Sponsored by:
Assemblywoman ALISON LITTELL MCHOSE
District 24 (Morris, Sussex and Warren)
SYNOPSIS
Requires appropriations in the nature of grants-in-aid to include certain criteria in the act in which they are enacted.
CURRENT VERSION OF TEXT
As introduced.
An Act requiring appropriations in the nature of grants-in-aid to include certain criteria in the act in which they are enacted, and supplementing P.L.1945, c.33 (C.52:9H-1 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. An appropriation in the nature of a grant-in-aid for the support or subsidy of the provision of services by private or public agencies, other than a State agency or agency of a local government unit, for which service the State does not have responsibility but which the State elects to provide through such agency, shall set forth in the act in which the appropriation is made, or in an act which is referred to in the act making the appropriation as controlling the appropriation, the criteria set forth in subsection b. of this act. Those criteria shall apply to all appropriations referred to in this subsection as standard compliance safeguards to ensure that those grant appropriations are enacted: (1) with clearly disclosed specific award criteria and (2) without reliance upon written, oral or other directives that are outside of the provisions of the enactment or the publicly available legislative history of that enactment, as to the specific purpose, recipient or other manner of distribution of the appropriation:
b. For each appropriation subject to the provisions of this section, each State spending agency shall provide the following:
(1) Program objectives, expressed as statements that specify how the program is intended to be implemented and what results are expected to occur from its implementation. Program objectives shall include process objectives that specify what activities need to take place in order to implement the program as intended and outcome objectives specifying the anticipated change in the target of the program (including but not limited to the participants) as a result of the target's involvement with the program; process objective statements, which shall include but shall not be limited to the following example: By (date or amount of time), (target population - who & how many) will participate in (duration of activity - how often or how long) of (specific activity) as measured by (measurement instrument or indicator); and an outcome objective statement, which shall include but shall not be limited to the following example: By (date or amount of time), (percent or number) of (participants or clients) will (specific achievement) measured/demonstrated by (measurement instrument or indicator) .
(2) Program procedures that include a specific description of how the program shall operate; and
(3) The major compliance and audit requirements of the program funded by the appropriation including the New Jersey Administrative Code or other statutory reference where additional information for the requirement can be obtained. The compliance requirements and suggested audit procedures shall be organized into five categories: (a) types of services allowed or disallowed; (b) eligibility requirements; (c) matching, level of effort, and/or earmarking requirements or a combination thereof; (d) reporting requirements; and (e) special tests and provisions. Each requirement shall be accompanied by suggested audit procedures that can be used to test for compliance which may supplement any other procedures an auditor may use. However, if auditors of the appropriation determine it is necessary to apply professional judgment and use other procedures to determine the extent of reviews and tests to be performed, prior written approval from the State disbursing department shall be obtained. The specific compliance requirements and suggested audit procedures for each program shall be provided in further detail by the State spending agency that administers the program.
c. Grant agreements for appropriations subject to the provisions of this section shall be executed by the State spending agency and the recipient which shall set forth the following information:
(1) In general, information that provides details on the
(a) grant agreement data
(b) compliance with existing laws
(c) bonding and insurance
(d) indemnification
(e) assignability, and
(f) availability of funds.
(2) Pre-award requirements and special grant conditions for "high risk" grantees.
(3) Post-award requirements that include, as applicable,
(a) financial management system
(b) method of payment
(c) allowable costs
(d) period of availability of funds
(e) matching and cost sharing
(f) program income
(g) audit requirements
(h) budget revision and modification
(i) property management standards
(j) procurement standards
(k) monitoring of program performance
(l) financial and performance reporting
(m) access to records
(n) record retention
(o) enforcement, and
(p) termination and suspension.
(4) After-the-grant requirements that include grant closeout procedures.
2. This act shall take effect immediately and shall first apply to the State fiscal year commencing July 1, 2013.
STATEMENT
This bill requires that an appropriation in the nature of a grant-in-aid for the support or subsidy of the provision of services by private or public agencies, other than State agencies or agencies of local government units, for which service the State does not have responsibility but which the State elects to provide, shall set forth in the act in which the appropriation is enacted, or in an act which is referenced in the act making the appropriation as controlling the appropriation, specific criteria which shall be followed as standard compliance safeguards to ensure that such grant appropriations are enacted with clearly disclosed specific award criteria and do not rely upon written, oral or other directives that are external to the enactment or its publicly available legislative history, as to specific purpose, recipient or other manner of distribution of the appropriation.
This specific criteria shall include: program objectives that specify how the program is intended to be implemented and what results are expected to occur from its implementation; program procedures that include a specific description of how the program shall operate; and the major compliance and audit requirements of the program funded by the appropriation including the New Jersey Administrative Code or other statutory reference where additional information for the requirement can be obtained.
Grant agreements shall be executed by the State spending agency and the recipient which shall set forth detailed information including a general overview of the program, pre-award requirements, post-award requirements, and after-the-grant requirements.