HB4689 Engrossed LRB100 18371 RJF 33578 b
1		AN ACT concerning finance.
2		Be it enacted by the People of the State of Illinois,
3		represented in the General Assembly:
4		Section 5. The Grant Accountability and Transparency Act is
5		amended by changing Sections 20, 25, 45, and 60 as follows:
6		(30 ILCS 708/20)
7		(Section scheduled to be repealed on July 16, 2020)
8		Sec. 20. Adoption of federal rules applicable to grants.
9		(a) On or before July 1, 2016, the Governor's Office of
10		Management and Budget, with the advice and technical assistance
11		of the Illinois Single Audit Commission, shall adopt rules
12		which adopt the Uniform Guidance at 2 CFR 200. The rules, which
13		shall apply to all State and federal pass-through awards
14		effective on and after July 1, 2016, shall include the
15		following:
16		(1) Administrative requirements. In accordance with
17		Subparts B through D of 2 CFR 200, the rules shall set
18		forth the uniform administrative requirements for grant
19		and cooperative agreements, including the requirements for
20		the management by State awarding agencies of federal grant
21		programs before State and federal pass-through awards have
22		been made and requirements that State awarding agencies may
23		impose on non-federal entities in State and federal

HB4689 Engrossed - 2 - LRB100 18371 RJF 33578 b
1		pass-through awards.
2		(2) Cost principles. In accordance with Subpart E of 2
3		CFR 200, the rules shall establish principles for
4		determining the allowable costs incurred by non-federal
5		entities under State and federal pass-through awards. The
6		principles are intended for cost determination, but are not
7		intended to identify the circumstances or dictate the
8		extent of State or federal pass-through participation in
9		financing a particular program or project. The principles
10		shall provide that State and federal awards bear their fair
11		share of cost recognized under these principles, except
12		where restricted or prohibited by State or federal law.
13		(3) Audit and single audit requirements and audit
14		follow-up. In accordance with Subpart F of 2 CFR 200 and
15		the federal Single Audit Act Amendments of 1996, the rules
16		shall set forth standards to obtain consistency and
17		uniformity among State and federal pass-through awarding
18		agencies for the audit of non-federal entities expending
19		State and federal awards. These provisions shall also set
20		forth the policies and procedures for State and federal
21		pass-through entities when using the results of these
22		audits.
23		The provisions of this item (3) do not apply to
24		for-profit subrecipients because for-profit subrecipients
25		are not subject to the requirements of 2 CFR 200, Subpart F
26		OMB Circular A-133, Audits of States, Local and Non-Profit

HB4689 Engrossed - 3 - LRB100 18371 RJF 33578 b
1		Organizations. Audits of for-profit subrecipients must be
2		conducted pursuant to a Program Audit Guide issued by the
3		Federal awarding agency. If a Program Audit Guide is not
4		available, the State awarding agency must prepare a Program
5		Audit Guide in accordance with the 2 CFR 200, Subpart F –
6		Audit Requirements - OMB Circular A-133 Compliance
7		Supplement. For-profit entities are subject to all other
8		general administrative requirements and cost principles
9		applicable to grants.
10		(b) This Act addresses only State and federal pass-through
11		auditing functions and does not address the external audit
12		function of the Auditor General.
13		(c) For public institutions of higher education, the
14		provisions of this Section apply only to awards funded by State
15		appropriations and federal pass-through awards from a State
16		agency to public institutions of higher education. Federal
17		pass-through awards from a State agency to public institutions
18		of higher education are governed by and must comply with
19		federal guidelines under 2 CFR 200.
20		(d) The State grant-making agency is responsible for
21		establishing requirements, as necessary, to ensure compliance
22		by for-profit subrecipients. The agreement with the for-profit
23		subrecipient shall describe the applicable compliance
24		requirements and the for-profit subrecipient's compliance
25		responsibility. Methods to ensure compliance for State and
26		federal pass-through awards made to for-profit subrecipients

HB4689 Engrossed - 4 - LRB100 18371 RJF 33578 b
1		shall include pre-award, audits, monitoring during the
2		agreement, and post-award audits. The Governor's Office of
3		Management and Budget shall provide such advice and technical
4		assistance to the State grant-making agency as is necessary or
5		indicated.
6		(Source: P.A. 98-706, eff. 7-16-14; 99-523, eff. 6-30-16.)
7		(30 ILCS 708/25)
8		(Section scheduled to be repealed on July 16, 2020)
9		Sec. 25. Supplemental rules. On or before July 1, 2017, the
10		Governor's Office of Management and Budget, with the advice and
11		technical assistance of the Illinois Single Audit Commission,
12		shall adopt supplemental rules pertaining to the following:
13		(1) Criteria to define mandatory formula-based grants
14		and discretionary grants.
15		(2) The award of one-year grants for new applicants.
16		(3) The award of competitive grants in 3-year terms
17		(one-year initial terms with the option to renew for up to
18		2 additional years) to coincide with the federal award.
19		(4) The issuance of grants, including:
20		(A) public notice of announcements of funding
21		opportunities;
22		(B) the development of uniform grant applications;
23		(C) State agency review of merit of proposals and
24		risk posed by applicants;
25		(D) specific conditions for individual recipients

HB4689 Engrossed - 5 - LRB100 18371 RJF 33578 b
1		(including requiring the use of a fiscal agent and
2		additional corrective conditions);
3		(E) certifications and representations;
4		(F) pre-award costs;
5		(G) performance measures and statewide prioritized
6		goals under Section 50-25 of the State Budget Law of
7		the Civil Administrative Code of Illinois, commonly
8		referred to as "Budgeting for Results"; and
9		(H) for mandatory formula grants, the merit of the
10		proposal and the risk posed should result in additional
11		reporting, monitoring, or measures such as
12		reimbursement-basis only.
13		(5) The development of uniform budget requirements,
14		which shall include:
15		(A) mandatory submission of budgets as part of the
16		grant application process;
17		(B) mandatory requirements regarding contents of
18		the budget including, at a minimum, common detail line
19		items specified under guidelines issued by the
20		Governor's Office of Management and Budget;
21		(C) a requirement that the budget allow
22		flexibility to add lines describing costs that are
23		common for the services provided as outlined in the
24		grant application;
25		(D) a requirement that the budget include
26		information necessary for analyzing cost and

HB4689 Engrossed - 6 - LRB100 18371 RJF 33578 b
1		performance for use in Budgeting for Results; and
2		(E) caps on the amount of salaries that may be
3		charged to grants based on the limitations imposed by
4		federal agencies.
5		(6) The development of pre-qualification requirements
6		for applicants, including the fiscal condition of the
7		organization and the provision of the following
8		information:
9		(A) organization name;
10		(B) Federal Employee Identification Number;
11		(C) Data Universal Numbering System (DUNS) number;
12		(D) fiscal condition;
13		(E) whether the applicant is in good standing with
14		the Secretary of State;
15		(F) past performance in administering grants;
16		(G) whether the applicant is or has ever been on
17		the Debarred and Suspended List maintained by the
18		Governor's Office of Management and Budget;
19		(H) whether the applicant is or has ever been on
20		the federal Excluded Parties List; and
21		(I) whether the applicant is or has ever been on
22		the Sanctioned Party List maintained by the Illinois
23		Department of Healthcare and Family Services.
24		Nothing in this Act affects the provisions of the Fiscal
25		Control and Internal Auditing Act nor the requirement that the
26		management of each State agency is responsible for maintaining

HB4689 Engrossed - 7 - LRB100 18371 RJF 33578 b
1		effective internal controls under that Act.
2		For public institutions of higher education, the
3		provisions of this Section apply only to awards funded by State
4		appropriations and federal pass-through awards from a State
5		agency to public institutions of higher education.
6		(Source: P.A. 98-706, eff. 7-16-14; 99-523, eff. 6-30-16.)
7		(30 ILCS 708/45)
8		(Section scheduled to be repealed on July 16, 2020)
9		Sec. 45. Applicability.
10		(a) The requirements established under this Act apply to
11		State grant-making agencies that make State and federal
12		pass-through awards to non-federal entities. These
13		requirements apply to all costs related to State and federal
14		pass-through awards. The requirements established under this
15		Act do not apply to private awards.
16		(a-5) Nothing in this Act shall prohibit the use of State
17		funds for purposes of federal match or maintenance of effort.
18		(b) The terms and conditions of State, federal, and
19		pass-through awards apply to subawards and subrecipients
20		unless a particular Section of this Act or the terms and
21		conditions of the State or federal award specifically indicate
22		otherwise. Non-federal entities shall comply with requirements
23		of this Act regardless of whether the non-federal entity is a
24		recipient or subrecipient of a State or federal pass-through
25		award. Pass-through entities shall comply with the

HB4689 Engrossed - 8 - LRB100 18371 RJF 33578 b
1		requirements set forth under the rules adopted under subsection
2		(a) of Section 20 of this Act, but not to any requirements in
3		this Act directed towards State or federal awarding agencies,
4		unless the requirements of the State or federal awards indicate
5		otherwise.
6		When a non-federal entity is awarded a cost-reimbursement
7		contract, only 2 CFR 200.330 through 200.332 are incorporated
8		by reference into the contract. However, when the Cost
9		Accounting Standards are applicable to the contract, they take
10		precedence over the requirements of this Act unless they are in
11		conflict with Subpart F of 2 CFR 200. In addition, costs that
12		are made unallowable under 10 U.S.C. 2324(e) and 41 U.S.C.
13		4304(a), as described in the Federal Acquisition Regulations,
14		subpart 31.2 and subpart 31.603, are always unallowable. For
15		requirements other than those covered in Subpart D of 2 CFR
16		200.330 through 200.332, the terms of the contract and the
17		Federal Acquisition Regulations apply.
18		With the exception of Subpart F of 2 CFR 200, which is
19		required by the Single Audit Act, in any circumstances where
20		the provisions of federal statutes or regulations differ from
21		the provisions of this Act, the provision of the federal
22		statutes or regulations govern. This includes, for agreements
23		with Indian tribes, the provisions of the Indian
24		Self-Determination and Education and Assistance Act, as
25		amended, 25 U.S.C. 450-458ddd-2.
26		(c) State grant-making agencies may apply subparts A

HB4689 Engrossed - 9 - LRB100 18371 RJF 33578 b
1		through E of 2 CFR 200 to for-profit entities, foreign public
2		entities, or foreign organizations, except where the awarding
3		agency determines that the application of these subparts would
4		be inconsistent with the international obligations of the
5		United States or the statute or regulations of a foreign
6		government.
7		(d) 2 CFR 200.101 specifies how 2 CFR 200 is applicable to
8		different types of awards. The same applicability applies to
9		this Act. Except for 2 CFR 200.202 and 200.330 through 200.332,
10		the requirements in Subparts C, D, and E of 2 CFR 200 do not
11		apply to the following programs:
12		(1) The block grant awards authorized by the Omnibus
13		Budget Reconciliation Act of 1981 (including Community
14		Services; Preventive Health and Health Services; Alcohol,
15		Drug Abuse, and Mental Health Services; Maternal and Child
16		Health Services; Social Services; Low-Income Home Energy
17		Assistance; States' Program of Community Development Block
18		Grant Awards for Small Cities; and Elementary and Secondary
19		Education, other than programs administered by the
20		Secretary of Education under Title V, Subtitle D, Chapter
21		2, Section 583 - the Secretary's discretionary award
22		program) and both the Alcohol and Drug Abuse Treatment and
23		Rehabilitation Block Grant Award (42 U.S.C. 300x-21 to
24		300x-35 and 42 U.S.C. 300x-51 to 300x-64) and the Mental
25		Health Service for the Homeless Block Grant Award (42
26		U.S.C. 300x to 300x-9) under the Public Health Services

HB4689 Engrossed - 10 - LRB100 18371 RJF 33578 b
1		Act.
2		(2) Federal awards to local education agencies under 20
3		U.S.C. 7702 through 7703b (portions of the Impact Aid
4		program).
5		(3) Payments under the Department of Veterans Affairs'
6		State Home Per Diem Program (38 U.S.C. 1741).
7		(4) Federal awards authorized under the Child Care and
8		Development Block Grant Act of 1990, as amended, including
9		the following:
10		(A) Child Care and Development Block Grant (42
11		U.S.C. 9858).
12		(B) Child Care Mandatory and Matching Funds of the
13		Child Care and Development Fund (42 U.S.C. 9858).
14		(e) (Blank). Except for the 2 CFR 200.202 requirement to
15		provide public notice of federal financial assistance
16		programs, the guidance in Subpart C Pre-federal Award
17		Requirements and Contents of Federal Awards does not apply to
18		the following programs:
19		(1) Entitlement federal awards to carry out the
20		following programs of the Social Security Act:
21		(A) Temporary Assistance to Needy Families (Title
22		IV-A of the Social Security Act, 42 U.S.C. 601-619);
23		(B) Child Support Enforcement and Establishment of
24		Paternity (Title IV-D of the Social Security Act, 42
25		U.S.C. 651-669b);
26		(C) Foster Care and Adoption Assistance (Title

HB4689 Engrossed - 11 - LRB100 18371 RJF 33578 b
1		IV-E of the Act, 42 U.S.C. 670-679c);
2		(D) Aid to the Aged, Blind, and Disabled (Titles I,
3		X, XIV, and XVI - AABD of the Act, as amended); and
4		(E) Medical Assistance (Medicaid) (42 U.S.C.
5		1396-1396w-5), not including the State Medicaid Fraud
6		Control program authorized by Section 1903(a)(6)(B) of
7		the Social Security Act (42 U.S.C. 1396b(a)(6)(B)).
8		(2) A federal award for an experimental, pilot, or
9		demonstration project that is also supported by a federal
10		award listed in paragraph (1) of subsection (e) of this
11		Section.
12		(3) Federal awards under subsection 412(e) of the
13		Immigration and Nationality Act of 1965 and Section 501(a)
14		of the Refugee Education Assistance Act of 1980 for cash
15		assistance, medical assistance, and supplemental security
16		income benefits to refugees and entrants and the
17		administrative costs of providing the assistance and
18		benefits under 8 U.S.C. 1522(e).
19		(4) Entitlement awards under the following programs of
20		The National School Lunch Act:
21		(A) National School Lunch Program (42 U.S.C.
22		1753);
23		(B) Commodity Assistance (42 U.S.C. 1755);
24		(C) Special Meal Assistance (42 U.S.C. 1759a);
25		(D) Summer Food Service Program for Children (42
26		U.S.C. 1761); and

HB4689 Engrossed - 12 - LRB100 18371 RJF 33578 b
1		(E) Child and Adult Care Food Program (42 U.S.C.
2		1766).
3		(5) Entitlement awards under the following programs of
4		The Child Nutrition Act of 1966:
5		(A) Special Milk Program (42 U.S.C. 1772);
6		(B) School Breakfast Program (42 U.S.C. 1773); and
7		(C) State Administrative Expenses (42 U.S.C.
8		1776).
9		(6) Entitlement awards for State Administrative
10		Expenses under The Food and Nutrition Act of 2008 (7 U.S.C.
11		2025).
12		(7) Non-discretionary federal awards under the
13		following non-entitlement programs:
14		(A) Special Supplemental Nutrition Program for
15		Women, Infants and Children under the Child Nutrition
16		Act of 1966 (42 U.S.C. 1786);
17		(B) The Emergency Food Assistance Programs
18		(Emergency Food Assistance Act of 1983) (7 U.S.C.
19		7501); and
20		(C) Commodity Supplemental Food Program (7 U.S.C.
21		612c).
22		(f) For public institutions of higher education, the
23		provisions of this Act apply only to awards funded by State
24		appropriations and federal pass-through awards from a State
25		agency to public institutions of higher education.
26		(g) Each grant-making agency shall enhance its processes to

HB4689 Engrossed - 13 - LRB100 18371 RJF 33578 b
1		monitor and address noncompliance with reporting requirements
2		and with program performance standards. Where applicable, the
3		process may include a corrective action plan. The monitoring
4		process shall include a plan for tracking and documenting
5		performance-based contracting decisions.
6		(Source: P.A. 98-706, eff. 7-16-14; revised 9-25-17.)
7		(30 ILCS 708/60)
8		(Section scheduled to be repealed on July 16, 2020)
9		Sec. 60. Grant Accountability and Transparency Unit
10		responsibilities.
11		(a) The Grant Accountability and Transparency Unit within
12		the Governor's Office of Management and Budget shall be
13		responsible for:
14		(1) The development of minimum requirements applicable
15		to the staff of grant applicants to manage and execute
16		grant awards for programmatic and administrative purposes,
17		including grant management specialists with:
18		(A) general and technical competencies;
19		(B) programmatic expertise;
20		(C) fiscal expertise and systems necessary to
21		adequately account for the source and application of
22		grant funds for each program; and
23		(D) knowledge of compliance requirements.
24		(2) The development of minimum training requirements,
25		including annual training requirements.

HB4689 Engrossed - 14 - LRB100 18371 RJF 33578 b
1		(3) Accurate, current, and complete disclosure of the
2		financial results of each funded award, as set forth in the
3		financial monitoring and reporting Section of 2 CFR 200.
4		(4) Development of criteria for requiring the
5		retention of a fiscal agent and for becoming a fiscal
6		agent.
7		(5) Development of disclosure requirements in the
8		grant application pertaining to:
9		(A) related-party status between grantees and
10		grant-making agencies;
11		(B) past employment of applicant officers and
12		grant managers;
13		(C) disclosure of current or past employment of
14		members of immediate family; and
15		(D) disclosure of senior management of grantee
16		organization and their relationships with contracted
17		vendors.
18		(6) Implementation of rules prohibiting a grantee from
19		charging any cost allocable to a particular award or cost
20		objective to other State or federal awards to overcome fund
21		deficiencies, to avoid restrictions imposed by law or terms
22		of the federal awards, or for other reasons.
23		(7) Implementation of rules prohibiting a non-federal
24		entity from earning or keeping any profit resulting from
25		State or federal financial assistance, unless prior
26		approval has been obtained from the Governor's Office of

HB4689 Engrossed - 15 - LRB100 18371 RJF 33578 b
1		Management and Budget and is expressly authorized by the
2		terms and conditions of the award.
3		(8) Maintenance of an Illinois Debarred and Suspended
4		List that contains the names of those individuals and
5		entities that are ineligible, either temporarily or
6		permanently, to receive an award of grant funds from the
7		State.
8		(9) Ensuring the adoption of standardized rules for the
9		implementation of this Act by State grant-making agencies.
10		The Grant Accountability and Transparency Unit shall
11		provide such advice and technical assistance to the State
12		grant-making agencies as is necessary or indicated in order
13		to ensure compliance with this Act.
14		(10) Coordination of financial and Single Audit
15		reviews.
16		(11) Coordination of on-site reviews of grantees and
17		subrecipients.
18		(12) Maintenance of the Catalog of State Financial
19		Assistance, which shall be posted on an Internet website
20		maintained by the Governor's Office of Management and
21		Budget that is available to the public.
22		(b) The Grant Accountability and Transparency Unit shall
23		have no power or authority regarding the approval, disapproval,
24		management, or oversight of grants entered into or awarded by a
25		State agency or by a public institution of higher education.
26		The power or authority existing under law to grant or award

HB4689 Engrossed - 16 - LRB100 18371 RJF 33578 b
1		grants by a State agency or by a public institution of higher
2		education shall remain with that State agency or public
3		institution of higher education. The Unit shall be responsible
4		for providing technical assistance to guide reviewing and
5		approving amendments to the Administrative Code amendments
6		proposed by State grant-making grant agencies to comply in
7		connection with the implementation of this Act and shall be
8		responsible for establishing standardized policies and
9		procedures for State grant-making agencies in order to ensure
10		compliance with the Uniform Administrative Requirements, Cost
11		Principles and Audit Requirements for Federal Awards set forth
12		in 2 CFR Part 200, all of which must be adhered to by the State
13		grant-making agencies throughout the life cycle of the grant.
14		(c) The powers and functions of grant making by State
15		agencies or public institutions of higher education may not be
16		transferred to, nor may prior grant approval be transferred to,
17		any other person, office, or entity within the executive branch
18		of State government.
19		(Source: P.A. 98-706, eff. 7-16-14.)
20		(30 ILCS 708/100 rep.)
21		Section 10. The Grant Accountability and Transparency Act
22		is amended by repealing Section 100.