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HomeMy WebLinkAbout7.1 CDBG Grant Process~~~~ OF' DpB~y i9~ j''-~~N a2 ~`~i~~ ~'~~~C~ •~~ STAFF REPORT C I T Y C L E R K DUBLIN CITY COUNCIL File # ^~]~~-~~ DATE: May 18, 2010 TO: Honorable Mayor and City Councilmembers FROM: Joni Pattillo, City Manager SUBJEC . Approval of Combined Grant Process and Related Documents Prepared By: Gay/ene Burkett, Administrative Ana/yst 1 EXECUTIVE SUMMARY: During the Fiscal Year 2009-2010 Goals and Objectives process, the City Council established a high priority objective to develop a procedure to combine the Community Development Block Grant (CDBG) and the Community Support Grant processes into one. On October 6, 2009, the City Council created the Community Development Block Grant and Community Support Grant Committee ("Committee") to provide policy guidance and direction to assist Staff on meeting this objective. The Committee has met several times and provided input on the process and necessary documents. Upon full City Council acceptance of the Committee's recommendations, the objective of combining the Community Development Block Grant and the Community Support Grant processes into one process will be complete. FINANCIAL IMPACT: None RECOMMENDATION: Staff recommends that the City Council: 1) Receive Staff presentation; 2) Accept the Committee's recommendations on the new grant process, the Universal Grant Application and Universal Rating Criteria; 3) Not establish grant funding priorities so as to maintain flexibility in the grant award process; and 4) Authorize the City Manager or her designee the ability to make changes to the related documents as appropriate. ,,.._-.___. Submitted By Community Development Director v ' Revie by Assistant City Manager GOPY TO: Internal Distribution ITEM NO. ~• f 1 of 3 BACKGROUN D: In Fiscal Year 2009-2010, the City Council approved an objective to combine the CDBG and Community Grants into one process in order to streamline the grant process for Staff and applicants and to prepare for when the City becomes an Entitlement City under the CDBG Program. The City Council created the Community Development Block Grant (CDBG) and Community Support Grant Committee (Committee). The following is a brief overview of the meetings held by the Committee and follow-up meetings to the City Council on the Committee recommendations: • On October 22, 2009, the first Standing Committee meeting was held. It was decided that the Community Support Grant open application process would occur during the same time period as the CDBG open application period. • On January 12, 2010, the Standing Committee received presentations from Community Grant and CDBG Grant Applicants and made funding recommendations. • On February 2, 2010, Staff presented the Committee's recommendations to the full City Council for CDBG funds for FY 2010-2011. • On February 24, 2010, Staff presented the Committee's recommendations to the full City Council for Community Grants for FY 2010-2011. • On April 27, 2010, the Committee reviewed the proposed Universal Grant Application and the proposed Universal Rating Criteria. The Committee recommended adoption of both documents as proposed by Staff. The Committee also recommended not establishing funding priorities at this time as CDBG funds are not guaranteed and are subject to limitations set by the Department of Housing and Urban Development (HUD) and the County, and Community Support Grants are subject to the availability of general fund revenues. ANALYSIS As part of ineeting the City Councii's objective to develop a procedure to combine the Community Development Block Grant (CDBG) and the Community Support Grant processes into one, during the last funding cycle, Staff incorporated changes and combined processes to merge the grant applications process into one. Those changes included: - Changes to the timing of the Request for Proposal and Grant deadlines; - Mandatory presentations to the Committee from all grant applicants; and - Presentation of CDBG and Community Support Grant funding recommendations to the full City Council at two separate meetings in February 2010. Additionally, a Universal Grant Application Packet (Attachment 1) was developed based on the existing CDBG and Community Grant applications to be used by all grant applicants. The application was reviewed and recommended for approval by the Committee. It should be noted that the proposed application is subject to final review and approval by the Alameda County Department of Housing and Community Development because of the Department of Housing and Urban Development's (HUD) requirements; therefore, it may be necessary to make further changes to the application depending on 2 of 3 the County's direction. It is not anticipated that any material changes to the application will be requested as a result of the County's review. Staff also developed Universal Grant Rating Criteria (Attachment 2) to assist in rating all applications. The Criteria was reviewed and recommended for approval by the Committee. The Universal Rating Criteria is the same in nature as the CDBG Rating Criteria previously approved by the City Council on April 21, 2009, with the addition of language to address if Community Support Grant requests meet a City goal (as noted in RED on Attachment 2). This form will be filled out by Staff and provided to the Committee to assist in future funding decisions. Staff also requested the Committee's consideration of whether funding priorities should be established. The Cities of Pleasanton and Livermore set aside CDBG funds for certain activities such as youth, seniors and art based on recommendations from their respective commissions. Both of these cities receive federa~ grants in the hundreds of thousands of dollars. Staff did not recommend establishing funding priorities at this time considenng the amount of funding that may be available in the future. CDBG funds are not guararrteed and are subject to limitations set by the Department of Housing and Urban Development (HUD) and the County. Community Support Grants are subject to the availability of General Fund Revenues. The Committee agreed to recommend not establishing funding priorities at this time to maintain flexibility within the grant award process. Should the City Council decide to move forward with establishment of funding priorities, new procedures as well as a new Universal Grant Rating Criteria would need to be developed and brought back to the Committee and the City Council for review at a later date_ Staff recommends that the City Council authorize the City Manager or her designee to make changes to the combined grant process, the Universal Grant Application or the Universal Grant Rating Criteria from time to time to be reflective of current industry changes to County, State or Federal guidelines (or others as applicable). NOTICING REQUIREMENTS/PUBLIC OUTREACH: • In early November, a Request for Proposal was noticed in the newspaper 3 times. • On November 3 and 10, 2009, City Staff held informational meetings with community organizations. • On April 7, 2010, a meeting was held for Community Groups to comment regarding the proposed new documents and the modified process. Generally the response was positive. • A workshop will be held in the Fall of 2010 to assist applicants with the new process and the new application. ATTACHMENTS: 1) Universal Grant Application Packet 2) Universal Grant Rating Criteria K:\Combining CDBG & Community C',r.urts\City Council Commiuees\#1 - Standing CommiUee\Staff RepoRs & Attachments\Staff Report 5-18-10 meetingcf (3).doc 3 of 3 I ~ i~ CITY OF DUBLIN FUNDING REQUEST FOR FISCAL YEAR 2011-2012 Community Development Block Grant Program and Community Support Grant Program 19 U N IVERSAL G RANT ~PLICATIO~ PACKET AGENCY NAME: PROPOSED PROJECT/PROGRAM NAME: FUNDING AMOUNT REQUESTED: APPLICATION DEADLINE: COVER PAGE I ~-~r~' 'd• I `~ i ~' ~ O Page 1 of 12 of Universal Grant Application ATTACHMENT 1 a ~ ~~, Fiscal Year 2011-2012 APPLICATION FOR FUNDS Agency Information AGENCY NAME: ADDR ESS: EXEC. DIRECTOR/MANAGER: Phone Number: Please list the Primary Project Contact Ae~son who would be able to ar~wer questions about this application and project/program during the funding period. CONTACT NAME and TITLE: CONTACT PHONE: CONTACT FAX: CONTACT EMAIL: Organizational Background Private Non-Profit ^ ^ Public Agency ~ Other (Describe): Federal Tax ID Number City Business License No. (required if funded) LIST PREVIOUSLY YEARS CITY FUNDING RECEIVED AND CHECK TYPE OF GRANT RECEIVED: CDBG ^ or COMMUNITY GRANT ~ or BOTH ~ Page 2 of 12 of Universal Grant Application ~ ~ (`~ ~ Proposal Summary (A Program may contain several goals) Check one Capital Request ^ or Public Service Request ^ or Other ^ PROGRAM NAME: BRIEF PROGRAM SUMMARY: GOALS (Number of Program goals to be achieved in fiscal year 2011-2012): Number of Dublin residents served List a brief description of each program goal: by this goal *!/SE SEPARATE SfIEET FOR MORE INFORMATION IF NECESSARY AMOUNT OF DUBLIN GRANT FUNDING REQUESTED (maximum $25,000 per project for Community Support Grants. Must match first column on Budget Formj: $ OVERALL TOTAL NUMBER OF DUBLIN RESIDENTS TO BE SERVED BY THIS PROGRAM: $ GRANT APPLICATION CERTIFICATION To the best of my knowledge and belief, ali information and data in this application and attachments are true and correct. No material information has been omitted, including financial information. If funded, i certify that the Agency is willing and able to adhere to polices and procedures specified by the City of Dublin, and ff applicable, the appropriate program regulations of the US Department of Housing and Urban Development. Further, i understand this is not an agreement for grant funding and cannot encumber funds until the Ciiy of Dublin and the individual authorized to execute contracts on behalf of the Applicant Agency, has signed the contract, and if applicable, all federal regulations and paperwork are compteted. AUTHORIZED SIGNATURE TITLE DATE Page 3 of 12 of Universal Grant Application You are required to answer each of the questions i~nlbwing the firmat below, using 8~fs" by 11" white paper, 12-point ~ype, with 1-inch margins. Do not inclucle the puestion in your narratnre; horrever answ~ers should be in order and refer to the carresponding section & number. The Program and Budget Narratives are not to exceed four (4) total pages. Ali pages must be consecutiMely numbered. Please answer each question even if it appears repetitaus. If applicabie, cwmpiete an additional page answ~ering questions regarding Capital requests. A. Program Narrative (maximum three [ 3] pages2 1. Describe the program for which you are requesting fundin,g. Provide a description of the problem(s), need(s), issue(s), or other service gaps to support an unmet need for the program/activity in Dublin. In addition, supply data such as demographics, reports and/or other information supporting your information and proving the need exists in Dublin. DO NOT solely cite statistics from your own program to prove need. 2. Within your Program, you may break out individuai goals you irrtend to achieve. These goais should be measurable goals such as: Present 3 cammunity education meetings on agency's services; assist 10 Dublin residents with specific services the agency offers; serve 1,000 meals to 50 Dubiin residents on a regular basis; install 5 sidewalk ramps on Dublin street corners, etc. 3. Describe: o The overali population you anticipate serving with these funds o How many of the overall population served are Dublin residents? o The type and frequency of Dublin outreach and marketing efforts for the Program. o The frequency and outreach to target population and how these efforts are accessible to limited-Engiish speakers. o Your agency's language access capabilities and how you provide culturally appropriate services. 4. How do you define success in this program? Please list and briefly describe the goals/outcomes that are crucial to the success of your program. Describe how participation in this program will change, enhance, or provide lasting improvements in the lives of potential clients. 5. Identify the organizations that your agency works or cooperates with and describe their relevant capabilities that result in greater service integration. 6. Provide an explanation of how your programs are accessible to individuals with various types of disabilities. 7. Describe leveraging or sustainability efforts your organization is implementing to maintain current service Ieveis. B. Budget Narrative (maximum one ~ 1 Lpage) 1. Describe how this program is cost effective and the budget is reasonable for the anticipated result. 2. If this application does not receive funding, what will be the effect on the program? 3. Does the agency anticipate having any unspertt grant funds at the end of the fiscal year? If so, explain why. 4. Complete Financial Information and Budget Forms. Please specify the total program budget. You must provide information on the common outcome indicator which defines the amount of dollars leveraged by the grant request. if you have any questions, please refer to the instructions for guidance or contact program staff.) s ~~ ~ Page 4 of t 2 of Universal Grant Application ~ l~~ ~ C. Capital Exqenditure Narrative (maximum one [ 1]page, if aQplicabiel 1. Provide a detailed budget and scope of work for each capital expenditure or a construction/ rehabilitation budget and describe how you ascertained these costs. 2. Will this projec~t require implementation of Davis-Bacon/Fair Labor Standards Aat? If required, describe how your agency will compiy with this regulation (bid requirements, determine wage rates, monitor compliance, etc). PLEASE CONTACT STAFF IMMEDIATELY IF YOU HAVE ANY QUESTIONS REGARDING DAVIS-BACON ~ FAIR LABOR STANDARDS ACT REQUIREMENTS~ Page 5 of 12 of Universal Grant Application ~ 1~ ~ Financial Information Form for ALL Grants Additional Program Revenue/Funding Sources & Staffing Costs Attach additional sheets if necessary Additional program funding sources could include, but are not limited to foundations, corporations, individual contributions, events, reimbursements and in-kind contributions. Types of funds are loans, grants, donations, in-kind services, etc. NEW BENEFITS PAID & BENEFIT COST & BENEFIT COST Y/N W/GRANT FUNDS TO GRANT TO GRANT Page 6 of 12 of Universal Grant Application If you anticipate utilizing CDBG funds to pay for staff costs, please list each employee/title and the percentage of their salary and benefits that will be paid with CDBG Funds. Include the total monthly and yearly costs to the CDBG program. Note: Vacation, sick leave and holidays for employees cannot be charged to CDBG as program expenses. 7~ ~ Program Expense Budget Form for ALL Grants Attach additiona- sheets if necessary CAPITAL EXPENSES Construction/Rehabilitation Permits and Fees Design Engineering Acquisition Other Soft Costs (define) Subtotal PERSONNEL EXPENSES Salaries Benefits Subtotai OPERATING EXPENSES Supplies Printing/Copying Postage Telephone Rent and Utilities Accounting/Audit Other (define) Subtotal TOTAL BUDGET PREPARED BY NAME and TITLE: CONTACT PHONE: CONTACT EMAIL: Dublin City Grant S Total Program Budget S $ S S $ $ $ S $ $ Page 7 of 12 of Universal Grant Application ~$ i ~ - If you do not meet the eligibility requirements for Community Development Block Grant (CDBG) funding as outlined on page 3 of the instructions, go no further, you are done. If you are unwilling or unable to meet the quarterly reporting and program file audit as required for CDBG funding, go no further, you are done. If you do not know if you qualify for CDBG funds, but are willing to comply with all Federal and City guidelines regarding the use of CDBG funds, please fill out the Performance Measures section. (see page 3 of the instructions for more information on CDBG qualifications). By filling out this section, there is no guarantee that your activity or Program is eligible for the use of CDBG funds. City Staff will make the final determination. Follow up information may be required. • For CDBG only D Performance Measures (use attached form~pages 10-13 of this application) 1. Select all Goals and Priorities that apply (refer to page 8 of instructions). 2. Choose ONE Objective, Outcome and Specific Indicator (page 10 of application) #1, #2 and #3. 3. Complete Common Indicator (page 11 of application) #4.A and #4.B (refer to chart below). 4. You must complete pages i and 2 of the Performance Measures. Section 5, Environmental Review Requirements, if not necessary if you are applying for Public Services. •:• Income Limits by household size, established May 2010 This table is provided to assist with completing Question #D.3 (above) in the Performance Measures Section (page 11) Family Size Extremely Low Very Low 50% of Low Median Moderate 30°~ of Median Median g0% of Median Income Income i Person $18,750 $31,250 $46,350 $62,500 $75,000 2 Persons $21,450 $35,700 $53,000 571,450 $85,700 3 Persons $24,100 $40,200 $59,600 $80,350 $96,450 4 Persons $26,800 $44,650 $66,250 $89,300 $107,150 5 Persons $28,950 $48,200 $71,500 $96,450 $115,700 6 Persons $31,100 $51,800 $76,850 $103,600 $124,300 7 Persons $33,250 $55,350 $82,150 $110,750 $132,850 8 Persons $35,400 $58,950 $87,450 $117,900 $141,450 Page 8 of 12 of Universal Grant Application 9~1~ HUD updates this income chart each year. The City will provide all FY 2011-2012 Subrecipients with the most current data when it becomes available. Source: U.S~ Department of Housing and Urhan Development, (HUD) Data for Oak/and SMS Page 9 of 12 of Universal Grant Application 9 ~~ ~~ HUD updates this income chart each year. The City wili provide all FY 2011-2012 Subrecipients with the most current data when it becomes available. Source: U.S~ Department of Housing and Urban Deve/opmen~ (HUD) Data for Oakland SMS Page 9 of 12 of Universal Grant Application ~° ~~ ~ Performance Measures Page 1 of 2 (Fill out a Performance Measure for goal and/or objective) AGENCY: PROGRAM: ACTIVIIY: GOAL/OBJECTIVE: If you anticipate receiving CDBG funds, you must complete this section. Please circle at least one of each of the following goais and priorities which are applicable to this activity, goal & objective. Refer to Instructions to complete RFP for a list of the goals and priorities. HUD Strategic Goal 1 2 3 4 5 HUD Policy Priority 1 2 3 4 5 6 How Will Your Agency Benefit Dublin Residents? Please refer to InstruCtions to complete RFP for qesCription ot Pertormance measures. 1. Obiective (select one) 2. Outcome (select one) ^ Creating a Suitable Living Environment ^ Availability/Accessibility ^ Providing Decent Affordable Housing ^ Affordability ^ Creating Economic Opportunities ^ Sustainability ^ Public facility or infrastructure ^ Owner occupied units rehabilitated ^ Public service ^ Direct financial assistance to homebuyers ^ Targeted revitalization ^ Tenant Based Rentai Assistance (TBRA) ^ Commercial fa~ade treatments or ^ Homeless shelters business building rehabilitation ~ Emergency housing ^ Brownfields remediated ~ Homeless prevention ^ Rental units constructed ~ ~obs created ^ Rental units rehabilitated ~ ~obs retained ^ Homeownership units constructed or ~ g~~nesses providing goods or services acquired with rehabilitation ^ Business assistance Page 10 of 12 of Universal Grant Application ~f~ ~~ Performance Measures Page 2 of 2 Applicable pages must be completed for each program I A. Total number of clients you anticipate serving (choose one or the other). DO NOT PROVIDE STATS IN BOTH CATEGORIES Households I I OR I Persons B. Breakout the number of clients you anticipate serving in the following categories. income charge on page 6. Low Income Very Low Female Headed (>50%) ~ncome Disabled Households Senior Youth Homeless ~~50a~a~ DO NOT COMPLETE THIS SECTION OF YOU ARE APPLYING FOR PUBLIC SERVICES 5. Environmental Review Requireme~s: Source documentation requested below includes, j but is not limited to: 1) personal experience of the individuai completing the application [inciude name, titie and date]; 2) another individual experienced w'rth the subject [include name, title and date]; 3) pubiication or other documentation [include title and date], etc.) SOURCE and/or CATEGORY DOCUMENTATION A. Historic Preservation: Will the project affect any historic properties or areas? if so, project may take up to 90 days to ciear with State Hisboric Preservation ~cer before contracts can be executed. B. Floodplain Management To be completed by County staff. C. Wetiands Protection: Does the project invoive new construction within or adjacent to wetlands, marshes, wet meadows, mud flats or natural ponds per field observation? D. Coastal Zone: Does the project involve the placement, erection or removal of materials, or an increase in the use in a Coastal Zone. E. Sole Source Aquifers. - State if project is or is not located within a U.S. EPA-designated sole source aquifer watershed area per Aprii 1990 Memoranda of Understanding [HUD EPA MOU of 1990]. F. Endangered Species: ~11 the project have any effect on any federally protected (listed or proposed) threatened or endangered species? Use personal euperience or contact the Nationai ~Idlife Association to determine if there are endangered species present in or around the project site. If the area is already urbanized, note this citing as your personal experience/observation. Include ifie name and title of the individual making the determination and the date, or the name of the publication that supports the finding. ~ u. iniiia ana ~cenic r~ivers. ~ ~ione in niamecia ~ Page 11 of 12 of Universal Grant Application ~a ~ ~ ~~. SOURCE and/or CATEGORY DOCUMENTATION County. H. Air Quality: ~II the project affect air quality during construction and/or operation? (If there is potential, is the project located within an "attainment" area or if it is within a"non-attainment" area, it conforms to the EPA-approved State Implementation Plan.) Use personal experience or obtain information from local Planning Deparbment or EPA regarding the effect of air quality in the area of the project Include the name and title of the individuai making the determination and the date, or the name of the publication that supports the finding. I. Farmland Protection: Does tf~e project site include prime or unique farmland, or other farmland of statewide or local importance? Use personal experience or the local Planning Department to detiermine whether or not the site will affect local farmlands. If the site is already urbanized, note this citing your personal experience. Include the name and title of tf~e individual making ti~e determination and the date, or tfie name of tt~e publication that supports the finding. J. Noise Abatement and Control: Does the project invoive development of noise sensitive uses, or is the project in the line-of~ight of a major or arterial roadway or railroad? K. Explosive and Flammable Operations: Is ti~e project located an "Acceptable Separation Distance" from any above-ground explosive or flammable fuels or chemicals? Use personal experience or obtain information from the local fire chief or EPA to determine if the project is located an acceptable separation distance from any abov~ground explosive or flammable fuels or chemicai containers. Inciude the name and titie of the individuai making the determination and the date, or the name of the publication that supports tt~e finding. L. Toxic Chemicals/Radioactive Materials: Are the subject and adjacent propertles free from hazardous materials, contamination, toxic chemicals, gasses and radroactive substances which could affect tfie health or safety of occupaMs or conflict with the intended use of the property~ Use personal experience or the local fire chief to determine that the project is not located witi~in 2000 feet of a toxic or radioaciive site. Include the name and title of tt~e individual making the determination and the da~e, or the name of the publication that supports the finding. M. Airport Clear Zones and Accident Potential Zones: This seciion tio be completed by County staff. N. Environmental Justice: A) The proposed site is suitable for its proposed use and will not be adversely impacfied by adverse environmental conditions; B) Site suitability is a concern; the project is adversely affected by environmental conditions impacling low income or minority populations. END OF APPLICATION Page 12 of 12 of Universal Grant Application G~~,l OF pp~~~ /~ ~ I~ ''~ n~ ~`` City of Dubiin 1`~~~j~ ~ ~ % Universal Grant Rating Sheet ~~LtFO~'~~~ ~ . ::a ~ : ~ a ~ i. a~ C~' ~.. .~ ~ s~: : Organization: Maximum of 15 points RECOMMEND FUNDING FUNDING SOURCE CDBG^ Total Requested Total Recommended PROPOSALSCO IF RECOMMENDING CDBG FUNDING, NOTE THAT CDBG FUNDS MAY ON~Y BE USED FOR THE FOLLOWING ACTIVITIES AS DEFINED BY THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (CHECK ONE). CAPITAL PROJECTS ^ PUBLIC SERVICE ^ HOUSING ^ ECONOMIC DEVELOPMENT ^ THE WORD ~PROGRAM'~ IS USED BELOW ON THIS FORM TO INCLUDE SERVICES, ACTIVITIES OR IMPROVEMENTS. 1. Organization/Management • The organizarion previously received funding from Dublin, and has fully complied with the City's management procedures, including invoice and report deadlines. • The organization, as presented in the application, is able to achieve the stated goals and outcomes. • The organization and their staff are qualified and have the capacity to provide for the program. (i.e. non-profit status, resumes for staff, a Board of Directors, informarion on clients served) • The organization has completed all required aspects of the application process. • The proposed program has a successful proven track record (not a new program). (Maximum of 5) 2. Needs/Benefit • The beneficiaries are an appropriate target group (lower income residents, handicapped, elderly, youth, etc.) • The organization provides an acrivity to Dublin residents tl~at other organizarions do not provide. ~~1. i~enctits a m;i~ui-ir~~ ut l~ul~liii 1-esid~nrs I~~ rn~~trui~ rlie ~:ity~s Ylisston, ~'istott at~d ValueS ~)]Z ~l. P11~'<'Y~ ~ir ~r_~_i~Y r~(l (' r, f t~lt' j~.~. [~r~n~iYrt71<'~lY ~~f j Ir,~ iciliir =ltltj ~~t-~~~,~il T~r•~~~(_'~i ~r~ill('tlY~~ C-r~..lt~_'~~7( ~~~~i~,l~~ nY 1~~ ~]1~-~ • The organization's program meets more than one community need. • The organization collaborates with other agencies to enhance services. (Maximum of 5) ATTACHMENT 2 1 _ Program• Yes ^ No ^ Comm. Grant^ Incl. Fund^ K:\Combining CDBG & Community Caants~ApplicaYions\Universal Criteria Rating Sheetdoc i~~ i~' 3. Funding/ Budget • The amount of funding requested compared to the number of Dublin residents served is reasonable • Fiscal responsibility - evaluation of the most current audit does not reveal one or more *material weaknesses* (or equivalent) that could jeopardize other funding. • Program and administrative budget covers the cost to provide for the program. • The organization leverages other funding sources to provide activities/services/improvements. • The organization charges a fee and/or produces other income that may be used to support this program (review submitted fee schedule if applicable). (Maximum of 5) * Standardized accounting audit statements 1. A"Control Deficiency", which is the lowest of the three deficiencies, exists when the design or operation of a control does not a11ow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. 2. A"Significant Deficiency" is a control deficiency or a combination of control deficiencies, that adversely effects the organization's ability to initiate, authorize, record, process or report financial data in accordance with the Generally Accepted Accounting Principles, and that the likelihood of a misstatement of the organization's financial statement that is more than inconsequential which will not be prevented or detected by the organization's established internal controls. 3. A"Material Weakness", is a significant deficiency or a combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements which will not be prevented or detected by the organization's established internal controls. • Rating Criteria is subject to change from time to time to reflect the current industry or to address the type of applications received. • 2 K:\Combining CDBG & Community Grants~Applications\Unive~sal Criteria Rating Sheetdce