+----------+------------------------------+----+----------------------+
| **Guide  |                              |    |                      |
| for      |                              |    |                      |
| Review   |                              |    |                      |
| of SHP   |                              |    |                      |
| F        |                              |    |                      |
| inancial |                              |    |                      |
| Mana     |                              |    |                      |
| gement** |                              |    |                      |
+----------+------------------------------+----+----------------------+
| **Name   |                              |    |                      |
| of       |                              |    |                      |
| Gr       |                              |    |                      |
| antee:** |                              |    |                      |
|          |                              |    |                      |
| *        |                              |    |                      |
| *     ** |                              |    |                      |
+----------+------------------------------+----+----------------------+
| **Staff  |                              |    |                      |
| C        |                              |    |                      |
| onsulted |                              |    |                      |
| :     ** |                              |    |                      |
+----------+------------------------------+----+----------------------+
| *        |                              | ** |                      |
| *Name(s) |                              | Da |                      |
| of       |                              | te |                      |
| Revie    |                              | ** |                      |
| wer(s)** |                              |    |                      |
+----------+------------------------------+----+----------------------+

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

**[Instructions]{.underline}:** This Exhibit is designed to review the
SHP grantee's financial management system and eligibility of SHP grant
expenditures. With respect to the applicability of OMB Circulars on cost
principles, certain requirements do not apply to the SHP program.
Specifically, all expenditures for the SHP program must be based on
actual, incurred costs. Costs that do not represent an incurred cost
such as depreciation or professional retainer fees are not allowable.
Follow the sampling guidance in Section 13-3 of the introduction to this
Chapter.

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

1\.

+------------------------------------------------------------+---------+
| Does the grantee have written procedures for recording     |         |
| financial transactions, and a current accounting manual    |         |
| and a chart of accounts?                                   |         |
|                                                            |         |
| \[24 CFR 583.330(c), 24 CFR 84.21(b)(2) or 24 CFR          |         |
| 85.20(b)(2)\]                                              |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

2\.

+------------------------------------------------------------+---------+
| Does the grantee maintain a policy manual covering the     |         |
| authority for approving financial transactions?            |         |
|                                                            |         |
| \[24 CFR 583.330(c), 24 CFR 84.21(b)(2) or 24 CFR          |         |
| 85.20(b)(2)\]                                              |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

3\.

+----------------------------------------------------------+-----------+
| If the grantee has a policy manual, does it provide      |           |
| guidelines for controlling expenditures, such as         |           |
| purchasing requirements and travel authorizations?       |           |
|                                                          |           |
| \[24 CFR 583.330(c), 24 CFR 84.21(b)(2) or 24 CFR        |           |
| 85.20(b)(2)\]                                            |           |
+----------------------------------------------------------+-----------+
| **Describe Basis for Conclusion:**                       |           |
+----------------------------------------------------------+-----------+
|                                                          |           |
+----------------------------------------------------------+-----------+

4\.

+------------------------------------------------------------+---------+
| Does the grantee have written procedures regarding the     |         |
| maintenance of accounting records?                         |         |
|                                                            |         |
| \[24 CFR 583.330(c), 24 CFR 84.53(b) or 24 CFR 85.42\]     |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

5\.

+------------------------------------------------------------+---------+
| Are the grantee's fiscal records and valuables secured in  |         |
| a limited-access area?                                     |         |
|                                                            |         |
| \[24 CFR 583.330(c), 24 CFR 84.21(b)(3) or 24 CFR          |         |
| 85.20(b)(3)\]                                              |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

6\.

+----------------------------------------------------------+-----------+
| If the SHP grantee has an interest-bearing account, is   |           |
| there evidence that any interest on grant advances has   |           |
| been returned to HUD?                                    |           |
|                                                          |           |
| \[24 CFR 583.330 (c), 24 CFR 84.22(k) or 24 CFR          |           |
| 85.21(i)\]                                               |           |
+----------------------------------------------------------+-----------+
| **Describe Basis for Conclusion:**                       |           |
+----------------------------------------------------------+-----------+
|                                                          |           |
+----------------------------------------------------------+-----------+

7\.

+------------------------------------------------------------+---------+
| Does the grantee identify expenditures in its accounting   |         |
| records according to eligible activities identified in the |         |
| approved homeless assistance competition application?      |         |
|                                                            |         |
| \[24 CFR 583.410 and 24 CFR 583.330(c), 24 CFR 84.21(b)(2) |         |
| or 24 CFR 85.20(b)(2)\]                                    |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

8\.

+------------------------------------------------------------+---------+
| Do the fiscal records indicate evidence that the grantee   |         |
| has effective internal control over, and accountability    |         |
| for, all grant funds, property and other assets?           |         |
|                                                            |         |
| \[24 CFR 583.330 (c), 24 CFR 84.21(b)(3) or 24 CFR         |         |
| 85.20(b)(3)\]                                              |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

9\.

+------------------------------------------------------------+---------+
| Does a review of the sample transaction records indicate   |         |
| that SHP expenditures were for eligible costs and          |         |
| supported by adequate source documentation (invoices,      |         |
| contracts, or purchase orders)?                            |         |
|                                                            |         |
| \[24 CFR 583.100-135 and 24 CFR 583.330 (c), 24 CFR        |         |
| 84.21(b)(7) or 24 CFR 85.20(b)(6)\]                        |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

10\.

+----------------------------------------------------------+-----------+
| If the grantee draws down SHP funds on an advance (and   |           |
| not reimbursement) basis, do the financial records       |           |
| reveal that payments made for project costs occurred     |           |
| within three business days of the deposit of grant       |           |
| funds?                                                   |           |
|                                                          |           |
| \[24 CFR 583.330 (c), 24 CFR 84.21(b)(5) or 24 CFR       |           |
| 85.20(b)(7)\]                                            |           |
+----------------------------------------------------------+-----------+
| **Describe Basis for Conclusion:**                       |           |
+----------------------------------------------------------+-----------+
|                                                          |           |
+----------------------------------------------------------+-----------+

11\.

+------------------------------------------------------------+---------+
| Are journal entries for expenditures clearly explained and |         |
| reviewed by some form of a checks and balance system?      |         |
|                                                            |         |
| \[24 CFR 84.21(b)(1) or 24 CFR 85.20(b)(1)\]               |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

12\.

+------------------------------------------------------------+---------+
| Is there evidence that the grantee requires subsidiary     |         |
| records for accounts, etc., to be balanced with control    |         |
| accounts on a regular basis?                               |         |
|                                                            |         |
| \[24 CFR 583.330(c), 24 CFR 84.21(b)(1) or 24 CFR          |         |
| 85.20(b)(1)\]                                              |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

13\.

  ------------------------------------------------------------- ---------
  a\. Are charges to the SHP for salaries and wages, whether    
  treated as direct or indirect costs, based on payrolls        
  documented in accordance with generally accepted accounting   
  principles and approved by a responsible official(s) of the   
  organization being monitored?                                 

  **Describe Basis for Conclusion:**                            

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

+----------------------------------------------------------+-----------+
| b.  For employees working solely on SHP, 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:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

14\.

+------------------------------------------------------------+---------+
| Is there evidence that the staff duties are separated so   |         |
| that no one individual has complete authority over an      |         |
| entire financial transaction?                              |         |
|                                                            |         |
| \[24 CFR 583.330(c), 24 CFR 84.21(b)(1) or 24 CFR          |         |
| 85.20(b)(1)\]                                              |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

15\.

+------------------------------------------------------------+---------+
| Are payments for employee salaries supported by timesheets |         |
| indicating actual times, not percentages?                  |         |
|                                                            |         |
| \[24 CFR 583.330 (c), OMB Circular A-87, Attachment B,     |         |
| #8(h) or OMB Circular A-122, Attachment B, #8\]            |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

16\.

+----------------------------------------------------------+-----------+
| If salaries are being paid from more than one source, do |           |
| the fiscal records clearly define payments among the     |           |
| funding sources?                                         |           |
|                                                          |           |
| \[24 CFR 583.330 (c), OMB Circular A-87, Attachment B,   |           |
| #11(h) or OMB Circular A-122, Attachment B, #11(m)\]     |           |
+----------------------------------------------------------+-----------+
| **Describe Basis for Conclusion:**                       |           |
+----------------------------------------------------------+-----------+
|                                                          |           |
+----------------------------------------------------------+-----------+

17\.

+----------------------------------------------------------+-----------+
| If salaries involve payments from more than one SHP      |           |
| activity line (e.g., supportive services, operating      |           |
| costs), can payments for wages be clearly tracked within |           |
| the grantee's fiscal records?                            |           |
|                                                          |           |
| \[24 CFR 583.330 (c), 24 CFR 84.21(b)(1) or 24 CFR       |           |
| 85.20(b)(1)\]                                            |           |
+----------------------------------------------------------+-----------+
| **Describe Basis for Conclusion:**                       |           |
+----------------------------------------------------------+-----------+
|                                                          |           |
+----------------------------------------------------------+-----------+

18\.

  ------------------------------------------------------------- ---------
  Is there evidence in the financial records of any cash        
  payments being provided directly to the clients?              

  **Describe Basis for Conclusion:**                            

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

19\.

+------------------------------------------------------------+---------+
| Does the Line of Credit Control System (LOCCS) withdrawal  |         |
| information match the information from the SHP grantee's   |         |
| drawdown voucher requests?                                 |         |
|                                                            |         |
| \[24 CFR 583.330(c)\]                                      |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+