The Illinois Grant Funds Recovery Act (30 ILCS 705), or GFRA, is an Illinois statute that applies to all grants and provides a recovery approach for state agencies, such as the Department of Commerce, for any funds misspent or improperly held.  The GFRA states that grant funds may not be used except for those purposes which the funding agency and grantee agree on.  Those purposes are identified in the Grant Agreement.  Grantees must return to the Department of Commerce, within forty five days of the grant period, any grant funds not expended or legally obligated by the end of the grant period.

The GFRA authorizes the Department and others, including the Attorney General, to take action to recover any grant funds that have been misspent, improperly held, or not expended or legally obligated by the end of the grant period.  The GFRA represents the final stage of the noncompliance process, at which point the Office of General Counsel seeks legal remedy to resolve issues with the grantee.