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

 

 

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1        (2) Cost principles. In accordance with Subpart E of 2
2    CFR 200, the rules shall establish principles for
3    determining the allowable costs incurred by non-federal
4    entities under State and federal pass-through awards. The
5    principles are intended for cost determination, but are
6    not intended to identify the circumstances or dictate the
7    extent of State or federal pass-through participation in
8    financing a particular program or project. The principles
9    shall provide that State and federal awards bear their
10    fair share of cost recognized under these principles,
11    except where restricted or prohibited by State or federal
12    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
26    F, Audits of States, Local and Non-Profit Organizations.

 

 

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

 

 

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1shall include pre-award, audits, monitoring during the
2agreement, and post-award audits. The Governor's Office of
3Management and Budget shall provide such advice and technical
4assistance to the State grant-making agency as is necessary or
5indicated.
6(Source: P.A. 99-523, eff. 6-30-16; 100-676, eff. 1-1-19.)
 
7    (30 ILCS 708/25)
8    Sec. 25. Supplemental rules. On or before July 1, 2017,
9the Governor's Office of Management and Budget, with the
10advice and technical assistance of the Illinois Single Audit
11Commission, shall adopt supplemental rules pertaining to the
12following:
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

 

 

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1        (including the use of a fiscal agent and additional
2        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
11        additional 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

 

 

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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 on the Debarred and
17        Suspended List maintained by the Governor's Office of
18        Management and Budget;
19            (H) whether the applicant is on the federal
20        Excluded Parties List; and
21            (I) whether the applicant is on the Sanctioned
22        Party List maintained by the Illinois Department of
23        Healthcare and Family Services.
24    Nothing in this Act affects the provisions of the Fiscal
25Control and Internal Auditing Act nor the requirement that the
26management of each State agency is responsible for maintaining

 

 

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1effective internal controls under that Act.
2    For public institutions of higher education, the
3provisions of this Section apply only to awards funded by
4State appropriations and federal pass-through awards from a
5State agency to public institutions of higher education.
6(Source: P.A. 100-676, eff. 1-1-19; 100-997, eff. 8-20-18;
7101-81, eff. 7-12-19.)
 
8    (30 ILCS 708/45)
9    Sec. 45. Applicability.
10    (a) The requirements established under this Act apply to
11State grant-making agencies that make State and federal
12pass-through awards to non-federal entities. These
13requirements apply to all costs related to State and federal
14pass-through awards. The requirements established under this
15Act do not apply to private awards.
16    (a-5) Nothing in this Act shall prohibit the use of State
17funds for purposes of federal match or maintenance of effort.
18    (b) The terms and conditions of State, federal, and
19pass-through awards apply to subawards and subrecipients
20unless a particular Section of this Act or the terms and
21conditions of the State or federal award specifically indicate
22otherwise. Non-federal entities shall comply with requirements
23of this Act regardless of whether the non-federal entity is a
24recipient or subrecipient of a State or federal pass-through
25award. Pass-through entities shall comply with the

 

 

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

 

 

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1through E of 2 CFR 200 to for-profit entities, foreign public
2entities, or foreign organizations, except where the awarding
3agency determines that the application of these subparts would
4be inconsistent with the international obligations of the
5United States or the statute or regulations of a foreign
6government.
7    (d) 2 CFR 200.101 specifies how 2 CFR 200 is applicable to
8different types of awards. The same applicability applies to
9this Act.
10    (e) (Blank).
11    (f) For public institutions of higher education, the
12provisions of this Act apply only to awards funded by State
13appropriations and federal pass-through awards from a State
14agency to public institutions of higher education. This Act
15shall recognize provisions in 2 CFR 200 as applicable to
16public institutions of higher education, including Appendix
17III of Part 200 and the cost principles under Subpart E.
18    (g) Each grant-making agency shall enhance its processes
19to monitor and address noncompliance with reporting
20requirements and with program performance standards. Where
21applicable, the process may include a corrective action plan.
22The monitoring process shall include a plan for tracking and
23documenting performance-based contracting decisions.
24(Source: P.A. 100-676, eff. 1-1-19; 100-863, eff. 8-14-18;
25101-81, eff. 7-12-19.)
 
26    Section 99. Effective date. This Act takes effect upon

 

 

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1becoming law.