Playing by the Rules: A Handbook for CDBG ... - City of El Cajon
Playing by the Rules: A Handbook for CDBG ... - City of El Cajon
Playing by the Rules: A Handbook for CDBG ... - City of El Cajon
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<strong>Playing</strong> <strong>by</strong> <strong>the</strong> <strong>Rules</strong><br />
A <strong>Handbook</strong> <strong>for</strong> <strong>CDBG</strong> Subrecipients on Administrative Systems<br />
8.1 Overview<br />
The closeout <strong>of</strong> a Subrecipient Agreement is <strong>the</strong> process <strong>by</strong> which <strong>the</strong> grantee determines that all<br />
required work under <strong>the</strong> Agreement has been completed. This means that all financial,<br />
administrative, and per<strong>for</strong>mance issues related to <strong>the</strong> activities undertaken <strong>by</strong> <strong>the</strong> subrecipient<br />
have been resolved to <strong>the</strong> satisfaction <strong>of</strong> both <strong>the</strong> grantee and <strong>the</strong> subrecipient.<br />
The Federal regulations applicable to <strong>the</strong> <strong>CDBG</strong> program include few specific requirements<br />
relative to <strong>the</strong> closeout <strong>of</strong> subrecipient projects. The lack <strong>of</strong> specific Federal requirements means<br />
that <strong>the</strong>re will be some variation in closeout procedures among communities. None<strong>the</strong>less, many<br />
grantees, through <strong>the</strong> incorporation <strong>of</strong> appropriate language in <strong>the</strong>ir Subrecipient Agreements,<br />
require <strong>the</strong>ir subrecipients to follow closeout procedures that are similar to <strong>the</strong> ones that <strong>the</strong><br />
grantees <strong>the</strong>mselves must follow pursuant to 24 CFR 570.509. The following section describes<br />
<strong>the</strong> general process detailed in 24 CFR 570.509 that is <strong>of</strong>ten used <strong>by</strong> grantees as a standard <strong>for</strong><br />
<strong>the</strong> closeout <strong>of</strong> subrecipients.<br />
8.2 Closeout Procedures<br />
A grantee will usually initiate closeout procedures relative to a subrecipient when:<br />
• All costs to be paid with <strong>CDBG</strong> funds have been incurred, with <strong>the</strong> exception <strong>of</strong><br />
closeout costs (e.g., audit) or contingent liability costs.<br />
• The work to be financed with <strong>CDBG</strong> has been completed, including activities<br />
financed through escrow accounts, loan guarantees, or similar mechanisms.<br />
• The o<strong>the</strong>r responsibilities <strong>of</strong> <strong>the</strong> subrecipient under its agreement with <strong>the</strong> grantee<br />
have been met, or <strong>the</strong> grantee feels that <strong>the</strong>re is no fur<strong>the</strong>r benefit in keeping <strong>the</strong><br />
Agreement open <strong>for</strong> <strong>the</strong> purpose <strong>of</strong> securing per<strong>for</strong>mance.<br />
When <strong>the</strong> grantee has determined that <strong>the</strong>se criteria have been met, or upon <strong>the</strong> expiration or<br />
termination <strong>of</strong> <strong>the</strong> Subrecipient Agreement, <strong>the</strong> grantee usually will require <strong>the</strong> subrecipient to<br />
provide final versions <strong>of</strong> all financial, per<strong>for</strong>mance, and o<strong>the</strong>r reports that were a condition <strong>of</strong> <strong>the</strong><br />
award. These reports may include but are not limited to:<br />
• A final per<strong>for</strong>mance or progress report.<br />
• A financial status report (including all program income).<br />
• A final request <strong>for</strong> payment.<br />
Chapter 8–3