Section 12.3 Initiation of Closeout Process

Completing Your Grant: Section 12.3 Initiation of Closeout Process

The closing out of your grant can begin in one of two ways. Either the grantee can contact CDFA to inform the agency that the grantee is ready to closeout or CDFA may initiate closeout, particularly if the grant is within 30-45 days of its expiration date. No matter who initiates the process, the first step toward closeout should be to review all project records to determine that the following activities have been completed and are documented in the grantee’s files:

• All costs to be covered by the CDBG grant have been incurred or obligated, including payment of a final audit, if necessary, and any unsettled third party claims or contract commitments. Costs are considered incurred when goods and services are received and contract work is performed. With respect to activities which are carried out through a revolving loan account or escrow account, costs are considered incurred when initially used for the purpose described in the grant contract with CDFA.
• All Semi-Annual Progress Reports are submitted and CDFA has accepted them as complete.
• All financial and program monitoring findings have been resolved to the satisfaction of CDFA.
• All prior audit findings have been resolved.
• At least one public hearing (mid-grant hearing) was held since initiating the project and all comments received have been placed in the project files.
• All other responsibilities under the CDBG contract, including any special conditions, have been carried out to the satisfaction of CDFA.