+----------+------------------------------+----+----------------------+
| **Guide  |                              |    |                      |
| for      |                              |    |                      |
| Review   |                              |    |                      |
| of EZ    |                              |    |                      |
| Cost     |                              |    |                      |
| Allowa   |                              |    |                      |
| bility** |                              |    |                      |
+----------+------------------------------+----+----------------------+
| **Name   |                              |    |                      |
| of       |                              |    |                      |
| Program  |                              |    |                      |
| Partic   |                              |    |                      |
| ipant:** |                              |    |                      |
|          |                              |    |                      |
| *        |                              |    |                      |
| *     ** |                              |    |                      |
+----------+------------------------------+----+----------------------+
| **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 participant\'s
program more fully and/or to identify issues that, if not properly
addressed, could result in deficient performance. Negative conclusions
to these questions may result in a \"concern\" being raised, but not a
**\"finding.**\"

**[Instructions]{.underline}:** This Exhibit is designed to evaluate the
EZ's cost allocation procedures for costs charged to Implementation
Plans (IPs). Compliance is based on OMB Circular A-87 and 24 CFR Part
85.22 (for governmental units) and 24 CFR 84.27 (for nonprofit
organization). These requirements are incorporated by reference in the
Round II EZ Grant Agreement, Section I.D.

**[Questions]{.underline}**

1\.

+------------------------------------------------------------+---------+
| Does a spot check of a sample of the following items of    |         |
| cost reveal any obvious instances where these expenditures |         |
| were not necessary and reasonable for proper and efficient |         |
| administration of the EZ program:                          |         |
|                                                            |         |
| \[EZ Grant Agreement, Section I.D; 24 CFR 85.22 or 24 CFR  |         |
| 84.27; OMB Circular A-87, Attachment B or OMB Circular     |         |
| A-122, Attachment B\]                                      |         |
+------------------------------------------------------------+---------+
| a\. salaries and related costs?                            |         |
|                                                            |         |
| \[OMB Circular A-87, Attachment B.8 or OMB Circular A-122, |         |
| #8\]                                                       |         |
+------------------------------------------------------------+---------+
| b\. professional service contracts (e.g., legal, account,  |         |
| audit, consulting)?                                        |         |
|                                                            |         |
| \[OMB Circular A-87, Attachment B.32 or OMB Circular       |         |
| A-122, Attachment B, #37\]                                 |         |
+------------------------------------------------------------+---------+
| c\. travel expenditures?                                   |         |
|                                                            |         |
| \[OMB Circular A-87, Attachment B, #43 or OMB Circular     |         |
| A-122, Attachment B, #51\]                                 |         |
+------------------------------------------------------------+---------+
| d\. other administrative costs (e.g., training)?           |         |
|                                                            |         |
| \[OMB Circular A-87, Attachment B, #42 or OMB Circular     |         |
| A-122, Attachment B, #49\]                                 |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

2\.

+------------------------------------------------------------+---------+
| Does a review of EZ program expenditures reveal the        |         |
| existence of any unallowable costs as itemized in OMB      |         |
| Circular A-87, Attachment D, (or OMB Circular A-122, for   |         |
| nonprofit subrecipients) including:                        |         |
|                                                            |         |
| \[EZ Grant Agreement, Section I.D; 24 CFR 85.22 or 24 CFR  |         |
| 84.27\]                                                    |         |
+------------------------------------------------------------+---------+
| a\. entertainment?                                         |         |
|                                                            |         |
| \[OMB Circular A-87 or OMB Circular A-122, Attachment B,   |         |
| #14\]                                                      |         |
+------------------------------------------------------------+---------+
| b\. contributions and donations?                           |         |
|                                                            |         |
| \[OMB Circular A-87 or OMB Circular A-122, Attachment B,   |         |
| #12\]                                                      |         |
+------------------------------------------------------------+---------+
| c\. fines and penalties?                                   |         |
|                                                            |         |
| \[OMB Circular A-87 or OMB Circular A-122, Attachment B,   |         |
| #16\]                                                      |         |
+------------------------------------------------------------+---------+
| d.  general governmental expenditures including salary and |         |
|     expenses of the chief executive officer of the EZ?     |         |
|                                                            |         |
|     \[OMB Circular A-87 or OMB Circular A-122, Attachment  |         |
|     B, #19\]                                               |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

3\.

  ------------------------------------------------------------- ---------
  Have any costs related to lobbying activities been charged to 
  the EZ program? \[EZ Grant Agreement, Section I.D; 24 CFR     
  85.22 or 24 CFR 84.27\]                                       

  **Describe Basis for Conclusion:**                            

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

4\.

+------------------------------------------------------------+---------+
| Are costs charged to the EZ program after subtraction of   |         |
| all applicable credits?                                    |         |
|                                                            |         |
| \[EZ Grant Agreement, Section I.D; 24 CFR 85.22 or 24 CFR  |         |
| 84.27\]                                                    |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

5\.

+------------------------------------------------------------+---------+
| Are costs charged to the grant program not allocable to or |         |
| included as a cost of any other Federally financed program |         |
| in the period under review?                                |         |
|                                                            |         |
| \[EZ Grant Agreement, Section I.D; 24 CFR 85.22 or 24 CFR  |         |
| 84.27\]                                                    |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

6\.

+----------------------------------------------------------+-----------+
| If the EZ charges indirect costs to the grant program,   |           |
| are such costs supported by an Indirect Cost Rate/Cost   |           |
| Allocation Plan prepared in accordance with OMB Circular |           |
| A-87, Attachment A, Section F?                           |           |
|                                                          |           |
| \[EZ Grant Agreement, Section I.D; 24 CFR 85.22\]        |           |
+----------------------------------------------------------+-----------+
| **Describe Basis for Conclusion:**                       |           |
+----------------------------------------------------------+-----------+
|                                                          |           |
+----------------------------------------------------------+-----------+

7\.

+----------------------------------------------------------+-----------+
| If subrecipients charge indirect costs to the EZ         |           |
| program, are such costs supported by an Indirect Cost    |           |
| Rate/Cost Allocation Plan prepared in accordance with    |           |
| OMB Circular A-122, Attachment A, Section C?             |           |
|                                                          |           |
| \[EZ Grant Agreement, Section I.D; 24 CFR 84.27\]        |           |
+----------------------------------------------------------+-----------+
| **Describe Basis for Conclusion:**                       |           |
+----------------------------------------------------------+-----------+
|                                                          |           |
+----------------------------------------------------------+-----------+

8\.

+------------------------------------------------------------+---------+
| Does a review of the personnel roster of staff being paid  |         |
| from EZ funds reveal any obvious instances of personnel    |         |
| being paid from, but not working on, EZ program            |         |
| activities?                                                |         |
|                                                            |         |
| \[EZ Grant Agreement, Section I.D; 24 CFR 85.22 or 24 CFR  |         |
| 84.27\]                                                    |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+