Mississippi Administrative Code
Title 6 - Economic Development
Part 4 - Community Services
Chapter 7 - HOME Program
Rule 6-4-7.9 - Additional Considerations regarding Financial Management Requirements

A. Audit. Audit information will be reviewed.

B. Budgeting. The organization should conduct annual budgeting of its operations and all activities and programs. It should track and report budget versus actual income and expenses.

C. Reporting. Financial reporting should be regular, current and sufficient for the board to forecast and monitor the financial status of the corporation.

D. Cash Flow Management. The organization should know its current cash position and maintain control over expenditures.

E. Internal Controls. The organization should have adequate internal controls to ensure separation of duties and safeguarding of corporate assets. There should be sufficient oversight of all financial activities.

F. Procurement/Conflict of Interest. The organization should have a conflict of interest policy governing board members, employees, and development activities, particularly in procurement of contract services and the award of housing units for occupancy.

G. Insurance. The organization should maintain adequate insurance, including liability, fidelity, bond workers compensation, property hazard and project. In regards to bonding provisions (surety bond), the organization shall obtain a minimum bonding of $75,000 to protect the interest of the organization and any entity, which shall award funds unto the organization. If funded, the CUDO is required to increase the surety bond to $150,000 for each principal.

H. Financial Stability. The current balance sheet and budget should indicate a sufficient, diversified and stable funding base to support essential operations.

I. Portfolio Financial Condition. If the organization has a portfolio of properties, they should be in stable physical and financial condition.

J. Liquidity. Whether the organization has liquid assets available to cover current expenses shall be considered, as well as whether the organization has funds available for predevelopment expenses or equity investments required for development.