AUTHORITY: Implementing and authorized by Sections 9(b) and 31.1 of the Illinois Horse Racing Act of 1975 [230 ILCS 5/9(b)].

SOURCE: Adopted at 13 Ill. Reg. 1232, effective January 13, 1989; amended at 18 Ill. Reg. 7410, effective April 29, 1994; amended at 20 Ill. Reg. 7941, effective June 1, 1996; amended at 36 Ill. Reg. 320, effective January 1, 2012.

SUBPART A: GENERAL ADMINISTRATIVE PROVISIONS

 

Section 208.10  Application

 

Pursuant to Section 31.1 of the Illinois Horse Racing Act of 1975 [230 ILCS 5/31.1], the Illinois Racing Board (Board) shall annually distribute funds collected from organization licensees pursuant to the Act.

 

a)         Applicants for such funds shall submit a completed application, on a form provided by the Board, no later than October 1 of each year.  Incomplete applications shall be returned to the applicant, with a written explanation as to why the materials are incomplete and a date by which the additional materials are to be submitted. Incomplete applications shall not be considered.

 

b)         Any non-profit organization that provides medical and family counseling and similar services to persons who reside or work on the backstretch of Illinois racetracks may apply for funds pursuant to Section 31.1 of the Act [230 ILCS 5/31.1].  Each applicant must be able to document its not-for-profit status with a 501(c)(3) (26 U.S.C. 501(c)(3)) Internal Revenue Service ruling or a letter from the Illinois Attorney General's Charitable Trust Division containing the applicant's current registration number and confirming that the applicant is current in the filing of its financial reports.

 

(Source:  Amended at 20 Ill. Reg. 7941, effective June 1, 1996)

 

Section 208.20  General Program Requirements

 

a)         Recipients of funding shall not deny charitable services or discriminate in the hiring or promotion of staff on the basis of race, sex, age, religion, national origin or handicap.

 

b)         Client intake policies and procedures shall be set forth in writing and shall be available for review by the Board.

 

c)         Personnel policies and volunteer training procedures shall be set forth in writing and be available for review by the Board.

 

d)         Recipients of funding shall have rules to govern conflict of interest situations and shall incorporate such rules in their constitution or by-laws and publish such rules as agency policy.  Such rules shall be available to the Board for review.

 

(Source:  Amended at 20 Ill. Reg. 7941, effective June 1, 1996)

 

Section 208.30  Funding Priorities

 

In considering applications for funds made pursuant to Section 31.1(b) of the Act, the Board shall consider the following factors in determining whether to award funding:  the impact of the charitable activities of the charitable organization on the racing industry; the sources of revenue of the charitable organization; the character, reputation, experience and financial integrity of the charitable organization; and, the extent to which there exists a demonstrated need for the proposed services in the charitable organization's proposed service area.

 

(Source:  Amended at 18 Ill. Reg. 7410, effective April 29, 1994)

 

Section 208.40  Award of Charitable Funds

 

No later than December 31 of each year, the Board shall inform all applicants of the decision made relative to their applications and shall distribute all those funds awarded.  All awards are subject to the availability of funds as specified in Section 31.1(a) of the Act.

 

(Source:  Amended at 20 Ill. Reg. 7941, effective June 1, 1996)

SUBPART B: FISCAL AND MONITORING REQUIREMENTS

 

Section 208.100  Use Of Funds

 

a)         All funds awarded by the Board must be used in the manner and for the purposes set forth in the application which served as the basis of the Board's award.  The recipient shall not change, modify, revise, alter, amend, or delete any part of the services it has agreed to provide in the application without written consent from the Board.

 

b)         Procedures For a Modification

 

1)         The recipient must notify the Board and identify the modification.

 

2)         The recipient shall submit a written explanation of the circumstances requiring modification with a new proposed budget itemizing the requested modification.

 

3)         The explanation shall be approved by the Board if the request is consistent with the original intent of the application.

 

4)         The Board shall notify the recipient of its approval or denial of the request.

 

c)         Failure to meet the requirements of this Section shall result in the recipient's disqualification from future funding for a period of time as determined by the Board.

 

(Source:  Amended at 18 Ill. Reg. 7410, effective April 29, 1994)

 

Section 208.110  Accounting Requirements

 

a)         Each entity receiving funds shall establish and maintain a formal modified accrual accounting system in accordance with generally accepted accounting principles of the American Institute of Certified Public Accountants (AICPA) including a level of documentation, classification of entries and audit trails sufficient to meet the requirements of this Part.

 

b)         All accounting entries must be supported by source documents, recorded in books of original entry, and posted to a general ledger on a monthly basis.

 

c)         For programs funded by the Board, expenses are to be recorded by specific program.  All expenses not funded by the Board may be booked in total.

 

d)         All fiscal records must be maintained by the recipient for five years after the end of the funding period.  In instances involving unresolved issues arising from an audit, pending litigation or tax issues, records related to those issues must be retained until the issues are resolved.

 

(Source:  Amended at 18 Ill. Reg. 7410, effective April 29, 1994)

 

Section 208.120  Audits

 

a)         Each recipient shall have an annual audit performed at the close of its fiscal year.  This audit is to be performed in accordance with generally accepted auditing standards by an independent certified public accountant registered by the State of Illinois.  The resulting audit report is to be prepared in accordance with the American Institute of Certified Public Accountants (AICPA) (2011).

 

b)         Audit Report

 

1)         A copy of the applicant's audited financial statements for the preceding calendar year shall be included in the applicant's application.  A request for an extension of time to file an audit report must be submitted in writing 30 days prior to the deadline for filing the application.  A request for an extension of time to file an audit report shall only be granted when the auditor submits a signed statement certifying that the audit cannot be completed in the designated time due to circumstances beyond the control of the auditor and the recipient.  The auditor's statement must also detail the circumstances that form the basis for this request.

 

2)         The report shall contain the basic financial statements presenting the financial position of the agency, the results of its operations and changes in fund balances.

 

3)         The reports shall contain a schedule of income by source.  Individual sources of income should not be combined (e.g., funds received from several State or federal agencies should not be combined into one classification, such as "State of Illinois" or "Federal Government").

 

4)         The report shall contain a schedule of operating expenses by program - operating fund.  The term "operating fund" includes all funds a recipient may have in its accounting records except those in a capital fund or contingency fund.

 

5)         The report shall also contain the auditor's opinion regarding the financial statements taken as a whole, or an assertion to the effect that an opinion cannot be expressed.  If the auditor expresses a qualified opinion, a disclaimer of opinion, or an adverse opinion, the reason for that opinion must be stated.  The auditor shall communicate any material weakness in the recipient's internal controls.

 

c)         Recipients shall also be subject to audit by Board personnel to determine whether the funds awarded by the Board are being used in accordance with proposed budget contained in the application.

 

(Source:  Amended at 36 Ill. Reg. 320, effective January 1, 2012)