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Legislation Document
SPONSOR:
Sen. Paradee
DELAWARE STATE SENATE
153rd GENERAL ASSEMBLY
SENATE AMENDMENT NO. 1
TO
HOUSE BILL NO. 190
AMEND House Bill No. 190, as amended, on line 9 by deleting “
An incorporated
” and inserting in lieu thereof “
Incorporated as a
”.
FURTHER AMEND House Bill No. 190, as amended, on line 11 by deleting “
organization.
” and inserting in lieu thereof “
agency.
”.
FURTHER AMEND House Bill No. 190, as amended, on line 14 by inserting “
(Board)
” after “
Directors
”.
FURTHER AMEND House Bill No. 190, as amended, by inserting the following on line 15 after “
meetings.
”:
“
The organization’s Board must adopt all of the following policies:
a. A conflict of interest policy for Board members.
b. A whistleblower policy for the organization’s employees and volunteers, including Board members. At a minimum, this whistleblower protection policy must include all of the protections under Chapter 17 of Title 19.
”.
FURTHER AMEND House Bill No. 190, as amended, by deleting lines 16 through 25 in their entirety and inserting in lieu thereof the following:
“
(4) Be providing a service that is 1 or more of the following:
a. Satisfying unmet needs in the community.
b. Unduplicated by other state-supported agencies.
c. Complementary or supplemental to other state-funded programs.
d. Providing child care for school-age children before school, after school, or during the summer or other breaks in the course of the school year.
(5) Have written accounting and budget procedures that are available upon the request of the Controller General.
(6) Submit all of the following with the required application for a grant-in-aid:
a. If the organization received a grant-in-aid for the current fiscal year, documentation of community support in the form of testimonials from Delaware residents who have benefited from the services provided using that grant-in-aid. An organization may not submit a testimonial in support of an application if the organization submitted that testimonial in support of a previous grant-in-aid application.
b. Documentation of the organization’s ability to fund at least half of its operations through sources of revenue other than state funding. For purposes of this paragraph (b)(6)b., state funding includes a contract or an appropriation, including a grant-in-aid, but does not include payments from Medicaid.
c.1. A copy of the organization’s most recent audit. The audit submitted under this paragraph (b)(6)c.1. must be issued within the previous 3 years and completed by either a Certified Public Accountant or a Public Accountant.
2. Notwithstanding paragraph (b)(6)c.1. of this section, an organization that received a grant-in-aid for the current fiscal year that is less than $250,000 may submit a copy of the organization’s most recent review or compilation of financial statements if that review or compilation was completed within the previous 3 years by either a Certified Public Accountant or a Public Accountant.
3. If an organization that received a grant-in-aid for the current fiscal year that is less than $250,000 cannot provide either an audit or a review or compilation of financial statements under paragraphs (b)(6)c.1. through (b)(6)c.2. of this section, the organization must submit a statement of the circumstances related to the reason it cannot comply with either requirement and must submit any available supporting documentation, including all of the following: profit and loss statements, budget materials, bank statements, and IRS Form 990.
d. A signed certification that each member of the organization’s Board has received a copy of the organization’s conflict of interest policy and either of the following:
1. A statement that all members of the organization’s Board have attested to being in compliance with the organization’s conflict of interest policy.
2. A list of potential or perceived conflicts that Board members have under the organization’s conflict of interest policy and a statement that the members of the organization’s Board have attested to either being in compliance with the organization’s conflict of interest policy or to disclosing all potential or perceived conflicts.
e.1. A certification that the organization is not currently, and has never been, the defendant in any litigation regarding the misuse of money received from this State or grant money received from any source.
2. If the organization cannot provide the certification under paragraph (b)(6)e.1. of this section, the organization must disclose all actions against the organization for the misuse of money received from this State or under a grant, including all of the following for each action: the court caption, status of the case, and if applicable, the disposition and date thereof.
”.
FURTHER AMEND House Bill No. 190, as amended, by deleting lines 34 through 58 in their entirety and inserting in lieu thereof the following:
“
(7) Providing child care that does not meet the requirements under paragraph (b)(4)d. of this section.
(d) Money appropriated under a grant-in-aid is paid to an organization in quarterly installments.
(e) The Controller General may contract for or conduct a performance or financial audit of the receipt, handling, or expenditure of a grant-in-aid by an organization that is not a state agency. An audit under this subsection may not include funds other than the money appropriated under a grant-in-aid unless the money appropriated under a grant-in-aid is commingled with other funds in a manner that requires those other funds to also be audited.
(f) The Controller General may delay or withhold a grant-in-aid installment payment if the organization does any of the following:
(1) If required, fails to submit a quarterly statement of expenditures under the grant-in-aid.
(2) Spends money from the grant-in-aid for purposes that were not included under the appropriation by the General Assembly.
(3) Spends money for a purpose prohibited under subsection (c) of this section.
(4) Ceases operation or is not providing some or all of the programs or services for which the grant-in-aid was appropriated.
(g) An organization must repay money dispersed under a grant-in-aid if the Controller General, in consultation with the Chair and Vice-Chair of the Joint Finance Committee, determines that the organization misused the money or failed to provide some or all of the programs or services for which the grant-in-aid was appropriated.
”.
FURTHER AMEND House Bill No. 190, as amended, on line 59 by deleting “January 1 following its enactment into law.” as it appears therein and inserting in lieu thereof “July 1, 2028.”.
FURTHER AMEND House Bill No. 190, as amended, by deleting lines 60 through 62 in their entirety.
SYNOPSIS
This Amendment revises the eligibility requirements for organizations and programs to receive a grant-in-aid and codifies oversight and accountability mechanisms that apply to recipients of grants-in-aid. This Amendment also eliminates the creation of the Grant-in-Aid Subcommittee and changes the effective date of this Act from January 1, 2027, to July 1, 2028.
This Amendment requires that an organization must do all of the following to receive a grant-in-aid:
• Adopt a conflict of interest policy for members of the organization’s Board of Directors (Board) and a whistleblower policy for employees and volunteers, including Board members. The organization must submit a signed certification that each member of the Board has received a copy of this conflict of interest policy with either a statement that all members of the Board have attested to being in compliance or a list of potential or perceived conflicts.
• Submit a copy of the organization’s most recent audit and requires that the organization’s accounting and budget procedures be in writing and available upon request. It allows an organization that received a grant-in-aid in an amount under $250,000 for the current fiscal year to submit a copy of the organization’s most recent review or compilation of financial statements instead of an audit and if the organization cannot provide either an audit or a review or compilation of financial statements, to provide an explanation and other supporting documentation.
• Provide testimonials from Delaware residents to document community support, if the organization received a grant-in-aid during the current fiscal year.
This Amendment revises eligibility requirements for a program to receive a grant-in-aid as follows:
• Clarifies that programs are eligible if they are complementary or supplemental to other programs.
• Makes programs that provide child care for school-age children eligible.
• Expands the requirement that a program fund at least half of its operations from sources of revenue other than a grant-in-aid to include any funding from this State other than Medicaid payments.
This Amendment strengthens oversight and accountability of grants-in-aid by codifying the authority of the Controller General to do all of the following:
• Contract for or conduct a performance or financial audit of the receipt, handling, or expenditure of a grant-in-aid by an organization that is not a state agency.
• Delay or withhold an installment payment if an organization misspends a grant-in-aid, ceases operation, or is not providing the programs or services for which the grant-in-aid was appropriated.
• Require that an organization repay money dispersed under a grant-in-aid after determining, in consultation with the Chair and Vice-Chair of the Joint Finance Committee, that the organization misused grant-in-aid money.
This Amendment also makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual.
Author: Senator Paradee