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| Public Act 100-0676
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| HB4689 Enrolled | LRB100 18371 RJF 33578 b |
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AN ACT concerning finance.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Grant Accountability and Transparency Act is |
amended by changing Sections 20, 25, 45, and 60 as follows:
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(30 ILCS 708/20) |
(Section scheduled to be repealed on July 16, 2020)
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Sec. 20. Adoption of federal rules applicable to grants. |
(a) On or before July 1, 2016, 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, 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 |
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pass-through awards.
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(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.
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(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 |
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 2 CFR 200, Subpart F |
OMB Circular A-133, Audits of States, Local and Non-Profit |
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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 2 CFR 200, Subpart F – |
Audit Requirements - 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. |
(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 |
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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.
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(Source: P.A. 98-706, eff. 7-16-14; 99-523, eff. 6-30-16.)
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(30 ILCS 708/25) |
(Section scheduled to be repealed on July 16, 2020)
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Sec. 25. Supplemental rules. On or before July 1, 2017, 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.
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(2) The award of one-year grants for new applicants.
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(3) The award of competitive grants in 3-year terms |
(one-year initial terms with the option to renew for up to |
2 additional years) to coincide with the federal award.
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(4) The issuance of grants, including:
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(A) public notice of announcements of funding |
opportunities; |
(B) the development of uniform grant applications;
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(C) State agency review of merit of proposals and |
risk posed by applicants;
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(D) specific conditions for individual recipients |
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(including requiring the use of a fiscal agent and |
additional corrective conditions);
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(E) certifications and representations;
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(F) pre-award costs;
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(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
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(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.
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(5) The development of uniform budget requirements, |
which shall include:
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(A) mandatory submission of budgets as part of the |
grant application process;
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(B) mandatory requirements regarding contents of |
the budget including, at a minimum, common detail line |
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 |
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performance for use in Budgeting for Results; 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:
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(A) organization name;
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(B) Federal Employee Identification Number;
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(C) Data Universal Numbering System (DUNS) number;
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(D) fiscal condition;
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(E) whether the applicant is in good standing with |
the Secretary of State;
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(F) past performance in administering grants;
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(G) whether the applicant is or has ever been on |
the Debarred and Suspended List maintained by the |
Governor's Office of Management and Budget;
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(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.
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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 |
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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.
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(Source: P.A. 98-706, eff. 7-16-14; 99-523, eff. 6-30-16.)
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(30 ILCS 708/45) |
(Section scheduled to be repealed on July 16, 2020)
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Sec. 45. Applicability.
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(a) The requirements established under this Act apply to |
State grant-making agencies that make State and federal |
pass-through awards to non-federal entities. These |
requirements apply to all costs related to State and federal |
pass-through awards.
The requirements established under this |
Act do not apply to private awards. |
(a-5) Nothing in this Act shall prohibit the use of State |
funds for purposes of federal match or maintenance of effort. |
(b) The terms and conditions of State, federal, and |
pass-through awards apply to subawards and subrecipients |
unless a particular Section of this Act or the terms and |
conditions of the State or federal award specifically indicate |
otherwise. Non-federal entities shall comply with requirements |
of this Act regardless of whether the non-federal entity is a |
recipient or subrecipient of a State or federal pass-through |
award. Pass-through entities shall comply with the |
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requirements set forth under the rules adopted under subsection |
(a) of Section 20 of this Act, but not to any requirements in |
this Act directed towards State or federal awarding agencies, |
unless the requirements of the State or federal awards indicate |
otherwise.
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When a non-federal entity is awarded a cost-reimbursement |
contract, only 2 CFR 200.330 through 200.332 are incorporated |
by reference into the contract. However, when the Cost |
Accounting Standards are applicable to the contract, they take |
precedence over the requirements of this Act unless they are in |
conflict with Subpart F of 2 CFR 200. In addition, costs that |
are made unallowable under 10 U.S.C. 2324(e) and 41 U.S.C. |
4304(a), as described in the Federal Acquisition Regulations, |
subpart 31.2 and subpart 31.603, are always unallowable. For |
requirements other than those covered in Subpart D of 2 CFR |
200.330 through 200.332, the terms of the contract and the |
Federal Acquisition Regulations apply.
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With the exception of Subpart F of 2 CFR 200, which is |
required by the Single Audit Act, in any circumstances where |
the provisions of federal statutes or regulations differ from |
the provisions of this Act, the provision of the federal |
statutes or regulations govern. This includes, for agreements |
with Indian tribes, the provisions of the Indian |
Self-Determination and Education and Assistance Act, as |
amended, 25 U.S.C. 450-458ddd-2.
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(c) State grant-making agencies may apply subparts A |
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through E of 2 CFR 200 to for-profit entities, foreign public |
entities, or foreign organizations, except where the awarding |
agency determines that the application of these subparts would |
be inconsistent with the international obligations of the |
United States or the statute or regulations of a foreign |
government.
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(d) 2 CFR 200.101 specifies how 2 CFR 200 is applicable to |
different types of awards. The same applicability applies to |
this Act. Except for 2 CFR 200.202 and 200.330 through 200.332, |
the requirements in Subparts C, D, and E of 2 CFR 200 do not |
apply to the following programs:
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(1) The block grant awards authorized by the Omnibus |
Budget Reconciliation Act of 1981 (including Community |
Services; Preventive Health and Health Services; Alcohol, |
Drug Abuse, and Mental Health Services; Maternal and Child |
Health Services; Social Services; Low-Income Home Energy |
Assistance; States' Program of Community Development Block |
Grant Awards for Small Cities; and Elementary and Secondary |
Education, other than programs administered by the |
Secretary of Education under Title V, Subtitle D, Chapter |
2, Section 583 - the Secretary's discretionary award |
program) and both the Alcohol and Drug Abuse Treatment and |
Rehabilitation Block Grant Award (42 U.S.C. 300x-21 to |
300x-35 and 42 U.S.C. 300x-51 to 300x-64) and the Mental |
Health Service for the Homeless Block Grant Award (42 |
U.S.C. 300x to 300x-9) under the Public Health Services |
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Act.
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(2) Federal awards to local education agencies under 20 |
U.S.C. 7702 through 7703b (portions of the Impact Aid |
program).
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(3) Payments under the Department of Veterans Affairs' |
State Home Per Diem Program (38 U.S.C. 1741).
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(4) Federal awards authorized under the Child Care and |
Development Block Grant Act of 1990, as amended, including |
the following:
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(A) Child Care and Development Block Grant (42 |
U.S.C. 9858). |
(B) Child Care Mandatory and Matching Funds of the |
Child Care and Development Fund (42 U.S.C. 9858). |
(e) (Blank). Except for the 2 CFR 200.202 requirement to |
provide public notice of federal financial assistance |
programs, the guidance in Subpart C Pre-federal Award |
Requirements and Contents of Federal Awards does not apply to |
the following programs: |
(1) Entitlement federal awards to carry out the |
following programs of the Social Security Act: |
(A) Temporary Assistance to Needy Families (Title |
IV-A of the Social Security Act, 42 U.S.C. 601-619);
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(B) Child Support Enforcement and Establishment of |
Paternity (Title IV-D of the Social Security Act, 42 |
U.S.C. 651-669b);
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(C) Foster Care and Adoption Assistance (Title |
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IV-E of the Act, 42 U.S.C. 670-679c);
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(D) Aid to the Aged, Blind, and Disabled (Titles I, |
X, XIV, and XVI - AABD of the Act, as amended); and
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(E) Medical Assistance (Medicaid) (42 U.S.C. |
1396-1396w-5), not including the State Medicaid Fraud |
Control program authorized by Section 1903(a)(6)(B) of |
the Social Security Act (42 U.S.C. 1396b(a)(6)(B)). |
(2) A federal award for an experimental, pilot, or |
demonstration project that is also supported by a federal |
award listed in paragraph (1) of subsection (e) of this |
Section.
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(3) Federal awards under subsection 412(e) of the |
Immigration and Nationality Act of 1965 and Section 501(a) |
of the Refugee Education Assistance Act of 1980 for cash |
assistance, medical assistance, and supplemental security |
income benefits to refugees and entrants and the |
administrative costs of providing the assistance and |
benefits under 8 U.S.C. 1522(e).
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(4) Entitlement awards under the following programs of |
The National School Lunch Act: |
(A) National School Lunch Program (42 U.S.C. |
1753);
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(B) Commodity Assistance (42 U.S.C. 1755);
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(C) Special Meal Assistance (42 U.S.C. 1759a);
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(D) Summer Food Service Program for Children (42 |
U.S.C. 1761); and
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(E) Child and Adult Care Food Program (42 U.S.C. |
1766).
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(5) Entitlement awards under the following programs of |
The Child Nutrition Act of 1966: |
(A) Special Milk Program (42 U.S.C. 1772);
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(B) School Breakfast Program (42 U.S.C. 1773); and
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(C) State Administrative Expenses (42 U.S.C. |
1776).
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(6) Entitlement awards for State Administrative |
Expenses under The Food and Nutrition Act of 2008 (7 U.S.C. |
2025). |
(7) Non-discretionary federal awards under the |
following non-entitlement programs:
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(A) Special Supplemental Nutrition Program for |
Women, Infants and Children under the Child Nutrition |
Act of 1966 (42 U.S.C. 1786);
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(B) The Emergency Food Assistance Programs |
(Emergency Food Assistance Act of 1983) (7 U.S.C. |
7501); and
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(C) Commodity Supplemental Food Program (7 U.S.C. |
612c).
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(f) For public institutions of higher education, the |
provisions of this Act apply only to awards funded by State |
appropriations and federal pass-through awards from a State |
agency to public institutions of higher education. |
(g) Each grant-making agency shall enhance its processes to |
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monitor and address noncompliance with reporting requirements |
and with program performance standards. Where applicable, the |
process may include a corrective action plan. The monitoring |
process shall include a plan for tracking and documenting |
performance-based contracting decisions.
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(Source: P.A. 98-706, eff. 7-16-14; revised 9-25-17.)
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(30 ILCS 708/60) |
(Section scheduled to be repealed on July 16, 2020)
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Sec. 60. Grant Accountability and Transparency Unit |
responsibilities. |
(a) The Grant Accountability and Transparency Unit within |
the Governor's Office of Management and Budget shall be |
responsible for:
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(1) The development of minimum requirements applicable |
to the staff of grant applicants to manage and execute |
grant awards for programmatic and administrative purposes, |
including grant management specialists with:
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(A) general and technical competencies;
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(B) programmatic expertise;
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(C) fiscal expertise and systems necessary to |
adequately account for the source and application of |
grant funds for each program; and
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(D) knowledge of compliance requirements. |
(2) The development of minimum training requirements, |
including annual training requirements.
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(3) Accurate, current, and complete disclosure of the |
financial results of each funded award, as set forth in the |
financial monitoring and reporting Section of 2 CFR 200.
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(4) Development of criteria for requiring the |
retention of a fiscal agent and for becoming a fiscal |
agent.
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(5) Development of disclosure requirements in the |
grant application pertaining to:
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(A) related-party status between grantees and |
grant-making agencies;
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(B) past employment of applicant officers and |
grant managers;
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(C) disclosure of current or past employment of |
members of immediate family; and |
(D) disclosure of senior management of grantee |
organization and their relationships with contracted |
vendors.
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(6) Implementation of rules prohibiting a grantee from |
charging any cost allocable to a particular award or cost |
objective to other State or federal awards to overcome fund |
deficiencies, to avoid restrictions imposed by law or terms |
of the federal awards, or for other reasons.
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(7) Implementation of rules prohibiting a non-federal |
entity from earning or keeping any profit resulting from |
State or federal financial assistance, unless prior |
approval has been obtained from the Governor's Office of |
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Management and Budget and is expressly authorized by the |
terms and conditions of the award.
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(8) Maintenance of an Illinois Debarred and Suspended |
List that contains the names of those individuals and |
entities that are ineligible, either temporarily or |
permanently, to receive an award of grant funds from the |
State. |
(9) Ensuring the adoption of standardized rules for the |
implementation of this Act by State grant-making agencies. |
The Grant Accountability and Transparency Unit shall |
provide such advice and technical assistance to the State |
grant-making agencies as is necessary or indicated in order |
to ensure compliance with this Act.
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(10) Coordination of financial and Single Audit |
reviews.
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(11) Coordination of on-site reviews of grantees and |
subrecipients.
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(12) Maintenance of the Catalog of State Financial |
Assistance, which shall be posted on an Internet website |
maintained by the Governor's Office of Management and |
Budget that is available to the public.
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(b) The Grant Accountability and Transparency Unit shall |
have no power or authority regarding the approval, disapproval, |
management, or oversight of grants entered into or awarded by a |
State agency or by a public institution of higher education. |
The power or authority existing under law to grant or award |
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grants by a State agency or by a public institution of higher |
education shall remain with that State agency or public |
institution of higher education. The Unit shall be responsible |
for providing technical assistance to guide reviewing and |
approving amendments to the Administrative Code amendments |
proposed by State grant-making grant agencies to comply in |
connection with the implementation of this Act and shall be |
responsible for establishing standardized policies and |
procedures for State grant-making agencies in order to ensure |
compliance with the Uniform Administrative Requirements, Cost |
Principles and Audit Requirements for Federal Awards set forth |
in 2 CFR Part 200, all of which must be adhered to by the State |
grant-making agencies throughout the life cycle of the grant. |
(c) The powers and functions of grant making by State |
agencies or public institutions of higher education may not be |
transferred to, nor may prior grant approval be transferred to, |
any other person, office, or entity within the executive branch |
of State government.
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(Source: P.A. 98-706, eff. 7-16-14.)
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(30 ILCS 708/100 rep.) |
Section 10. The Grant Accountability and Transparency Act |
is amended by repealing Section 100.
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