Bill Amendment: IL SB1057 | 2015-2016 | 99th General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: GRANT ACCOUNTABILITY UNIT

Status: 2015-05-22 - Rule 19(a) / Re-referred to Rules Committee [SB1057 Detail]

Download: Illinois-2015-SB1057-Senate_Amendment_001.html

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Sen. Pamela J. Althoff

Filed: 4/14/2015

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AMENDMENT TO SENATE BILL 1057
AMENDMENT NO. ______. Amend Senate Bill 1057 by replacing
everything after the enacting clause with the following:
"Section 5. The Grant Accountability and Transparency Act
is amended by changing Sections 20, 25, 55, 85, 90, and 100 as
follows:
(30 ILCS 708/20)
(Section scheduled to be repealed on July 16, 2019)
Sec. 20. Adoption of federal rules applicable to grants.
(a) On or before July 1, 2016 2015, the Governor's Office
of Management and Budget, with the advice and technical
assistance of the Illinois Single Audit Commission, shall adopt
rules which adopt the Uniform Guidance at 2 CFR 200. The rules,
which shall apply to all State and federal pass-through awards
effective on and after July 1, 2016 2015, shall include the
following:

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(1) Administrative requirements. In accordance with
Subparts B through D of 2 CFR 200, the rules shall set
forth the uniform administrative requirements for grant
and cooperative agreements, including the requirements for
the management by State awarding agencies of federal grant
programs before State and federal pass-through awards have
been made and requirements that State awarding agencies may
impose on non-federal entities in State and federal
pass-through awards.
(2) Cost principles. In accordance with Subpart E of 2
CFR 200, the rules shall establish principles for
determining the allowable costs incurred by non-federal
entities under State and federal pass-through awards. The
principles are intended for cost determination, but are not
intended to identify the circumstances or dictate the
extent of State or federal pass-through participation in
financing a particular program or project. The principles
shall provide that State and federal awards bear their fair
share of cost recognized under these principles, except
where restricted or prohibited by State or federal law.
(3) Audit and single audit requirements and audit
follow-up. In accordance with Subpart F of 2 CFR 200 and
the federal Single Audit Act Amendments of 1996, the rules
shall set forth standards to obtain consistency and
uniformity among State and federal pass-through awarding
agencies for the audit of non-federal entities expending

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State and federal awards. These provisions shall also set
forth the policies and procedures for State and federal
pass-through entities when using the results of these
audits.
The provisions of this item (3) do not apply to
for-profit subrecipients because for-profit subrecipients
are not subject to the requirements of OMB Circular A-133,
Audits of States, Local and Non-Profit Organizations.
Audits of for-profit subrecipients must be conducted
pursuant to a Program Audit Guide issued by the Federal
awarding agency. If a Program Audit Guide is not available,
the State awarding agency must prepare a Program Audit
Guide in accordance with the OMB Circular A-133 Compliance
Supplement. For-profit entities are subject to all other
general administrative requirements and cost principles
applicable to grants.
(b) This Act addresses only State and federal pass-through
auditing functions and does not address the external audit
function of the Auditor General.
(c) For public institutions of higher education, the
provisions of this Section apply only to awards funded by State
appropriations and federal pass-through awards from a State
agency to public institutions of higher education. Federal
pass-through awards from a State agency to public institutions
of higher education are governed by and must comply with
federal guidelines under 2 CFR 200.

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(d) The State grant-making agency is responsible for
establishing requirements, as necessary, to ensure compliance
by for-profit subrecipients. The agreement with the for-profit
subrecipient shall describe the applicable compliance
requirements and the for-profit subrecipient's compliance
responsibility. Methods to ensure compliance for State and
federal pass-through awards made to for-profit subrecipients
shall include pre-award, audits, monitoring during the
agreement, and post-award audits. The Governor's Office of
Management and Budget shall provide such advice and technical
assistance to the State grant-making agency as is necessary or
indicated.
(Source: P.A. 98-706, eff. 7-16-14.)
(30 ILCS 708/25)
(Section scheduled to be repealed on July 16, 2019)
Sec. 25. Supplemental rules. On or before July 1, 2016
2015, the Governor's Office of Management and Budget, with the
advice and technical assistance of the Illinois Single Audit
Commission, shall adopt supplemental rules pertaining to the
following:
(1) Criteria to define mandatory formula-based grants
and discretionary grants.
(2) The award of one-year grants for new applicants.
(3) The award of competitive grants in 3-year terms
(one-year initial terms with the option to renew for up to

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2 additional years) to coincide with the federal award.
(4) The issuance of grants, including:
(A) public notice of announcements of funding
opportunities;
(B) the development of uniform grant applications;
(C) State agency review of merit of proposals and
risk posed by applicants;
(D) specific conditions for individual recipients
(requiring the use of a fiscal agent and additional
corrective conditions);
(E) certifications and representations;
(F) pre-award costs;
(G) performance measures and statewide prioritized
goals under Section 50-25 of the State Budget Law of
the Civil Administrative Code of Illinois, commonly
referred to as "Budgeting for Results"; and
(H) for mandatory formula grants, the merit of the
proposal and the risk posed should result in additional
reporting, monitoring, or measures such as
reimbursement-basis only.
(5) The development of uniform budget requirements,
which shall include:
(A) mandatory submission of budgets as part of the
grant application process;
(B) mandatory requirements regarding contents of
the budget including, at a minimum, common detail line

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items specified under guidelines issued by the
Governor's Office of Management and Budget;
(C) a requirement that the budget allow
flexibility to add lines describing costs that are
common for the services provided as outlined in the
grant application;
(D) a requirement that the budget include
information necessary for analyzing cost and
performance for use in the Budgeting for Results
initiative; and
(E) caps on the amount of salaries that may be
charged to grants based on the limitations imposed by
federal agencies.
(6) The development of pre-qualification requirements
for applicants, including the fiscal condition of the
organization and the provision of the following
information:
(A) organization name;
(B) Federal Employee Identification Number;
(C) Data Universal Numbering System (DUNS) number;
(D) fiscal condition;
(E) whether the applicant is in good standing with
the Secretary of State;
(F) past performance in administering grants;
(G) whether the applicant is or has ever been on
the Debarred and Suspended List maintained by the

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Governor's Office of Management and Budget;
(H) whether the applicant is or has ever been on
the federal Excluded Parties List; and
(I) whether the applicant is or has ever been on
the Sanctioned Party List maintained by the Illinois
Department of Healthcare and Family Services.
Nothing in this Act affects the provisions of the Fiscal
Control and Internal Auditing Act nor the requirement that the
management of each State agency is responsible for maintaining
effective internal controls under that Act.
For public institutions of higher education, the
provisions of this Section apply only to awards funded by State
appropriations and federal pass-through awards from a State
agency to public institutions of higher education.
(Source: P.A. 98-706, eff. 7-16-14.)
(30 ILCS 708/55)
(Section scheduled to be repealed on July 16, 2019)
Sec. 55. The Governor's Office of Management and Budget
responsibilities.
(a) The Governor's Office of Management and Budget shall:
(1) provide technical assistance and interpretations
of policy requirements in order to ensure effective and
efficient implementation of this Act by State grant-making
agencies; and
(2) have authority to approve any exceptions to the

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requirements of this Act and shall adopt rules governing
the criteria to be considered when an exception is
requested; exceptions shall only be made in particular
cases where adequate justification is presented.
(b) The Governor's Office of Management and Budget shall,
on or before July 1, 2015 2014, establish a centralized unit
within the Governor's Office of Management and Budget. The
centralized unit shall be known as the Grant Accountability and
Transparency Unit and shall be funded with a portion of the
administrative funds provided under existing and future State
and federal pass-through grants. The amounts charged will be
allocated based on the actual cost of the services provided to
State grant-making agencies and public institutions of higher
education in accordance with the applicable federal cost
principles contained in 2 CFR 200 and this Act will not cause
the reduction in the amount of any State or federal grant
awards that have been or will be directed towards State
agencies or public institutions of higher education.
(Source: P.A. 98-706, eff. 7-16-14.)
(30 ILCS 708/85)
(Section scheduled to be repealed on July 16, 2019)
Sec. 85. Implementation date. The Governor's Office of
Management and Budget shall adopt all rules required under this
Act on or before July 1, 2016 2015.
(Source: P.A. 98-706, eff. 7-16-14.)

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(30 ILCS 708/90)
(Section scheduled to be repealed on July 16, 2019)
Sec. 90. Agency implementation. All State grant-making
agencies shall implement the rules issued by the Governor's
Office of Management and Budget on or before July 1, 2017 2015.
The standards set forth in this Act, which affect
administration of State and federal pass-through awards issued
by State grant-making agencies, become effective once
implemented by State grant-making agencies. State grant-making
agencies shall implement the policies and procedures
applicable to State and federal pass-through awards by adopting
rules for non-federal entities by December 31, 2016 that shall
take effect for fiscal years on and after December 26, 2014,
unless different provisions are required by State or federal
statute or federal rule.
(Source: P.A. 98-706, eff. 7-16-14.)
(30 ILCS 708/100)
(Section scheduled to be repealed on July 16, 2019)
Sec. 100. Repeal. This Act is repealed on July 16, 2020 5
years after the effective date of this Act.
(Source: P.A. 98-706, eff. 7-16-14.)".