the Commission's report shall include necessary statutory and rule changes required to implement any proposed actions.
(e) The report shall examine and make recommendations for the following with regard to a grant before it is awarded:
(1) criteria to define mandatory formula-based grants
and discretionary grants;
(2) whether three-year discretionary grants should
exist in a competitive grant environment;
(3) the development of uniform grant applications;
(4) the development of uniform budget requirements;
(5) the development of pre-qualification requirements
of applicants, including the fiscal condition of the organization;
(6) the development of minimum requirements of
applicant staff to manage and execute grant awards for programmatic and administrative purposes;
(7) the development of criteria for requiring the
retention of a fiscal agent and for becoming a fiscal agent; and
(8) the development of disclosure requirements
pertaining to related party status between grantees and grant-making agencies.
(f) The report shall examine and make recommendations for the following with regard to a grant at the time it is awarded:
(1) the development of uniform grant agreements;
(2) the development of uniform reporting
requirements, including budget-to-actual quarterly reports;
(3) the implementation of uniform monitoring,
including on-site fiscal and administrative control reviews on a risk-based approach to determine the required frequency of monitoring;
(4) the development of payment methods, including
advance and reconcile, capital advances, and reimbursement;
(5) the development of administrative requirements;
(6) the development of allowable cost principles;
(7) the development of a conditional exemption
(8) the development of standardized audit
(9) the development of program performance reporting
and budgeting for results;
(10) the development of record retention and access
(11) the development of grant termination and
(g) The report shall examine and make recommendations for the following with regard to a grant after it has been awarded:
(1) the development of standardized closeout
(2) the development of standardized audit
(3) the development of subsequent grant adjustments
and continuing responsibilities;
(4) the development of a uniform method of grant
(5) the development of an appeals process.
(h) The report shall be filed with the General Assembly by January 1, 2014.
(i) Definitions. As used in this Section:
"Departments" means the agencies, boards, and
commissions listed in subparagraph (b) of this Section, including any additional Departments designated by the Governor.
"Grant" means an award of financial assistance, the
principal purpose of which is to transfer a thing of value from a federal or state agency to a recipient to carry out a public purpose of support or stimulation authorized by a law of the United States or the State of Illinois. A grant is distinguished from a contract, which is used to acquire property or services for the federal or State government's direct benefit or use as defined in Section 210 of Subpart B of federal Office of Management Board Circular A-133. Notwithstanding subparagraph (b) of Section 2 of this Act, fee-for-service purchase of care agreements are grants for purposes of this Section.
Technical terms used in subsections (e) through (g)
shall have the same meanings as provided for by their usage or definition in federal Office of Management Board Circular A-110.
(j) The Commission shall operate with no direct costs to the State. The Office of the Governor shall coordinate with the Departments listed under subsection (b) to provide administrative support for the Commission.
(k) This Section is repealed on April 1, 2014.
(Source: P.A. 98-47, eff. 7-1-13.)