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to comply with the above audit requirements will constitute a violation of this contract and <br /> may result in the withholding of future payments. <br /> The Subrecipient hereby agrees to have an annual agency audit conducted in accordance <br /> with current City policy concerning subrecipient audits and The UAR. <br /> A. Subrecipients that expend $750,000 or more in total Federal financial assistance <br /> in a year must obtain an independent audit in accordance with the UAR. The <br /> computation of the total of such assistance includes all Federal funds received by <br /> the entire entity, and not just the department or division receiving the CDBG <br /> funding. For purposes of determining the amount of Federal assistance expended, <br /> all Federal assistance shall be considered, including that which is received directly <br /> from a Federal agency, or passed through a state or local government, or through <br /> non-profit organizations, or any combination thereof. <br /> B. Subrecipient will furnish the City with a balance sheet and income statement <br /> (financial statement) prepared by a Certified Public Accountant ("CPA") for its <br /> activities during the term of the Agreement at the Subrecipient's expense. <br /> Subrecipient will provide a written copy of the financial statement to the City within <br /> nine (9) months from the date of Subrecipient's fiscal year end and not more than <br /> 30 days after the Subrecipient's receipt of the financial statement. Financial <br /> Statements required under the terms of this agreement will consist of: <br /> a. CPA preparation of financial records is not required if the Subrecipient has total <br /> assets of $15,000 or less in value; <br /> b. A compiled financial statement is required if Subrecipient has total assets <br /> greater than $15,000 and less than or equal to $100,000 in value. <br /> c. A reviewed financial statement is required if Subrecipient has total assets <br /> greater than $100,000 and less than or equal to $200,000 in value. <br /> d. An audited financial statement is required if Subrecipient has total assets of <br /> more than $200,000 in value. (In an "Audited" statement a CPA provides an <br /> in-depth study of the records, organizes them into a statement, and issues an <br /> opinion to their validity.) <br /> e. For the purposes of this agreement, the term "total assets" is defined to mean <br /> the total amount of liquid assets that is documented to be available to the <br /> Subrecipient at the time the funding is approved. <br /> C. Reporting and Payment Procedures <br /> 1. Program Income <br /> The Subrecipient shall report all program income (as defined at 24 CFR 570.500(a)) <br /> generated by activities carried out with CDBG funds made available under this contract in <br /> the form, content, and frequency as required by the City. <br /> The use of program income by the Subrecipient shall comply with the requirements set <br /> forth at 24 CFR 570.504. By way of further limitations, the Subrecipient may use such <br /> income during the contract period for activities permitted under this contract and shall <br /> 2016 Template Approved by Council 9/20/16 <br /> Page 9 <br />