04 NCAC 19S .1104 CLOSEOUT
(a) A recipient may close out HOME funds for an individual Federal fiscal year when the following criteria have been met:
(1) All funds to be closed out have been drawn down and expended for completed project costs or funds not drawn down and expended are to be deobligated by the Department;
(2) The matching funds requirements in Section 92.218 have been met unless waived for the fiscal year by the U.S. Congress;
(3) Project Completion Reports for all projects using funds to be closed out have been submitted and entered into the department's financial system in order for the Department to prepare the Closeout Report;
(4) The recipient has been reviewed and audited and the Department has determined that all requirements except for affordability, have been met or all monitoring and audit findings have been resolved.
(A) The recipient's most recent audit report must be received by the Department. Even though the audit does not cover all funds to be closed out, closeout may proceed provided the recipient agrees in its Closeout Report that unaudited funds will be subject to the recipient's next single audit and that the recipient may be required to repay the Department any disallowed costs based on the results of the audit.
(B) The on‑site monitoring of the recipient by the Department must include verification of the Department's financial system data reflected in the Closeout Report and reconciliation of any discrepancies existing between the Department's financial system and the recipient's records.
(b) The Closeout Report contains the final data on funds and must be signed by the recipient and the Department's designated official. In addition the report must contain:
(1) A provision regarding unaudited funds, required by Part(a)(4)(i) of this Rule.
(2) A provision requiring the recipient to continue to meet the requirement applicable to housing projects for the period of affordability specified in 24 CFR Part 92.252 or 92.254;
(3) A provision requiring recipients to keep records demonstrating that the requirements have been met and to repay HOME funds, as required by 24 CFR 92.503, if the housing fails to remain affordable for the required period.
History Note: Authority G.S. 143B‑10; 143B‑431; 24 C.F.R. Part 92;
Eff. November 2, 1992.