Bill Text: IL HB0002 | 2013-2014 | 98th General Assembly | Chaptered

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Bill Title: Amends the Illinois Grant Funds Recovery Act. Adds to the list of requirements on a grant application. Provides that a grant agreement must contain proof of either the existence of a line of credit or the financial solvency of the grantee. Prohibits the award of a grant if a family relationship exists between the grantee or its leadership and the funding agency. Provides that all administrators and service providers must be appropriately credentialed in their respective fields. Sets requirements concerning quarterly updates and reports to the grantor agency. Provides that if the funds received from the grant are used to provide State services, then the clients for recipients of those services may not be charged an additional fee for those services.

Spectrum: Moderate Partisan Bill (Republican 11-2)

Status: (Passed) 2013-07-01 - Public Act . . . . . . . . . 98-0047 [HB0002 Detail]

Download: Illinois-2013-HB0002-Chaptered.html

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Public Act 098-0047
HB0002 Enrolled LRB098 02559 KMW 32563 b
AN ACT concerning finance.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Grant Funds Recovery Act is amended
by adding Section 15 as follows:
(30 ILCS 705/15 new)
Sec. 15. 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
process;
(8) the development of standardized audit
requirements;
(9) the development of program performance reporting
and budgeting for results;
(10) the development of record retention and access
requirements; and
(11) the development of grant termination and
enforcement procedures.
(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
procedures;
(2) the development of standardized audit
requirements;
(3) the development of subsequent grant adjustments
and continuing responsibilities;

(4) the development of a uniform method of grant
recovery; and
(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.