NONPROFIT GRANTS/INCREASE ACCOUNTABILITY.

View NCGA Bill Details2013-2014 Session
House Bill 58 (Public) Filed Thursday, January 31, 2013
A BILL TO BE ENTITLED AN ACT TO IMPROVE THE OVERSIGHT OF STATE GRANTS TO NON-STATE ENTITIES AND TO INCREASE THE ACCOUNTABILITY OF GRANTEES WHO RECEIVE STATE GRANTS, AS RECOMMENDED BY THE JOINT LEGISLATIVE PROGRAM EVALUATION OVERSIGHT COMMITTEE.
Intro. by Howard.

Status: Re-ref Com On Appropriations (House Action) (Mar 14 2013)

SOG comments (1):

Identical bill

Substantively identical to S 144, filed 2/27/13.

H 58

Bill Summaries:

  • Summary date: Mar 13 2013 - More information

    House Committee substitute makes the following changes to the 1st edition.

    Makes technical and conforming changes to Section 1, GS 143C-6-23. Adds language to the definitions of "grantee" and "subgrantee", elaborating and establishing conditions that, upon meeting one of the conditions, qualifies an entity to be considered as such.

    Amends GS 143C-6-23(d)(5a) and (5b), making clarifying and technical changes. Creates new GS 143C-23(d)(5c), requiring an administering State agency and the Office of Budget and Management (OSBM) to provide an accounting of withheld funds that is separate from other funds used for oversight and monitoring, and that the accounting be made available to a grantee or subgrantee upon request.

    Makes technical changes to GS 143C-6-23(d)(6a) and (9a).

    Amends GS 143C-6-23(f), providing the OSBM authority to take actions for noncompliance. Requires consultation with a granting agency of the U.S. and the State Agency if the funds are pass-through funds from a U.S. agency, before taking actions for noncompliance. Authorizes actions for noncompliance, including suspension of grant funds, after certain conditions are met.

    Deletes GS 143C-6-23(f1), where the withholding of 2% for grant oversight costs was authorized, with the appropriate approval, and .5% withholding was authorized, for grant oversight costs, without any approval required.

    Amends GS 143C-6-23(h), deleting the requirement to report noncompliance to the Joint Legislative Commission on Governmental Operations and the Fiscal Research Division, in lieu of maintaining a publically available list of all grantees or subgrantees that are in noncompliance.

    Amends GS Chapter 143C, enacting a new GS 143C-6-24 (Withholding of Grant Program Funds for Oversight), creating a mandatory requirement that state agencies that are overseeing grant programs must withhold 2% of the amount awarded to cover oversight costs.  Requires 25% of that amount to be transferred to OSBM to cover costs of overseeing grants to non-state entities. If the amount withheld appears to be in excess of the amount required for oversight, the amount of the withholding can be reduced.  Reductions can be approved by request from an administering state agency or without request and upon determination by the OSBM.

    Withholding amounts will be reviewed annually by the OSBM, with adjustments to withholding  possible at any time.  Withholding is not allowed if the funds are pass-through funds from the federal government and the terms prohibit withholding or the program is funded by a direct appropriation from the General Assembly.

    Makes technical and clarifying changes to GS 143C-6-23(d), requiring submission of a cash receipts and disbursement report.

    Changes effective date, with Sections 2 and 3 becoming effective July 1, 2014 and applying to grants awarded on or after that date. The remainder is effective July 1, 2013.

     


  • Summary date: Jan 31 2013 - More information

    GS 143C-6-23(d) sets out policies governing the disbursement and monitoring of state grants. Adds several policies, including requirements for contracts awarding grants, a requirement to create mandatory periodic reporting requirements for grantees and subgrantees, and a monitoring plan. Enacts new subsection (f1), authorizing state agencies that oversee certain grants to withhold up to 2% of the grant amount to cover oversight costs, after following the specified guidelines. Amends GS 143C-6-23(f) to direct the Office of the Controller to stop payments to a grantee following notification by the Office of State Budget and Management to suspend disbursement. Effective July 1, 2013.

    Effective July 1, 2015, adds the requirement that grantees submit cash-basis reporting within 90 days after the end of the fiscal year to the list of policies in GS 143C-6-23(d).


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