Illinois Department of Commerce - PowerPoint Presentation

Illinois Department of Commerce & Economic Opportunity www.illinois.gov/dceo Community Development Block Grants 2019 Administrator’s Workshop

Illinois Department of Commerce & Economic Opportunity www.illinois.gov/dceo Community Development Block Grants Notice of State Award Finalist → Grant Agreement JoLaine Miner

Pre-award process 3

Acronyms NOSAF – Notice of State Award Finalist Issued as the first step in the Grant Award Process; contains special conditions GATA – Grantee Accountability and Transparency Act Applicable to all State of Illinois grants regardless of fund source ICQ – Internal Control Questionnaire Assesses the Financial and Administrative practices of the grantee 4

Acronyms PRAQ – Programmatic Risk Assessment Questionnaire Assesses the grantee’s ability to comply with programmatic requirements Issued at the time the NOSAF is sent NOSA – Notice of State Award Issued after all requirements contained in the NOSAF are met CARS - State of Illinois Indirect Cost Rate System (CARS) Indirect cost rates are not applicable to CDBG Grants – choose “no cost rate selected” 5

NOSAF ICQ – Financial and Administrative (grants.illinois.gov/ icq ) ICQ – PRAQ Programmatic Risk Assessment Conflict of Interest and Mandatory Disclosures Environmental Review Requirements Program-specific Special Grant Conditions 6

NOSAF HOUSING REHABILITATION-SPECIFIC – Kara Cozadd After receipt of NOSAF, Complete and sign the Finding of Exempt Activity Form (for) Environmental and other studies Administration Inspection and testing Allows procurement of activity delivery and administration/inspection costs 7

NOSA Issued AFTER all conditions of the NOSAF are met. Created by grant manager and approved by Assistant Deputy Director The Grantee will receive a system-generated email that the NOSA is ready for acceptance The Administrator should be listed in the Grantee’s record as a contact The Grantee must accept the NOSA 8

CARS After acceptance of the NOSA New Grantees will receive an email invitation to CARS. If not received, use the CARS login URL to complete the submission process https://solutions.crowehorwath.com/CARS/StateofIllinoisGOMB/Login.aspx Default username is your email address Default password is GOMB@123 9

CARS To “re-assign” users rights to another representative within your organization to complete the process you may do so using the “REASSIGN” action button after logging into the system. A brief training video explaining the “re-assign” process is provided at: https://www.illinois.gov/sites/GATA/Webinars/Pages/CARS-Training-Reassignment.aspx If the Grantee is already established within the CARS for prior years, an automatic notice will be sent when a new Fiscal Year Record is ready to complete . 10

Grant Agreement After NOSA accepted After CARS submission Review the Grant Agreement Exhibits Budget Certification Signed by Authorized Official and designee, if applicable Return entire signed agreement and budget to grant manager 11

Post-GRANT AGREEMENT HOUSING REHABILITATION 12 Kara Cozadd

Housing Rehabilitation Specific After Executed Grant Agreement Potential applicant and contractor solicitation An invitation to apply must be distributed. A notice in the local paper and letters to households in the project area must state the place and times staff will be available to assist with the application process. Administrative staff should have a local presence and provide adequate time for all households in the project area to apply for assistance. The contractor ad should specify pre-qualified requirements and contact information to obtain contract application 13

Housing Rehabilitation Specific Eligibility Requirements for Housing Rehab Recipients Single-Family, Owner Occupied-proof of ownership, homeowner insurance, at one year with grantee as additional insured. Must be reverified prior to rehab construction. Income Eligible-verification of all persons in the household the age of 18 and older. Must be re-verified prior to rehab construction. Use form (update income chart annually) https://www.hudexchange.info/incomecalculator/ 14

Housing Rehabilitation Specific Prioritization of Housing Applicants Once all households in the project area have had the opportunity to apply, prioritization must be given to: - Very Low income - Elderly and Handicapped Households - 51% of points must be given to the above criteria As soon as an applicant is eligible to participate in the program, take photos of home and send information to DNR/IHPA for clearance and start of Tier 2 process. 15

Illinois Department of Commerce & Economic Opportunity www.illinois.gov/dceo Community Development Block Grants Environmentals Kirk Kumerow, John McCarthy, Kara Cozadd

24 C.F.R. Part 58 Entities Assuming HUD’s Environmental Review ResponsibilitiesKirk Kumerow

DCEO’s ERR Mission To not return CDBG funds to HUD for lack of proper environmental review. 18

NEPA Assumption Authority under Part 58 [§58.4] Responsible Entities (REs) assume HUD’s NEPA responsibilitiesUnit of General Local Government (UGLG)Serve as the Federal Agency on behalf of HUD RE assumes responsibility for:Environmental ReviewEnvironmental Decision-makingEnvironmental Action that would apply to HUD under NEPA and related laws Assumed by execution of grant agreement (as HUD subrecipient) and/or by certification of the RROFResponsibility cannot be delegated Responsibility to ensure mitigation is incorporated into project plans and implemented 19

Certifying Officer Responsible Federal Official under Section 102 of NEPA and related statutesChief Elected Official of CDBG Grantee Community Authorized to execute the RROFAccepts jurisdiction of Federal Courts for RE Has the authority to enter into binding commitment in response to court judgements 20

§58.22: Limitation of Action Prior to environmental approval / clearance, the RE may not: Commit HUD fundsBegin bid process Commit non-HUD funds where the activity wouldHave an adverse environmental impact or Limit the choice of reasonable alternatives Do not take action before environmental clearance!! 21

Environmental Review Record [§58.38] §58 NEPA’s administrative record for each projectReviewable by public/HUD/State/courts Contains all evaluations, findings, decisions, documentation, public notices, approvalsRE’s only proof of procedural compliance with Federal environmental law and defense against environmental challenges May be subpoenaed and subject to scrutiny by a court of lawIt is the RE’s defense against monitoring findings and sanctions 22

Determine the Level of Environmental Review

Levels of Review 24

Typical Timelines for Review 25

Exempt Activities [§58.34] Most Common Types For DCEO CDBG:Environmental and other studiesAdministrative and management activities Engineering or design costsAssistance for temp or perm improvements following disaster, or imminent threats to public safety, incl. from physical deterioration*** 26

Emergency Exemption [§58.34(a)(10)] ***Project consists solely of: Assistance for temporary or permanent improvements that do not alter environmental conditions And limited to protection, repair, or restoration activities necessary only to control or arrest the effects from disasters or imminent threats to public safety including those resulting from physical deterioration DCEO ERO must pre-approve use of this type of Exemption For more information see Dec 2012 policy memo Exemptions for Disasters and Imminent Threats 27

Categorical Exclusions – two types Categorically Excluded NOT Subject to Related Authorities §58.35(b) CENST Categorically Excluded SUBJECT TO Related Authorities §58 .35(a) CEST 28

Cat Ex NOT Subject to §58.5 §58.35(b) for DCEO CDBG, generally only:Operating costs including maintenance*, security, operation, utilities, furnishings, equipment, supplies, staff training and recruitment and other incidental costs (rare for DCEO CDBG) Economic Development (ED) activities not associated with construction or expansion of existing operations (e.g., purchase of equipment, inventory purchase) 29

*Maintenance vs. Repair Maintenance (CENST)Cleaning, yardworkRe-painting previously painted surface Replacing kitchen appliances not attached to building and that would not damage building when removedPatching a roof leak Replacing broken windows Repair (CEST)Work that is not maintenance See notice CPD-16-02 Guidance for Categorizing an Activity as Maintenance for Compliance with HUD Environmental Regulations, 24 CFR Parts 50 and 58 30

Cat Ex SUBJECT to 58.5 [§58.35(a)] Most Common For DCEO CDBG:Acquisition, repair, improvement, reconstruction or rehabilitation of public facilities and improvements (other than buildings) when the facilities and improvements are: Already in placeRetained for the same use Without change in size or capacity by more than 20%(e.g., Replacement of water or sewer lines, reconstruction of curbs and sidewalks, repaving of streets (NOT maintenance)) Removal of architectural barriers that restrict mobility of, and accessibility to, the elderly and those with disabilities 31

Cat Ex SUBJECT to 58.5 [§58.35(a)] (3)(i) Single family housing rehabilitationUnit density not increased beyond 4 units Project doesn’t involve changes in land use from residential to non-residentialThe footprint of the building is not increased in a floodplain or wetland 32

Cat Ex SUBJECT to 58.5 [§58.35(a)] (3)(iii) Non-residential structuresFacilities and improvements were in place and will not be changed in size or capacity by more than 20%Project doesn’t involve changes in land use from non-residential to residential, commercial to industrial, or one industrial use to another 33

Two CEST Potential Outcomes CEST converts to EXEMPTComplete Statutory Worksheet with all supporting documentation“All No’s” for 16 bodies of law No circumstances requiring compliance / mitigationDocument the file and proceed with project once DCEO approves CEST cannot convert to EXEMPT Complete Statutory Worksheet with all supporting documentation Something requires mitigation or further compliance actionsProceed with approval process NOI/RROF publication/postingRROF (HUD Form 7015.15) DCEO Env. Release Ltr . 34

Sample CDBG CEST Conversions to Exempt Water or sewer main replacements in place (and no extensions)Sewer re-linings w/spot replacements Rebuild sewer lift station in placeSidewalk replacements (no extensions) - for RLF Closeouts Road repaving (no extension or expansion) - for RLF Closeout or EDAnd none of the above are in a FEMA-mapped Flood Plain and/or a USF&WS-mapped Wetlands, and also do not require IDNR Wetlands mitigation 35

Environmental Assessment [§58.36] Any project not Exempt, Categorically Excluded, and does not meet EIS thresholds. Some IL CDBG examples:Extension of water or sewer lines to an unserved communityWater tower replacement The purpose is to evaluate the project as a whole Determine existing conditions and trendsIdentify all impacts (direct, indirect, cumulative) Examine and recommend feasible ways to eliminate or minimize adverse environmental impacts Examine alternatives to project itself, if applicable 36

Documenting an Environmental Assessment Environmental Assessment (EA) format provided by DCEO that follows §58.40Includes separate EA Checklist and Statutory Checklist and all supporting documentation indicating a Finding of No Significant Impact (FONSI) Sign and date (by preparer and CEO)FONSI and NOI/RROF publication/posting (& dissemination )RROF (HUD Form 7015.15) DCEO Env. Release Letter 37

EA Determination Will either be: Finding of No Significant Impact (FONSI) – No Environmental Impact Statement (EIS) Required Or Finding of Significant Impact (FOSI) – Will Require an EIS (Extremely Rare for DCEO CDBG) 38

Environmental Impact Statement [§58.37]Required when the project is determined to have a potentially significant impact on the human environment (can’t declare a FONSI). HUD specific examples: Construction of hospitals or nursing homes with 2500+ bedsRemove, demolish, convert / sub-rehab 2500+ existing housing units Construction of 2500+ new housing units – or provide the site for said unitsProvide enough additional water and sewer capacity to support 2500+ additional housing units All extremely rare for Illinois DCEO CDBG funding GET IN TOUCH WITH DCEO ERO ASAP!! 39

Conduct the Environmental ReviewKara Cozadd

An Early Start is Important! Ensures decisions reflect environmental valuesAvoids project delays and heads off potential conflictsProcedural reasons: Grantee may not commit HUD funds on an activity prior to RROF approval and Grantee may not commit non-HUD funds prior to RROF approval if the activity or project would have an adverse enviro. impact or limit choiceERR must be submitted to DCEO ERO within 90 days of date of NOSAF, like any other Special Grant Condition specified in NOSAF

Costs of Performing the Review [§58.23] If Activity Delivery (AD) is budgeted, Grantee may reimburse ERR prep costs from AD (Now more for HR, ED, RLF Close-out, and not PI) If a formal mitigation cost is incurred during ERR prep (e.g., an IDNR Incidental Take Authorization for Illinois Chorus Frog or Franklin’s Ground Squirrel, or a Phase I ASTM for ED project), Grantee may reimburse with Construction or Housing Rehab funds (as applicable)

Who Does What Must use an experienced Environmental specialist (Guidebook, Section II)Specialist may prepare supporting documentationRE’s must independently evaluate their work and prepare the environmental review itself (i.e., CEO signature on HUD/DCEO ERR forms) Correspondence to interested tribes and public Notices must be sent under the RE’s signature and on its letterheadSpecialist should never address Tribes directly (i.e., Grantee letterhead/CEO signature) Specialist should not sign or address public Notices

Compliance Documentation “N/A” = Not Acceptable… Not Allowed… Not Appropriate…

Adding funds? Updating the ERR [§58.47] Re-evaluation of a project is required when new activities are added, unexpected conditions arise, or substantial changes are made to the nature, magnitude or extent of the project.If original environmental finding is still valid:Update the ERR with new project description / funding amount and CENST documentation [§58.35(b)(7)] New RROF with changes to DCEO, no publication or waiting period for new Env. Release Letter (this is a Chicago HUD OEE office policy) If original environmental finding is no longer valid or project significantly changed: RE must prepare new review and proceed with approval process (RROF  publication/posting  env. release)

Tiered Review [§58.15] CDBG HR Begin CDBG HR review when NOSAF issuedProject area identified, but specific addresses unknownTWO STEP PROCESS Tier 1: CEST project area-wide review Tier 2: CEST home-specific reviewBest suited for CEST projects such as scattered site single family HR Tiered CEST projects CANNOT convert to exempt! There will always be NOI/RROF publication/posting for Tier 1

Tiered Review – CDBG HR Tier 1Area-wide (addresses unknown)A reasonable geographic area (i.e., the application’s project area)Answers as many factors in the environmental review as feasible (for CDBG HR, 12 of 16 bodies of Federal environmental law) Tier 2 Site-specific (now know home address)This is separate ERR. Each home must have its own Tier 2 review complementing the Tier 1 review Will cite the Tier 1 for all previously answered factors (12 of 16)Will answer factors unanswered in Tier 1 requiring specific address (4 of 16)

Tiered Review – CDBG HR Tier 1 12 Bodies of LawAirport Hazards; Coastal Barriers, Flood Insurance; Clean Air; Coastal Zone; Endangered Species; Explosive & Flammable Hazards; Farmland Protection; Floodplain Management; Sole Source Aquifers; Wetlands Protection; & Wild and Scenic Rivers Tier 2 4 Bodies of Law Contamination & Toxic SubstancesHistoric Preservation Noise Abatement & ControlEnvironmental Justice

HR Tiered Review: Do I Submit a RROF? YES! You cannot convert ANY tiered reviews to Exempt at the target area Tier 1 level!This means you must:Publish/post NOI/RROF as appropriate, stating it is a tiered review and identifying what aspects of the review will be evaluated at each level (12 Tier 1 vs. 4 Tier 2) Submit Tier 1 CEST ERR with RROF to DCEO HR ERO for review Receive DCEO Tier 1 environmental release letter that will be contingent on complete Tier 2 reviews for each home being completed/DCEO-approved prior to award of a home’s housing rehab contract .

HR Tiered Review: When Do I Draw Funds? For Activity Delivery and/or Rehabilitation Administration, you may draw AFTER DCEO approval of the target area Tier 1 CEST review and Grant Agreement is executed For an individual home’s Housing Rehabilitation, you may draw AFTER DCEO approval of that home’s individual Tier 2 CEST review, without having to publish/post, submit a new RROF, or receive a new environmental release letter (only email approval from DCEO HR ERO)

Implementing Actions [§58.77c] For All IL CDBG Grants: Grantee must assure environmental review decisions are carried out during project development and implementationEstablish binding commitments and enforce them i.e. Construction and rehab contracts must contain required Mitigation languageEducate contractors/workers on formal Mitigation conditions (e.g., Copper Belly Water Snake habitat/migration routes) Track/monitor implementation and update ERR accordingly

Compliance with Laws and Authorities of 24 C.F.R. Part 58.5 13 Bodies of Federal Environmental Law Kirk Kumerow

Levels of Review that Require §58.5 Compliance Projects that are Categorically Excluded Subject to 58.5 (CEST)24 C.F.R. 58.35(a) Projects that require an Environmental Assessment (EA) 24 C.F.R. 58.36Projects that require an Environmental Impact Statement (EIS)24 C.F.R. 58.37

§58.5 Laws & Authorities Clean Air ActCoastal Zone Management Act Contamination and Toxic Substances (HUD reg) Endangered Species ActExplosive & Flammable Hazards (HUD reg) Farmlands Protection Policy Act Floodplain Management (E.O. 11988)National Historic Preservation Act Noise Control Act Safe Drinking Water Act (Sole Source Aquifers) Wetlands Protection (E.O. 11990) Wild & Scenic Rivers Act Environmental Justice (E.O. 12898)

Overview of NEPA-Related Laws and Authorities Grantee must certify that it has complied with - and will continue to comply with - the laws and authorities of §58.5Must consider the criteria, standards, policies, and regulations of these laws and authorities Must provide written documentation of compliance or no circumstance requiring compliance with each law or authority

Ensure Public Participation in the NEPA Decision-making Process After completion of a CEST or EA level review 56

Reasons for Public Participation It is a public right under NEPA Public input can improve the quality of a project Can resolve differences that could otherwise stop or delay a project 57

Types of Public Notices under Part 58 Notice of Intent to Request the Release of Funds (NOI/RROF) Required for projects that are CEST (Not Converting to Exempt), EA, or EIS Notice of Finding of No Significant Impact (FONSI) Required for EA Combined NOI/RROF and FONSI notice May be used for EAs, but not CEST (DCEO encourages because only 1 “Combined” Notice) 58

Public Notifications: Comment Periods NOI/RROF 7 full days for publication 10 full days for posting Combined NOI/RROF and FONSI 15 full days for publication & dissemination 18 full days for posting & dissemination Comment period starts the day after publication/posting and lasts until C.O.B. on the 7th/10th (NOI/RROF) or 15 th /18th (NOI/RROF FONSI) full day after that date. 59

Public Notifications: Comment Periods FONSI must also be disseminated to interested parties If posting, must prominently display in 3 local locations available to the public. If feasible, one should be at subject site (rare for IL CDBG projects) Need to use applicable language(s) for posting (i.e., reflect your project community’s composition) RE must consider comments from the public prior to signature by the Certifying Officer on CEST or EA; mitigate or not following comments 60

Who Are Interested Parties? Local news media Appropriate Tribal, Local, State, and Federal agencies DCEO CDBG ERO in place of HUD OEE Environmental groups or individuals with known interest in area or project Regulatory oversight agencies with known interest in project area Chicago Regional office of the US EPA 61

Timing and Counting Days Counted in calendar days RE starts counting the day after publication/posting If last day of comment period falls on a weekend or holiday, accept public comments received through the following business day RE may extend comment period for any reason, but must extend as needed per §58.46 RE signs and submits RROF after last day of comment period (on or after the “On or about” date at start of Notice) 62

63 Example: 15-day Comment Period S M T W T F S 1 - Pub 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 - RROF 18 19 20 21 22 23 24 25 26 27 28 29 30 31

Obtain Environmental Clearance (for CEST and EA) John McCarthy 64

Environmental Clearance Process 65

HUD Form 7015.15 (RROF) Required submittal for each DCEO CDBG CEST (Not Convert to Exempt) or EA Must use current non-expired form (IL CDBG specific PI/ED-PI & HR Tier 1 versions available on DCEO CDBG Website) This is the legal document and its pre-filled language should not be changed When completing the form: Location of the project (incl. GPS coordinates) in Box 10 (i.e., not City Hall) BOX 11: Complete project description, incl. completion sched ., estimated project cost, incl. estimated funding from CDBG & non-CDBG. HR version incl. Tiered review language 66

Submitting the ERR to DCEO CDBG ERO Scan & E-mail (or mail) color copy of entire CDBG ERR (Keep original in your files) to respective DCEO CDBG ERO (i.e., Kirk for PI/ED-PI/Non-HR RLF Close-out or Kara for HR) 67

Submitting the ERR to DCEO CDBG ERO If EA or CEST (Not Converting To Exempt), include: RROF (HUD Form 7015.15) Signed, dated, and completed correctly Proof of publication or posting of NOI/RROF or FONSI/NOI/RROF (incl. dissemination of FONSI) 68

DCEO Objection Period DCEO CDBG has a 15-day objection period for EA and CEST (Not convert to Exempt) Reasons for objection (§58.75): 7015.15 not signed by correct person Failed to make a FONSI or FOSI determination or §58.35 or §58.47 determination RE omitted steps in the preparation, publication, or completion of EA Funds committed prior to RROF Another Federal Agency objects DCEO may ask for re-publication or re-submission if: Notice periods too short RROF signed prior to end of local public comment period RROF incorrectly completed Long lapse between Notice and submission of RROF to DCEO (“On or about” date) 69

Post ERR Actions 70

Continuing Obligations Any mitigations or contingencies identified in the ERR must be relayed to applicable parties and/or put into applicable agreements and contracts Grantee Chief Elected Official has certified this with submission of HUD RROF form DCEO CDBG ERO and/or Grant Manager can verify through monitoring, periodic spot-check and/or verification of Pre-Construction Conference docs. 71

In Conclusion…. Correct application of 24 CFR Part 58 is essential for avoiding sanctions, litigation, and unexpected mitigation or remediation costs! Follow all required steps in the environmental review and decision-making process Carefully document compliance with NEPA and its related authorities, and State of Illinois specific requirements 72

In Conclusion…. Exercise due diligence in investigations Use reasonable approaches that are neither arbitrary nor capricious Carefully maintain the Environmental Review Record (or Environmental Record Review)! 73

Illinois Department of Commerce & Economic Opportunity www.illinois.gov/dceo Community Development Block Grants 2 CFR 200 Procurement Standards David Wortman

2 CFR 200.317 to 326 – Procurement Standards §200.317 Procurements by states §200.318 General procurement standards §200.319 Competition §200.320 Methods of procurement to be followed §200.321 Contracting with MBE, et. al. §200.322 Procurement of recovered materials §200.323 Contract cost and price §200.324 Federal agency or pass-through entity review §200.325 Bonding requirements §200.326 Contract provisions 75

2 CFR 200.318 General procurement stan dards 76 Use local procedures if conform with federal law Maintain contractor oversight Maintain written standards of conduct for all employees Use most economical approach Use intergovernmental or inter-entity agreements Use federal excess/surplus property

2 CFR 200.318 General Procurement Standards continued 77 Use value engineering Use responsible contractors Maintain procurement records Use T&M contracts only if necessary Local grantee responsible for all aspects of contract

2 CFR 200.317 to 326–Procurement Standards §200.317 Procurements by states §200.318 General procurement standards §200.319 Competition §200.320 Methods of procurement to be followed §200.321 Contracting with MBE, et. al. §200.322 Procurement of recovered materials §200.323 Contract cost and price §200.324 Federal agency or pass-through entity review §200.325 Bonding requirements §200.326 Contract provisions 78

2 CFR 200.319 Competition 79 Full, open and competitive procurement process No unreasonable requirements No unnecessary experience or bonding requirement No noncompetitive pricing among firms No noncompetitive retainer contracts No conflicts of interest No “brand name” requirement No arbitrary actions

2 CFR 200.319 Competition continued 80 No geographic preference Must have written procedures Include technical description of work or product Include criteria for proposal evaluation If pre-qualified lists are used they must be current

2 CFR 200.317 to 326–Procurement Standards §200.317 Procurements by states §200.318 General procurement standards §200.319 Competition §200.320 Methods of procurement to be followed §200.321 Contracting with MBE, et. al. §200.322 Procurement of recovered materials §200.323 Contract cost and price §200.324 Federal agency or pass-through entity review §200.325 Bonding requirements §200.326 Contract provisions 81

2 CFR §200.320 Methods of procurement to be followed 82 Procurement by micro-purchases Procurement by small purchase procedures Procurement by sealed bids (formal advertising) Procurement by competitive proposals (intentionally left blank) Procurement by noncompetitive proposals

2 CFR §200.320 Methods of procurement to be followed 83 Procurement by micro-purchases Procurement by small purchase procedures $ limits changed June 20, 2018 per OMB Memo 18-18

2 CFR §200.320 Methods of procurement to be followed 84 Procurement by micro-purchases (Less than $10,000) Procurement by small purchase procedures Procurement by sealed bids (formal advertising) Procurement by competitive proposals (intentionally left blank) Procurement by noncompetitive proposals

2 CFR §200.320 Methods of procurement to be followed 85 Procurement by micro-purchases Procurement by small purchase procedures (Less than $250,000) Procurement by sealed bids (formal advertising) Procurement by competitive proposals (intentionally left blank) Procurement by noncompetitive proposals

Procurement by small purchase procedures (Less than $250,000) 86 May be used for activity delivery, engineering, or construction activity Phone or mail solicitation acceptable Solicit at least three potential qualified bidders Make bid packet available for pick up or mailing No less than two bidders (if one bidder must document reason) vi. A&E service may include price as a factor, (but not the factor)

2 CFR §200.320 Methods of procurement to be followed 87 Procurement by micro-purchases Procurement by small purchase procedures Procurement by sealed bids (formal advertising) Procurement by competitive proposals (intentionally left blank) Procurement by noncompetitive proposals

2 CFR §200.320 Methods of procurement to be followed 88 Procurement by sealed bids (formal advertising) Proposals must have: Detailed description Two or more responsible bidders Require a firm, fixed price offer Bidding requirements: Publicly advertised with sufficient notice Sufficient specifications Public bid opening Contract to lowest qualified bidder Reject bids only for sound reason

2 CFR §200.320 Methods of procurement to be followed 89 Procurement by micro-purchases Procurement by small purchase procedures Procurement by sealed bids (formal advertising) Procurement by competitive proposals (intentionally left blank) Procurement by noncompetitive proposals

2 CFR §200.320 Methods of procurement to be followed 90 Procurement by competitive proposals Must be publicized & identify evaluation factors Solicited from adequate number of sources Written evaluation criteria Award to most advantageous proposal QBS allowed for A/E professional services

2 CFR §200.320 Methods of procurement to be followed 91 Procurement by micro-purchases Procurement by small purchase procedures Procurement by sealed bids (formal advertising) Procurement by competitive proposals (intentionally left blank) Procurement by noncompetitive proposals

2 CFR §200.320 Methods of procurement to be followed 92 Procurement by noncompetitive proposals Item is available only from a single source Emergency does not permit delay State expressly authorizes After solicitation of a number of sources, competition is determined inadequate Generally, Illinois CDBG does not allow.

2 CFR 200.317 to 326–Procurement Standards §200.317 Procurements by states §200.318 General procurement standards §200.319 Competition §200.320 Methods of procurement to be followed §200.321 Contracting with MBE, et. al. §200.322 Procurement of recovered materials §200.323 Contract cost and price §200.324 Federal agency or pass-through entity review §200.325 Bonding requirements §200.326 Contract provisions 93

2 CFR §200.321 Contracting with MBE, et. al. 94 Must take steps to assure that MBE, & WBE are used Affirmative steps must include: Placing qualified MBE and WBE on solicitation lists Assuring MBE and WBE are solicited Divide task to permit maximum participation Establish schedule to permit maximum participation Use SBA and MBDA of US Dept. of Commerce Require prime contractor to use items 1 through 5

2 CFR 200.317 to 326–Procurement Standards §200.317 Procurements by states §200.318 General procurement standards §200.319 Competition §200.320 Methods of procurement to be followed §200.321 Contracting with MBE, et. al. §200.322 Procurement of recovered materials §200.323 Contract cost and price §200.324 Federal agency or pass-through entity review §200.325 Bonding requirements §200.326 Contract provisions 95

2 CFR §200.323 Contract cost and price 96 Price analysis for contract and modifications Profit calculation for contracts with no price competition Estimated cost contract – Subpart E-Cost Principles Cost-plus contracts are not allowed

2 CFR 200.317 to 326–Procurement Standards §200.317 Procurements by states §200.318 General procurement standards §200.319 Competition §200.320 Methods of procurement to be followed §200.321 Contracting with MBE, et. al. §200.322 Procurement of recovered materials §200.323 Contract cost and price §200.324 Federal agency or pass-through entity review §200.325 Bonding requirements §200.326 Contract provisions 97

2 CFR §200.324 Federal agency or pass-through entity review DCEO 98 Must make specifications available to DCEO Must make RFP, invitation to bid, et. al. available when: Vary from 2 CFR 200 standards Only one bid/response “Brand name” product Award to non-low bidder Contract is above Simplified Acquisition Threshold Exemption from pre-procurement review

2 CFR 200.317 to 326–Procurement Standards §200.317 Procurements by states §200.318 General procurement standards §200.319 Competition §200.320 Methods of procurement to be followed §200.321 Contracting with MBE, et. al. §200.322 Procurement of recovered materials §200.323 Contract cost and price §200.324 Federal agency or pass-through entity review §200.325 Bonding requirements §200.326 Contract provisions 99

2 CFR §200.325 Bonding requirements 100 Applies to construction or facility improvement contracts Bid bond of 5% of bid Performance bond of 100% of the contract price Payment bond of 100% of the contract price

2 CFR 200.317 to 326–Procurement Standards §200.317 Procurements by states §200.318 General procurement standards §200.319 Competition §200.320 Methods of procurement to be followed §200.321 Contracting with MBE, et. al. §200.322 Procurement of recovered materials §200.323 Contract cost and price §200.324 Federal agency or pass-through entity review §200.325 Bonding requirements §200.326 Contract provisions 101

Illinois Department of Commerce & Economic Opportunity www.illinois.gov/dceo Community Development Block Grants Labor Standards JoLaine Miner

Part I labor standards 103

Federal Labor Standards Any contract over $2,000 is subject to Federal Labor Standards Assign someone the responsibility for assuring compliance 104

What are the Federal Labor Standards? Davis-Bacon Prevailing Wage Act Copeland Anti-Kickback Act Contract Work Hours & Safety Standards Act (CWHSSA) 105

Davis-Bacon Prevailing Wage Act (40 USC 276) Laborers and mechanics must be paid at least once per work week All laborers and mechanics must be paid federal prevailing wages for the work they are performing on the project Only apprentices and trainees registered with the US Department of Labor may be paid less than the federal prevailing wage 106

Davis-Bacon Prevailing Wage Act (40 USC 276) Foremen/Supervisors are covered by Davis-Bacon (20% or more performing manual work) Exclusions: Project Superintendents, administrative staff, executives, clerical. Exemptions: Volunteers and Force Account Workers 107

Copeland Anti-Kickback Act (40 USC 276c) Prohibits employers from forcing employees to give up any part of their wages, except for authorized payroll deductions 108

Contract Work Hours & Safety Standards Act (40 USC 327-330) Laborers and mechanics must be paid time and one half for hours worked over 40 hours in one work week Assure no laborer or mechanic be made to work in surroundings that are unsanitary, hazardous, or dangerous 109

labor standards - Bidding process 110

Bidding Process All construction projects must go through a formal bidding process Contracts over $250,000 must be competitively bid Bid packets are prepared by the Engineer Bid packets must include federal prevailing wage rates 111

Bidding Process - continued Advertise Newspapers with broad circulation www.dodgeprojects.construction.com Post MBE Notice City/Village Hall and the regional PTAC Email copy to Darryl.Thomas@Illinois.gov Send addendums to all bid packet holders, if necessary Publicly open all bids Choose the lowest, responsible bidder 112

Bidding Process - continued Award Contract Submit HUD 2516 within 10 days Check for Debarment at www.sam.gov Prime Contractors – Verification of registration and contractor eligibility Sub-Contractors – Verification of contractor eligibility. Include sam.gov search results with 2516 113

CONTRACT AWARD CONTRACT DOCUMENTS 114

Obtain Prevailing Wage Rates from the Wage Determination Website: https://www.wdol.gov/dba.aspx Labor Standard Provisions are to be included with the wage rate decisions https:// www.hud.gov /sites/documents/DOC_12586.PDF 115 Federal Prevailing Wage Rates in Bid and Contract Documents

Federal Prevailing Wage Rates in Bid and Contract Documents PWRs should be obtained: Initial - 30 days prior to the bid advertisement Check for updates: 10 days prior to the bid advertisement 10 days prior to the bid opening 116

Federal Prevailing Wage Rates in Bid and Contract Documents Exceptions: Contract not awarded w/in 90 days 10 days prior to Contract Award . 117

OBTAINING PREVAILING WAGE RATES 118

Obtaining Prevailing Wage Rates - Step 1 Determine Construction Type/Category Building Category - Water and Sewage Treatment Plants/Warehouses [Plumber Craft] Heavy Category - Sanitary or Storm Sewer Mains, Water Mains or Supply Lines, Storage Tanks and Wells. If a project contains both categories, use the category that would fit 80% of the cost of construction. 119

Obtaining Prevailing Wage Rates - Step 2 Go to the Website – www.wdol.gov Click on “Selecting DBA WDs” 120

121 Choose smallest # Selecting DBA WDs

122

123 Right click on the screen to open the options dialog box. Right Click, choose “Select All” Right Click, choose “Copy” Open new Word document Paste WRD informationFormat into a usable document. Selecting DBA WDs

124 Formatted Word Document

Obtaining Prevailing Wage Rates Additional Classifications [29 CFR 5.5(a)(1)(ii)] Request an additional classification only when: The work to be performed by the classification requested is not performed by a classification in the wage determination; and The classification is utilized in the area by the construction industry; and The proposed wage rate, including fringe, bears a reasonable relationship to the wage rates contained in the wage determination. 125

Obtaining Prevailing Wage Rates Additional Classifications: If it is necessary to request an additional classification, contact the Labor Standards Officer: JoLaine Miner 217.558.4222 Jolaine.miner@Illinois.gov 126

Frequently asked questions 127

Frequently Asked Questions What is the site of the work? The physical place or places where the building or work called for in the contract will remain once the contract work has been completed and any other site where a significant portion of the building or work is constructed, provided that such site is established specifically for the performance of the contract or project . 128

Frequently Asked Questions What is NOT a site of the work? Branch plant establishment;Fabrication plants; Tool yards, etc., of a contractor or subcontractor whose location and continuance in operation are determined wholly without regard to a particular Federal or federally-assisted contract or project; and Commercial or material supplier fabrication plants, batch plants, borrow pits, job headquarters, tool yards, etc., established by supplier for the project before opening of bids but not on the site of the work 129

Frequently Asked Questions Under what circumstances are truck drivers covered under DBRA? Drivers of a contractor or subcontractor for time spent working on the site of the workDrivers of a contractor or subcontractor for time spent loading and/or unloading materials and supplies on the site of the work, if such time is not de minimis; Truck drivers transporting materials or supplies between a facility that is deemed part of the site of the work and the actual construction site; andTruck drivers transporting portion(s) of the building or work between a site established specifically for the performance of the contract or project where a significant portion of such building or work is constructed and the physical place(s) where the building or work called for in the contract(s) will remain. 130

Frequently Asked Questions Under what circumstances are truck drivers not covered under the DBRA?Material delivery truck drivers while off “the site of the work;” Drivers of a contractor or subcontractor traveling between a Davis-Bacon job and a commercial supply facility while they are off the “site of the work;” and Truck drivers whose time spent on the site of the work is de minimis, such as only a few minutes at a time merely to pick up or drop off materials or supplies. 131

Labor standards Resources and reference materials 132

Labor Standards Resources HUD Office of Labor Relation Forms webpage https://portal.hud.gov/hudportal/HUD?src=/program_offices/labor_standards_enforcement Labor Standards and Enforcement and Related Forms https://portal.hud.gov/hudportal/HUD?src=/program_offices/labor_standards_enforcement/olrform 133

Labor Standards Resources Contractor’s Guide to Prevailing Wage Requirements for Federally-Assisted Construction Projects https://portal.hud.gov/hudportal/documents/huddoc?id=4812-LRguide.pdf Wage Determinations Online http://www.wdol.gov 134

Reference Documents Federal Labor Standards Provisions Davis Bacon – Questions and Answers 135

Labor standards Economic Development Projects 136 Dave Goben

CDBG Economic Development Projects Davis Bacon Applies to all construction activities using CDBG funds whether on public or private property. Infrastructure improvements for the benefit of a business; Direct Capital investment to a business (building improvements, installation and purchase of equipment, construction costs, leased improvements). 137

Part II construction management 138

Preconstruction conference 139

Preconstruction Conference Prior to the Preconstruction Conference, all contract documents should be signed, including all CDBG certification forms (Notice of Award, Contract Agreement, etc.) 140

Preconstruction Conference Who should Attend? Contractor Subcontractors Engineer Grantee Grant Administrator Grantee Attorney Utility Companies 141

Preconstruction Conference What should be Discussed? Identify roles in the project Suppliers, Subcontractors Public Safety Easements Location of Utilities Clean-up Shop Drawings & approval of materials Change orders Pay requests CDBG requirements* Labor Standards* Notice to Proceed 142

143 Preconstruction Conference New Certification Form Grantee   Grant #   Date ____/____/________ Project Name   Amount $ Time   Engineer   Administrator   Contractor/Company   Contract # 1 Represented By   $ Contractor/Company   Contract # 2 Represented By   $ Contractor/Company   Contract # 3 Represented By   $

Preconstruction Conference May Conclude Conference with Notice to Proceed If all contract documents are in order/executed Must clearly establish Construction Start Date Scheduled project completion date Basis for assessing liquidated damages in the event of unsatisfactory performance by general/sub-contractors, etc. 144

Preconstruction Conference A copy of the fully executed contract documentation and certifications (original signatures) must be maintained in the Grantee’s Labor Standards File. 145

Preconstruction Conference Required Documentation Preconstruction Conference Checklist/ Minutes, Including: Sign-in Sheet Signed Certification Additional Notes/Comments 146

Preconstruction Conference Submit Materials to the CDBG Grant Manager Wage Determination MBE Form and posting documentation Completed Checklist/Minutes Copy of Notice to Proceed Certificate from contractor appointing officer to supervise payment of employees First / Last CPR for each contractor Apprenticeship documentation if applicable 147 Copies to: JoLaine Miner with 2516

housing rehabilitation Preconstruction activities 148 Kara Cozadd

Inspection Process Start after home is deemed eligible Identification of the rehabilitation need through an initial assessment by your inspector Before the inspector leaves the property, he/she must inform the homeowner of the types of work being considered. Corrections to All Code violations, and Energy Efficiency Improvements are prioritized. 149

Specifications and Costs Your inspector must prepare bid specifications by individual line item activities and provide corresponding “in-house” cost estimate using acceptable software programs. A limit of $50,000 per home. Photographs of individual homes to be rehabbed must be submitted to DCEO with all Tier 2’s. Once Tier 2 clearance from DCEO, proceed to next phase. 150

Competitive Bidding Process Prepare initial Bid Packets to be mailed to each qualified local contractor. Schedule a walk through with the qualified local contractor. Amendments to the original bid packets sent out if applicable Formal Bid Opening Contract bid selected Contract Signing/pre-construction conference Includes Contractor, Administrator, Inspector and homeowner 151

Construction management – required actions 152

Construction Management Once construction starts Check Weekly Payrolls Visit work site Conduct employee interviews 153

Weekly Payrolls Payrolls submitted to Administrator every week Including Statement of Compliance, certifying: Required Information provided Information maintained Information is correct Each laborer/mechanic paid wages earned; Laborer/mechanic paid not less than the determined wage 154

Weekly Payrolls Compare payroll to wage rate decision Total payroll amount (base + fringe) must equal or exceed federal prevailing wage rate Any underpayments found while reviewing payroll must be reported to the CDBG Labor Standards Officer Owner-operator subcontractor payrolls must be signed off by prime contractor 155

Weekly Payrolls Is an apprentice on the payroll? Must obtain a copy of the Department of Labor’s Certification of Enrollment in an Apprentice Program. 156

Weekly Payrolls - Example 157 Federal Prevailing Wage Rate Base Pay = $20.00 Fringe = $5.00 + 5% Base $20.00 Fringe $5.00 Fringe + $1.00 (5% of $20.00) Total $26.00 The employee does exceed federal prevailing wage rate even though the base pay is less Employee Payroll Base Pay = $18.00 Fringe = $10.00 Total $28.00

Visit Work Site Check that the following documents are posted at the work site Federal Prevailing Wage Rate Decision Notice to Employees (WH 1321) https://www.dol.gov/whd/regs/compliance/posters/fedprojc.pdf Your rights (WH 1088) https://www.dol.gov/whd/regs/compliance/posters/flsa.htm 158

To document compliance, take a picture of the postings and keep in the project file. 159

Visit Work Site - continued Conduct Employee Interviews Using HUD 11 form, conduct several interviews of at least each craft Verify: Payment is consistent with the prevailing wage Employee is doing work and using tools for craft being paid 160

Force account labor 161

Force Account Labor Can be used on construction projects Only employees of units of local government Not employees of a water/sewer district Additional help can be hired for the project Must be paid federal prevailing wage rates 162

Wage restitution 163

Wage Restitution Underpayment of Wages Total wages (base + fringe) earned minus total wages paid Administrator notifies Prime Contractor in writingDescribe underpayments Instructions for computing/documenting restitution to be paid Prime Contractor is allowed 30 days to correct underpayments 164

Wage Restitution Corrected Certified Payroll Must reflect period of time restitution is due (Payroll #s; or date sequence) Signed Statement of Compliance Must be reviewed by Administrator Copy to Labor Standards Officer 165

Wage Restitution Corrected Certified Payroll, cont. If discrepancies are found Notify contractor of discrepancies in writing Additional payments must be made w/in 30 days Submit Corrected Certified Payroll (B) Signed Statement of Compliance Must be reviewed by Administrator Copy to Labor Standards Officer 166

Wage Restitution Withholding Against prime contractor to ensure the payment of wages due and unpaid If wage underpayments are not corrected within 30 days after written notification Only amounts needed to meet the contractor’s liability 167

Compliance review 168

Compliance Review Grants are reviewed to ensure compliance with federal requirements in the following areas: Labor Standards Bid process EEO Verification (Minority and Section 3 businesses) Construction contract award(s) 169

Compliance Review Contract Bonding and Insurance Construction Contracts over $100,000 Bid guarantees (5% of bid price) Bonded for 100% of contract price Preconstruction Conference Completed checklist on file with appropriate signatures, documentation 170

Compliance Review Labor Standards File Fully executed contract documents and certifications (original signatures) Pre-construction conference materials Wage Rate Determinations Employee Interviews Payrolls Apprentices Force Account Labor; and Wage Restitution 171

Illinois Department of Commerce & Economic Opportunity www.illinois.gov/dceo Community Development Block Gran ts Modifications Kirk Kumerow

Grant Modifications Consult with your CDBG grant manager regarding proposed changes: Location (Project area) Project Beneficiaries (incl. Project area) Environmental Impact (i.e., changes from completed ERR) Scope of Work Budget Project End Date 173

Grant Modifications Modifications Not Allowed For: Requests for activities outside the original project area Requests to decrease or increase Scope of Work/Budget due to greater or less than estimated costs In addition: If proposal alters LMI benefit, the percentage of benefit must be within the same “LMI Scoring” from application review. No decrease of LMI benefit allowed 174

Grant Modifications The CDBG grant manager will determine if a written Modification request is required. 175

Grant Modifications Unapproved changes can result in repayment of Grant funds. Always contact your Grant Manager prior to changing a CDBG grant project in any way 176

Modification – Required Documents Letter signed by the Grantee’s Chief Elected Official on Grantee letterhead. Detail why the Modification is necessary What exactly needs to be changed Please include Grant # 177

Modification – Required Documents DCEO Request for Modification/Waiver Form Always ensure you are using the most up- to-date version (can ask CDBG Grant Mgr.) The current form (January 2019) contains a new budget template requirement on the 2 nd page and current DCEO Director 178

Modification – Required Documents Scope of Work and Budget Modification requests only. A copy of the Scope of Work/Budget from the Grant Agreement should be submitted Write the requested changes directly on the page. 179

Modification – Required Documents LMI Benefits Form (Appendix 1-4-D) from the GMH Required as part of the Modification request submission when Grant Administrators are trying to move unused LMI connection funds to construction, because an insufficient number of LMI homeowners and/or renters did not income qualify.  180

Final Design Plans / As-Built Plans Required as part of the grant close-out process Submitted with the Grantee Evaluation Report (GER) at the end of the project 181

Final Design Plans / As-Built Plans Ensures the Grantee designed/ constructed the project as described and documented in the grant application; Or as described in executed subsequent grant Modifications. 182

Illinois Department of Commerce & Economic Opportunity www.illinois.gov/dceo Community Development Block Grants Quarterly Reporting John McCarthy

General Requirements Document for the project file, by name and by title, who will have fiscal responsibility for the CDBG funds and who will have signature authority, and for what amount each person is bonded. Document for the project file, by name and title, who will handle book entries, check preparation, and bank reconciliations. Fidelity bonds must be for an amount at least equal to any CDBG amount that will be drawn down at any one time. CDBG funds cannot be drawn until costs have been incurred and invoiced. 184

General Requirements - Account CDBG funds along with any additional funds should be deposited in two separate, dedicated accounts. CDBG funds must be placed in a non-interest bearing account. Two signatures are required on every check. CDBG funds must be disbursed within 20 days of deposit. 185

CDBG and Additional Funds Expenditures for CDBG ELIGIBLE ACTIVITIES All CDBG disbursements should be documented with an invoice, a copy of the canceled check and a bank statement. All additional disbursements should be documented with the same documentation and kept in a separate file. Separate ledgers must be kept for CDBG expenditures and for additional funds expenditures . 186

Reporting 2 CFR 200.302 – 200.332 States are required by Congress to establish record keeping requirements that are sufficient to facilitate reviews and audits of federal funds. The Department is required to document that the use of HUD funds complies with statutory and regulatory requirements. The Department collects reports to determine compliance with certifications, statutes, regulations, etc. 187

Grantee Reporting Financial reporting must be accurate and include a complete disclosure of the funded activities during the reporting period. All accounting records must be supported by source documentation. Cost charged must be incurred during reporting period. Funds must be expended on allowable items and must be approved by the responsible grantee official. 188

Grantee Reporting CDBG funds are not to be comingled with any other funds. CDBG funds need to be expended within 20 calendar days of receipt. CDGB funds need to be expended with 2 signatures. 189

Grantee Reporting The new uniform GATA form is called “Periodic Financial Report” or PFR “Performance” is reported on the “Periodic Performance Report” or PPR Both reports are due quarterly; and at Closeout Reports should be scanned as one package and sent to the Grant Manager 190

Periodic Financial Report 191

Periodic Performance Report 192

Periodic Performance Report 193

Housing Specific Reporting - Kara Cozadd Quarterly Reporting All payments are based on invoices from contractors/administrator Must document line item payouts to physical inspections of completed work PSR and FSR, rehab, admin and inspection contracts, change orders, invoices, cancelled checks, certificates of completion per house , document # of homes completed on PSR HUD Annual Performance Report due annually 194

Illinois Department of Commerce & Economic Opportunity www.illinois.gov/dceo Community Development Block Grants Required Reports Cietta Gower

196 Required Reports In addition to the quarterly Periodic Financial and Periodic Performance Reports the following are also required: Section 3 Summary Report – HUD 60002 Minority Business Enterprise (MBE) Notice of Contract Award – HUD 2516 Department of Labor Notification Preconstruction Conference Checklist/Minutes Grantee Evaluation Report (GER) with As-Built Drawing/Plan External Audit Reports Reports are on DCEO’s website - Community Development - Grantee Support and Reporting

197 Section 3 Summary Report - HUD 60002 Recipients of CDBG awards in excess of $200,000. Annual report due January 15 for previous calendar year. Every box/line needs to be completed; even if the answer is zero. Submit to your Grant Manager.

198 Minority Business Enterprise – MBE Affirmative steps to assure that minority businesses, women's business enterprises, and labor surplus area firms are used when possible. Must post on-or-before the date of the bid advertisement. City/Village Hall, copy to Procurement Technical Assistance Center (PTAC), copy to Darryl.Thomas@Illinois.gov Submit form and posting documentation to the Department with preconstruction conference documentation.

199 Notice of Contract Award – HUD 2516 All contracts over $2,000 Submit to the Department within 10 days of a contract award. All contractors and sub-contractors must have a DUNS number www.dnb.com Check for contractor eligibility at www.sam.gov Prime Contractors – verify registered and not debarred (not listed on the US General Service Administration’s List of Parties Excluded from Federal Procurement or Non-Procurement Programs) Sub-Contractors – verify they are not debarred/excluded Include www.sam.gov search results with the report submission.

200 Department Of Labor Notification Contracts or subcontracts in excess of $10,000. Submit notification of contracts or subcontracts to the US Department of Labor and to your Grant Manager within 10 days of the contract award.

201 Preconstruction Conference Checklist/Minutes Submit to your Grant Manager and the Labor Standards Officer Must be completed in full Submit copies of the following documents with the Preconstruction Checklist/Minutes: Wage Determination # IL ___ Mod# ___ Dated ____ MBE Form and posting documentation Notice to Proceed Certificate from Contractor Appointing Officer to Supervise Payment of Employees First and Last Payroll from each contractor, when available Apprenticeship documentation, if applicable

202 Grantee Evaluation Report – GER Requires a public hearing, facilitated by the governing body, to review program activities and performance. Requires an As-built drawing/plan. Submit to the Department no later than 60 days after the grant period ends OR 60 days after all grant funds are spent.  Submit with the Final Periodic Financial and Periodic Performance Report. Supporting documentation.

203 External Audit Reports FEIN Lock Illinois Stop Payment List Audit Unit: 312-814-4057 externalauditunit@illinois.gov

Illinois Department of Commerce & Economic Opportunity www.illinois.gov/dceo Community Development Block Grants Closeouts Cietta Gower

Closeouts 2 CFR 200.343 205 Process to determine that all applicable administrative actions and all required work of the federal award have been completed. Two Closeouts for the Department’s Public Infrastructure grant awards: Financial Program

206 Financial Closeout After the grant period ends, the Grantee has up to 45 days to draw grant funds. Grantee has expended all grant funds to complete the project Grantee has completed all eligible activities. Follow the same reporting steps for the Quarterly Periodic Financial Report and Periodic Performance Report except, mark the box indicating this is the Final Report.

207 Financial Closeout Submit the Final Periodic Financial and Periodic Performance Report no later than 60 days after the grant period ends OR 60 days after all grant funds are drawn.  If the grant closes early the report due date is based on the date last funds are drawn and not the date in the Report Schedule. The Grantee Evaluation Report (GER) is due at the same time as the Final Periodic Financial and Periodic Performance Reports.

208 Financial Closeout All balances of unobligated funds returned. All reporting requirements completed and supporting documentation submitted. GRS (F6) approve certified costs.

209 Program - Grantee Evaluation Report (GER) GER requires a public hearing, facilitated by the governing body, to review program activities and performance. GER requires an As-built construction plan/drawing. Submit the GER and its supporting documentation to the Department no later than 60 days after the grant period ends OR 60 days after all grant funds are spent.  Submit with the Final Periodic Financial and Periodic Performance Report.

210 Post-Closeout Adjustments and Continuing Responsibilities The Department retains the right to disallow costs and/or recover funds on the basis of a later audit or other review. The Grantee continues an obligation to return funds to the Department from subsequent refunds, corrections, or other transactions. The Grantee continues Audit requirement obligations. The Grantee continues responsibilities for records retention.

Illinois Department of Commerce & Economic Opportunity www.illinois.gov/dceo Community Development Block Grants Grantee Records Retention Dana Huston

CDBG Grantee Records Retention The department requires that a filing system be established that makes finding all of the necessary source documents readily accessible. 212

CDBG Grantee Records Retention The Retention Checklist will be sent with the Grant Agreement. A copy of a completed Retention Checklist must be kept in the project file. 213

CDBG Grantee Records Retention All grant records must be maintained for five years after the closeout of the grant. 214

CDBG Grantee Records Retention Process/Required Documentation 215

216  Process/Required Documentation GRANT APPLICATION   Copy of the complete CDBG Grant Application (must include all attachments and maps)

217 ENVIRONMENTAL REVIEW / SPECIAL GRANT CONDITIONS Notice of State Award Finalist Letter   Entire Environmental Record Review   Special Grant Condition(s) clearance documentation   Environmental Release Letter   Notice of State Award Letter  Process/Required Documentation

218 GRANT AWARD / AGREEMENT / MODIFICATIONS   Fully Executed Grant Agreement with Welcome Package   All modification requests   All executed Modification Agreements (when applicable)  Process/Required Documentation

219  Process/Required Documentation PROCUREMENT OF CONSTRUCTION CONTRACTS   MBE Form   Advertisement for Bids   Bid Packet   Bid Tabulation   Notice of Award   Notification of Contract Awards – Contract and Subcontract Activity (Form 2516)

220  Process/Required Documentation, Continued PROCUREMENT OF CONSTRUCTION CONTRACTS   Construction Contract with all signed certifications   Notice to Proceed   Prevailing Wage Rates   Copy of Contractor Review for Debarment (sam.gov) Contractor Bonding, Insurance Change Orders

221  Process/Required Documentation CONSTRUCTION LABOR STANDARDS   Pre-Construction Conference Checklist/Minutes/Sign-In Sheet   Payroll Signature Authorization   Employee Interviews (HUD 11)   Apprentice Certifications   Documentation of underpayment/proof of wage restitution   Fringe Documentation

222  Process/Required Documentation FINANCIAL MANAGEMENT RECORDS   Bank Account Documentation (CDBG)   Bank Account Documentation (Other Funds)   Bonding information of the Grantee   Signature Authority/Fiscal Responsibility Documentation   Authorized Signatory Change Form   Authorized Designee Signature Form(s)

223  Process/Required Documentation FINANCIAL EXPENDITURE RECORDS   CDBG Ledger   CDBG checks with corresponding invoices   Other Funds Ledger   Other Funds checks with corresponding invoices   Bank Statements   Print-Out of GRS screens requesting CDBG funds   Copies of Expenditure Summaries (if applicable)   Copies of signed Quarterly Reports w/documentation

224  Process/Required Documentation EQUAL OPPORTUNITY   Copy of Fair Housing Ordinance   Copies of Annual Section 3 Reports   Documentation of Section 3 employees hired   Documentation of Section 3 contracts awarded   Section 504   Grantee Self Evaluation for Persons w/ Disabilities

225  Process/Required Documentation DIRECT BENEFIT / HOOK-UPS   Copy of Advertising(s) of availability of financial assistance   Copy of Posting(s) of availability of financial assistance   Application/Income Documentation for all eligible applicants   Copies of 3 bids per hh or hook-up contract documentation   Copy of Invoices and checks paid per household   Application/Income Documentation for all ineligible applicants

226  Process/Required Documentation CLOSEOUT   Completed, signed Final Grantee Report w/ documentation   Completed, signed Grantee Evaluation Report (GER) –include all public hearing documentation   Correspondence related to Closeout   DCEO Financial Closeout Approval Letter   As-Built Project Map   Copy of proposed project map (for reference)

227  Process/Required Documentation MONITORING   CDBG Monitoring Letter   Response Documentation to Findings/Comments MISCELLANEOUS   General Correspondence   Income Surveys   Audits   Public Comments

www.illinois.gov/dceo Questions? Thank You! Illinois Department of Commerce & Economic Opportunity 500 East Monroe Springfield, IL 62701 Phone: 217.785-6174 Email: CEO.CDBG@Illinois.gov