Illinois Administrative Code
Title 14 - COMMERCE
Part 640 - RURAL DIVERSIFICATION ACT PROGRAM
Subpart B - RURAL DIVERSIFICATION GRANT PROGRAM
Section 640.350 - Modification, Breach and Termination of Grants

1) Modifications by Operation of Law - The grant award is subject to such modifications as may be required by changes in State law or regulations. Any such required modification shall be incorporated into and made a part of the grant as within the provisions of the Illinois Grant Funds Recovery Act (Ill. Rev. Stat. 1989, ch. 127, pars. 2301 et seq.). The Department shall notify the recipient in writing of any amendment to such regulations and the effective date.

2) Modifications in Budget - A recipient's request for budget variations in the amount or line item costs shall be in writing by registered letter and shall give justifications for the requested variations. The Department may approve modification requests, if, the Department determines such is necessary to achieve program objectives. Any changes in cost categories or line items shall not alter the activities or deliverables for the project. If the Department approves the modification request, the recipient will be notified in writing of the change and the effective date of the change.

3) Other Modifications by Department or Recipient - If either the Department or the recipient requests to modify the terms of the grant award other than as set forth in subsections (a)(1) and (2) above, written notice of the proposed modification shall be given to the other party. No modification shall take effect unless agreed to in writing by both the Department and the recipient.

1) If the Department determines that a recipient has failed to perform the terms and conditions of the scope of work of the project, then the Department shall, after notice and an opportunity to correct has been provided to the recipient, suspend the grant and withhold further payments until the grant is terminated, or the recipient's failure has been corrected.

2) The Department will determine that a recipient has failed to faithfully perform the terms and conditions of the scope of work of the project when:

1) Termination Due to Loss of Funding - In the absence of State funding for a specific year, all grants that year will be terminated in full. In the event of a partial loss of State funding, the Department will make proportionate cuts to all recipients.

2) Termination for Cause - If the Department determines that the recipient has failed to comply with the terms and conditions of the grant agreement the Department shall terminate the grant in whole, or in part, at any time before the date of completion. Such termination may be appealed by the recipient through the complaint process outlined in Section 640.340(c).

3) Termination by Agreement - The Department and the recipient shall terminate the grant in whole, or in part, when the Department and recipient agree that the continuation of the project would not produce beneficial results commensurate with the further expenditures of funds.