Sen. Pamela J. Althoff

Filed: 4/14/2015





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2    AMENDMENT NO. ______. Amend Senate Bill 1057 by replacing
3everything after the enacting clause with the following:
4    "Section 5. The Grant Accountability and Transparency Act
5is amended by changing Sections 20, 25, 55, 85, 90, and 100 as
7    (30 ILCS 708/20)
8    (Section scheduled to be repealed on July 16, 2019)
9    Sec. 20. Adoption of federal rules applicable to grants.
10    (a) On or before July 1, 2016 2015, the Governor's Office
11of Management and Budget, with the advice and technical
12assistance of the Illinois Single Audit Commission, shall adopt
13rules which adopt the Uniform Guidance at 2 CFR 200. The rules,
14which shall apply to all State and federal pass-through awards
15effective on and after July 1, 2016 2015, shall include the



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1        (1) Administrative requirements. In accordance with
2    Subparts B through D of 2 CFR 200, the rules shall set
3    forth the uniform administrative requirements for grant
4    and cooperative agreements, including the requirements for
5    the management by State awarding agencies of federal grant
6    programs before State and federal pass-through awards have
7    been made and requirements that State awarding agencies may
8    impose on non-federal entities in State and federal
9    pass-through awards.
10        (2) Cost principles. In accordance with Subpart E of 2
11    CFR 200, the rules shall establish principles for
12    determining the allowable costs incurred by non-federal
13    entities under State and federal pass-through awards. The
14    principles are intended for cost determination, but are not
15    intended to identify the circumstances or dictate the
16    extent of State or federal pass-through participation in
17    financing a particular program or project. The principles
18    shall provide that State and federal awards bear their fair
19    share of cost recognized under these principles, except
20    where restricted or prohibited by State or federal law.
21        (3) Audit and single audit requirements and audit
22    follow-up. In accordance with Subpart F of 2 CFR 200 and
23    the federal Single Audit Act Amendments of 1996, the rules
24    shall set forth standards to obtain consistency and
25    uniformity among State and federal pass-through awarding
26    agencies for the audit of non-federal entities expending



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1    State and federal awards. These provisions shall also set
2    forth the policies and procedures for State and federal
3    pass-through entities when using the results of these
4    audits.
5        The provisions of this item (3) do not apply to
6    for-profit subrecipients because for-profit subrecipients
7    are not subject to the requirements of OMB Circular A-133,
8    Audits of States, Local and Non-Profit Organizations.
9    Audits of for-profit subrecipients must be conducted
10    pursuant to a Program Audit Guide issued by the Federal
11    awarding agency. If a Program Audit Guide is not available,
12    the State awarding agency must prepare a Program Audit
13    Guide in accordance with the OMB Circular A-133 Compliance
14    Supplement. For-profit entities are subject to all other
15    general administrative requirements and cost principles
16    applicable to grants.
17    (b) This Act addresses only State and federal pass-through
18auditing functions and does not address the external audit
19function of the Auditor General.
20    (c) For public institutions of higher education, the
21provisions of this Section apply only to awards funded by State
22appropriations and federal pass-through awards from a State
23agency to public institutions of higher education. Federal
24pass-through awards from a State agency to public institutions
25of higher education are governed by and must comply with
26federal guidelines under 2 CFR 200.



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1    (d) The State grant-making agency is responsible for
2establishing requirements, as necessary, to ensure compliance
3by for-profit subrecipients. The agreement with the for-profit
4subrecipient shall describe the applicable compliance
5requirements and the for-profit subrecipient's compliance
6responsibility. Methods to ensure compliance for State and
7federal pass-through awards made to for-profit subrecipients
8shall include pre-award, audits, monitoring during the
9agreement, and post-award audits. The Governor's Office of
10Management and Budget shall provide such advice and technical
11assistance to the State grant-making agency as is necessary or
13(Source: P.A. 98-706, eff. 7-16-14.)
14    (30 ILCS 708/25)
15    (Section scheduled to be repealed on July 16, 2019)
16    Sec. 25. Supplemental rules. On or before July 1, 2016
172015, the Governor's Office of Management and Budget, with the
18advice and technical assistance of the Illinois Single Audit
19Commission, shall adopt supplemental rules pertaining to the
21        (1) Criteria to define mandatory formula-based grants
22    and discretionary grants.
23        (2) The award of one-year grants for new applicants.
24        (3) The award of competitive grants in 3-year terms
25    (one-year initial terms with the option to renew for up to



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1    2 additional years) to coincide with the federal award.
2        (4) The issuance of grants, including:
3            (A) public notice of announcements of funding
4        opportunities;
5            (B) the development of uniform grant applications;
6            (C) State agency review of merit of proposals and
7        risk posed by applicants;
8            (D) specific conditions for individual recipients
9        (requiring the use of a fiscal agent and additional
10        corrective conditions);
11            (E) certifications and representations;
12            (F) pre-award costs;
13            (G) performance measures and statewide prioritized
14        goals under Section 50-25 of the State Budget Law of
15        the Civil Administrative Code of Illinois, commonly
16        referred to as "Budgeting for Results"; and
17            (H) for mandatory formula grants, the merit of the
18        proposal and the risk posed should result in additional
19        reporting, monitoring, or measures such as
20        reimbursement-basis only.
21        (5) The development of uniform budget requirements,
22    which shall include:
23            (A) mandatory submission of budgets as part of the
24        grant application process;
25            (B) mandatory requirements regarding contents of
26        the budget including, at a minimum, common detail line



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1        items specified under guidelines issued by the
2        Governor's Office of Management and Budget;
3            (C) a requirement that the budget allow
4        flexibility to add lines describing costs that are
5        common for the services provided as outlined in the
6        grant application;
7            (D) a requirement that the budget include
8        information necessary for analyzing cost and
9        performance for use in the Budgeting for Results
10        initiative; and
11            (E) caps on the amount of salaries that may be
12        charged to grants based on the limitations imposed by
13        federal agencies.
14        (6) The development of pre-qualification requirements
15    for applicants, including the fiscal condition of the
16    organization and the provision of the following
17    information:
18            (A) organization name;
19            (B) Federal Employee Identification Number;
20            (C) Data Universal Numbering System (DUNS) number;
21            (D) fiscal condition;
22            (E) whether the applicant is in good standing with
23        the Secretary of State;
24            (F) past performance in administering grants;
25            (G) whether the applicant is or has ever been on
26        the Debarred and Suspended List maintained by the



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1        Governor's Office of Management and Budget;
2            (H) whether the applicant is or has ever been on
3        the federal Excluded Parties List; and
4            (I) whether the applicant is or has ever been on
5        the Sanctioned Party List maintained by the Illinois
6        Department of Healthcare and Family Services.
7    Nothing in this Act affects the provisions of the Fiscal
8Control and Internal Auditing Act nor the requirement that the
9management of each State agency is responsible for maintaining
10effective internal controls under that Act.
11    For public institutions of higher education, the
12provisions of this Section apply only to awards funded by State
13appropriations and federal pass-through awards from a State
14agency to public institutions of higher education.
15(Source: P.A. 98-706, eff. 7-16-14.)
16    (30 ILCS 708/55)
17    (Section scheduled to be repealed on July 16, 2019)
18    Sec. 55. The Governor's Office of Management and Budget
20    (a) The Governor's Office of Management and Budget shall:
21        (1) provide technical assistance and interpretations
22    of policy requirements in order to ensure effective and
23    efficient implementation of this Act by State grant-making
24    agencies; and
25        (2) have authority to approve any exceptions to the



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1    requirements of this Act and shall adopt rules governing
2    the criteria to be considered when an exception is
3    requested; exceptions shall only be made in particular
4    cases where adequate justification is presented.
5    (b) The Governor's Office of Management and Budget shall,
6on or before July 1, 2015 2014, establish a centralized unit
7within the Governor's Office of Management and Budget. The
8centralized unit shall be known as the Grant Accountability and
9Transparency Unit and shall be funded with a portion of the
10administrative funds provided under existing and future State
11and federal pass-through grants. The amounts charged will be
12allocated based on the actual cost of the services provided to
13State grant-making agencies and public institutions of higher
14education in accordance with the applicable federal cost
15principles contained in 2 CFR 200 and this Act will not cause
16the reduction in the amount of any State or federal grant
17awards that have been or will be directed towards State
18agencies or public institutions of higher education.
19(Source: P.A. 98-706, eff. 7-16-14.)
20    (30 ILCS 708/85)
21    (Section scheduled to be repealed on July 16, 2019)
22    Sec. 85. Implementation date. The Governor's Office of
23Management and Budget shall adopt all rules required under this
24Act on or before July 1, 2016 2015.
25(Source: P.A. 98-706, eff. 7-16-14.)



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1    (30 ILCS 708/90)
2    (Section scheduled to be repealed on July 16, 2019)
3    Sec. 90. Agency implementation. All State grant-making
4agencies shall implement the rules issued by the Governor's
5Office of Management and Budget on or before July 1, 2017 2015.
6The standards set forth in this Act, which affect
7administration of State and federal pass-through awards issued
8by State grant-making agencies, become effective once
9implemented by State grant-making agencies. State grant-making
10agencies shall implement the policies and procedures
11applicable to State and federal pass-through awards by adopting
12rules for non-federal entities by December 31, 2016 that shall
13take effect for fiscal years on and after December 26, 2014,
14unless different provisions are required by State or federal
15statute or federal rule.
16(Source: P.A. 98-706, eff. 7-16-14.)
17    (30 ILCS 708/100)
18    (Section scheduled to be repealed on July 16, 2019)
19    Sec. 100. Repeal. This Act is repealed on July 16, 2020 5
20years after the effective date of this Act.
21(Source: P.A. 98-706, eff. 7-16-14.)".