+-----------+--------------------------------+----+------------------+
| **Guide   |                                |    |                  |
| for       |                                |    |                  |
| Review of |                                |    |                  |
| Closeout  |                                |    |                  |
| System**  |                                |    |                  |
+-----------+--------------------------------+----+------------------+
| **Name of |                                |    |                  |
| Program   |                                |    |                  |
| Parti     |                                |    |                  |
| cipant:** |                                |    |                  |
|           |                                |    |                  |
| **     ** |                                |    |                  |
+-----------+--------------------------------+----+------------------+
| **Staff   |                                |    |                  |
| Con       |                                |    |                  |
| sulted:** |                                |    |                  |
|           |                                |    |                  |
| **     ** |                                |    |                  |
+-----------+--------------------------------+----+------------------+
| **Name(s) |                                | ** |                  |
| of        |                                | Da |                  |
| Revi      |                                | te |                  |
| ewer(s)** |                                | ** |                  |
+-----------+--------------------------------+----+------------------+

**NOTE:** All questions that address requirements contain the citation
for the source of the requirement (statute, regulation, NOFA, or grant
agreement). If the requirement is not met, HUD must make a finding of
noncompliance. All other questions (questions that do not contain the
citation for the requirement) do not address requirements, but are
included to assist the reviewer in understanding the participant\'s
program more fully and/or to identify issues that, if not properly
addressed, could result in deficient performance. Negative conclusions
to these questions may result in a \"concern\" being raised, but not a
**\"finding.**\"

**[Instructions]{.underline}:** This Exhibit is designed to evaluate the
state's compliance with the required elements of a closeout system.
States are required under 24 CFR 570.489(d) to have fiscal control and
accounting procedures. States may adopt the provisions of 24 CFR Part
85, or they may use their own state-established provisions. As part of
its fiscal controls, and as required by 24 CFR 570.489(i), a state
should have closeout procedures which will ensure that all applicable
administrative actions and all required work have been completed by the
recipient and the state. Where noncompliance is related to the lack of
documentation, the reviewer may also need to cite 24 CFR 570.493(b). Two
separate worksheets are attached to the end of this Exhibit to be
completed if time permits and/or any issues that would indicate the need
to sample state file documentation to test the state's closeout
procedures. Worksheet I is designed to review a sample of state grant
recipient files from a given year. Worksheet II is designed to summarize
data for all of the grant years being monitored.

**[Questions:]{.underline}**

1\.

+------------------------------------------------------------+---------+
| Does the state have standards for determining when grants  |         |
| to units of general local government are considered        |         |
| completed and ready to be closed out? (If the response is  |         |
| "yes," include a description of the state standards in     |         |
| your response below.)                                      |         |
|                                                            |         |
| \[24 CFR 570.489(i)\]                                      |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

2\.

+------------------------------------------------------------+---------+
| Does the state have an established system for submission   |         |
| of financial and performance reports after state grant     |         |
| recipients have completed all activities? (If the response |         |
| is "yes," include a description of the state's system in   |         |
| your response below.)                                      |         |
|                                                            |         |
| \[24 CFR 570.489(d)\]                                      |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

3\.

  ------------------------------------------------------------- ---------
  Are the financial and performance report submission deadlines 
  set by the state reasonable, given either the nature of the   
  state's program design or the type of activities funded?      
  (Describe the deadlines or the state's process for setting    
  deadlines and the factors considered as support for your      
  conclusion below.)                                            

  **Describe Basis for Conclusion:**                            

                                                                
  ------------------------------------------------------------- ---------

4\.

+------------------------------------------------------------+---------+
| Does the state have a system to ascertain when project or  |         |
| activity completions have occurred? (If the response is    |         |
| "yes," include a description of the state's system in your |         |
| response below.)                                           |         |
|                                                            |         |
| \[24 CFR 570.489(i)\]                                      |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

5\.

  ------------------------------------------------------------- ---------
  Does the system have a means to follow up when reports are    
  not submitted?                                                

  **Describe Basis for Conclusion:**                            

                                                                
  ------------------------------------------------------------- ---------

6\.

+------------------------------------------------------------+---------+
| Does a system exist to determine if unencumbered cash is   |         |
| available?                                                 |         |
|                                                            |         |
| \[24 CFR 570.489(d)\]                                      |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

7\.

  ------------------------------------------------------------- ---------
  Is there a means to ensure that state grant recipients return 
  unencumbered cash? \[24 CFR 570.489(d)\]                      

  **Describe Basis for Conclusion:**                            

                                                                
  ------------------------------------------------------------- ---------

8\.

+------------------------------------------------------------+---------+
| Is there a system to track receipt of unencumbered cash to |         |
| ensure it is received and properly accounted for?          |         |
|                                                            |         |
| \[24 CFR 570.489(d)\]                                      |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

9\.

+------------------------------------------------------------+---------+
| a\. Is there a method for systematic settlement of any     |         |
| issues that arise during the closeout process?             |         |
|                                                            |         |
| \[24 CFR 570.489(i)\]                                      |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

  ---------------------------------------------------------- ------------
  b\. Is the method described and made available to          
  recipients?                                                

  **Describe Basis for Conclusion:**                         

                                                             
  ---------------------------------------------------------- ------------

10\.

+------------------------------------------------------------+---------+
| Have criteria been established for deciding when grants    |         |
| will be terminated for both of the following situations:   |         |
|                                                            |         |
| a\. cause?                                                 |         |
|                                                            |         |
| b\. convenience?                                           |         |
|                                                            |         |
| \[24 CFR 570.489(i)\]                                      |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

11\.

+------------------------------------------------------------+---------+
| Have termination procedures been established for both of   |         |
| the following situations:                                  |         |
|                                                            |         |
| a.  cause?                                                 |         |
|                                                            |         |
| b.  convenience?                                           |         |
|                                                            |         |
|     \[24 CFR 570.489(i)\]                                  |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

12\.

+------------------------------------------------------------+---------+
| Have procedures been established to notify recipients of   |         |
| proposed termination actions for both of the following     |         |
| situations?                                                |         |
|                                                            |         |
| a\. cause?                                                 |         |
|                                                            |         |
| b\. convenience?                                           |         |
|                                                            |         |
| \[24 CFR 570.489(i)\]                                      |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Each Conclusion:**                    |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

13\.

+----------------------------------------------------------+-----------+
| Based on the results of your review, including any       |           |
| sampled files, do the state's procedures appear to be    |           |
| implemented in both of the following situations?         |           |
|                                                          |           |
| a\. cause?                                               |           |
|                                                          |           |
| b\. convenience?                                         |           |
|                                                          |           |
| \[24 CFR 570.489(i)\]                                    |           |
+----------------------------------------------------------+-----------+
| **Describe Basis for Each Conclusion:**                  |           |
+----------------------------------------------------------+-----------+
|                                                          |           |
+----------------------------------------------------------+-----------+

14\.

+------------------------------------------------------------+---------+
| a\. Is there a system of remedies for noncompliance?       |         |
|                                                            |         |
| \[24 570.492\]                                             |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

+----------------------------------------------------------+-----------+
| b\. If the answer to "a" above is "yes," are the         |           |
| remedies being used?                                     |           |
|                                                          |           |
| \[24 570.492\]                                           |           |
+----------------------------------------------------------+-----------+
| **Describe Basis for Conclusion:**                       |           |
+----------------------------------------------------------+-----------+
|                                                          |           |
+----------------------------------------------------------+-----------+

15\.

+------------------------------------------------------------+---------+
| Is CDBG-funded property acquired by recipients accounted   |         |
| for?                                                       |         |
|                                                            |         |
| \[24 CFR 570.489(k)\]                                      |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

16\.

+------------------------------------------------------------+---------+
| Is there a means to track overall progress of recipients?  |         |
| (If the answer is "yes," include in your response below    |         |
| how information is gathered on recipient activities.)      |         |
|                                                            |         |
| \[24 CFR 570.492\]                                         |         |
+------------------------------------------------------------+---------+
| **Describe Basis For Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

17\.

+------------------------------------------------------------+---------+
| Is there a means to identify when remedial actions should  |         |
| be taken?                                                  |         |
|                                                            |         |
| \[24 CFR 570.492\]                                         |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

18\.

+------------------------------------------------------------+---------+
| Is there a means to ensure that recipients are carrying    |         |
| out activities in a timely manner?                         |         |
|                                                            |         |
| \[24 CFR 570.492\]                                         |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

19\.

  ------------------------------------------------------------- ---------
  Does the state issue "conditional closeouts" subject to       
  completion (by the recipient) of certain pending or follow-up 
  actions? (If the answer is "yes," include in your response    
  below the types of pending actions that conditional closeouts 
  cover.)                                                       

  **Describe Basis for Conclusion:**                            

                                                                
  ------------------------------------------------------------- ---------

20\.

  ---------------------------------------------------------- ------------
  If submission of a final audit is a closeout condition,    
  does the state retain the right to recover funds as        
  appropriate based on the final audit?                      

  **Describe Basis for Conclusion:**                         

                                                             
  ---------------------------------------------------------- ------------

21\.

+------------------------------------------------------------+---------+
| Based on the results of your review, has the state         |         |
| established requirements and taken action to ensure the    |         |
| timely closeout of its grants to units of general local    |         |
| government?                                                |         |
|                                                            |         |
| \[24 CFR 570.489(i)\]                                      |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

+-----------+--------------------------------+----+------------------+
| **        |                                |    |                  |
| Worksheet |                                |    |                  |
| I:        |                                |    |                  |
| Closeout  |                                |    |                  |
| System    |                                |    |                  |
| Program   |                                |    |                  |
| Year      |                                |    |                  |
| Recipient |                                |    |                  |
| A         |                                |    |                  |
| nalysis** |                                |    |                  |
+-----------+--------------------------------+----+------------------+
| **Name of |                                |    |                  |
| Program   |                                |    |                  |
| Parti     |                                |    |                  |
| cipant:** |                                |    |                  |
|           |                                |    |                  |
|           |                                |    |                  |
+-----------+--------------------------------+----+------------------+
| **Staff   |                                |    |                  |
| Con       |                                |    |                  |
| sulted:** |                                |    |                  |
|           |                                |    |                  |
|           |                                |    |                  |
+-----------+--------------------------------+----+------------------+
| **Name(s) |                                | ** |                  |
| of        |                                | Da |                  |
| Revi      |                                | te |                  |
| ewer(s)** |                                | ** |                  |
+-----------+--------------------------------+----+------------------+

**[Instructions]{.underline}:** This worksheet is available to
supplement the information contained in the "Guide for Review of
Closeout System." When subgrant/project files are reviewed to confirm
the implementation of the state's system, select a sample within a
specific program year and complete the columns below \[insert recipient
name/project identification in column (a); dates in columns (b) through
(f); and "Yes" or "No," as appropriate, in column (g).\] Provide
responses to support conclusions and explain delays in complying with
the state established procedures at the end of this worksheet.

**Year:** [     ]{.underline}**\_\_**

+---+-----------+-----+-------+-------+-------+-----------+--------+
|   | \(a\)     | \(  | \(c\) | \(d\) | \(e\) | \(f\)     | \(g\)  |
|   |           | b\) |       |       |       |           |        |
+---+-----------+-----+-------+-------+-------+-----------+--------+
|   | **        | **D | *     | *     | *     | **Co      | **Nati |
|   | Recipient | ate | *Date | *Date | *Date | nditional | onal** |
|   | and       | A   | 90%   | 100%  | Final | C         |        |
|   | Project   | ppr | D     | D     | R     | loseout** | **Obj  |
|   | Name**    | ove | rawnd | rawnd | eport |           | ective |
|   |           | d** | own** | own** | Recei | **(wit    | Met:** |
|   |           |     |       |       | ved** | h/without |        |
|   |           |     |       |       |       | audit)**  | **Ye   |
|   |           |     |       |       |       |           | s/No** |
+---+-----------+-----+-------+-------+-------+-----------+--------+
| 1 |           |     |       |       |       |           |        |
| \ |           |     |       |       |       |           |        |
| . |           |     |       |       |       |           |        |
+---+-----------+-----+-------+-------+-------+-----------+--------+
| 2 |           |     |       |       |       |           |        |
| \ |           |     |       |       |       |           |        |
| . |           |     |       |       |       |           |        |
+---+-----------+-----+-------+-------+-------+-----------+--------+
| 3 |           |     |       |       |       |           |        |
| \ |           |     |       |       |       |           |        |
| . |           |     |       |       |       |           |        |
+---+-----------+-----+-------+-------+-------+-----------+--------+
| 4 |           |     |       |       |       |           |        |
| \ |           |     |       |       |       |           |        |
| . |           |     |       |       |       |           |        |
+---+-----------+-----+-------+-------+-------+-----------+--------+
| 5 |           |     |       |       |       |           |        |
| \ |           |     |       |       |       |           |        |
| . |           |     |       |       |       |           |        |
+---+-----------+-----+-------+-------+-------+-----------+--------+
| 6 |           |     |       |       |       |           |        |
| \ |           |     |       |       |       |           |        |
| . |           |     |       |       |       |           |        |
+---+-----------+-----+-------+-------+-------+-----------+--------+
|   | \(a\)     | \(  | \(c\) | \(d\) | \(e\) | \(f\)     | \(g\)  |
|   |           | b\) |       |       |       |           |        |
+---+-----------+-----+-------+-------+-------+-----------+--------+
|   | **        | **D | *     | *     | *     | **Co      | **Nati |
|   | Recipient | ate | *Date | *Date | *Date | nditional | onal** |
|   | and       | A   | 90%   | 100%  | Final | C         |        |
|   | Project   | ppr | D     | D     | R     | loseout** | **Obj  |
|   | Name**    | ove | rawnd | rawnd | eport |           | ective |
|   |           | d** | own** | own** | Recei | **(wit    | Met:** |
|   |           |     |       |       | ved** | h/without |        |
|   |           |     |       |       |       | audit)**  | **Ye   |
|   |           |     |       |       |       |           | s/No** |
+---+-----------+-----+-------+-------+-------+-----------+--------+
| 7 |           |     |       |       |       |           |        |
| \ |           |     |       |       |       |           |        |
| . |           |     |       |       |       |           |        |
+---+-----------+-----+-------+-------+-------+-----------+--------+
| 8 |           |     |       |       |       |           |        |
| \ |           |     |       |       |       |           |        |
| . |           |     |       |       |       |           |        |
+---+-----------+-----+-------+-------+-------+-----------+--------+
| 9 |           |     |       |       |       |           |        |
| \ |           |     |       |       |       |           |        |
| . |           |     |       |       |       |           |        |
+---+-----------+-----+-------+-------+-------+-----------+--------+
| 1 |           |     |       |       |       |           |        |
| 0 |           |     |       |       |       |           |        |
| \ |           |     |       |       |       |           |        |
| . |           |     |       |       |       |           |        |
+---+-----------+-----+-------+-------+-------+-----------+--------+

+-----------------------------------------------------------------------+
| **[CONCLUSIONS:]{.underline}**                                        |
|                                                                       |
|                                                                       |
+-----------------------------------------------------------------------+

+-----------+--------------------------------+----+------------------+
| **        |                                |    |                  |
| Worksheet |                                |    |                  |
| II:       |                                |    |                  |
| Closeout  |                                |    |                  |
| System    |                                |    |                  |
| Analysis  |                                |    |                  |
| by        |                                |    |                  |
| Program   |                                |    |                  |
| Years**   |                                |    |                  |
+-----------+--------------------------------+----+------------------+
| **Name of |                                |    |                  |
| Program   |                                |    |                  |
| Parti     |                                |    |                  |
| cipant:** |                                |    |                  |
|           |                                |    |                  |
|           |                                |    |                  |
+-----------+--------------------------------+----+------------------+
| **Staff   |                                |    |                  |
| Con       |                                |    |                  |
| sulted:** |                                |    |                  |
|           |                                |    |                  |
|           |                                |    |                  |
+-----------+--------------------------------+----+------------------+
| **Name(s) |                                | ** |                  |
| of        |                                | Da |                  |
| Revi      |                                | te |                  |
| ewer(s)** |                                | ** |                  |
+-----------+--------------------------------+----+------------------+

**[Instructions]{.underline}:** This worksheet is available to
supplement the information contained in the "Guide for Review of
Closeout System." When grant years are reviewed to provide summary
results from the implementation of the state's system, identify a sample
or series of grant years. Insert the year in column (a). Enter the
number of state grants from the specified year to units of local
government that meet the heading criteria in columns (b) through (f).
Provide your analysis of the results at the end of this worksheet.

  -------- ----------------- ------------- ------------- ----------- -------------
  \(a\)    \(b\)             \(c\)         \(d\)         \(e\)       \(f\)

  **FY**   **Number of       **Number 90%  **Number 100% **Number    **Number
           Closed Grants     Drawndown**   Drawndown**   Closed With Closed
           Approved**                                    an Audit**  Without an
                                                                     Audit**

  19                                                                      

  19                                                                      

  19                                                                      

  19                                                                      

  19                                                                      

  19                                                                      

  20                                                                      

  \(a\)    \(b\)             \(c\)         \(d\)         \(e\)       \(f\)

  **FY**   **Number of       **Number 90%  **Number 100% **Number    **Number
           Closed Grants     Drawndown**   Drawndown**   Closed With Closed
           Approved**                                    an Audit**  Without an
                                                                     Audit**

  20                                                                      

  20                                                                      

  20                                                                      

  20                                                                      

  20                                                                      
  -------- ----------------- ------------- ------------- ----------- -------------

+-----------------------------------------------------------------------+
| **[CONCLUSIONS:]{.underline}**                                        |
|                                                                       |
|                                                                       |
+-----------------------------------------------------------------------+