+-----------+--------------------------------+-----+------------------+
| **Guide   |                                |     |                  |
| for       |                                |     |                  |
| Review of |                                |     |                  |
| Financial |                                |     |                  |
| Man       |                                |     |                  |
| agement** |                                |     |                  |
+-----------+--------------------------------+-----+------------------+
| **Name of |                                |     |                  |
| Part      |                                |     |                  |
| icipating |                                |     |                  |
| Jur       |                                |     |                  |
| isdiction |                                |     |                  |
| (PJ):**   |                                |     |                  |
|           |                                |     |                  |
|           |                                |     |                  |
+-----------+--------------------------------+-----+------------------+
| **Staff   |                                |     |                  |
| Con       |                                |     |                  |
| sulted:** |                                |     |                  |
|           |                                |     |                  |
|           |                                |     |                  |
+-----------+--------------------------------+-----+------------------+
| **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 questions H.23 and I.42 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 its 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 monitor a
PJ's conformity to financial management requirements. The Exhibit is
divided into nine sections: Financial Management; Cash Management
Practices; Internal Controls; Accuracy of Report Information; Program
Income; Salaries and Wages; Indirect Costs; Minority-Owned Financial
Institutions; and OMB Circular A-133. The Exhibit also contains a
Worksheet and an Attachment The PJ's financial management system is to
be reviewed for compliance with 24 CFR Part 85 (as applicable). To
facilitate the financial review process, Attachment I provides
supplementary guidance on the documentation to be examined for certain
of the questions below. The attached Worksheet is designed to supplement
the review of the PJ's audit management system in the questions under
Section I of this Exhibit.

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

A. [Financial Management System]{.underline}

1\.

+------------------------------------------------------------+---------+
| Does the PJ record amounts budgeted for eligible           |         |
| activities as specified in the HOME regulations?           |         |
|                                                            |         |
| \[24 CFR 85.20(b)(4) and 24 CFR 92.505(a)\]                |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
|                                                            |         |
|                                                            |         |
+------------------------------------------------------------+---------+

2\.

+------------------------------------------------------------+---------+
| a\. Does the PJ record an obligation when contracts are    |         |
| executed, purchase orders issued, etc.? **NOTE:** If       |         |
| obligations are not recorded, the PJ should maintain       |         |
| information on obligations that is readily accessible.     |         |
|                                                            |         |
| \[24 CFR 85.20(b)(2) and 24 CFR 92.505(a)\]                |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
|                                                            |         |
|                                                            |         |
+------------------------------------------------------------+---------+

+------------------------------------------------------------+---------+
| b\. Based upon a selected or random sample, are            |         |
| expenditures supported by invoices, contracts, or purchase |         |
| orders, etc.?                                              |         |
|                                                            |         |
| \[24 CFR 85.20(b)(6) and 24 CFR 92.505(a)\]                |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
|                                                            |         |
|                                                            |         |
+------------------------------------------------------------+---------+

3\.

+----------------------------------------------------------+-----------+
| If the accounting system is on a cash basis, can the PJ  |           |
| support accrual data in the Integrated Disbursement and  |           |
| Information System (IDIS) and the Consolidated           |           |
| Performance and Evaluation Report (CAPER) from           |           |
| documentation on hand?                                   |           |
|                                                          |           |
| \[24 CFR 85.20(b)(1) and 24 CFR 92.505(a)\]              |           |
+----------------------------------------------------------+-----------+
| **Describe Basis for Conclusion:**                       |           |
+----------------------------------------------------------+-----------+
|                                                          |           |
+----------------------------------------------------------+-----------+

4\.

+----------------------------------------------------------+-----------+
| If the accounting system provides for accrual of         |           |
| expenditures, does the information reported to HUD       |           |
| reconcile with accounting records?                       |           |
|                                                          |           |
| \[24 CFR 85.20(b)(1) and 24 CFR 92.505(a)\]              |           |
+----------------------------------------------------------+-----------+
| **Describe Basis for Conclusion:**                       |           |
|                                                          |           |
|                                                          |           |
+----------------------------------------------------------+-----------+

.

+------------------------------------------------------------+---------+
| Does the PJ identify expenditures with respect to the      |         |
| grant program?                                             |         |
|                                                            |         |
| \[24 CFR 85.20(b)(2) and 24 CFR 92.505(a)\]                |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
|                                                            |         |
|                                                            |         |
+------------------------------------------------------------+---------+

6\.

+----------------------------------------------------------+-----------+
| Does the PJ identify expenditures by specific grant      |           |
| year?                                                    |           |
|                                                          |           |
| \[24 CFR 85.20(b)(2) and 24 CFR 92.505(a)\]              |           |
+----------------------------------------------------------+-----------+
| **Describe Basis for Conclusion:**                       |           |
|                                                          |           |
|                                                          |           |
+----------------------------------------------------------+-----------+

7\.

+------------------------------------------------------------+---------+
| a\. Does the PJ identify expenditures in its accounting    |         |
| records that clearly identify the use of HOME funds for    |         |
| eligible costs?                                            |         |
|                                                            |         |
| \[24 CFR 85.20(b)(2) and 24 CFR 92.505(a)\]                |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
|                                                            |         |
|                                                            |         |
+------------------------------------------------------------+---------+

+------------------------------------------------------------+---------+
| b\. Did the record review indicate that all expenditures   |         |
| were for eligible costs?                                   |         |
|                                                            |         |
| \[24 CFR 92.206 -- 209 and 24 CFR 85.20(b)(5)\]            |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
|                                                            |         |
|                                                            |         |
+------------------------------------------------------------+---------+

8\.

+------------------------------------------------------------+---------+
| Do accounting records include unexpended/unobligated       |         |
| balances?                                                  |         |
|                                                            |         |
| \[24 CFR 85.20(b)(2) and 24 CFR 92.505(a)\]                |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
|                                                            |         |
|                                                            |         |
+------------------------------------------------------------+---------+

B. [CASH MANAGEMENT PRACTICES]{.underline}

9\.

+------------------------------------------------------------+---------+
| Does the PJ have procedures to ensure that any HOME funds  |         |
| drawn down from its U.S. Treasury account are expended for |         |
| eligible costs within 15 days?                             |         |
|                                                            |         |
| \[24 CFR 92.502(c)(2)\]                                    |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
|                                                            |         |
|                                                            |         |
+------------------------------------------------------------+---------+

10\.

+------------------------------------------------------------+---------+
| a\. Have all HOME funds drawn down from the U.S. Treasury  |         |
| account been expended from the local HOME account for      |         |
| eligible costs within 15 days?                             |         |
|                                                            |         |
| \[24 CFR 92.502(c)(2)\]                                    |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
|                                                            |         |
|                                                            |         |
+------------------------------------------------------------+---------+

+------------------------------------------------------------+---------+
| b\. If such funds were on deposit in an interest-bearing   |         |
| account, did the PJ remit any interest earned after the    |         |
| 15-day period to the U.S. Treasury promptly (at least      |         |
| quarterly)?                                                |         |
|                                                            |         |
| \[24 CFR 92.502(c)(2)\]                                    |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
|                                                            |         |
|                                                            |         |
+------------------------------------------------------------+---------+

C. [Internal Controls]{.underline} (See also GAO/AIMD-98-21.2.1,
"Framework for Federal Financial Management System Checklist," May 1998)

11\.

+------------------------------------------------------------+---------+
| a\. Does the PJ have an organization chart that sets forth |         |
| the actual lines of responsibility?                        |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
|                                                            |         |
|                                                            |         |
+------------------------------------------------------------+---------+

+------------------------------------------------------------+---------+
| b\. Are duties for key employees of the PJ defined?        |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
|                                                            |         |
|                                                            |         |
+------------------------------------------------------------+---------+

+------------------------------------------------------------+---------+
| c\. Has the PJ obtained fidelity bond coverage for         |         |
| responsible officials?                                     |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
|                                                            |         |
|                                                            |         |
+------------------------------------------------------------+---------+

+------------------------------------------------------------+---------+
| d\. Does the PJ'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\. Do the PJ'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\. Do the PJ'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\. Do the PJ'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\. Is it clear that all personnel are responsible for     |         |
| communicating upward the PJ's operating problems and       |         |
| noncompliance with laws and regulations?                   |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
|                                                            |         |
|                                                            |         |
+------------------------------------------------------------+---------+

+------------------------------------------------------------+---------+
| i\. Do the PJ'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:**                         |         |
|                                                            |         |
|                                                            |         |
+------------------------------------------------------------+---------+

D. [Accuracy of Report Information]{.underline}

12\.

+-----------------------------------------------------------------------+
| a\. How does the PJ 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?                                     |
+-----------------------------------------------------------------------+
| **Describe Basis for Conclusion:**                                    |
|                                                                       |
|                                                                       |
+-----------------------------------------------------------------------+

+------------------------------------------------------------+---------+
| b.  Does the financial information (e.g., drawdowns,       |         |
|     unexpended balances) recorded in HUD's financial       |         |
|     management systems \[e.g., Line of Credit Control      |         |
|     System (LOCCS), IDIS\] match the official accounting   |         |
|     records of the PJ for the period covered by the last   |         |
|     required performance report?                           |         |
|                                                            |         |
|     \[24 CFR 85.20(b)(1) and 24 CFR 92.505(a)\]            |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
|                                                            |         |
|                                                            |         |
+------------------------------------------------------------+---------+

+------------------------------------------------------------+---------+
| c\. Does the program income information in the PJ's        |         |
| official accounting records for the period covered by the  |         |
| most recently completed performance report match the       |         |
| information in IDIS?                                       |         |
|                                                            |         |
| \[24 CFR 85.20(b)(1) and 24 CFR 92.505(a)\]                |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
|                                                            |         |
|                                                            |         |
+------------------------------------------------------------+---------+

E. [Program Income]{.underline}

13\.

+------------------------------------------------------------+---------+
| Are revenue-generating activities being undertaken?        |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
|                                                            |         |
|                                                            |         |
+------------------------------------------------------------+---------+

14\.

+----------------------------------------------------------+-----------+
| If revenue-generating activities are being undertaken,   |           |
| has the PJ established revenue accounts to record        |           |
| program income?                                          |           |
|                                                          |           |
| \[24 CFR 85.20(b)(2) and 24 CFR 92.505(a)\]              |           |
+----------------------------------------------------------+-----------+
| **Describe Basis for Conclusion:**                       |           |
|                                                          |           |
|                                                          |           |
+----------------------------------------------------------+-----------+

15\.

+----------------------------------------------------------+-----------+
| If income is generated by the use of HOME and other      |           |
| funds, does the PJ have a system to determine the amount |           |
| of program income attributable to the use of HOME funds? |           |
+----------------------------------------------------------+-----------+
| **Describe Basis for Conclusion:**                       |           |
|                                                          |           |
|                                                          |           |
+----------------------------------------------------------+-----------+

16\.

+----------------------------------------------------------+-----------+
| Does the PJ disburse program income to pay program costs |           |
| before making cash withdrawals from the U.S. Treasury?   |           |
|                                                          |           |
| \[24 CFR 92.502(c)(2)\]                                  |           |
+----------------------------------------------------------+-----------+
| **Describe Basis for Conclusion:**                       |           |
|                                                          |           |
|                                                          |           |
+----------------------------------------------------------+-----------+

17\.

+----------------------------------------------------------+-----------+
| a\. Does the PJ have a system/procedures for tracking    |           |
| program income received by subrecipients, State          |           |
| recipients or contractors administering all or a portion |           |
| of the PJ's HOME program?                                |           |
|                                                          |           |
| \[24 CFR 85.20(b)(3) and 24 CFR 92.505(a)\]              |           |
+----------------------------------------------------------+-----------+
| **Describe Basis for Conclusion:**                       |           |
|                                                          |           |
|                                                          |           |
+----------------------------------------------------------+-----------+

+----------------------------------------------------------+-----------+
| b\. If program income is retained by subrecipients,      |           |
| State recipients or contractors administering all of a   |           |
| portion of the PJ's HOME program, does the PJ have a     |           |
| system for ensuring that such income is reported in a    |           |
| timely and accurate manner?                              |           |
+----------------------------------------------------------+-----------+
| **Describe Basis for Conclusion:**                       |           |
|                                                          |           |
|                                                          |           |
+----------------------------------------------------------+-----------+

+----------------------------------------------------------+-----------+
| c\. Upon expiration of any agreements between the PJ and |           |
| subrecipients, State recipients or contractors, does the |           |
| PJ have a system for ensuring:                           |           |
|                                                          |           |
| i.  the transfer of any funds to be returned to the PJ;  |           |
|     and/or                                               |           |
|                                                          |           |
| ii. the transfer of outstanding loans or accounts        |           |
|     receivable?                                          |           |
|                                                          |           |
|     \[24 CFR 92.504(c)(2)(vii) and 24 CFR 85.20(b)(3)\]  |           |
+----------------------------------------------------------+-----------+
| **Describe Basis for Conclusion:**                       |           |
|                                                          |           |
|                                                          |           |
+----------------------------------------------------------+-----------+

18\. Loan Servicing

+----------------------------------------------------------+-----------+
| If the PJ provides loans, does it have a system for      |           |
| properly servicing all loans (including deferred payment |           |
| loans and loans in a revolving fund) that includes:      |           |
|                                                          |           |
| i\. written loan agreements that clearly describe the    |           |
| repayment terms, what constitutes a default and how it   |           |
| can be cured, and what actions the PJ will take if the   |           |
| default is not cured, and (if applicable) what is        |           |
| pledged as security for the loan?                        |           |
|                                                          |           |
| ii\. collection procedures that provide for the          |           |
| recognition of all current amounts due, payments         |           |
| received, notification to borrower when payments are     |           |
| overdue, a process for taking action on defaulted loans, |           |
| and criteria for writing off bad debts?                  |           |
|                                                          |           |
| \[24 CFR 85.20(b)(3) and 24 CFR 92.505(a)\]              |           |
+----------------------------------------------------------+-----------+
| **Describe Basis for Conclusion:**                       |           |
|                                                          |           |
|                                                          |           |
+----------------------------------------------------------+-----------+

F. [Salaries and Wages]{.underline}

19\.

+----------------------------------------------------------+-----------+
| Are direct salaries and wages of employees chargeable to |           |
| [one]{.underline} grant program or cost objective based  |           |
| on payrolls documented in accordance with the generally  |           |
| accepted practice of the PJ and approved by a            |           |
| responsible official? \[OMB Circular A-87, Attachment B, |           |
| section 8(h)(3) and 24 CFR 92.505(a)\]                   |           |
+----------------------------------------------------------+-----------+
| **Describe Basis for Conclusion:**                       |           |
|                                                          |           |
|                                                          |           |
+----------------------------------------------------------+-----------+

20\.

+----------------------------------------------------------+-----------+
| 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?                               |           |
|                                                          |           |
| \[OMB Circular A-87, Attachment B, section 8.h. (4) and  |           |
| (5), 24 CFR 92.207(a)(1), and 24 CFR 92.505(a)\]         |           |
+----------------------------------------------------------+-----------+
| **Describe Basis for Conclusion:**                       |           |
|                                                          |           |
|                                                          |           |
+----------------------------------------------------------+-----------+

G. [Indirect Costs]{.underline}

21\.

+------------------------------------------------------------+---------+
| a\. Are indirect costs charged to the program?             |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
|                                                            |         |
|                                                            |         |
+------------------------------------------------------------+---------+

+----------------------------------------------------------+-----------+
| b.  If indirect costs are charged to the program, have   |           |
|     Cost Allocation Plans and/or an Indirect Cost Rate   |           |
|     proposal been developed in accordance with OMB       |           |
|     Circular A-87, Attachments C and E?                  |           |
|                                                          |           |
|     \[24 CFR 92.505(a)\]                                 |           |
+----------------------------------------------------------+-----------+
| **Describe Basis for Conclusion:**                       |           |
|                                                          |           |
|                                                          |           |
+----------------------------------------------------------+-----------+

+----------------------------------------------------------+-----------+
| c\. Is there any evidence to indicate that costs are not |           |
| being billed in accordance with the Indirect Cost Rate?  |           |
|                                                          |           |
| \[OMB Circular A-87, Attachment A, Section F and 24 CFR  |           |
| 92.505(a)\]                                              |           |
+----------------------------------------------------------+-----------+
| **Describe Basis for Conclusion:**                       |           |
|                                                          |           |
|                                                          |           |
+----------------------------------------------------------+-----------+

H. [Minority-Owned Financial Institutions]{.underline}

22\.

+------------------------------------------------------------+---------+
| Has the PJ used minority-owned financial institutions in   |         |
| conjunction with the grant program? (**Note**: Because PJs |         |
| are [not required]{.underline} to use minority-owned       |         |
| financial institutions, but *encouraged* to do so pursuant |         |
| to 24 CFR 92.351(b), a "No" response to this question      |         |
| would **NOT** constitute a finding.)                       |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
|                                                            |         |
|                                                            |         |
+------------------------------------------------------------+---------+

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

> **[Instructions]{.underline}:** HOME PJs 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. PJs that, in turn, provide HOME funds to subrecipients
> and state recipients are called pass-through entities. For
> simplification purposes, the term "subrecipient" will be used in this
> guide to refer to both subrecipients and state recipients.
> Pass-through entities are required by OMB A-133, §\_\_\_. 400(d) to
> establish procedures to oversee subrecipient compliance with A-133.
> This Exhibit section is designed to evaluate a PJ's 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 PJ's control system.

23\.

+------------------------------------------------------------+---------+
| Did the PJ ensure that audits were conducted and met all   |         |
| of the following:                                          |         |
|                                                            |         |
| \[OMB Circular A-133, §\_\_\_\_.400(d)(4) and 24 CFR       |         |
| 92.506\]                                                   |         |
+------------------------------------------------------------+---------+
| 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?                                       |         |
|                                                            |         |
|     \[OMB Circular A-133, §\_\_\_.500\]                    |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

24\.

+------------------------------------------------------------+---------+
| Does the most recent audit report include an opinion (or   |         |
| disclaimer of opinion) as to whether the financial         |         |
| statements of the PJ were presented fairly in all material |         |
| respects in conformity with generally accepted accounting  |         |
| principles and an opinion (or disclaimer of opinion) as to |         |
| whether the schedule of expenditures of Federal awards was |         |
| presented fairly in all material aspects in relation to    |         |
| the PJ's financial statements taken as a whole?            |         |
|                                                            |         |
| \[OMB Circular A-133, §\_\_\_.505(a) and 24 CFR 92.506\]   |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
|                                                            |         |
| **     **                                                  |         |
+------------------------------------------------------------+---------+

25\.

+-----------------------------------------------------------------------+
| a\. Does the PJ's written agreement with state recipients and         |
| subrecipients contain the requirement of following OMB Circular A-133 |
| audit requirements?                                                   |
|                                                                       |
| \[24 CFR 92.504 (C)(1) & (2)\]                                        |
+-----------------------------------------------------------------------+
| **Describe Basis for Conclusion:**                                    |
|                                                                       |
|                                                                       |
+-----------------------------------------------------------------------+

+------------------------------------------------------------+---------+
| b\. Does the PJ determine if State recipients and          |         |
| subrecipients expending more than \$500,000 in Federal     |         |
| awards in one fiscal year meet the requirements of         |         |
| Circular A-133?                                            |         |
|                                                            |         |
| \[OMB Circular A-133, §\_\_\_.400(d)(4), §\_\_\_.200 and   |         |
| 24 CFR 92.506\]                                            |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
|                                                            |         |
|                                                            |         |
+------------------------------------------------------------+---------+

26\.

+------------------------------------------------------------+---------+
| Does the State recipient's or subrecipient's audit report  |         |
| include an opinion (or disclaimer of opinion) as to        |         |
| whether the financial statements of the State recipient or |         |
| subrecipient were presented fairly in all material         |         |
| respects in conformity with generally accepted accounting  |         |
| principles and an opinion (or disclaimer of opinion) as to |         |
| whether the schedule of Federal awards was presented       |         |
| fairly in all material respects in relation to the State   |         |
| recipient's or subrecipient's financial statements taken   |         |
| as a whole?                                                |         |
|                                                            |         |
| \[OMB Circular A-133, §\_\_\_.400(d)(4), §\_\_\_.500(b)    |         |
| and 24 CFR 92.506\]                                        |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

27\.

+------------------------------------------------------------+---------+
| Does the audit include a report on the subrecipient's or   |         |
| State recipient's internal controls related to the         |         |
| financial statements and major programs?                   |         |
|                                                            |         |
| \[OMB Circular A-133, §\_\_\_.400(d)(3), §\_\_\_.400(d)    |         |
| (4), §\_\_\_.500(b) and 24 CFR 92.506\]                    |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

28\.

+------------------------------------------------------------+---------+
| Did the PJ review each audit report of its State           |         |
| recipients that expended \$500,000 or more in Federal      |         |
| awards in the fiscal year to determine whether the audit   |         |
| report states the State recipient or subrecipient has      |         |
| complied with the laws and regulations, and provisions of  |         |
| contracts or grant agreements that may have a direct and   |         |
| material effect on each of its major programs?             |         |
|                                                            |         |
| \[OMB Circular A-133, §\_\_\_. 400(d) (4), §\_\_\_. 500(d) |         |
| and 24 CFR 92.506\]                                        |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

29\.

+------------------------------------------------------------+---------+
| Did the PJ ensure that audit reports of its State          |         |
| recipients and subrecipients that expended \$500,000 or    |         |
| more in Federal awards in the fiscal year were submitted   |         |
| within thirty (30) days after receipt of the auditors      |         |
| report, but not later than nine months after the end of    |         |
| the audit period?                                          |         |
|                                                            |         |
| \[OMB Circular A-133, §\_\_\_. 400(d)(4), §\_\_\_. 3205(a) |         |
| and 24 CFR 92.506\]                                        |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

30\.

+------------------------------------------------------------+---------+
| Did the PJ determine that the State recipient's or         |         |
| subrecipient's audit costs charged to the HOME program did |         |
| not exceed the percentage that the HOME funds expended     |         |
| represented of the total funds expended by the State       |         |
| recipient or subrecipient during the fiscal year?          |         |
|                                                            |         |
| \[OMB Circular A-133, §\_\_\_.400(d)(4), §\_\_\_.230 and   |         |
| 24 CFR 92.506\]                                            |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

31\.

+------------------------------------------------------------+---------+
| Did the PJ issue a management decision on audit findings   |         |
| within six months after receipt of the State recipient or  |         |
| subrecipient's audit report?                               |         |
|                                                            |         |
| \[OMB Circular A-133, §\_\_\_.400(d)(5) and 24 CFR         |         |
| 92.506\]                                                   |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
|                                                            |         |
|                                                            |         |
+------------------------------------------------------------+---------+

32\.

+------------------------------------------------------------+---------+
| Did the PJ ensure that the State recipient or subrecipient |         |
| took appropriate and timely corrective action on audit     |         |
| findings?                                                  |         |
|                                                            |         |
| \[OMB Circular A-133, §\_\_\_.400(d)(5) and 24 CFR         |         |
| 92.506\]                                                   |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

33

+------------------------------------------------------------+---------+
| Did the PJ consider whether the State recipient or         |         |
| subrecipient audit necessitated adjustment of the PJ's own |         |
| records?                                                   |         |
|                                                            |         |
| \[OMB Circular A-133, §\_\_\_.400(d)(6) and 24 CFR         |         |
| 92.506\]                                                   |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
|                                                            |         |
|                                                            |         |
+------------------------------------------------------------+---------+

34\.

+------------------------------------------------------------+---------+
| Did record review disclose any items that should have been |         |
| adjusted in the PJ's records, but were not?                |         |
|                                                            |         |
| \[OMB Circular A-133, §\_\_\_.400(d)(6) and 24 CFR         |         |
| 92.506\]                                                   |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
|                                                            |         |
|                                                            |         |
+------------------------------------------------------------+---------+

35\.

+------------------------------------------------------------+---------+
| Does the PJ require each subrecipient to permit the PJ and |         |
| independent auditors to have access to the records and     |         |
| financial statements, as necessary, to comply with the     |         |
| Circular?                                                  |         |
|                                                            |         |
| \[OMB Circular A-133, §\_\_\_.400(d)(7) and 24 CFR         |         |
| 92.506\]                                                   |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
|                                                            |         |
|                                                            |         |
+------------------------------------------------------------+---------+

36\.

+-----------------------------------------------------------------------+
| What is the PJ's process for reviewing and reaching determinations    |
| regarding the findings in the State recipient and subrecipient        |
| audits?                                                               |
+-----------------------------------------------------------------------+
| **Describe Basis for Conclusion:**                                    |
|                                                                       |
|                                                                       |
+-----------------------------------------------------------------------+

37\.

+------------------------------------------------------------+---------+
| a\. Does the PJ have procedure to inform HUD and federal   |         |
| law enforcement authorities of illegal acts or             |         |
| irregularities?                                            |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
|                                                            |         |
|                                                            |         |
+------------------------------------------------------------+---------+

+-----------------------------------------------------------------------+
| b\. If yes, what is procedure(s)/criteria used in determining when to |
| notify authorities?                                                   |
+-----------------------------------------------------------------------+
| **Describe Basis for Conclusion:**                                    |
|                                                                       |
|                                                                       |
+-----------------------------------------------------------------------+

38\.

+------------------------------------------------------------+---------+
| Is there a procedure to establish an account receivable    |         |
| from the subrecipient when a monetary sanction is          |         |
| involved?                                                  |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
|                                                            |         |
|                                                            |         |
+------------------------------------------------------------+---------+

39\.

+------------------------------------------------------------+---------+
| Is there a means of ensuring consistent treatment of all   |         |
| audit findings?                                            |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
|                                                            |         |
|                                                            |         |
+------------------------------------------------------------+---------+

40\.

+------------------------------------------------------------+---------+
| Does the PJ 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 PJs 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.) \[24 CFR 92.351(b)\]        |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
|                                                            |         |
|                                                            |         |
+------------------------------------------------------------+---------+

+-----------+--------------------------------+-----+------------------+
| **Guide   |                                |     |                  |
| for       |                                |     |                  |
| Review of |                                |     |                  |
| Financial |                                |     |                  |
| Man       |                                |     |                  |
| agement** |                                |     |                  |
|           |                                |     |                  |
| **Wor     |                                |     |                  |
| ksheet:** |                                |     |                  |
|           |                                |     |                  |
| **OMB     |                                |     |                  |
| Circular  |                                |     |                  |
| A-133     |                                |     |                  |
| Audits    |                                |     |                  |
| M         |                                |     |                  |
| anagement |                                |     |                  |
| System    |                                |     |                  |
| Review**  |                                |     |                  |
+-----------+--------------------------------+-----+------------------+
| **Name of |                                |     |                  |
| Part      |                                |     |                  |
| icipating |                                |     |                  |
| Jur       |                                |     |                  |
| isdiction |                                |     |                  |
| (PJ):**   |                                |     |                  |
|           |                                |     |                  |
|           |                                |     |                  |
+-----------+--------------------------------+-----+------------------+
| **Staff   |                                |     |                  |
| Con       |                                |     |                  |
| sulted:** |                                |     |                  |
|           |                                |     |                  |
|           |                                |     |                  |
+-----------+--------------------------------+-----+------------------+
| **Name(s) |                                | **D |                  |
| of        |                                | ate |                  |
| Revie     |                                | :** |                  |
| wer(s):** |                                |     |                  |
+-----------+--------------------------------+-----+------------------+

**[Instructions]{.underline}:** This Exhibit Worksheet is intended to
supplement the information contained in Section I. OMB Circular A-133:
Audits of States, Local Governments, and Non-Profit Organizations. The
Worksheet contains three parts: Audit Receipt Deadlines; Were
Requirements Met?; and Conclusions. Where State recipient and
subrecipient audits are reviewed to confirm the implementation of the
PJ's system, select a sample of grants and insert the names of the State
recipients and 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. [AUDIT Receipt Deadlines]{.underline}

+---+-----------------+-----------+------------+----------+-----------+
|   | **State         | **Fiscal  | **Audit**  | *        | **Audit   |
|   | Recipient and   | Year End  |            | *Audit** | R         |
|   | Subrecipient    | Date**    | **Report   |          | eceived** |
|   | Name**          |           | Date**     | **Due    |           |
|   |                 |           |            | 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:

  **Describe Basis for Conclusion:**

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