14 Ill. Adm. Code 540.190
Modification, Suspension and Termination of Grants
Section 540
Section 540.190
Modification, Suspension and Termination of Grants
a) Modification and Amendment of the Grant – The grant award is
subject to revision as follows:
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 modifications shall be incorporated into and
made part of the grant within the provisions of the Illinois Grant Funds
Recovery Act (Ill. Rev. Stat. 1989, ch. 127, pars. 2301 et seq.). The
Department shall notify in writing the recipient of any amendment to such
regulations.
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, in the Department's sole
determination, such is necessary to achieve program objectives of the program application
contents set out in Section 540.140. 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 Modification 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 modifications
shall take effect unless agreed to in writing by both the Department and the
recipient.
b) Suspension –
1) If the Department believes that a recipient has failed to
faithfully perform the terms and conditions of the scope of work of the
project, then the Department shall suspend the grant and withhold further
payments until the grant is terminated, or the recipient's failure has been
corrected. The recipient may appeal such decision as provided in Section
540.170(b) of this Subpart.
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:
A) The Department has notified the recipient in writing of the
existence of circumstances such as repeated failure to submit required reports;
misapplication of grant funds; evidence of fraud and abuse; repeated failure to
meet performance objectives, timelines, or standards; failure to provide or
substantiate matching funds; or failure to resolve negotiated points of the
agreement; and
B) The recipient fails to develop and implement a corrective
action plan satisfactory to the Department within 30 calendar days of the
Department's notice.
c) Termination of Financial Assistance – Financial assistance
shall be terminated for the following reasons:
1) Termination Due to Loss of Funding – In the absence of State
funding for a specific year, all grants that year shall be terminated in full.
In the event of a partial loss of State funding, the Department shall 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 financial
assistance; has failed to observe or perform or cause the observance or
performance of any covenant contained in the agreement; or any statement, certification,
representation or warranty made by or on behalf of the recipient shall prove to
have been untrue or incorrect in any material respect when made, the Department
shall terminate the grants in whole, or in part, at any time before the date of
completion.
3) Termination by Agreement – The Department and the recipient
shall terminate the grant in whole, or in part, when the Department and the
recipient agree that the continuation of the project would not produce
beneficial results commensurate with the future expenditures of funds.