R2025-274 Resolution Authorizing an Agreement with the Illinois Department of Commerce and Economic Opportunity for a Site Readiness Planning Grant for the Northeast Water Main Extension

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Agreement No. 25-912014 (d) A grantee who does not have a current negotiated rate, may elect to charge a de minimis rate up to 15 percent of modified total direct costs,which may be used indefinitely. No documentation is required to justify the de minimis Indirect Cost Rate. 2 CFR 200.414(f). 7.3. Transfer of Costs.Cost transfers between Grants,whether as a means to compensate for cost overruns or for other reasons,are unallowable. 2 CFR 200.451. 7.4. Commercial Organization Cost Principles.The federal cost principles and procedures for cost analysis and the determination, negotiation and allowance of costs that apply to commercial organizations are set forth in 48 CFR Part 31. 7.5. Financial Management Standards.The financial management systems of Grantee must meet the following standards: (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)(9)and 30 ILCS 708/97, Grantee must 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 must 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 Grantee's organization. (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 E of the requirement to submit personnel activity reports. 2 CFR 200.430(g)(8). Personnel activity reports must account on an after-the-fact basis for one hundred percent(100%)of the employee's actual time,separately indicating the time spent on the Award,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 must 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 Award purposes,the valuation of these contributions must be supported with adequate documentation. (c) Internal Control.Grantee must maintain effective control and accountability 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. State of Illinois GRANT AGREEMENT FISCAL YEAR 2026 Page 11 of 43