Res 2014-103/Approving a standard form of Subrecipient Agreement for the award of Community Development Block Grant Funds

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A. Subrecipients that expend $500,000 (Increased to $750,000 as of January 1, 2015 as per 2 CFR 200.110(b)) or more in total Federal financial assistance in a year must obtain an independent audit in accordance with the Single Audit Act of 1984 and OMB Circular A -133 as referenced at 24 CFR 84.26 and 85.26. The computation of the total of such assistance includes all Federal funds received by the entire entity, and not just the department or division receiving the CDBG funding. For purposes of determining the amount of Federal assistance expended, all Federal assistance shall be considered, including that which is received directly from a Federal agency, or passed through a state or local government, or through non - profit organizations, or any combination thereof. B. Subrecipient will furnish the City with a balance sheet and income statement (financial statement) prepared by a Certified Public Accountant ( "CPA ") for its activities during the term of the Agreement at the Subrecipient's expense. Subrecipient will provide a written copy of the financial statement to the City within 90 days nine (9) months from the date of Subrecipient's fiscal year end and not more than 30 days after the Subrecipient's receipt of the financial statement. Financial Statements required under the terms of this agreement will consist of: a. CPA preparation of financial records is not required if the Subrecipient has total assets of $15,000 or less in value; b. A compiled financial statement is required if Subrecipient has total assets greater than $15,000 and less than or equal to $100,000 in value. c. A reviewed financial statement is required if Subrecipient has total assets greater than $100,000 and less than or equal to $200,000 in value. d. An audited financial statement is required if Subrecipient has total assets of more than $200,000 in value. (In an "Audited" statement a CPA provides an in -depth study of the records, organizes them into a statement, and issues an opinion to their validity.) e. For the purposes of this agreement, the term "total assets" is defined to mean the total amount of liquid assets that is documented to be available to the Subrecipient at the time the funding is approved. C. Reporting and Payment Procedures Program Income The Subrecipient shall report all program income (as defined at 24 CFR 570.500(a)) generated by activities carried out with CDBG funds made available under this contract in the form, content, and frequency as required by the City. The use of program income by the Subrecipient shall comply with the requirements set forth at 24 CFR 570.504. By way of further limitations, the Subrecipient may use such income during the contract period for activities permitted under this contract and shall reduce requests for additional funds by the amount of any such program income balances on hand. All unexpended program income shall be returned to the City at the Format approved 2014 Page 9