d)
IEMA may either reimburse a Grantee for eligible expenditures or advance funds
to a Grantee for eligible expenditures, but only upon the Granteea's submission
of an accepted bid, invoice, or other official document showing the exact cost
of the expenditure. For reimbursement, the Grantee shall provide documentation
that the exact cost of the expenditure was paid to the vendor.
AGENCY NOTE: Nothing in these rules shall exempt a Grantee from
complying with applicable procurement requirements.
1) For advance payments, the Applicant must
submit a request as indicated in the NOFO and include the information in
subsection (d)(1)(A). Approval and administration of advance payments shall be
governed by subsections (d)(1)(B) through (G).
A) An Advance Payment Request Cash Budget
Template (Cash Budget). Cash Budgets must be signed by either the Chief
Executive Officer (or equivalent) or Chief Financial Officer (or equivalent)
for the Applicant. The executive's signature certifies that their entity
complies with the requirements set forth in
2 CFR
200.302 (Financial Management) and 44 Ill.
Admin. Code
7000.120(b)(i)(A)
(Advance Payments). The Cash Budget must demonstrate the estimated monthly cash
requirements for each month of the Grant Performance Period.
B) If advance payment is requested, prior to
approval, IEMA will perform or secure an assessment to ensure compliance with
the specific language of GATA and any rules adopted pursuant to GATA. If the
assessment does not ensure compliance with GATA and the rules promulgated
thereunder, then IEMA may deny the request for advance payment.
C) Upon approval by IEMA, advance payments
shall be limited to the minimum amounts needed and be timed to be in accordance
with the actual, immediate cash requirements of the Grantee in carrying out the
purpose of the approved Project. The timing and amount of advance payments must
be as close as is administratively feasible to the actual disbursements by the
Grantee for Project costs. Additionally, the Grantee must make timely payments
to contractors.
D) Upon approval
for advance payment, an initial payment will be processed in an amount equal to
the first three months' cash requirements as reflected in the submitted Advance
Payment Cash Budget.
E) Grantees
must submit invoices in the format and method prescribed in the Grant
Agreement. Invoices must include only allowable incurred costs that have been
paid by the Grantee.
F) Subsequent
payments will be made quarterly based on the invoices submitted to IEMA and
will be adjusted up or down, based on a comparison of actual cumulative
expenditures to cumulative advance payments, to date.
G) Grantees that do not expend all advance
payment amounts by the end of the Grant Performance Period or that are unable
to demonstrate that all incurred costs were necessary, reasonable, allowable,
or allocable as approved in their respective grant budget, shall return the
funds within 45 days or be subject to grant funds recovery.
2) Unless a request for advance
payment was received and approved as indicated in subsection 120.50(d)(1),
Grantees will be paid via the reimbursement method or when they do not meet the
requirements of 44 Ill. Admin. Code
7000.120(b)(2),
upon a grantee's request to use the reimbursement method of payment, or as
stipulated in a specific condition. Grantees that have specific conditions
noted in their Grant Agreement for any of the following items must be paid
using the reimbursement method:
A) Fiscal and
administrative high risk (weak internal controls);
B) Have a history of failure to comply with
general or specific terms and conditions of the Grant Agreement or any other
grants issued by the State of Illinois
C) Failure to meet expected performance goals
as described in
2 CFR
200.211 or their Project deliverables as
stated in their applicable Grant Agreement;
D) Or otherwise not financially or
programmatically responsible.
