Illinois Administrative Code › Title 35 - ENVIRONMENTAL PROTECTION › Part 360 - GENERAL CONDITIONS OF STATE OF ILLINOIS GRANTS FOR SEWAGE TREATMENT WORKS UNDER THE ANTI-POLLUTION BOND ACT OF 1970 › Subpart H - REQUIREMENTS APPLICABLE TO PAYMENT OF GRANTS › Appendix B - Access To Records - Audit (Existing Consulting Engineering Agreement) (Applicable To Consulting Engineering Agreements Entered Into Between June 30, 1975 and July 1, 1976)

Current through Register Vol. 48, No. 28, July 12, 2024
1. Access clause. After June 30, 1975, a construction grant
				  for Steps 1, 2 or 3 will not be awarded unless an acceptable records and access
				  clause is included in the consulting engineering subagreement. The clause
				  contained in Appendix III shall be used after July 1, 1976.
2. Agency exercise of right of access to records.
a. For the purpose of determining where the Agency
				  shall exercise its right of access, engineers' project-related records have
				  been divided into three categories:
(1) Category A. Records pertaining directly to the
				  professional, technical and other services performed, excluding any type of
				  financial records of the consulting engineer.
(2) Category B. Financial records of the
				  consulting engineer pertaining to the direct costs of professional, technical
				  and other services performed, excluding financial records pertaining to profit
				  and overhead or other indirect costs.
(3) Category C. Financial records of the
				  consulting engineer excluding from Category B.
b. In all cases, the Agency will exercise its
				  right of access to Category A records. Also, where there is an indication that
				  fraud, gross abuse, or corrupt practices may be involved, the Agency will
				  exercise its right of access to records in all categories. Otherwise, access to
				  consulting engineers' financial records (Categories B and C) will depend
				  principally upon the method(s) of compensation stipulated in the
				  agreement:
(1) Agreements based upon a percentage of
				  construction cost. Category B and C records will not be audited. However, terms
				  of the agreement including the total amount of compensation will be evaluated
				  for fairness and reasonableness and consistency with historical and advisory
				  guidelines in general use and acceptable locally or other analyses or data
				  relied upon or utilized by the contracting parties in negotiation of the
				  agreement. Such evaluation shall also consider comparable contracts for which
				  Agency grants have been awarded.
(2) Agreements based upon salary cost times a
				  multiplier including profit. Category B records will be audited. However, terms
				  of the agreement, including the total amount of compensation and the
				  multiplier, will be evaluated for fairness and reasonableness and consistency
				  with historical and advisory guidelines in general use and acceptable locally
				  or other analyses or data relied upon or utilized by the contracting parties in
				  negotiation of the agreement. Such evaluation shall also consider comparable
				  contracts for which Agency grants have been awarded. Items of overhead or other
				  indirect costs will only be audited to the extent necessary to assure that
				  types of costs found both in overhead and reimbursable direct costs, if any,
				  are properly charged.
(3) Per diem agreements. Category B records will
				  be audited. Category C records will not be audited. Audit will be performed to
				  the extent necessary to determine that hours claimed and classes of personnel
				  used were properly supported. The per diem rates will be evaluated in
				  accordance with appropriate portions of paragraphs 2.b(1) and (2) of this
				  appendix.
(4) Cost plus a fixed fee (profit). All direct
				  costs and overhead and other indirect costs claimed will be audited to
				  determine that they are reasonable, allowable, and properly supported by the
				  consulting engineer's records. The amount of fixed fee will not be questioned
				  unless the total compensation appears unreasonable when evaluated in accordance
				  with paragraphs 2.b(1) and (2) of this appendix.
(5) Fixed price lump sum contracts. Category B and
				  C records will not be audited. The contract amount will not be questioned
				  unless the total compensation appears unreasonable when evaluated in accordance
				  with appropriate portions of paragraphs A.2.b.(1) and (2) of this
				  appendix.
c. Under agreements covering both grant-eligible
				  and ineligible work, access to records will be exercised to the extent
				  necessary to allocate contract work or costs between work grant-eligible for
				  construction grant assistance and work or costs which are ineligible.
d. Under agreements utilizing two or more methods
				  of compensation, each part of the agreement will be separately audited in
				  accordance with the appropriate subparagraph of paragraph (b)(2) of this
				  section.
e. Any audited firm and the grantee will be
				  afforded opportunity for an audit exit conference and an opportunity to receive
				  and comment upon the pertinent portions of each draft audit report. The final
				  audit report will include the written comments, if any, of the audited parties
				  in addition to those of the appropriate state agency(ies).