A contract administered by a grantee shall be officially
closed out upon program completion or the contract period, whichever comes
first. While there are standard requirements to the close-out process, the
Department will deal directly with the grantee to determine the most
appropriate process and timetable for accomplishing these requirements. The
Department will notify a grantee as to the time to begin the necessary
close-out procedures. These procedures will consist of the following:
(1)
Program audit. The
Department will require an audit by an independent Certified Public Accountant.
An audit shall be in conformance with Office of Management and Budget Circular
A-128. The exact extent and timing of the audit will depend on how recently the
grantee may have had an audit, or how soon one is scheduled, if any.
(2)
Property disposition. If
property was acquired in whole or part with program funds, there shall be a
proper disposition of the property before final close-out. The Department will
instruct grantees as to how this shall be done.
(3)
Third party claims. If,
during the grant, law suits or liens have been brought against the grantee,
these shall be adequately resolved prior to, or as soon as possible after
close-out. The Department will provide instructions to the grantee if the cases
occur.
(4)
Fund
reimbursements and accounting. If the grantee has not fully expended
program funds received or if the grantee has generated program income by virtue
of program assisted activities, or both, these funds shall be accounted for to
the Department. In the case of unexpended balances of program funds, these
shall be returned to the Department prior to final close-out. In the case of
program income, the Department will permit grantees to retain this income in
accordance with 24 CFR
570.506 (relating to program
income).
(5)
Final grant
report. Prior to final closeout, the grantee shall provide to the
Department a final performance report which summarizes the results of
activities undertaken with program funds. The Department will provide
instructions as to the full content of this report.