+-----------+--------------------------------+-----+------------------+
| **Guide   |                                |     |                  |
| for       |                                |     |                  |
| Review of |                                |     |                  |
| Y         |                                |     |                  |
| outhbuild |                                |     |                  |
| Financial |                                |     |                  |
| Man       |                                |     |                  |
| agement** |                                |     |                  |
+-----------+--------------------------------+-----+------------------+
| **Name of |                                |     |                  |
| Grant     |                                |     |                  |
| Rec       |                                |     |                  |
| ipient:** |                                |     |                  |
|           |                                |     |                  |
|           |                                |     |                  |
+-----------+--------------------------------+-----+------------------+
| **Staff   |                                |     |                  |
| Consulted |                                |     |                  |
| (Name and |                                |     |                  |
| Title):** |                                |     |                  |
|           |                                |     |                  |
|           |                                |     |                  |
+-----------+--------------------------------+-----+------------------+
| **Grant   |                                |     |                  |
| Number:** |                                |     |                  |
|           |                                |     |                  |
|           |                                |     |                  |
+-----------+--------------------------------+-----+------------------+
| **Name(s) |                                | **D |                  |
| of        |                                | ate |                  |
| Revie     |                                | :** |                  |
| wer(s):** |                                |     |                  |
+-----------+--------------------------------+-----+------------------+

**NOTE:** All questions that address requirements contain the citation
for the source of the requirement (statute, regulation, NOFA, or grant
agreement). Except for question 49, 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 to be used to monitor
the Youthbuild grant recipient's conformity to financial management
requirements \[see 24 CFR 585.401 and 585.501(a)\]. The exhibit is
divided into 8 sections covering: Financial Management System; Advances;
the SF-272, Federal Cash Transactions Report; Internal Controls;
Accuracy of Report Information; Salaries and Wages; Indirect Costs; and
OMB Circular A-133. If the Youthbuild grant recipient is a governmental
unit, its financial management system is to be reviewed for compliance
with 24 CFR Part 85, "Administrative Requirements for Grants and
Cooperative Agreements to State, Local, and Federally Recognized Indian
Tribal Governments" and OMB Circular A-87, "Cost Principles Applicable
to Grants, Contracts, and Other Agreements with State and Local
Governments." Financial management systems for grant recipients which
are nonprofit organizations are to be monitored using 24 CFR Part 84,
"Uniform Administrative Requirements for Institutions of Higher
Education, Hospitals, and Other Nonprofit Organizations" and OMB
Circular A-122, "Cost Principles Applicable to Grants, Contracts and
Other Agreements with Nonprofit Institutions." The HUD reviewer should
obtain a Line of Credit Control System (LOCCS) drawdown voucher report
and randomly select a sample for review. A Worksheet attached to this
Exhibit (Attachment I) is designed to supplement the questions on the
grant recipient's OMB Circular A-133 audit management system in Section
H.

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

A. [Financial Management System]{.underline}

1\.

+------------------------------------------------------------+---------+
| Does the Youthbuild grant recipient record amounts         |         |
| budgeted for eligible activities as specified in the       |         |
| applicable grant agreement?                                |         |
|                                                            |         |
| \[24 CFR 84.21(b)(4) or 24 CFR 85.20; 24 CFR 585.401\]     |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

2\.

+------------------------------------------------------------+---------+
| From the sample of vouchers, is the information consistent |         |
| with the information reported in Form HUD-40201, Parts 5   |         |
| and 7 (as applicable) and LOCCS?                           |         |
|                                                            |         |
| \[24 CFR 84.21(b)(4) or 24 CFR 85.20; 24 CFR 585.401\]     |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

3\.

+------------------------------------------------------------+---------+
| Does the Youthbuild grant recipient record an encumbrance  |         |
| when contracts are executed, purchase orders issued, etc.? |         |
| **NOTE:** If encumbrances are not recorded, the grant      |         |
| recipient should maintain information on obligations that  |         |
| is readily accessible.                                     |         |
|                                                            |         |
| \[24 CFR 84.21(b)(2) or 24 CFR 85.20; 24 CFR 585.401\]     |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

4\.

+------------------------------------------------------------+---------+
| Based upon a selected sample of vouchers, are expenditures |         |
| supported by invoices, contracts, or purchase orders,      |         |
| etc.?                                                      |         |
|                                                            |         |
| \[24 CFR 84**.**21(b)(7) or 24 CFR 85.20\]                 |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

5\.

  ------------------------------------------------------------- ---------
  a\. Does the grant recipient receive funding from more than   
  one source?                                                   

  **Describe Basis for Conclusion:**                            

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

+-----------------------------------------------------------------------+
| b\. If the answer to "a" above is "yes," are grant recipient wages    |
| chargeable to more than one grant properly supported by time          |
| distribution records?                                                 |
|                                                                       |
| \[24 CFR 84.21(b)(7) or 24 CFR 85.20; 24 CFR 585.304 and 24 CFR       |
| 585.401\]                                                             |
+-----------------------------------------------------------------------+
| **Describe Basis for Conclusion:**                                    |
+-----------------------------------------------------------------------+
|                                                                       |
+-----------------------------------------------------------------------+

6\.

+------------------------------------------------------------+---------+
| Were reviewed expenditures eligible under the Youthbuild   |         |
| program?                                                   |         |
|                                                            |         |
| \[24 CFR 84.21(b)(7) or 24 CFR 85.22; 24 CFR 585.305 and   |         |
| 24 CFR 585.401\]                                           |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

7\.

+------------------------------------------------------------+---------+
| Does the information reported to HUD for the period        |         |
| reviewed reconcile with the grant recipient's official     |         |
| accounting records?                                        |         |
|                                                            |         |
| \[24 CFR 84.21(b)(1) or 24 CFR 85.20; 24 CFR 585.401\]     |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

8\.

+------------------------------------------------------------+---------+
| If the accounting system is on a cash basis, can the       |         |
| Youthbuild grant recipient support accrual data in the     |         |
| semi-annual, annual, or other applicable report(s) from    |         |
| documentation on hand (Form HUD-40201, Parts 5 and 7)?     |         |
|                                                            |         |
| \[24 CFR 84.21(b)(1) or 24 CFR 85.20; 24 CFR 585.401 and   |         |
| 24 CFR 585.403\]                                           |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

9\.

+------------------------------------------------------------+---------+
| Does the Youthbuild grant recipient identify expenditures  |         |
| with respect to the grant program?                         |         |
|                                                            |         |
| \[24 CFR 84.21(b)(2) or 24 CFR 85.20; 24 CFR 585.401\]     |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

10\.

+------------------------------------------------------------+---------+
| Does the Youthbuild grant recipient identify expenditures  |         |
| by specific grant?                                         |         |
|                                                            |         |
| \[24 CFR 84.21(b)(2) or 24 CFR 85.20; 24 CFR 585.401\]     |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

11\.

+------------------------------------------------------------+---------+
| Does the Youthbuild grant recipient identify expenditures  |         |
| in its accounting records according to eligible activity   |         |
| classifications specified in the grant agreement that      |         |
| clearly identify the use of program funds for eligible     |         |
| activities?                                                |         |
|                                                            |         |
| \[24 CFR 84.21(b)(2) or 24 CFR 85.20; 24 CFR 585.401\]     |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

12\.

+------------------------------------------------------------+---------+
| Do accounting records include unexpended/unobligated       |         |
| balances?                                                  |         |
|                                                            |         |
| \[24 CFR 84.21(b)(2) or 24 CFR 85.20; 24 CFR 585.305 and   |         |
| 24 CFR 585.401\]                                           |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

b\. [Advances]{.underline}

13\.

+----------------------------------------------------------+-----------+
| If the Youthbuild grant recipient requests funds in      |           |
| advance (and is not on a reimbursement basis), does the  |           |
| recipient minimize the time elapsed between the transfer |           |
| of funds from the U.S. Treasury and their disbursement?  |           |
|                                                          |           |
| \[24 CFR 84.22(a) or 24 CFR 85.21; 24 CFR 585.401\]      |           |
+----------------------------------------------------------+-----------+
| **Describe Basis for Conclusion:**                       |           |
+----------------------------------------------------------+-----------+
|                                                          |           |
+----------------------------------------------------------+-----------+

14\.

+----------------------------------------------------------+-----------+
| If the Youthbuild grant recipient advances grant funds   |           |
| to subrecipients, does the grant recipient minimize the  |           |
| time elapsed between the transfer of funds to, and       |           |
| disbursement by, the subrecipients?                      |           |
|                                                          |           |
| \[24 CFR 84.22(a) or 24 CFR 85.21; 24 CFR 585.401\]      |           |
+----------------------------------------------------------+-----------+
| **Describe Basis for Conclusion:**                       |           |
+----------------------------------------------------------+-----------+
|                                                          |           |
+----------------------------------------------------------+-----------+

c\. [SF-272, Federal Cash Transactions Report]{.underline}

15\.

+------------------------------------------------------------+---------+
| a\. Did the Youthbuild grant recipient submit the SF-272,  |         |
| Federal Cash Transactions Report, within 15 calendar days  |         |
| following the end of each quarter?                         |         |
|                                                            |         |
| \[24 CFR 84.52(a)(2) or 24 CFR 85.41; 24 CFR 585.501\]     |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

+----------------------------------------------------------+-----------+
| b\. If the answer to "a" is "no," was the requirement    |           |
| waived based on the grant recipient meeting one of the   |           |
| three waiver provisions: (1) monthly advances do not     |           |
| exceed \$25,000 per recipient; (2) the recipient's       |           |
| accounting controls are adequate to minimize excessive   |           |
| Federal advances; or (3) electronic payment mechanisms   |           |
| provide adequate data?                                   |           |
|                                                          |           |
| \[24 CFR 84.52(a)(2) or 24 CFR 85.41; 24 CFR 585.501\]   |           |
+----------------------------------------------------------+-----------+
| **Describe Basis for Conclusion:**                       |           |
+----------------------------------------------------------+-----------+
|                                                          |           |
+----------------------------------------------------------+-----------+

16\.

+----------------------------------------------------------+-----------+
| If the Youthbuild grant recipient is required to submit  |           |
| the SF-272, has it submitted timely and complete reports |           |
| for the last 3 reporting periods?                        |           |
|                                                          |           |
| \[24 CFR 84.52(a)(2) or 24 CFR 85.41; 24 CFR 585.501\]   |           |
+----------------------------------------------------------+-----------+
| **Describe Basis for Conclusion:**                       |           |
+----------------------------------------------------------+-----------+
|                                                          |           |
+----------------------------------------------------------+-----------+

17\.

+------------------------------------------------------------+---------+
| Does the grant recipient maintain an interest-bearing      |         |
| account?                                                   |         |
|                                                            |         |
| \[24 CFR 84.22(k) or 24 CFR 85.21(i); 24 CFR 585.501\]     |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

18\.

+-----------------------------------------------------------------------+
| If the answer to "17" above is "yes," how much interest did the       |
| account(s) generate during the reporting period(s) being monitored?   |
|                                                                       |
| \[24 CFR 84.22(k) or 24 CFR 85.21(i); 24 CFR 585.501\]                |
+-----------------------------------------------------------------------+
| **Describe Basis for Conclusion:**                                    |
+-----------------------------------------------------------------------+
|                                                                       |
+-----------------------------------------------------------------------+

19\.

+----------------------------------------------------------+-----------+
| If grant advances are deposited into an interest-bearing |           |
| account, what provisions have been made for return of    |           |
| interest income to HUD?                                  |           |
|                                                          |           |
| \[24 CFR 84.22(k) or 24 CFR 85.21(i); 24 CFR 585.501\]   |           |
+----------------------------------------------------------+-----------+
| **Describe Basis for Conclusion:**                       |           |
+----------------------------------------------------------+-----------+
|                                                          |           |
+----------------------------------------------------------+-----------+

d\. [Internal Controls]{.underline} (Reference for some of the
questions: GAO/AIMD-98-21.2.1, "Framework for Federal Financial
Management System Checklist," May 1998)

20\.

  ------------------------------------------------------------- ---------
  a\. Does the Youthbuild grant recipient have an organization  
  chart that sets forth the actual lines of responsibility?     

  **Describe Basis for Conclusion:**                            

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

  ------------------------------------------------------------- ---------
  b\. Are duties for key employees of the Youthbuild grant      
  recipient defined?                                            

  **Describe Basis for Conclusion:**                            

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

  ------------------------------------------------------------- ---------
  c\. Has the Youthbuild grant recipient obtained fidelity bond 
  coverage for responsible officials?                           

  **Describe Basis for Conclusion:**                            

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

  ------------------------------------------------------------- ---------
  d\. Does the Youthbuild grant recipient's chart of accounts   
  include a complete listing of the account numbers used to     
  support the control needed to ensure that resources used do   
  not exceed resources authorized?                              

  **Describe Basis for Conclusion:**                            

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

  ------------------------------------------------------------- ---------
  e\. Does the Youthbuild grant recipient's approval controls   
  provide reasonable assurance that appropriate individuals     
  approve recorded transactions in accordance with management's 
  general or specific criteria?                                 

  **Describe Basis for Conclusion:**                            

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

  ------------------------------------------------------------- ---------
  f\. Does the Youthbuild grant recipient's controls over the   
  design and use of documents and records provide reasonable    
  assurance that transactions and events are properly           
  documented, recorded, and auditable?                          

  **Describe Basis for Conclusion:**                            

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

  ------------------------------------------------------------- ---------
  g\. Does the Youthbuild grant recipient's segregation of      
  duties controls effectively reduce the opportunity for        
  someone to perpetrate or conceal errors or irregularities in  
  the normal course of duties?                                  

  **Describe Basis for Conclusion:**                            

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

  ------------------------------------------------------------- ---------
  h\. Does the Youthbuild grant recipient's internal control    
  procedures support its ability to prepare financial           
  statements that are fairly presented in conformity with       
  generally accepted or other relevant and appropriate          
  accounting principles and regulatory requirements? (One level 
  of assurance of the accuracy and integrity of data is         
  provided by the attainment of an unqualified opinion on the   
  audited annual financial statements and internal controls.)   

  **Describe Basis for Conclusion:**                            

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

e\. [Accuracy of Report Information]{.underline}

21\.

+-----------------------------------------------------------------------+
| How does the Youthbuild grant recipient demonstrate that its systems  |
| and/or procedures ensure that accurate information is collected and   |
| reported to HUD and that such systems and/or procedures comply with   |
| Federal policies and requirements governing reporting?                |
|                                                                       |
| \[24 CFR 585.403\]                                                    |
+-----------------------------------------------------------------------+
| **Describe Basis for Conclusion:**                                    |
+-----------------------------------------------------------------------+
|                                                                       |
+-----------------------------------------------------------------------+

22\.

+------------------------------------------------------------+---------+
| Does the financial information (e.g., drawdowns,           |         |
| unexpended balances) recorded in HUD's financial           |         |
| management systems (e.g., Line of Credit Control System,   |         |
| or LOCCS) match the official accounting records of the     |         |
| Youthbuild grant recipient for the period covered by Part  |         |
| 5 or Part 7, as applicable?                                |         |
|                                                            |         |
| \[24 CFR 585.403\]                                         |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

23\.

+------------------------------------------------------------+---------+
| Did the Youthbuild grant recipient use funds in whole or   |         |
| in part to acquire real property under the grant?          |         |
|                                                            |         |
| -24 CFR 84.32 or 24 CFR 85.31; 24 CFR 585.403\]            |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

24\.

+----------------------------------------------------------+-----------+
| If the Youthbuild grant recipient generated program      |           |
| income (i.e., from the sale of real property), does the  |           |
| program income information in the Youthbuild grant       |           |
| recipient's official accounting records for the period   |           |
| covered by the most recently-completed semi-annual       |           |
| report match the information in this report?             |           |
|                                                          |           |
| \[24 CFR 84.24, 84.30. 84.32 or 24 CFR 85.25; 24 CFR     |           |
| 585.403\]                                                |           |
+----------------------------------------------------------+-----------+
| **Describe Basis for Conclusion:**                       |           |
+----------------------------------------------------------+-----------+
|                                                          |           |
+----------------------------------------------------------+-----------+

f\. [Salaries and Wages]{.underline}

25\.

+----------------------------------------------------------+-----------+
| a\. Are charges to the Youthbuild program for salaries   |           |
| and wages, whether treated as direct or indirect costs,  |           |
| based on payrolls documented in accordance with the      |           |
| generally accepted practice of the governmental unit and |           |
| approved by a responsible official(s) of the             |           |
| governmental unit?                                       |           |
|                                                          |           |
| \[OMB Circular A-122, Attachment B, #8(m) or OMB         |           |
| Circular A-87, Attachment B, #8(h)(3); 24 CFR 585.403    |           |
| and 24 CFR 585.501\]                                     |           |
+----------------------------------------------------------+-----------+
| **Describe Basis for Conclusion:**                       |           |
+----------------------------------------------------------+-----------+
|                                                          |           |
+----------------------------------------------------------+-----------+

+----------------------------------------------------------+-----------+
| b\. For employees working solely on the Youthbuild       |           |
| program, are charges for their salaries and wages        |           |
| supported by periodic certifications that the employees  |           |
| worked solely on that program for the period covered by  |           |
| the certification?                                       |           |
|                                                          |           |
| \[OMB Circular A-87, Attachment B, #8(h)(3)\]            |           |
+----------------------------------------------------------+-----------+
| **Describe Basis for Conclusion:**                       |           |
+----------------------------------------------------------+-----------+
|                                                          |           |
+----------------------------------------------------------+-----------+

+------------------------------------------------------------+---------+
| c\. Were the certifications prepared at least              |         |
| semi-annually and signed by the employee or a supervisory  |         |
| official having first hand knowledge of the work performed |         |
| by the employee?                                           |         |
|                                                            |         |
| \[OMB Circular A-87, Attachment B, #8(h)(3)\]              |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

26\.

+----------------------------------------------------------+-----------+
| For employees working on [multiple]{.underline} programs |           |
| or cost objectives whose time is being charged on a      |           |
| direct basis, are their salaries and wages supported by  |           |
| time distribution records?                               |           |
|                                                          |           |
| \[OMB Circular A-122, Attachment B, #8(m) or OMB         |           |
| Circular A-87; 24 CFR 585.403 and 24 CFR 585.501\]       |           |
+----------------------------------------------------------+-----------+
| **Describe Basis for Conclusion:**                       |           |
+----------------------------------------------------------+-----------+
|                                                          |           |
+----------------------------------------------------------+-----------+

g\. [Indirect Costs]{.underline}

27\.

  ------------------------------------------------------------- ---------
  Are indirect costs charged to the program?                    

  **Describe Basis for Conclusion:**                            

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

28\.

+----------------------------------------------------------+-----------+
| If indirect costs are charged to the program, has an     |           |
| Indirect Cost Rate/Cost Allocation Plan been developed   |           |
| in accordance with OMB Circular A-87, Attachments C and  |           |
| E; or OMB Circular 122, Attachment A, Section C?         |           |
|                                                          |           |
| \[24 CFR 585.501\]                                       |           |
+----------------------------------------------------------+-----------+
| **Describe Basis for Conclusion:**                       |           |
+----------------------------------------------------------+-----------+
|                                                          |           |
+----------------------------------------------------------+-----------+

29\.

+----------------------------------------------------------+-----------+
| Is there any evidence to indicate that costs are not     |           |
| being billed in accordance with an approved Cost         |           |
| Allocation Plan or the Indirect Cost Rate?               |           |
|                                                          |           |
| \[OMB Circular A-122, Attachment A, Section D or OMB     |           |
| Circular A-87, Attachment A, Section F; 24 CFR 585.501\] |           |
+----------------------------------------------------------+-----------+
| **Describe Basis for Conclusion:**                       |           |
+----------------------------------------------------------+-----------+
|                                                          |           |
+----------------------------------------------------------+-----------+

h\. [OMB Circular A-133: Audits of States, Local Governments, and
Non-Profit Organizations]{.underline}

> **[Instructions]{.underline}:** Youthbuild grant recipients are
> subject to OMB Circular A-133, which establishes audit requirements
> pursuant to the Single Audit Act Amendments of 1996 for states, local
> governments, and non-profit organizations that receive federal aid.
> The Circular defines responsibilities for implementing and monitoring
> those requirements. Grant recipients that, in turn, provide Federal
> funds to secondary organizations are called pass-through entities. For
> simplification purposes, the term "subrecipient" will be used in this
> guide to refer to all such secondary organizations. Pass-through
> entities are required by OMB A-133, §\_\_\_.400(d) to establish
> systems to oversee subrecipient compliance with A-133. This section of
> questions is designed to assist in determining whether the participant
> is in compliance with the required elements of an audits management
> system. An audits management review worksheet is attached to this
> Exhibit that can be used to help document the results from testing a
> sample of grants to subrecipients against the Youthbuild grant
> recipient's control system.

30\.

  ------------------------------------------------------------- ---------
  Does the Youthbuild grant recipient meet the threshold, or    
  have any subrecipients that meet the threshold, for having a  
  single audit performed? If no, skip questions 31 through 50   
  and Attachment I, the Audit Review Worksheet.                 

  **Describe Basis for Conclusion:**                            

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

31\.

+-----------------------------------------------------------------------+
| What is the Youthbuild grant recipient's means of ensuring that       |
| audits are conducted to meet all of the following:                    |
|                                                                       |
| a.  at the proper time? \[OMB Circular A-133, §\_\_\_.320(a)\]        |
|                                                                       |
| b.  by independent, qualified personnel? \[OMB Circular A-133,        |
|     §\_\_\_.305\]                                                     |
|                                                                       |
| c.  In a manner which meets the Comptroller General's audit           |
|     standards? \[OMB Circular A-133, §\_\_\_.500\]                    |
|                                                                       |
|     \[24 CFR 585.501\]                                                |
+-----------------------------------------------------------------------+
| **Describe Basis for Conclusion:**                                    |
+-----------------------------------------------------------------------+
|                                                                       |
+-----------------------------------------------------------------------+

32\.

+------------------------------------------------------------+---------+
| a\. Does the Youthbuild grant recipient's audit report     |         |
| include an opinion on whether the financial statements are |         |
| presented fairly in all material respects in conformity    |         |
| with GAAP and whether the schedule of expenditures is      |         |
| presented fairly in all material respects?                 |         |
|                                                            |         |
| \[OMB Circular A-133, §\_\_\_.310(a), §\_\_\_.500(b); 24   |         |
| CFR 585.501\]                                              |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

+------------------------------------------------------------+---------+
| b\. Does the Youthbuild grant recipient's financial        |         |
| statements reflect its financial position, results of      |         |
| operations or changes in net assets and, where             |         |
| appropriate, cash flows for the fiscal year?               |         |
|                                                            |         |
| \[OMB Circular A-133, §\_\_\_.310(a), §\_\_\_.500(b); 24   |         |
| CFR 585.501\]                                              |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

33\.

  ------------------------------------------------------------- ---------
  Does the Youthbuild grant recipient use subrecipients? (If    
  yes, continue with the following questions. If no, skip to    
  Question 39.)                                                 

  **Describe Basis for Conclusion:**                            

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

34\.

  -----------------------------------------------------------------------
  How much Youthbuild funding did subrecipients receive and expend during
  the past year?

  **Describe Basis for Conclusion:**

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

35\.

+------------------------------------------------------------+---------+
| Has the Youthbuild grant recipient determined if           |         |
| subrecipients expending \$300,000 or more in Federal       |         |
| awards in the fiscal year \[\$500,000 or more for fiscal   |         |
| years ending after December 31, 2003\] met the             |         |
| requirements of OMB Circular A-133?                        |         |
|                                                            |         |
| \[OMB Circular A-133, §\_\_\_.200; 24 CFR 585.501\]        |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

36\.

+----------------------------------------------------------+-----------+
| a\. Are the financial statements of subrecipients        |           |
| presented fairly in all material respects in conformity  |           |
| with generally accepted accounting principles?           |           |
|                                                          |           |
| \[OMB Circular A-133, §\_\_\_.400(d)(4) and              |           |
| §\_\_\_.500(b); 24 CFR 585.501\]                         |           |
+----------------------------------------------------------+-----------+
| **Describe Basis for Conclusion:**                       |           |
+----------------------------------------------------------+-----------+
|                                                          |           |
+----------------------------------------------------------+-----------+

  ------------------------------------------------------------- ---------
  b\. Are the schedules of expenditures of Federal awards       
  presented fairly in all material respects in relation to the  
  financial statements of subrecipients taken as a whole?       

  **Describe Basis for Conclusion:**                            

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

37\.

  -----------------------------------------------------------------------
  How does the grant recipient ensure that each subrecipient audit has
  determined whether the subrecipient has internal accounting and other
  control systems to provide reasonable assurance that it is managing
  Federal financial assistance programs in compliance with applicable
  laws and regulations?

  **Describe Basis for Conclusion:**

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

38\.

+-----------------------------------------------------------------------+
| Did the Youthbuild grant recipient review each audit report of its    |
| subrecipients that expended \$300,000 or more in Federal awards in    |
| the fiscal year \[\$500,000 or more for fiscal years ending after     |
| December 31, 2003\] to determine whether the audit report states the  |
| subrecipient has complied with the laws, regulations, and provisions  |
| of contracts or grant agreements that may have a direct and material  |
| effect on each of its major programs?                                 |
|                                                                       |
| \[OMB Circular A-133 §\_\_\_.320(a) and §\_\_\_.500(d); 24 CFR        |
| 585.501\]                                                             |
+-----------------------------------------------------------------------+
| **Describe Basis for Conclusion:**                                    |
+-----------------------------------------------------------------------+
|                                                                       |
+-----------------------------------------------------------------------+

39\.

+-----------------------------------------------------------------------+
| Did the Youthbuild grant recipient ensure that audit reports of its   |
| subrecipients that expended \$300,000 or more in Federal awards in    |
| the fiscal year \[\$500,000 or more for fiscal years ending after     |
| December 31, 2003\] were submitted within 30 days after receipt of    |
| the auditor's report but not later than nine months after the end of  |
| the audit period (or such longer period agreed to in advance by the   |
| grant recipient)?                                                     |
|                                                                       |
| \[OMB Circular A-133, §\_\_\_.320(a); 24 CFR 585.501\]                |
+-----------------------------------------------------------------------+
| **Describe Basis for Conclusion:**                                    |
+-----------------------------------------------------------------------+
|                                                                       |
+-----------------------------------------------------------------------+

40\.

+-----------------------------------------------------------------------+
| How does the Youthbuild grant recipient ensure that audit costs are   |
| allowable as a direct cost, or as an allocated indirect cost, as      |
| determined in accordance with applicable OMB cost principles?         |
|                                                                       |
| \[OMB Circular A-133, §\_\_\_.400(d)(4) and §\_\_\_.230\]             |
+-----------------------------------------------------------------------+
| **Describe Basis for Conclusion:**                                    |
+-----------------------------------------------------------------------+
|                                                                       |
+-----------------------------------------------------------------------+

41\.

+----------------------------------------------------------+-----------+
| Does the Youthbuild grant recipient have a means for     |           |
| determining what corrective actions by its subrecipients |           |
| are necessary and appropriate to resolve findings and    |           |
| that such actions are taken?                             |           |
|                                                          |           |
| \[OMB Circular A-133, §\_\_\_.400(d)(5); 24 CFR          |           |
| 585.501\]                                                |           |
+----------------------------------------------------------+-----------+
| **Describe Basis for Conclusion:**                       |           |
+----------------------------------------------------------+-----------+
|                                                          |           |
+----------------------------------------------------------+-----------+

42\.

+----------------------------------------------------------+-----------+
| Does the Youthbuild grant recipient issue management     |           |
| decisions for audit findings within six months after     |           |
| receipt of subrecipient audit reports, and provide       |           |
| follow-up to ensure that subrecipients take appropriate  |           |
| and timely corrective action?                            |           |
|                                                          |           |
| \[OMB Circular A-133, §\_\_\_.400(d)(5); 24 CFR          |           |
| 585.501\]                                                |           |
+----------------------------------------------------------+-----------+
| **Describe Basis for Conclusion:**                       |           |
+----------------------------------------------------------+-----------+
|                                                          |           |
+----------------------------------------------------------+-----------+

43\.

+----------------------------------------------------------+-----------+
| Does the Youthbuild grant recipient have a means for     |           |
| deciding whether subrecipient audits necessitate         |           |
| adjustment of the grant recipient's records?             |           |
|                                                          |           |
| \[OMB Circular A-133, §\_\_\_.400(d)(6); 24 CFR          |           |
| 585.501\]                                                |           |
+----------------------------------------------------------+-----------+
| **Describe Basis for Conclusion:**                       |           |
+----------------------------------------------------------+-----------+
|                                                          |           |
+----------------------------------------------------------+-----------+

44\.

+------------------------------------------------------------+---------+
| Did the record review disclose any items that should have  |         |
| been adjusted in the Youthbuild grant recipient's records, |         |
| but were not?                                              |         |
|                                                            |         |
| \[OMB Circular A-133, §\_\_\_.400(d)(6); 24 CFR 585.501\]  |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

45\.

+------------------------------------------------------------+---------+
| Does the Youthbuild grant recipient have a system or       |         |
| procedure that requires each subrecipient to permit        |         |
| independent auditors and recipient staff to have access to |         |
| the records and financial statements, as necessary, to     |         |
| comply with the Circular?                                  |         |
|                                                            |         |
| \[OMB Circular A-133, §\_\_\_.400(d)(7); 24 CFR 585.501\]  |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

46\.

+-----------------------------------------------------------------------+
| What is the Youthbuild grant recipient's process for reviewing and    |
| reaching determinations to accept or reject findings and properly     |
| documenting such determinations?                                      |
|                                                                       |
| \[24 CFR 585.501\]                                                    |
+-----------------------------------------------------------------------+
| **Describe Basis for Conclusion:**                                    |
+-----------------------------------------------------------------------+
|                                                                       |
+-----------------------------------------------------------------------+

47\.

+------------------------------------------------------------+---------+
| Does the Youthbuild grant recipient have a process for     |         |
| referral of agency-contested findings and recommendations  |         |
| to senior level officials, outside of the normal chain of  |         |
| command, for resolution?                                   |         |
|                                                            |         |
| \[24 CFR 585.501\]                                         |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

48\.

+------------------------------------------------------------+---------+
| a\. Does the Youthbuild grant recipient have a system or   |         |
| procedure to promptly inform HUD and federal law           |         |
| enforcement authorities of illegal acts or irregularities? |         |
|                                                            |         |
| \[24 CFR 585.501\]                                         |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

  -----------------------------------------------------------------------
  b\. If the answer to "a" above is "yes," what is procedure(s)/criteria
  used in determining when to notify authorities?

  **Describe Basis for Conclusion:**

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

49\.

  ---------------------------------------------------------- ------------
  Is there a procedure to establish accounts receivable from 
  subrecipients when monetary sanctions are involved?        

  **Describe Basis for Conclusion:**                         

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

50\.

  ------------------------------------------------------------- ---------
  Is there a means of ensuring consistent treatment of all      
  audit findings?                                               

  **Describe Basis for Conclusion:**                            

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

51\.

  ------------------------------------------------------------- ---------
  Does the Youthbuild grant recipient make positive efforts to  
  use small businesses, minority-owned firms, and women's       
  business enterprises in procuring audit services, and does    
  its system encourage localities or subrecipients/subgrantees  
  to do the same? (**Note**: Because grant recipients are [not  
  required]{.underline} to use minority-owned financial         
  institutions, but encouraged to do so pursuant to OMB         
  Circular A-133, §\_\_\_.305(a), a "No" response to this       
  question would **NOT** constitute a finding.)                 

  **Describe Basis for Conclusion:**                            

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

+-----------+--------------------------------+-----+------------------+
| **A       |                                |     |                  |
| ttachment |                                |     |                  |
| I: Guide  |                                |     |                  |
| for       |                                |     |                  |
| Review of |                                |     |                  |
| You       |                                |     |                  |
| thbuild** |                                |     |                  |
|           |                                |     |                  |
| **OMB     |                                |     |                  |
| Circular  |                                |     |                  |
| A-133     |                                |     |                  |
| Audits    |                                |     |                  |
| M         |                                |     |                  |
| anagement |                                |     |                  |
| System**  |                                |     |                  |
+-----------+--------------------------------+-----+------------------+
| **Name of |                                |     |                  |
| Grant     |                                |     |                  |
| Rec       |                                |     |                  |
| ipient:** |                                |     |                  |
|           |                                |     |                  |
|           |                                |     |                  |
+-----------+--------------------------------+-----+------------------+
| **Name(s) |                                | **D |                  |
| of        |                                | ate |                  |
| Revie     |                                | :** |                  |
| wer(s):** |                                |     |                  |
+-----------+--------------------------------+-----+------------------+

**[Instructions]{.underline}:** This Worksheet is intended to supplement
the information contained in the Section H. [OMB Circular A-133: Audits
of States, Local Governments, and Non-Profit Organizations]{.underline},
of this Exhibit. Where subrecipient audits are reviewed to confirm the
implementation of the Youthbuild grant recipient's system, select a
sample of grants and insert the names of the subrecipients in column (a)
and the fiscal year end dates in column (b) of Part I. Insert due dates
and receipt deadlines in columns (c) through (e) of Part I; and answer
"yes" or "no," as appropriate, in columns (f) through (j) of Part II.

[Part I - Receipt Deadlines]{.underline}

+---+----------------+-----------+-----------+-----------+------------+
|   | **Subrecipient | **Fiscal  | **Audit** | **Audit** | **Audit    |
|   | Name**         | Year End  |           |           | Received** |
|   |                | Date**    | **Report  | **Due     |            |
|   |                |           | Date**    | Date**    | **Date**   |
+===+================+===========+===========+===========+============+
|   | \(a\)          | \(b\)     | \(c\)     | \(d\)     | \(e\)      |
+---+----------------+-----------+-----------+-----------+------------+
| 1 |                |           |           |           |            |
| \ |                |           |           |           |            |
| . |                |           |           |           |            |
+---+----------------+-----------+-----------+-----------+------------+
| 2 |                |           |           |           |            |
| \ |                |           |           |           |            |
| . |                |           |           |           |            |
+---+----------------+-----------+-----------+-----------+------------+
| 3 |                |           |           |           |            |
| \ |                |           |           |           |            |
| . |                |           |           |           |            |
+---+----------------+-----------+-----------+-----------+------------+
| 4 |                |           |           |           |            |
| \ |                |           |           |           |            |
| . |                |           |           |           |            |
+---+----------------+-----------+-----------+-----------+------------+
| 5 |                |           |           |           |            |
| \ |                |           |           |           |            |
| . |                |           |           |           |            |
+---+----------------+-----------+-----------+-----------+------------+
| 6 |                |           |           |           |            |
| \ |                |           |           |           |            |
| . |                |           |           |           |            |
+---+----------------+-----------+-----------+-----------+------------+
| 7 |                |           |           |           |            |
| \ |                |           |           |           |            |
| . |                |           |           |           |            |
+---+----------------+-----------+-----------+-----------+------------+
| 8 |                |           |           |           |            |
| \ |                |           |           |           |            |
| . |                |           |           |           |            |
+---+----------------+-----------+-----------+-----------+------------+
| 9 |                |           |           |           |            |
| \ |                |           |           |           |            |
| . |                |           |           |           |            |
+---+----------------+-----------+-----------+-----------+------------+
| 1 |                |           |           |           |            |
| 0 |                |           |           |           |            |
| \ |                |           |           |           |            |
| . |                |           |           |           |            |
+---+----------------+-----------+-----------+-----------+------------+

[Part II - Were Requirements Met (Yes/No)?]{.underline}

  --------------------------------------------------------------------------------
         **A-133     **Corrective   **Corrective    **Corrective   **Corrective
         Met?**      Actions        Actions         Actions        Actions Taken
                     Accepted?**    Documented?**   Taken?**       in 6 months?**
  ------ ----------- -------------- --------------- -------------- ---------------
         \(f\)       \(g\)          \(h\)           \(i\)          \(j\)

  1\.                                                                   

  2\.                                                                   

  3\.                                                                   

  4\.                                                                   

  5\.                                                                   

  6\.                                                                   

  7\.                                                                   

  8\.                                                                   

  9\.                                                                   

  10\.                                                                  
  --------------------------------------------------------------------------------

[Part III - Conclusions]{.underline}

  -----------------------------------------------------------------------
  Explain negative responses or delays in complying with the required
  deadlines.

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