ADMINISTRATIVE CODE

TITLE 29: EMERGENCY SERVICES, DISASTERS, AND CIVIL DEFENSE
CHAPTER I: ILLINOIS EMERGENCY MANAGEMENT AGENCY AND OFFICE OF HOMELAND SECURITY
SUBCHAPTER a: GENERAL ADMINISTRATION
PART 120 STATE NOT-FOR-PROFIT SECURITY GRANT PROGRAM

Section 120.10 Purpose and Scope

Section 120.15 Definitions

Section 120.20 Eligibility and Project Requirements

Section 120.30 Application Requirements

Section 120.40 Application Submission and Notification of Grant Award

Section 120.50 Grant Agreement and Payment

Section 120.60 Audit, Grant Fund Recovery, and Records Retention

Section 120.10 Purpose and Scope

a) This Part establishes the criteria for State grants to not-for-profit organizations at high risk of threats, attacks, or acts of terrorism. The grants shall be used to assist the not-for-profit organizations in preventing, preparing for, or responding to acts of terrorism. This Part along with GATA, the GATA Rule, and the Agency GATA Rule, also establishes application requirements and procedures for submission of grant applications and the issuance of grant funds.

b) Grants under this Part will be issued only to those eligible not-for-profit organizations that demonstrate through the application process that their facilities, activities, and the individuals visiting their facilities and involved in their activities are at a high risk for threats, attacks, and acts of terrorism.

Section 120.15 Definitions

"Act" means the Illinois Emergency Management Agency Act [20 ILCS 3305].

"Agency GATA Rule" means 44 Ill. Adm. Code 7030, General Grantmaking of the Illinois Emergency Management Agency.

"Applicant" means an eligible not-for-profit organization.

"GATA" means the Grant Accountability and Transparency Act [30 ILCS 708].

"GATA Rule" means the administrative rules of the Governor's Office of Management and Budget found at 44 Ill. Adm. Code 7000.

"Grant Performance Period" means a 3-year period beginning and ending as specified in the Grant Agreement, unless extended by the Agency.

"Grant Recovery Act" means the Illinois Grant Funds Recovery Act [30 ILCS 705].

"Grantee" means an applicant awarded a grant under this Part in accordance with GATA, the GATA Rule, and the Agency GATA Rule.

"High Risk", for the purposes of this Part, means that there is an elevated or extreme probability that the organization will encounter threats, attacks, or acts of terrorism due to their profile, ideology, mission, or beliefs and failure to take adequate security measures will result in the increased odds of injury to the public, loss of life, or destruction to property.

"IEMA-OHS" or "Agency" means the Illinois Emergency Management Agency and Office of Homeland Security.

"Management and administrative costs" means costs for activities that are directly related to the management and administration of the grant award such as financial management and monitoring. These costs must be based on actual expenses or known contractual costs and are not operational costs. Examples of management and administrative costs are travel, meeting-related expenses, and salaries of full/part-time staff in direct support of the program, preparing and submitting required programmatic and financial reports, establishing and/or maintaining equipment inventory, documenting operational and equipment expenditures for financial accounting purposes, and responding to official informational requests from state and federal oversight authorities.

"NOFO" means the Notice of Funding Opportunity issued by IEMA-OHS.

"Not-For-Profit Organization" means an organization exempt under Section 501(c)(3) of the federal Internal Revenue Code or exempt from the requirements of Section 501(c)(3).

"Project" means all eligible preparedness activities under the federal Nonprofit Security Grant Program and those deemed eligible by the Director of IEMA-OHS.

"Project Site" means all buildings at the physical location with the same address where the funding will be used to complete the Project as specified in the application.

"Terrorism" means the use of threats, force, or violence against persons or property in violation of the criminal laws of the United States or the State of Illinois for purposes of intimidation, coercion, or ransom based on the organization's profile, ideology, mission, or beliefs.

"Vulnerability Assessment" means an in-depth analysis of the building functions, systems, and site characteristics to identify building weaknesses and lack of redundancy, and determine mitigations or corrective actions that can be designed or implemented to reduce the vulnerabilities. A vulnerability assessment should be performed for existing buildings and renovations. The vulnerability assessment provides a basis for determining mitigation and security enhancement measures.

Section 120.20 Eligibility and Project Requirements

a) Pursuant to Section 5(g-5) of the Act, only not-for-profit organizations which are exempt from federal income taxation under Section 501(c)(3) of the federal Internal Revenue Code that are at high risk of a threat, attack, or acts of terrorism are eligible for this grant. The Agency shall not award grants to those entities whose primary purpose is to provide medical or mental health services. [20 ILCS 3305/17.8]

b) The location of the project, as identified by the applicant during the application process, shall be in the State of Illinois and shall remain located in the State for a minimum of 5 years after the end of the grant performance period. The agency may consider and provide written approval for relocation of security equipment, but only when the grantee will no longer occupy the premises where the security equipment is located, conditions and criteria for awarding the grant have not changed, and the new location is within the State.

c) Eligible projects shall not duplicate, in part or in whole, a project included under any awarded federal grant or in a pending federal grant application in order to ensure that funds awarded under the program are used to supplement existing federal funds and not replace, i.e., supplant, funds appropriated for the same purpose. Applicants may apply for project funding on the State application in the same AEL category as the federal application as long as the requested funds are a supplement to the federal funding. Applicants shall provide specific distinguishable information about the project for the AEL category on the application in order for the Agency to approve the application.

d) Eligible Projects.

1) Projects eligible for funding include all eligible preparedness activities under the federal Nonprofit Security Grant Program, including, but not limited to physical security upgrades, security training exercises, preparedness training exercises, and contracting with security personnel. Project funding shall be awarded subject to the appropriation for this program.

2) The Director of IEMA-OHS may deem other security upgrades, not provided under the federal Nonprofit Security Grant Program, eligible projects under this State program. Additional security upgrades, not provided under the federal Nonprofit Security Grant Program, may be deemed eligible under this subsection. The Director, in coordination with the Governor's Homeland Security Advisor, may establish additional security upgrades that are consistent with the strategic priorities in the State of Illinois' Homeland Security Strategy 2024-2028 or updated strategy (https://iemaohs.illinois.gov/hs/strategy.html) and U.S. Department of Homeland Security and Federal Emergency Management Agency national priorities for current and emerging threats. Additional security upgrades deemed eligible, e.g., cybersecurity enhancements, public warning systems, and physical security enhancement equipment that are developed with new technology, will be identified in the Notice of Funding Opportunity (NOFO).

3) The applicant may request up to 5% of the total grant award for management and administration costs. Such management and administration costs shall be included in the requested grant award amount, rather than in addition to the requested amount.

AGENCY NOTE: The amount of funding granted for management and administration costs will be adjusted according to the actual amount spent during the grant performance period. For example, an applicant requests 5% of the total grant award for management and administrative costs and $150,000 is awarded. The grantee spends only $100,000 of the grant award. The grantee will receive only $5,000 in management and administration costs, not the original $7,500 anticipated.

4) Indirect Costs: The applicant may request indirect costs consistent with the GATA Rule (44 Ill. Adm. Code 7000). The indirect costs shall be included in the requested grant award amount, rather than in addition to the requested amount.

e) Prohibitions.

1) Applicants should check SAM.gov (https://sam.gov/content/exclusions) for exclusions and prohibited uses to prevent entering into a prohibited transaction.

2) An applicant awarded grant funding may be required to certify that it is in compliance with applicable federal, State and local prohibitions in the grant agreement described in Section 120.50.

Section 120.30 Application Requirements

a) IEMA-OHS will make grant awards through a competitive application process to organizations that meet the eligibility requirements in Section 120.20 and that are approved for funding based upon a completed and approved application. Grant awards shall be made contingent on funding.

b) Eligible organizations may apply for funding for one site or multiple sites as long as the maximum funding amounts identified in the NOFO are not exceeded. Each site must have its own application and vulnerability assessment.

c) On the application, applicants shall:

1) Indicate the legal name of the applicant;

2) Provide a point of contact for the project including email address;

3) Provide documentation confirming the applicant meets the requirement in Section 120.20(a). Applicants shall provide documentation indicating they are exempt under Section 501(c)(3) of the federal Internal Revenue Code or exempt from the requirements of Section 501(c)(3);

4) Provide a specific description of the applicant's profile, ideology, mission, and beliefs and a specific explanation of how the organization is high risk for threats, attacks, or acts of terrorism;

5) Provide documentation or a narrative indicating compliance with Section 120.30(d).

6) Provide specific evidence and information identifying and substantiating a high risk designation, including prior or current threats, attacks, or acts of terrorism against the not-for-profit organization. The applicant may also include information regarding threats, attacks, or acts of terrorism against other similar organizations that have the same profile, ideology, mission, or beliefs that they believe helps substantiate the high risk designation for their organization;

7) Indicate the symbolic or strategic value of one or more of the applicant's sites that renders the project site a high risk for the target of a threat, attack, or act of terrorism;

8) Describe the proposed project and discuss potential consequences to the organization if the project site is damaged, destroyed, or disrupted by a threat, attack, or act of terrorism.

9) Describe how the grant funds will be used to integrate organizational preparedness with broader State and local preparedness efforts as described by the Agency in the State of Illinois Homeland Security Strategy 2024-2028;

10) Submit a vulnerability assessment conducted by experienced security, law enforcement, or military personnel, or an agency-approved or federal Nonprofit Security Grant Program self-assessment tool within the last three years, or since the most recent security improvements if they occurred within the last three years. If a self-assessment tool is used, provide a list of law enforcement officials or other subject matter experts consulted, if applicable;

11) Describe how the grant award and proposed project will be used to address the vulnerabilities identified pursuant to subsection (c)(10).

12) Provide a description of any equipment compatibility considerations;

13) Provide a project budget and timeline;

14) If the project affects leased property, provide a copy of a long-term lease agreement that extends a minimum of five years from the date of the application or provide a written attestation/commitment to remain at the leased property for this period of time; and

15) Submit any other relevant information requested by IEMA-OHS to support or supplement the information provided in the grant application.

d) The Illinois State Agency Historic Resources Preservation Act [20 ILCS 3420/4] requires notification to and review by the Illinois Department of Natural Resources (IDNR) of State agency undertakings (including projects funded by State grants) that can result in changes in the character or use of historic property, if any historic property is located in the area of potential effects. Applicants should confirm prior to submitting an application that this requirement is not applicable. Further information concerning this requirement can be found at https://www2.illinois.gov/dnrhistoric/Pages/default.aspx. Applicants can also contact IEMA-OHS's State Historic Preservation Office (SHPO) Coordinator with questions.

Section 120.40 Application Submission and Notification of Grant Award

a) Grant opportunities and awards will be administered in a manner that complies with all State requirements, including, but not limited to, GATA, the GATA Rule, and the Agency GATA Rule. Applicants and grantees shall review all application materials and grant award documents which will include the specific applicable requirements for the grant opportunity.

b) The NOFO will be published utilizing multiple methods of communication pursuant to the Act, including posting on IEMA-OHS's website.

c) Subject to appropriation, the grant application period shall be open for no less than 45 calendar days during the first application cycle each fiscal year, unless IEMA-OHS determines that a shorter period is necessary to avoid conflicts with the annual federal Nonprofit Security Grant Program funding cycle.

d) The NOFO shall include the period for submission of applications, including applicable deadlines. Applicants shall submit grant applications as indicated in the NOFO and this Part. Incomplete or late applications will not be considered.

e) IEMA-OHS may extend the application period or open additional application periods depending on funding provided by the Illinois General Assembly. This grant program shall only be available for as long as funding is appropriated by the Illinois General Assembly for this purpose.

f) An applicant may submit only one application for funding per project site per application period. An applicant may apply for multiple project sites as indicated in Section 120.30(b) and the NOFO.

g) The grant is for a three-year performance period; however, the Agency may extend the grant performance period for good cause upon request by the grantee. Projects supported by this grant may not begin or end outside the dates specified in the grant agreement described in Section 120.50, unless extended in writing by the Agency.

h) This is a competitive grant program. IEMA-OHS reserves the right to deny any grant application or to provide reduced funding to any grantee.

i) Grants will be awarded following a merit review by IEMA-OHS pursuant to GATA, GATA Rule and the agency's GATA Rule. In evaluating the applications, IEMA-OHS will consider the criteria listed below:

1) The high risk of the applicant's organization for threats, attacks, or acts of terrorism;

2) The necessity of the funding based on the vulnerability assessment provided by the applicant;

3) The ability of the proposed project to enhance the safety of the organization;

4) Coordination with broader State and local preparedness as described by the agency in the NOFO;

5) Sustainability of the project, specifically including compliance with Section 120.20(c) and review of proposed eligible equipment interoperability with existing equipment (if applicable);

6) An evaluation of the likelihood of project completion during the grant performance period;

7) Equity: 10 additional points will be added to the scores of applicants that are located within a disadvantaged community and demonstrate how they serve a disadvantaged community or population. The Council on Environmental Quality's Climate and Economic Justice Screening Tool (CEJST) will be used to identify these applicants using the address of their physical location; and

8) The availability of funding and whether applicants have received funding previously on the federal or State program.

j) For projects and applicants that meet the eligibility requirements, grant awards will be prioritized for applicants with the highest risk of threats, attacks, and acts of terrorism. Therefore, this criterion will be weighed most heavily during the merit review process. IEMA-OHS shall determine, in consultation with other State agency partners, utilizing the information provided during the application process and information obtained from the Agency's Office of Homeland Security, whether the applicant is at high risk of being subject to threats, attacks, or acts of terrorism.

k) Notification will be sent to the point of contact indicated in the application when final grant funding allocations have been determined.

l) Appeals. Appeals for this grant program shall follow the process provided in 44 Ill. Adm. Code 7000.350(g). All appeals shall be submitted in writing to the Deputy Director of the Agency's Office of Homeland Security.

Section 120.50 Grant Agreement and Payment

a) IEMA-OHS shall execute a grant agreement with each applicant to whom a grant is awarded. The grant agreement shall specify the parties to the grant, the grant performance period, the amount of the grant, that unspent grant funds shall be returned to the State as required by the Illinois Grant Funds Recovery Act [30 ILCS 705] and other applicable federal and State law, that the State of Illinois may audit records required to be maintained to verify that grant funds were used for permissible uses under the grant, that the grant agreement shall cease if funds for the grant are not appropriated by the General Assembly, and any other standard provisions required to be included in grant agreements entered into by the State.

b) IEMA-OHS will send the grant agreement for signature to the point of contact indicated in the application. The grant agreement must be signed by both the grantee and IEMA-OHS prior to funding being disbursed.

c) Following execution of the grant agreement, a grantee shall submit a copy of documents that verify expenditures or anticipated expenditures to IEMA-OHS for review in accordance with the approved project budget.

d) For all eligible expenditures, IEMA-OHS will pay grantees by the advance payment method, reimbursement method, or working capital advance method may either reimburse a grantee for eligible expenditures or advance funds to a grantee for eligible expenditures, but only upon the grantee's submission of an accepted bid, invoice, or other official document showing the exact cost of the expenditure. For the reimbursement method, the grantee shall provide documentation (i.e., receipt) that the exact cost of the expenditure was paid to the vendor. Grantees shall submit all bids, invoices, or other official documents showing the exact cost of an expenditure in the format and method prescribed in the grant agreement or as otherwise directed by IEMA-OHS. Invoices must include only allowable incurred costs that have been paid by the grantee.

AGENCY NOTE: Nothing in these rules shall exempt a grantee from complying with applicable procurement requirements.

1) Advance Payment Method. For the advance payment method, the grantee shall submit a request as indicated in the NOFO and include the information in subsection (d)(1)(A). Approval and administration of advance payments shall be governed by subsections (d)(1)(B) through (G).

A) An Advance Payment Request Cash Budget Template (Cash Budget). Cash budgets must be signed by either the Chief Executive Officer (or equivalent) or Chief Financial Officer (or equivalent) for the grantee. The executive's signature certifies that their entity complies with the requirements set forth in 2 CFR 200.302 (Financial Management) and 44 Ill. Adm. Code 7000.120(b)(i)(A) (Advance Payments). The cash budget must demonstrate the estimated monthly cash requirements for each month of the grant performance period.

B) If advance payment is requested, prior to approval, IEMA-OHS will perform or secure an assessment to ensure compliance with the specific language of GATA and any rules adopted pursuant to GATA. If the assessment does not ensure compliance with GATA and the rules promulgated thereunder, then IEMA-OHS may deny the request for advance payment. Any grantee that has a high risk category as a result of the internal control questionnaire required by GATA shall not be approved for advance payment.

C) Upon approval by IEMA-OHS, advance payments shall be limited to the minimum amounts needed and be timed to be in accordance with the actual, immediate cash requirements of the grantee in carrying out the purpose of the approved project. The timing and amount of advance payments must be as close as is administratively feasible to the actual disbursements by the grantee for project costs. Additionally, the grantee must make timely payments to contractors.

D) Upon approval for advance payment, an initial payment will be processed in an amount equal to the first three months' cash requirements as reflected in the submitted advance payment cash budget.

E) Subsequent advance payments will be made quarterly based on the invoices submitted to IEMA-OHS and will be adjusted up or down, based on a comparison of actual cumulative expenditures to cumulative advance payments, to date.

F) Grantees that do not expend all advance payment amounts by the end of the grant performance period or that are unable to demonstrate that all incurred costs were necessary, reasonable, allowable, or allocable as approved in their respective grant budget, shall return the funds within 45 days or be subject to grant funds recovery.

2) Reimbursement Method. Grantees will be paid via the reimbursement method or when they do not meet the requirements of subsection (d)(1), upon a grantee's request to use the reimbursement method of payment, or as stipulated in a specific condition. Grantees that have specific conditions noted in their grant agreement for any of the following items shall be paid using the reimbursement method:

A) Fiscal and administrative high risk (weak internal controls);

B) Having a history of failure to comply with general or specific terms and conditions of the grant agreement or any other grants issued by the State of Illinois;

C) Failure to meet expected performance goals as described in 2 CFR 200.211 or their project deliverables as stated in their applicable grant agreement; or

D) Otherwise not financially or programmatically responsible.

3) Working Capital Advance Method. If the grantee cannot meet the requirements of the advance payment method provided in subsection (d)(1) and IEMA-OHS has determined that reimbursement is not feasible because the grantee lacks sufficient working capital, IEMA-OHS may provide funding on a working capital advance basis. Under the working capital advance method, IEMA-OHS shall advance payments to the grantee to cover its estimated disbursement needs for initial start-up costs and up to two months of program expenses, not to exceed 25% of the total award amount. The grantee during the application process shall demonstrate a need for the advance funds to commence a project. The remaining grant funds shall be paid through the reimbursement method after the grantee presents sufficient supporting documentation of expenditures for eligible activities. The working capital advance method shall not be used if the reason for the working capital advance is the unwillingness or inability of IEMA-OHS to provide timely advance payments to the grantee to meet the grantee's actual cash disbursements.

Section 120.60 Audit, Grant Fund Recovery, and Records Retention

a) Grant funds shall be used exclusively for the project identified in the grant application and shall be expended in accordance with this Part and the grant agreement.

b) Grantees shall maintain documentation of expenditures under the grant for a minimum of five years after the termination of the grant performance period. Documentation shall be maintained so that it is readily accessible during an audit.

c) The State of Illinois shall have the right to inspect equipment procured and to audit and obtain copies of the books, records, and any other recorded information of the grantee related to grantee expenses for which grantee received compensation under this Part.

d) The State of Illinois shall have the right of recovery of the grant funds in accordance with the provisions and procedures of the Illinois Grant Funds Recovery Act [30 ILCS 705], Grant Accountability and Transparency Act [30 ILCS 708], the GATA Rule, and the Agency GATA Rule.