Full Text of SB3185 100th General Assembly
SB3185eng 100TH GENERAL ASSEMBLY |
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| 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| amended by changing Sections 20, 25, 45, and 60 as follows: | 6 | | (30 ILCS 708/20) | 7 | | (Section scheduled to be repealed on July 16, 2020)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 |
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| 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 |
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| 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 |
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| 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 |
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| 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 |
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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 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 |
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| 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 |
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| 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 |
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| 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 |
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| 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 |
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| 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
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| 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 |
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| 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.
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| 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 |
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| 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 |
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| 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 and ensuring that reviewing | 5 | | and approving amendments to the Administrative Code amendments | 6 | | proposed by State grant-making grant agencies 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.
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