Illinois General Assembly - Full Text of SB1057
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Full Text of SB1057  99th General Assembly



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1    AN ACT concerning government.
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 is
5amended 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8    (Section scheduled to be repealed on July 16, 2019)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
17        (1) Administrative requirements. In accordance with
18    Subparts B through D of 2 CFR 200, the rules shall set
19    forth the uniform administrative requirements for grant
20    and cooperative agreements, including the requirements for
21    the management by State awarding agencies of federal grant
22    programs before State and federal pass-through awards have
23    been made and requirements that State awarding agencies may



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



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1    Audits of States, Local and Non-Profit Organizations.
2    Audits of for-profit subrecipients must be conducted
3    pursuant to a Program Audit Guide issued by the Federal
4    awarding agency. If a Program Audit Guide is not available,
5    the State awarding agency must prepare a Program Audit
6    Guide in accordance with the 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
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 State
15appropriations and federal pass-through awards from a State
16agency to public institutions of higher education. Federal
17pass-through awards from a State agency to public institutions
18of higher education are governed by and must comply with
19federal 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
6(Source: P.A. 98-706, eff. 7-16-14.)
7    (30 ILCS 708/25)
8    (Section scheduled to be repealed on July 16, 2019)
9    Sec. 25. Supplemental rules. On or before July 1, 2016
102015, the Governor's Office of Management and Budget, with the
11advice and technical assistance of the Illinois Single Audit
12Commission, shall adopt supplemental rules pertaining to the
14        (1) Criteria to define mandatory formula-based grants
15    and discretionary grants.
16        (2) The award of one-year grants for new applicants.
17        (3) The award of competitive grants in 3-year terms
18    (one-year initial terms with the option to renew for up to
19    2 additional years) to coincide with the federal award.
20        (4) The issuance of grants, including:
21            (A) public notice of announcements of funding
22        opportunities;
23            (B) the development of uniform grant applications;
24            (C) State agency review of merit of proposals and
25        risk posed by applicants;



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



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1        information necessary for analyzing cost and
2        performance for use in the Budgeting for Results
3        initiative; and
4            (E) caps on the amount of salaries that may be
5        charged to grants based on the limitations imposed by
6        federal agencies.
7        (6) The development of pre-qualification requirements
8    for applicants, including the fiscal condition of the
9    organization and the provision of the following
10    information:
11            (A) organization name;
12            (B) Federal Employee Identification Number;
13            (C) Data Universal Numbering System (DUNS) number;
14            (D) fiscal condition;
15            (E) whether the applicant is in good standing with
16        the Secretary of State;
17            (F) past performance in administering grants;
18            (G) whether the applicant is or has ever been on
19        the Debarred and Suspended List maintained by the
20        Governor's Office of Management and Budget;
21            (H) whether the applicant is or has ever been on
22        the federal Excluded Parties List; and
23            (I) whether the applicant is or has ever been on
24        the Sanctioned Party List maintained by the Illinois
25        Department of Healthcare and Family Services.
26    Nothing in this Act affects the provisions of the Fiscal



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1Control and Internal Auditing Act nor the requirement that the
2management of each State agency is responsible for maintaining
3effective internal controls under that Act.
4    For public institutions of higher education, the
5provisions of this Section apply only to awards funded by State
6appropriations and federal pass-through awards from a State
7agency to public institutions of higher education.
8(Source: P.A. 98-706, eff. 7-16-14.)
9    (30 ILCS 708/55)
10    (Section scheduled to be repealed on July 16, 2019)
11    Sec. 55. The Governor's Office of Management and Budget
13    (a) The Governor's Office of Management and Budget shall:
14        (1) provide technical assistance and interpretations
15    of policy requirements in order to ensure effective and
16    efficient implementation of this Act by State grant-making
17    agencies; and
18        (2) have authority to approve any exceptions to the
19    requirements of this Act and shall adopt rules governing
20    the criteria to be considered when an exception is
21    requested; exceptions shall only be made in particular
22    cases where adequate justification is presented.
23    (b) The Governor's Office of Management and Budget shall,
24on or before July 1, 2015 2014, establish a centralized unit
25within the Governor's Office of Management and Budget. The



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1centralized unit shall be known as the Grant Accountability and
2Transparency Unit and shall be funded with a portion of the
3administrative funds provided under existing and future State
4and federal pass-through grants. The amounts charged will be
5allocated based on the actual cost of the services provided to
6State grant-making agencies and public institutions of higher
7education in accordance with the applicable federal cost
8principles contained in 2 CFR 200 and this Act will not cause
9the reduction in the amount of any State or federal grant
10awards that have been or will be directed towards State
11agencies or public institutions of higher education.
12(Source: P.A. 98-706, eff. 7-16-14.)
13    (30 ILCS 708/85)
14    (Section scheduled to be repealed on July 16, 2019)
15    Sec. 85. Implementation date. The Governor's Office of
16Management and Budget shall adopt all rules required under this
17Act on or before July 1, 2016 2015.
18(Source: P.A. 98-706, eff. 7-16-14.)
19    (30 ILCS 708/90)
20    (Section scheduled to be repealed on July 16, 2019)
21    Sec. 90. Agency implementation. All State grant-making
22agencies shall implement the rules issued by the Governor's
23Office of Management and Budget on or before July 1, 2017 2015.
24The standards set forth in this Act, which affect



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1administration of State and federal pass-through awards issued
2by State grant-making agencies, become effective once
3implemented by State grant-making agencies. State grant-making
4agencies shall implement the policies and procedures
5applicable to State and federal pass-through awards by adopting
6rules for non-federal entities by December 31, 2016 that shall
7take effect for fiscal years on and after December 26, 2014,
8unless different provisions are required by State or federal
9statute or federal rule.
10(Source: P.A. 98-706, eff. 7-16-14.)
11    (30 ILCS 708/100)
12    (Section scheduled to be repealed on July 16, 2019)
13    Sec. 100. Repeal. This Act is repealed on July 16, 2020 5
14years after the effective date of this Act.
15(Source: P.A. 98-706, eff. 7-16-14.)
16    Section 99. Effective date. This Act takes effect upon
17becoming law.