Financial Stability Documentation

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Awarded applicants may be asked to substantiate their financial stability. 

The documents that might be requested include:

  • Complete copy of your agency’s most recent independent audit report, including management letter and management’s response to all findings, if applicable
  • Letter from your financial institution identifying the average fund balances over the past twelve (12) months and listing any current lines of credit that were established for short-term cash flow needs and their available balance
  • Identify any contingent or pending lawsuits against the agency, its corporate officers, or employees that are materially related to its prospective ability to provide services and ensure financial and organizational stability
  • Identify bankruptcy and contract termination history
  • Internal Control Plan.  If no Internal Control Plan exists, a Business Plan including accounting practices

If an independent audit is not available these documents may be provided in lieu of the audit:

  • your most recent unaudited annual financial statements (cash flow, income statement, balance sheet)
  • name and type of accounting system (QuickBooks, Peachtree, etc.)
  • accounting basis (cash, accrual, GAAP, etc.)
  • accounting period
  • list of contracts held in the last 2 years with public agencies

 

If requested, the materials must be provided to DCF within 5 business days, unless another date is mutually agreed upon.  The information provided will be reviewed by DCF Auditors to determine the applicant's level of risk.  This risk level may be used to determine the level of monitoring that may be required or even if an award will be made.