Full Text of SB1697 102nd General Assembly
SB1697eng 102ND 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 | 5 | | is 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 | 9 | | Management and Budget, with the advice and technical | 10 | | assistance of the Illinois Single Audit Commission, shall | 11 | | adopt rules which adopt the Uniform Guidance at 2 CFR 200. The | 12 | | rules, which shall apply to all State and federal pass-through | 13 | | awards effective on and after July 1, 2016, shall include the | 14 | | following:
| 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 | 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 | 15 | | State appropriations and federal pass-through awards from a | 16 | | State agency to public institutions of higher education. | 17 | | Federal pass-through awards from a State agency to public | 18 | | institutions of higher education are governed by and must | 19 | | comply with 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. 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, | 9 | | the Governor's Office of Management and Budget, with the | 10 | | advice and technical assistance of the Illinois Single Audit | 11 | | Commission, shall adopt supplemental rules pertaining to the | 12 | | 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 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 | 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 | 4 | | State appropriations and federal pass-through awards from a | 5 | | State agency to public institutions of higher education.
| 6 | | (Source: P.A. 100-676, eff. 1-1-19; 100-997, eff. 8-20-18; | 7 | | 101-81, eff. 7-12-19 .) | 8 | | (30 ILCS 708/45)
| 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 | 2 | | subsection (a) of Section 20 of this Act, but not to any | 3 | | requirements in this Act directed towards State or federal | 4 | | awarding agencies, unless the requirements of the State or | 5 | | federal awards indicate 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 | 11 | | in conflict with Subpart F of 2 CFR 200. In addition, costs | 12 | | that are made unallowable under 10 U.S.C. 2324(e) and 41 | 13 | | U.S.C. 4304(a), as described in the Federal Acquisition | 14 | | Regulations, subpart 31.2 and subpart 31.603, are always | 15 | | unallowable. For requirements other than those covered in | 16 | | Subpart D of 2 CFR 200.330 through 200.332, the terms of the | 17 | | contract and the 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.
| 10 | | (e) (Blank). | 11 | | (f) For public institutions of higher education, the | 12 | | provisions of this Act apply only to awards funded by State | 13 | | appropriations and federal pass-through awards from a State | 14 | | agency to public institutions of higher education. This Act | 15 | | shall recognize provisions in 2 CFR 200 as applicable to | 16 | | public institutions of higher education, including Appendix | 17 | | III of Part 200 and the cost principles under Subpart E. | 18 | | (g) Each grant-making agency shall enhance its processes | 19 | | to monitor and address noncompliance with reporting | 20 | | requirements and with program performance standards. Where | 21 | | applicable, the process may include a corrective action plan. | 22 | | The monitoring process shall include a plan for tracking and | 23 | | documenting performance-based contracting decisions.
| 24 | | (Source: P.A. 100-676, eff. 1-1-19; 100-863, eff. 8-14-18; | 25 | | 101-81, eff. 7-12-19 .)
| 26 | | Section 99. Effective date. This Act takes effect upon |
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| 1 | | becoming law.
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