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a. CPA preparation of financial records is not required if the Subrecipient has <br />total 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 />C. Reporting and Payment Procedures <br />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 <br />in 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 />reduce requests for additional funds by the amount of any such program income <br />balances on hand. All unexpended program income shall be returned to the City at the <br />end of the contract period. Any interest earned on cash advances from the U.S. <br />Treasury and from funds held in a revolving fund account is not program income and <br />shall be remitted promptly to the City. <br />2. Indirect Costs <br />If indirect costs are charged, the Subrecipient will develop an indirect cost allocation plan <br />for determining the appropriate Subrecipient's share of administrative costs and shall <br />submit such plan to the City for approval, in a form specified by the City. <br />3. Payment Procedures <br />The City will pay to the Subrecipient funds available under this Agreement based upon <br />information submitted by the Subrecipient and consistent with any approved budget and <br />City policy concerning payments. With the exception of certain advances, payments will <br />be made for eligible expenses actually incurred by the Subrecipient, and not to exceed <br />actual cash requirements. Payments will be adjusted by the City in accordance with <br />advance fund and program income balances available in Subrecipient accounts. In <br />addition, the City reserves the right to liquidate funds available under this contract for <br />costs incurred by the City on behalf of the Subrecipient. <br />4. Progress Reports <br />Format approved 2 012 Page 9 <br />