Section 511.10  Purpose

 

General - All funds disbursed by the Department on a grant basis are subject to reconciliation and the recovery of lapsed funds. Grant funds recovery activity is based on the Illinois Grant Funds Recovery Act [30 ILCS 705].  The reconciliation will be based on one of the following methods at the election of the Department:

 

a)         Eligible Expenditures v. Program Revenue – This method compares the eligible expenditures to the total Department grant revenues by program.  An independent audit and associated supplemental revenue and expense schedule and/or Grant Reports may be required from the provider.  Eligible expenditures will be determined based on 89 Ill. Adm. Code 509.20, Allowable/Unallowable Costs and specific program requirements, if applicable.

 

b)         Eligible Services Delivered v. Services Projected – This method compares the actual eligible services delivered to the services projected in the contract or agreement.  If the services were based on a rate or unit of cost methodology, the number of eligible service units delivered times the rate or unit is compared to the total of all grant payments for that service.

 

At the beginning of each fiscal year, providers shall be notified in writing by the Department of the method of reconciliation.  If the provider is not notified, then the method of reconciliation used in the previous fiscal year shall apply.

 

(Source:  Amended at 26 Ill. Reg. 8558, effective May 31, 2002)

 

Section 511.15  Definitions

 

"Agency" – means the individual or organization with whom the Department has a contract/agreement for services.  The term Provider is synonymous with agency.

 

"Day" – means a calender day.

 

"Department" – means the Illinois Department of Human Services.

 

"Fee-for-Service" – means a program for which the payments are made on the basis of a rate, unit cost or allowable cost incurred and is based on a statement or bill as required by the Department. Payments made as a fee-for-service are not subject to the Illinois Grant Funds Recovery Act [30 ILCS 705].

 

"Grant" – means a program that receives all or part of the funding in advance of the actual delivery of services. This includes prorated prospective payments and payments made by the Department on an estimated basis or any other basis when the Department does not know the actual amount earned by the provider. This does not include advance payments made under the authority of Section 9.05 of the Illinois Finance Act [30 ILCS 105/9.05].  All funds paid as a grant are subject to the Illinois Grant Funds Recovery Act [30 ILCS 705].

 

"Secretary" – means the Secretary of the Illinois Department of Human Services.

 

Section 511.20  Responsibility

 

a)         Grant funds reconciled on the basis of eligible expenditures versus program revenues are the responsibility of the Department's Office of Contract Administration.

 

b)         Grant funds reconciled on the basis of eligible services delivered versus services projected are the responsibility of the Department's office or division administering the program.  At the request of the Secretary or the office or division responsible for the program, the Office of Contract Administration may serve as the Department's representative at any informal or formal hearings conducted under Sections 7 and 8 of  the Illinois Grant Funds Recovery Act [30 ILCS 705/7 and 8].

 

Section 511.30  Criteria for Recovery of Funds

 

a)         Grant funds shall be subject to recovery if the Department finds that the grant funds received by the Agency:

 

1)         Are determined to be subject to recovery based on one of the methods identified in Section 511.10;

 

2)         Were not spent in accordance with the grant agreement; or

 

3)         Were not expended or legally obligated by the expiration of the grant.

 

b)         Subsection (b) and (c) of this Section are applicable only to grants reconciled on the basis of eligible expenditures as opposed to program revenues subsection (a).

 

Section 511.40  Process for Recovery of Funds

 

If the Department believes that grant funds received by the provider are subject to recovery, the process outlined in the Grant Funds Recovery Act shall be followed:

 

a)         The provider will be notified, in writing, by the Department of the amount subject for recovery.  This notice will constitute an intent to recover by the Department.  The notice will indicate the opportunity for an informal hearing to determine the facts and issues regarding the recoverable funds and who to contact to request an informal hearing.

 

b)         The provider must notify the Department in writing within 15 calendar days after receipt of the Department's letter that they are requesting an informal hearing.

 

c)         If the provider does not file a request for an informal hearing, the Department may initiate the recovery.

 

d)         If the informal hearing does not resolve the issues or if the provider does not request a hearing within the specified time in subsection (b), the Department will notify the provider in writing of the intent to recover.  The letter will specify the amount to be recovered, the specific facts that permit recovery, and the right to a formal appeal.  If the provider requests a hearing, then the Department will take no action to recover funds until at least 35 days after the Department has issued the final recovery order.

 

e)         An agency electing to file an appeal in accord with subsection (d) shall notify the Department, in writing, of its request for a formal hearing, within 35 days from the receipt of the letter. 

 

f)         If the provider does not file an appeal, the Department may initiate the recovery.

 

g)         The hearing shall be presided over by an administrative law judge chosen by the Department.

 

h)         The provider shall have the burden of proof to show cause why no recovery should occur.

 

i)          If the decision of the hearing officer/administrative law judge is in favor of recovery, the Secretary shall approve the decision prior to implementing a recovery.

 

j)          The Secretary may elect to adopt, modify or reverse the recommended decision.

 

k)         The decision by the Secretary shall constitute the final administrative decision as defined in Section 3-101 of the Administrative Review Law [735 ILCS 5/3-101].

 

l)          All written notices sent under this Section shall be deemed received 5 days after the notice or mailing is deposited in the United States mail, properly addressed with the grantee's current business address and with sufficient U.S. postage affixed [30 ILCS 705/8(f)].

 

(Source:  Amended at 32 Ill. Reg. 7774, effective April 30, 2008)

 

Section 511.50  Methods of Recovery

 

The Department may elect any one or combination of the following method for recovery:

 

a)         Offset against existing grants or against grants to be made by the Department.

 

b)         Authorize the offset from existing grants or grants to be made by other grantor agencies.

 

c)         Authorize the Comptroller to offset any payments from any funds administered by the Comptroller for payment to the grantee, including, but not limited to, distributions of appropriated funds and payments of refunds.

 

d)         Initiate any debt collection method authorized by law to any private person.

 

e)         Remove the grantee from any of the Department's programs and forbid the grantee's participation in any future grant programs for a period not to exceed two years.

 

Section 511.60  Prompt Payment Act

 

The provisions of the Prompt Payment Act apply to this Part. This rule does not constitute a waiver of the provider's rights to recover a penalty for late payment as specified in the Act.