R2023-42 Resolution Authorizing a Grant Agreement between the City of Decatur and the State of Illinois Department of Commerce & Economic Opportunity (Grant #23-203058)

Home Browse Search

Agreement No 23-203058 (a) Accounting System.Grantee organizations must have an accounting system that provides accurate,current,and complete disclosure of all financial transactions related to each state-and federally-funded Program.Accounting records must contain information pertaining to state and federal pass-through awards,authorizations,obligations,unobligated balances,assets,outlays,and income. These records must be maintained on a current basis and balanced at least quarterly.Cash contributions to the Program from third parties must be accounted for in the general ledger with other Grant Funds. Third party in-kind(non-cash)contributions are not required to be recorded in the general ledger,but must be under accounting control,possibly through the use of a memorandum ledger. To comply with 2 CFR 200.305(b)(7)(i)and 30 ILCS 708/520,Grantee shall use reasonable efforts to ensure that funding streams are delineated within Grantee's accounting system. 2 CFR 200.302. (b) Source Documentation.Accounting records must be supported by such source documentation as canceled checks,bank statements,invoices,paid bills,donor letters,time and attendance records,activity reports,travel reports,contractual and consultant agreements,and subaward documentation.All supporting documentation should be clearly identified with the Award and general ledger accounts which are to be charged or credited. (i) The documentation standards for salary charges to grants are prescribed by 2 CFR 200.430,and in the cost principles applicable to the entity's organization(Paragraphs 7.4 through 7.7). (ii) If records do not meet the standards in 2 CFR 200.430,then Grantor may notify Grantee in PART TWO.PART THREE or Exhibit G of the requirement to submit Personnel activity reports.2 CFR 200.430(1)(8). Personnel activity reports shall account on an after-the-fact basis for one hundred percent(1000 of the employee's actual time,separately indicating the time spent on the Grant,other grants or projects,vacation or sick leave,and administrative time,if applicable.The reports must be signed by the employee,approved by the appropriate official, and coincide with a pay period.These time records should be used to record the distribution of salary costs to the appropriate accounts no less frequently than quarterly. (iii) Formal agreements with independent contractors,such as consultants,must include a description of the services to be performed,the period of performance,the fee and method of payment,an itemization of travel and other costs which are chargeable to the agreement,and the signatures of both the contractor and an appropriate official of Grantee. (iv) If third party in-kind(non-cash)contributions are used for Grant purposes,the valuation of these contributions must be supported with adequate documentation. (c) Internal Control.Effective control and accountability must be maintained for all cash, real and personal property,and other assets.Grantee must adequately safeguard all such property and must provide assurance that it is used solely for authorized purposes.Grantee must also have systems in place that provide reasonable assurance that the information is accurate,allowable,and compliant with the terms and conditions of this Agreement. 2 CFR 200.303. (d) Budget Control.Records of expenditures must be maintained for each Award by the cost categories of the approved Budget(including indirect costs that are charged to the Award),and actual expenditures are to be compared with budgeted amounts at least quarterly. (e) Cash Management.Requests for advance payment shall be limited to Grantee's immediate cash needs.Grantee must have written procedures to minimize the time elapsing between the receipt and the disbursement of Grant Funds to avoid having excess funds on hand.2 CFR 200305. 7.9. Profits.It is not permitted for any person or entity to earn a Profit from an Award.See,e.g.,2 CFR 200.400(8);see also 30 ILCS 708160(a)(7). 7.10. Management of Program Income. Grantee is encouraged to earn income to defray program State of Illinois GRANT AGREEMENT FISCAL YEAR 2023/1/18/22 Page 10 of 50