reglab/statecodes huggingface dataset:
New York Codes, Rules and Regulations › Title 9 - EXECUTIVE DEPARTMENT › Subtitle S - Division of Housing and Community Renewal › Chapter III - Low Rent Housing › Subchapter D - Accounting Manual For Public Housing Agencies › Part 1643 - Financing › Subpart 1643-2 - Accounting Entries And Procedures › Section 1643-2.8 - Amendment of loan contract

Current through Register Vol. 46, No. 28, July 10, 2024
Amendments which do not affect the aggregate maximum
						  principal amount of the loan contract are not reflected in the books of
						  account. Where the effect of the amendment is to change the amount of the loan,
						  appropriate resolutions amending the resolution authorizing the contracting of
						  indebtedness (see §
												1643-2.2[b]) and
						  the resolution authorizing the execution of requisition agreements and the
						  issuance of advance loan notes in the aggregate maximum principal amount of the
						  loan contract (see §
												1643-2.4[a]) are
						  required. A journal entry adjusting account 2311, Certificates of Indebtedness
						  Authorized, and account 2312, Certificates of Indebtedness Unissued, for the
						  difference in the amount of the loan contract, as amended, is then made. No
						  entry should be made until the amended contract has been approved by the
						  division and executed.
New York Codes, Rules and Regulations › Title 9 - EXECUTIVE DEPARTMENT › Subtitle S - Division of Housing and Community Renewal › Chapter III - Low Rent Housing › Subchapter D - Accounting Manual For Public Housing Agencies › Part 1644 - Debt Service › Subpart 1644-1 - General › Section 1644-1.1 - Debt service defined

Current through Register Vol. 46, No. 28, July 10, 2024
Debt service as used in this Subchapter refers to the
						  periodic provisions for payment of principal and interest on the outstanding
						  indebtedness of the local agency.
New York Codes, Rules and Regulations › Title 9 - EXECUTIVE DEPARTMENT › Subtitle S - Division of Housing and Community Renewal › Chapter III - Low Rent Housing › Subchapter D - Accounting Manual For Public Housing Agencies › Part 1644 - Debt Service › Subpart 1644-2 - Debt Service Prior To Issuance Of Housing Bonds › Section 1644-2.1 - Provision for payment of interest

Current through Register Vol. 46, No. 28, July 10, 2024
Prior to the issuance of State housing bonds, debt
						  service is limited to the provision for the payment of interest on the
						  indebtedness. The local agency's indebtedness outstanding during this period
						  will be temporary (short-term) indebtedness, having maturities not in excess of
						  one year, whether the funds have been borrowed from the State or from private
						  investors. The principal amounts of maturing temporary indebtedness will be
						  periodically refunded out of the proceeds of the issue of new short-term
						  obligations by the State or by the local agency, depending on the
						  circumstances, and, ultimately, out of the proceeds of an issue of housing
						  bonds by the State, as described in Part 1643, Financing.
New York Codes, Rules and Regulations › Title 9 - EXECUTIVE DEPARTMENT › Subtitle S - Division of Housing and Community Renewal › Chapter III - Low Rent Housing › Subchapter D - Accounting Manual For Public Housing Agencies › Part 1644 - Debt Service › Subpart 1644-2 - Debt Service Prior To Issuance Of Housing Bonds › Section 1644-2.3 - Recording the interest accrual

Current through Register Vol. 46, No. 28, July 10, 2024
Interest on all indebtedness, temporary or permanent,
						  is accrued quarterly, the computation of interest on temporary indebtedness
						  being made as described in 1644-2.2, supra. The total amount of the quarterly
						  accrual is initially charged to account 1420.1, Interest, for interest accrued
						  during the development period and to account 4716, Interest on Indebtedness,
						  for interest accrued during the operating period, the credit being to account
						  2132.1, Accrued Interest Payable--State of New York, for interest on advances
						  made by the State, and to account 2132.2, Accrued Interest Payable--Temporary
						  Loan Notes, for interest on funds borrowed from private investors. The cutoff
						  point for interest initially charged to development costs is the date of
						  substantial completion. The date of substantial completion, itself, is
						  considered the first day of the operating period.
New York Codes, Rules and Regulations › Title 9 - EXECUTIVE DEPARTMENT › Subtitle S - Division of Housing and Community Renewal › Chapter III - Low Rent Housing › Subchapter D - Accounting Manual For Public Housing Agencies › Part 1644 - Debt Service › Subpart 1644-2 - Debt Service Prior To Issuance Of Housing Bonds › Section 1644-2.4 - Allocation of interest charges to related programs

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Related programs comprise offsite
						clearance, rehabilitation, and relocation of buildings. Interest charges on
						funds borrowed or earmarked for related programs are capitalized as a
						development cost and charged to the cost of those programs. Such programs may
						extend beyond the date of substantial completion, into the operating period of
						the project proper. Local agencies conducting such programs in connection with
						the development of the project proper will therefore find it necessary to
						charge interest, in the first instance, to account 1420.1, Interest Expense,
						and to account 4716, Interest on Indebtedness, whichever is applicable, and
						then by journal voucher, credit the expense accounts and charge the appropriate
						development cost accounts (1440.16, Offsite Clearance; 1440.17, Rehabilitation
						and 1440.18, Relocation of Buildings). For funds borrowed prior to the issuance
						of housing bonds by the State, the allocation of the interest charges is in the
						proportion of the amount requisitioned for the related program on the most
						recent approved certificate of purposes (form DH-216) to the total amount
						borrowed for all purposes.
(b) For
						funds borrowed subsequent to the issue of housing bonds, the interest on the
						funds representing the bond issue proceeds is allocated to the related program
						in the proportion of the amount borrowed for the related program on the bond
						sale budget to the total amount of the bond issue borrowed for all purposes.
						Should temporary loan notes be outstanding simultaneously with the bond issue,
						the interest on the temporary loan notes is allocated in the same manner as the
						interest on temporary loan notes issued prior to the issuance of housing
						bonds.
(c) The allocation of
						interest charges to the rehabilitation program and relocation of buildings
						program should continue to be made until the programs are liquidated and closed
						out. The allocation of interest should continue to be made to the offsite
						clearance program until the project proper is declared substantially completed
						or the offsite program is liquidated, whichever is earlier. Upon the date of
						substantial completion of the project proper, the allocation of interest to the
						offsite program shall cease and all interest on all borrowed funds shall be
						charged to operations. A transfer of funds from the development fund to the
						administration fund shall further be required for interest allocable to related
						programs and paid out of the administration fund.
New York Codes, Rules and Regulations › Title 9 - EXECUTIVE DEPARTMENT › Subtitle S - Division of Housing and Community Renewal › Chapter III - Low Rent Housing › Subchapter D - Accounting Manual For Public Housing Agencies › Part 1644 - Debt Service › Subpart 1644-2 - Debt Service Prior To Issuance Of Housing Bonds › Section 1644-2.6 - Payment of interest

Current through Register Vol. 46, No. 28, July 10, 2024
Interest on temporary indebtedness, when paid, is
						  charged directly to the applicable accrued interest payable account, the credit
						  being to Development Fund (account 1111) or Administration Fund (account 1112),
						  as the case may be. Checks for interest on temporary indebtedness to the State
						  should be made payable to "Comptroller--State of New York".
New York Codes, Rules and Regulations › Title 9 - EXECUTIVE DEPARTMENT › Subtitle S - Division of Housing and Community Renewal › Chapter III - Low Rent Housing › Subchapter D - Accounting Manual For Public Housing Agencies › Part 1644 - Debt Service › Subpart 1644-3 - Debt Service Subsequent To Issuance Of Housing Bonds › Section 1644-3.1 - Issuance of bonds

Current through Register Vol. 46, No. 28, July 10, 2024
As described in Part 1643, Financing, the issuance of
						  housing bonds by the State is entirely within the discretion of the State
						  Comptroller. Bonds may, therefore, be issued by the State prior to the date of
						  substantial completion, or subsequent thereto. The issuance of bonds
						  simultaneously with substantial completion will, ordinarily, be fortuitous. The
						  date of substantial completion has an important bearing on the debt service on
						  the bond issue, as it not only controls the apportionment of the interest
						  charge to development and operations, but also the provision for amortization.
						  Prior to the date of substantial completion, debt service on the bond issue is
						  limited to the provision of interest only. Subsequent to the date of
						  substantial completion, the debt service will include a provision for
						  amortization of the indebtedness, as well as the provision for
						  interest.
New York Codes, Rules and Regulations › Title 9 - EXECUTIVE DEPARTMENT › Subtitle S - Division of Housing and Community Renewal › Chapter III - Low Rent Housing › Subchapter D - Accounting Manual For Public Housing Agencies › Part 1644 - Debt Service › Subpart 1644-3 - Debt Service Subsequent To Issuance Of Housing Bonds › Section 1644-3.2 - State Housing Debt Fund

Current through Register Vol. 46, No. 28, July 10, 2024
The State Housing Debt Fund is used by the Comptroller
						  as a debt service fund to receive remittance for debt service on bond issues
						  from local agencies and to make payments of interest and amortization to
						  bondholders. Under the terms of the various contracts for State aid, local
						  agencies are required to make payments of interest and amortization on their
						  indebtedness to the State in such amounts and at such times as will enable the
						  Comptroller to meet the debt service on the State's housing bonds. The
						  contracts further provide that remittances for debt service must be in the
						  hands of the Comptroller at least 15 days in advance of the date that payment
						  is due by the State to the bondholders. Interest on the bonds is, ordinarily,
						  payable semiannually and amortization is payable annually, the amortization
						  payment date coinciding with an interest payment date. The division will
						  endeavor to give the local agency timely notice, but the primary responsibility
						  for living up to the terms of the contract and meeting the debt service on time
						  is the local agency's. Remittances for debt service on bonds will be made by
						  the local agency to the division, for transmittal to the Comptroller, and not
						  to the Comptroller direct. Checks for debt service on bond issues should be
						  made payable to "Comptroller--State of New York". The Comptroller may also pay
						  into the State Housing Debt Fund the premiums, if any, received on the sale of
						  housing bonds and the interest received on State Housing Fund
						  investments.
New York Codes, Rules and Regulations › Title 9 - EXECUTIVE DEPARTMENT › Subtitle S - Division of Housing and Community Renewal › Chapter III - Low Rent Housing › Subchapter D - Accounting Manual For Public Housing Agencies › Part 1644 - Debt Service › Subpart 1644-3 - Debt Service Subsequent To Issuance Of Housing Bonds › Section 1644-3.3 - Computation of interest on State housing bonds

Current through Register Vol. 46, No. 28, July 10, 2024
The first interest payment to bondholders is,
						  ordinarily, due six months after the date of issue of the bonds and the
						  interest is payable semiannually thereafter. Local agencies will accrue
						  interest on State housing bonds at the end of each quarter beginning with the
						  month of issue at the rate of one quarter of the annual interest on the bonds
						  for each full calendar quarter of the interest year falling within the fiscal
						  year. Interest for fractional parts of a quarter is computed on the basis of a
						  90-day quarter, regardless of the actual number of days in that quarter. In
						  computing interest for fractional parts of a month, the first day of an
						  interest year falling within that month is counted, but not the last day of an
						  interest year.
(a) To illustrate,
						assume that on April 1, 1956 (the beginning of a fiscal year), $1,000,000 in
						housing bonds was outstanding for a given project. The bonds bear interest at
						the rate of 1.60 per cent per annum. On July 18, 1956, an amortization payment
						of $200,000 is made. The amount of the annual interest on the $1,000,000 of
						bonds outstanding on April 1, 1956 is $16,000. The interest to be accrued for
						the quarter ending June 30, 1956, is one quarter of $16,000 or
						$4,000.
(b) The interest to be
						accrued for the quarter ending September 30, 1956, taking into account the
						amortization payment of $200,000 on July 18, 1956 is as follows:
$4,000 ÷ 3 = $1,333.33
Interest for 17 days:
$1,333.33 * 17/
									 30
$ 755.55
Interest on $800,000 for 13 days (the number of
									 days remaining in July, assuming a 30 day month) and for the months of August
									 and September
Interest for July:
$3,200 ÷ 3 * 13/
									 30 = $462.22
Interest for August and September:
$3,200 ÷ 3 * 2 =
2,133.34
2,595.56
Total interest to be accrued for quarter ending
									 September 30, 1956
$3,351.11
(c) For the quarter ending December 31, 1956,
						the interest to be accrued is one quarter of $12,800 or $3,200.
New York Codes, Rules and Regulations › Title 9 - EXECUTIVE DEPARTMENT › Subtitle S - Division of Housing and Community Renewal › Chapter III - Low Rent Housing › Subchapter D - Accounting Manual For Public Housing Agencies › Part 1644 - Debt Service › Subpart 1644-3 - Debt Service Subsequent To Issuance Of Housing Bonds › Section 1644-3.4 - Recording the interest accrual

Current through Register Vol. 46, No. 28, July 10, 2024
The charge for interest accrued on bonds is to account
						  1420.1, Interest, for interest accrued prior to the date of substantial
						  completion, and applicable to the development period, and to account 4716,
						  Interest on Indebtedness, for interest accrued subsequent to the date of
						  substantial completion, and applicable to the operating period. The date of
						  substantial completion is considered as the first day of the operating period.
						  The credit for interest accrued on housing bonds is made to account 2132.1,
						  Accrued Interest Payable-- State of New York. A further allocation of interest
						  charges to the cost of related programs should then be made as described in
						  section 1644-2.4 of this Part. However,
						  after the bonds have been issued, the basis for the allocation is the
						  proportion that the amount borrowed for the related program in the bond sale
						  budget bears to the total bond issue. Prior to the issuance of bonds, it will
						  be recalled, the basis of the allocation is the proportion that the amount
						  requisitioned for the related program on the most recent certificate of
						  purposes bears to the total amount borrowed.
New York Codes, Rules and Regulations › Title 9 - EXECUTIVE DEPARTMENT › Subtitle S - Division of Housing and Community Renewal › Chapter III - Low Rent Housing › Subchapter D - Accounting Manual For Public Housing Agencies › Part 1644 - Debt Service › Subpart 1644-3 - Debt Service Subsequent To Issuance Of Housing Bonds › Section 1644-3.5 - Payment of interest

Current through Register Vol. 46, No. 28, July 10, 2024
The charge for the payment of interest on housing bonds
						  made in advance by the local agency is held in suspense in account 1124, State
						  Housing Debt Fund, until the date the Comptroller is scheduled to make the
						  payment to the bondholders. Payment of interest on housing bonds therefore
						  entails two entries, as follows:
Entry (1):
When the voucher for the
						  remittance of the interest to the division is drawn:
Debit: Account 1124, State Housing Debt Fund..
						  $XXX................................................................................................
Credit: Account 1111, Development Fund..
						  $XXX................................................................................................
or
Account 1112, Administration Fund..
						  $XXX................................................................................................
Entry (2):
By journal entry, on the
						  date the interest is due to be paid to the bondholders.
Debit: Account 2132.1, Accrued Interest
Payable, State of New York..
						  $XXX................................................................................................
Credit: Account 1124, State Housing Debt Fund..
						  $XXX................................................................................................
Explanation:
To record the payment of semiannual interest, due____,
						  19 ____, on State housing bonds by the State Comptroller.
New York Codes, Rules and Regulations › Title 9 - EXECUTIVE DEPARTMENT › Subtitle S - Division of Housing and Community Renewal › Chapter III - Low Rent Housing › Subchapter D - Accounting Manual For Public Housing Agencies › Part 1644 - Debt Service › Subpart 1644-3 - Debt Service Subsequent To Issuance Of Housing Bonds › Section 1644-3.6 - Premiums on State housing bonds

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
						As described in Part 1643, Financing, the premiums, if any, on housing bonds
						sold by the State are paid into the State Housing Debt Fund and do not
						ordinarily pass through the project's bank accounts. Premiums on State housing
						bonds, if any, are credited to development costs, whether the bonds are sold
						prior or subsequent to the date of substantial completion. The premium is
						recorded, by a journal entry, whenever the local agency is notified by the
						Division of Housing as to the amount of the premium allocable to the projects
						participating in the bond issue, as follows:
Entry (3):
Debit: Account 1124, State Housing Debt Fund
						  $XXX
Credit: Account 1420.8, Premium on State Housing Bonds
						  $XXX
Explanation:To record the premium on housing bond issue
						  no. ________, as per letter from Division of Housing dated
						  ________,19________.
(b)
						The premium on State housing bonds will not be amortized over the life of the
						bonds, as is sometimes done, but is, ordinarily, applied by the State
						Comptroller to the first interest payments falling due. The division will
						notify the local agency, in advance of the date the local agency is called upon
						to remit the interest for deposit in the State Housing Debt Fund, as to how
						much of the premium, if any, the Comptroller intends to apply to the payment of
						the interest and the local agency will then remit the difference between the
						scheduled payment and the premium applied. The actual amount remitted will be
						paid in the manner previously described (see entry [1], §
												1644-3.5, above) and account 1124,
						State Housing Debt Fund, is charged. On the date the interest is due to be paid
						to the bondholders, entry (2) above (§
												1644-3.5) is made, charging the
						full scheduled amount of the interest payment, before the deduction for the
						premium applied, to the accrued interest payable account and crediting account
						1124, State Housing Debt Fund. Note that the amount of the quarterly accrual
						for the interest on the bonds, computed as per section 1644- 3.3, is not
						affected by either the receipt or the application of the premium.
New York Codes, Rules and Regulations › Title 9 - EXECUTIVE DEPARTMENT › Subtitle S - Division of Housing and Community Renewal › Chapter III - Low Rent Housing › Subchapter D - Accounting Manual For Public Housing Agencies › Part 1644 - Debt Service › Subpart 1644-3 - Debt Service Subsequent To Issuance Of Housing Bonds › Section 1644-3.7 - Interest on State Housing Fund investments

Current through Register Vol. 46, No. 28, July 10, 2024
Interest received by the State Comptroller on State
						  Housing Fund investments (see Part 1645, Investments) will ordinarily be paid
						  into the State Housing Debt Fund and applied to the payment of interest on
						  housing bonds outstanding in the same manner as premiums received on the sale
						  of bonds. The recording of interest on State Housing Debt Fund investments is
						  on a cash basis, that is, the interest earned is not periodically accrued, as
						  is the case with interest on other investments, but the entry is made whenever
						  the local agency is notified by the division as to the amount of the interest
						  received by the Comptroller. Upon receipt of such notice, a journal entry is
						  made charging account 1124, State Housing Debt Fund, with the amount of the
						  interest received by the Comptroller, and crediting the applicable development
						  cost or operating income account, as described in Part 1645, Investments. As
						  with the premium on State housing bonds, the division will then notify the
						  local agency, in advance of the date the local agency is called upon to remit
						  the interest on the bond issue for deposit in the State Housing Debt Fund, as
						  to how much of the interest on State Housing Fund investments, if any, the
						  Comptroller intends to apply to the payment of the interest on the bonds and
						  the local agency will then remit the difference between the scheduled interest
						  and the interest on State Housing Fund investments applied. The actual amount
						  remitted will be paid in the manner previously described (see entry [1], §
												1644-3.5 above) and account 1124,
						  State Housing Debt Fund, is charged. On the date the interest is due to be paid
						  to the bondholders, entry (2) above (§
												1644-3.5) is made, charging the
						  full scheduled amount of the interest payment, before the deduction for the
						  interest on State Housing Fund investments applied, to the accrued interest
						  payable account and crediting account 1124, State Housing Debt Fund. Note that
						  the amount of the quarterly accrual for the interest on the bonds, computed as
						  per section
						  1644-3.3, is not affected by either
						  the receipt or the application of the interest on State Housing Fund
						  investments.
New York Codes, Rules and Regulations › Title 9 - EXECUTIVE DEPARTMENT › Subtitle S - Division of Housing and Community Renewal › Chapter III - Low Rent Housing › Subchapter D - Accounting Manual For Public Housing Agencies › Part 1644 - Debt Service › Subpart 1644-3 - Debt Service Subsequent To Issuance Of Housing Bonds › Section 1644-3.8 - Amortization of indebtedness

Current through Register Vol. 46, No. 28, July 10, 2024
The retirement of indebtedness by making periodic
						  repayments of the principal amount of the indebtedness is known as
						  amortization. With respect to the amortization of indebtedness of the local
						  agency to the State, representing the proceeds of a housing bond issue by the
						  State, the accounting entries will reflect the following:
(a) The periodic provision made by the local
						agency for amortizing the indebtedness.
(b) The payment of the scheduled amortization
						into the State Housing Debt Fund.
(c) The payment of the amortization by the
						State Comptroller to the holders of the housing bonds.
New York Codes, Rules and Regulations › Title 9 - EXECUTIVE DEPARTMENT › Subtitle S - Division of Housing and Community Renewal › Chapter III - Low Rent Housing › Subchapter D - Accounting Manual For Public Housing Agencies › Part 1644 - Debt Service › Subpart 1644-3 - Debt Service Subsequent To Issuance Of Housing Bonds › Section 1644-3.10 - Payment of amortization into State Housing Debt Fund

Current through Register Vol. 46, No. 28, July 10, 2024
Like the interest on housing bonds, the remittance for
						  the installment of amortization must be forwarded to the division, for
						  transmittal to the State Comptroller, so that it is in the latter's hands, for
						  deposit in the State Housing Debt Fund, at least 15 days in advance of the date
						  the amortization is due to be paid to the bondholders. The entry for the
						  remittance of amortization will come through the voucher register, as
						  follows:
Entry (5):
Debit: Account 1124, State Housing Fund..
						  $XXX................................................................................................
Credit: Account 1112, Administration Fund..
						  $XXX................................................................................................
That the credit for the remittance will always be to
							 the administration fund, inasmuch as no part of the provision for amortization
							 may be charged to development costs or to the related
							 programs.
New York Codes, Rules and Regulations › Title 9 - EXECUTIVE DEPARTMENT › Subtitle S - Division of Housing and Community Renewal › Chapter III - Low Rent Housing › Subchapter D - Accounting Manual For Public Housing Agencies › Part 1644 - Debt Service › Subpart 1644-3 - Debt Service Subsequent To Issuance Of Housing Bonds › Section 1644-3.11 - Payment of amortization to bondholders

Current through Register Vol. 46, No. 28, July 10, 2024
(a) On the date the amortization is due to be
						paid by the Comptroller to the holders of State housing bonds, payment of the
						installment is recorded by the following journal entry:
Entry (6):
Debit: Account 2313, Indebtedness Amortized, State
						  of
New York $XXX
Credit: Account 1124, State Housing Debt Fund
						  $XXX
Explanation:To record the payment of amortization on
						  housing bond issue no. ________.
(b) Account 2313, Indebtedness
						Amortized--State of New York, represents the cumulative total of amortization
						payments made by the State Comptroller to bondholders and appears on the
						balance sheet as a deduction from the total of certificates of indebtedness
						issued. Account 2600, Accumulated Amortization, represents the cumulative total
						of the provisions made for amortization, whether or not such provisions have
						been remitted to the State by the local agency or paid by the Comptroller, and
						appears on the balance sheet as a deduction from development costs.
New York Codes, Rules and Regulations › Title 9 - EXECUTIVE DEPARTMENT › Subtitle S - Division of Housing and Community Renewal › Chapter III - Low Rent Housing › Subchapter D - Accounting Manual For Public Housing Agencies › Part 1645 - Investments › Subpart 1645-1 - Investment Policy › Section 1645-1.1 - Investment of excess funds

Current through Register Vol. 46, No. 28, July 10, 2024
The division will require local agencies to invest,
						  promptly, all excess funds in their custody. Excess funds, as a general rule,
						  mean cash in checking accounts not required for disbursement within a period of
						  one or, at most, two months.
New York Codes, Rules and Regulations › Title 9 - EXECUTIVE DEPARTMENT › Subtitle S - Division of Housing and Community Renewal › Chapter III - Low Rent Housing › Subchapter D - Accounting Manual For Public Housing Agencies › Part 1645 - Investments › Subpart 1645-1 - Investment Policy › Section 1645-1.3 - Funds in custody of State Comptroller

Current through Register Vol. 46, No. 28, July 10, 2024
Local agency funds, representing the proceeds of a bond
						  issue not yet remitted to the local agency, are held by the Comptroller in the
						  State Housing Fund and may be invested by him from time to time, in securities
						  which are legal for the investment of State funds. Such investments are not
						  made at the direction or request of the local agency, but sole discretion with
						  respect thereto is reserved by the Comptroller, within the limitations of the
						  State Finance Law.
New York Codes, Rules and Regulations › Title 9 - EXECUTIVE DEPARTMENT › Subtitle S - Division of Housing and Community Renewal › Chapter III - Low Rent Housing › Subchapter D - Accounting Manual For Public Housing Agencies › Part 1645 - Investments › Subpart 1645-2 - Accounting For Investments › Section 1645-2.1 - Elements to be accounted for

Current through Register Vol. 46, No. 28, July 10, 2024
Every transaction involving investments can be broken
						  down into component elements, such as purchase or sales price, accrued interest
						  purchased or sold, expense of acquisition or disposition, etc. Some or all of
						  these elements will be present in every investment transaction. For example,
						  some securities are bought and sold on the open market. Some may be bought
						  through brokers who charge a commission, others may be bought through banks
						  which may not charge a commission. Others, like certain U.S. bonds, are not
						  traded on the open market, but may only be bought from, or redeemed by, the
						  issuer or its agents. The agents, in the latter case, may or may not be
						  entitled to compensation. Some securities may be bought and sold, or redeemed,
						  at face value, with or without accrued interest; other transactions may involve
						  discounts from face value, or premiums; interest may be receivable periodically
						  on some securities, on others the interest may merely accrue and be reflected
						  in increased redemption values, etc. The elements to be accounted for, some or
						  all of which will occur in every investment transaction, are summarized as
						  follows:
(a) Acquisition of
						investment.
(1) Purchase price, exclusive of
						accrued interest or expense of acquisition
(2) Premium or discount
(3) Accrued interest purchased
(4) Expenses of acquisition.
New York Codes, Rules and Regulations › Title 9 - EXECUTIVE DEPARTMENT › Subtitle S - Division of Housing and Community Renewal › Chapter III - Low Rent Housing › Subchapter D - Accounting Manual For Public Housing Agencies › Part 1645 - Investments › Subpart 1645-2 - Accounting For Investments › Section 1645-2.8 - State Housing Fund investments

Current through Register Vol. 46, No. 28, July 10, 2024
(a) The
						State Comptroller may, from time to time, invest the proceeds of an issue of
						State housing bonds. These investments are investments of development funds but
						are designated as State Housing Fund investments to distinguish them from
						development funds invested directly by the local agency and under its custody
						and control. The local agency will be notified, through the division, when the
						investments are made, as to the amounts invested in the various securities. No
						accounting entry shall be made on the books of the local agency to reflect
						investments made by the Comptroller. The balance in account 1123, State Housing
						Fund, may therefore represent cash held by the Comptroller, or cash and
						investments. The Comptroller does not amortize premium or discount on
						investments made by him and interest thereon is ordinarily paid into the State
						Housing Debt Fund. The balance in account 1123, State Housing Fund, will
						therefore ordinarily remain undisturbed. State Housing Fund investments are
						primarily of a short-term nature and are on a yield basis. The interest earned
						represents the difference between the amount expended on acquisition and the
						proceeds received on disposition of the security.
(b) The Comptroller does not accrue interest
						earned on State Housing Fund investments, but records them on a cash basis, as
						received. Accordingly, interest earned on State Housing Fund investments shall
						not be accrued periodically by the local agency but shall be recorded, on a
						cash basis, whenever the local agency is notified by the division of the
						receipt of the interest by the Comptroller. Upon receipt of such notice, a
						journal entry is made charging account 1124, State Housing Debt Fund, and
						crediting the appropriate interest earned account, apportioning the interest
						earned to the applicable period, as follows:
(1) Interest applicable to the period up to
						the date of substantial completion--credit account 1420.2, Interest
						Income.
(2) Interest applicable to
						the period beginning with the date of substantial completion--credit account
						3610, Interest Earned, for interest applicable to the current fiscal year;
						credit account 2710, Prior Years Adjustments, for interest applicable to prior
						fiscal years. The local agency will be expected to propose the disposition of
						the credit to account 2710 to the division for approval prior to the end of the
						current fiscal year, along with the disposition of other charges and credits to
						the prior years adjustments account.
New York Codes, Rules and Regulations › Title 9 - EXECUTIVE DEPARTMENT › Subtitle S - Division of Housing and Community Renewal › Chapter III - Low Rent Housing › Subchapter D - Accounting Manual For Public Housing Agencies › Part 1645 - Investments › Subpart 1645-2 - Accounting For Investments › Section 1645-2.10 - Security deposits fund investments

Current through Register Vol. 46, No. 28, July 10, 2024
The advisability of investing security deposits funds
						  should be carefully considered by local agencies in view of the bookkeeping
						  problems raised by the requirement in the New York State Real Property Law to
						  the effect that the return, if any, on the investment of security deposits
						  accrues to the tenant. The local agency, therefore, derives no benefit from the
						  investment of such funds and the benefit to the individual tenants, in view of
						  the size of most security deposits, is not only nominal, but out of all
						  proportion to the expense to the local agency of keeping the records involved.
						  In addition, the factor of possible loss on disposition of security deposit
						  fund investments, which by law, are in the nature of trust funds, must be
						  considered. Local agencies desiring, nevertheless, to invest security deposit
						  funds should consult with the division and secure approval of the accounting
						  system and procedures for recording and apportioning to the tenants accounts
						  the interest earned.
New York Codes, Rules and Regulations › Title 9 - EXECUTIVE DEPARTMENT › Subtitle S - Division of Housing and Community Renewal › Chapter III - Low Rent Housing › Subchapter D - Accounting Manual For Public Housing Agencies › Part 1645 - Investments › Subpart 1645-2 - Accounting For Investments › Section 1645-2.11 - Investment ledger

Current through Register Vol. 46, No. 28, July 10, 2024
Detailed records shall be kept of all investments made
						  directly by the local agency in a subsidiary investment ledger. A specimen
						  ledger sheet which reflects the procedures described in this Part, is appended
						  as Exhibit 1 of Appendix S-10. A separate sheet should be maintained for each
						  lot, by type of securities, acquired. For example, if $10,000 maturity value
						  series F bonds, and $20,000 series G bonds were acquired on May 1, 1956,
						  separate ledger sheets would be set up for each lot. If $5,000, maturity value,
						  series F bonds were acquired at a later date, a separate ledger sheet would,
						  similarly be set up. The ledger sheets should be segregated by the funds and
						  each investment of reserve funds should, further, be marked for the particular
						  reserve to which the investment is applicable. The investment ledger should, at
						  all times, reflect the current book value of each investment and the sum of the
						  balances should agree with the balances in the general ledger investment
						  accounts (1170 group). The investment ledger should also reflect the current
						  balance for interest receivable on investments and the sum of the balances
						  should agree with the general ledger accrued interest account
						  (1144).
New York Codes, Rules and Regulations › Title 9 - EXECUTIVE DEPARTMENT › Subtitle S - Division of Housing and Community Renewal › Chapter III - Low Rent Housing › Subchapter D - Accounting Manual For Public Housing Agencies › Part 1645 - Investments › Subpart 1645-2 - Accounting For Investments › Section 1645-2.12 - General ledger segregation of reserve fund investments

Current through Register Vol. 46, No. 28, July 10, 2024
For reasons of administrative facility, all reserve
						  fund investments, like reserve fund cash, are pooled to the extent that all the
						  investments are charged to the one account (account 1176, Reserve Fund
						  Investments) and are registered in the name of the reserve fund. Separate
						  accountability of reserve fund investments by reserves, is prescribed and may
						  be accomplished by a general ledger analysis, using a columnar ledger sheet.
						  See also sections 1645- 3.1 and 1647-5.1. A similar general ledger analysis is
						  maintained of reserve fund cash. In this manner, the assets of each reserve can
						  be accounted for, so that, at all times, each reserve may be reconciled with
						  its assets.
New York Codes, Rules and Regulations › Title 9 - EXECUTIVE DEPARTMENT › Subtitle S - Division of Housing and Community Renewal › Chapter III - Low Rent Housing › Subchapter D - Accounting Manual For Public Housing Agencies › Part 1645 - Investments › Subpart 1645-3 - Safekeeping Of Investments › Section 1645-3.1 - Registration of investments

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
						Securities are issued either registered in the name of the owner or in bearer
						form. The registration of investments in the name of the local agency is a
						prime consideration in their safekeeping and no investments in bearer
						securities should be made without the prior approval of the division and only
						after adequate safeguards have been provided for the handling and safekeeping
						of the securities, as described in sections
						1645-3.2 and
						1645-3.3 below. The form in which
						the investment is registered should include the name of the local agency, the
						name and number of the project and the name of the fund whose cash is being
						invested, as per the following example:
"Yorkburgh Housing Authority, a public corporation, in
						  trust for the purposes of the Sunshine Courts, Project NYS-999 Reserve Fund,
						  under Section ________________ of the contract dated _______________ with the
						  City of Yorkburgh, State of New York."
(b) No indication need be made in the name in
						which reserve funds are registered as to the particular reserve for which the
						investment is being made, in order to facilitate the transfer of investments,
						which may be made, under certain circumstances, among the various reserves (see
						§
												1645-4.2). The investment ledger
						sheet should, however, be marked to indicate the applicable reserve. Registered
						securities should be kept in a safe deposit box.
(c) Savings accounts in savings banks and
						savings and loan associations shall be registered as follows:
"Yorkburgh Housing Authority, Sunshine Courts, Reserve
						  Fund, in trust under New York State Loan and Subsidy Contract,
						  NYS--999."
New York Codes, Rules and Regulations › Title 9 - EXECUTIVE DEPARTMENT › Subtitle S - Division of Housing and Community Renewal › Chapter III - Low Rent Housing › Subchapter D - Accounting Manual For Public Housing Agencies › Part 1645 - Investments › Subpart 1645-3 - Safekeeping Of Investments › Section 1645-3.2 - Custodian accounts

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
						Custodian accounts in a bank provide the best means of safekeeping for
						securities issued in bearer form. It will be found that short-term U.S.
						government obligations, such as treasury bills, notes and certificates of
						indebtedness, which are recommended for short term investments, are ordinarily
						issued in bearer form. Under most circumstances, the most satisfactory
						arrangement, when such securities are purchased, is to have the bank handling
						the acquisition of the securities act as custodian. Many banks will act as
						custodians for U.S. government securities without charge and local agencies
						should endeavor to make arrangements with such banks. The division will be glad
						to advise if difficulty is encountered in this respect. In any event,
						arrangements involving the payment of custodian fees should be submitted to the
						division for prior approval. Custodian fees, if any, are charged to the same
						account as safe deposit rentals (see §
												1645-3.3, below).
(b) The resolution of the local agency
						authorizing the opening of a custodian account shall specify that the release
						of the securities, in whole or in part, from the custodian account shall be
						accomplished only upon the signature and counter signature of at least two
						authorized persons, who shall also be check signers.
New York Codes, Rules and Regulations › Title 9 - EXECUTIVE DEPARTMENT › Subtitle S - Division of Housing and Community Renewal › Chapter III - Low Rent Housing › Subchapter D - Accounting Manual For Public Housing Agencies › Part 1645 - Investments › Subpart 1645-3 - Safekeeping Of Investments › Section 1645-3.3 - Safe deposit boxes

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Securities
						which are not kept in a custodian account shall be held for safekeeping in a
						safe deposit box. The resolution of the local agency authorizing the renting of
						a safe deposit box, whether for the safekeeping of securities or for any other
						authorized purpose, shall specify that access to the safe deposit box shall be
						had only on the signature and counter signature of at least two authorized
						persons, who shall also be check signers, that the box be opened only when at
						least two signatories are present, and that the signatories shall be mutually
						responsible for the safe delivery of the contents.
(b) Safe deposit rentals are charged to
						account 1410.8, Office Supplies and Sundry, during the development period, and
						to account 4140, Project Expense, or the account 4150, Central Office Expense,
						whichever is applicable, during the operating period.
New York Codes, Rules and Regulations › Title 9 - EXECUTIVE DEPARTMENT › Subtitle S - Division of Housing and Community Renewal › Chapter III - Low Rent Housing › Subchapter D - Accounting Manual For Public Housing Agencies › Part 1645 - Investments › Subpart 1645-4 - Transfers Of Investments Between Funds › Section 1645-4.1 - Transfers between funds

Current through Register Vol. 46, No. 28, July 10, 2024
Investments may be transferred from one fund to
						  another. Such transfers shall take the form of a sale must be duly authorized
						  by resolution of the local agency, must be accompanied by an actual transfer of
						  cash from one fund to the other, and shall be made at the book value of the
						  investment as of the date of the transfer. In addition, if the security has
						  been registered, steps must be taken to endorse on the security the name of the
						  fund to which the investment has been transferred, by advising the issuer, or
						  its fiscal or transfer agents, of the change in ownership and submitting the
						  security to be transferred for cancellation and re-issue in the new
						  name.
New York Codes, Rules and Regulations › Title 9 - EXECUTIVE DEPARTMENT › Subtitle S - Division of Housing and Community Renewal › Chapter III - Low Rent Housing › Subchapter D - Accounting Manual For Public Housing Agencies › Part 1645 - Investments › Subpart 1645-4 - Transfers Of Investments Between Funds › Section 1645-4.2 - Transfers between reserves

Current through Register Vol. 46, No. 28, July 10, 2024
Cash and investments for reserves may be transferred to
						  and from each other, as the need arises, by journal entry, duly authorized by
						  resolution of the local agency. Such transfers shall be made at the book value
						  of the investment as of the date of transfer. For example, assume that the
						  vacancy and collection loss reserve has cash and that the painting and
						  decorating reserve, which needs cash, has investments with a book value of
						  $1,050. The journal entry to record the transfer would be:
Entry (6):
Debit: Account 1176, Reserve Fund
									 Investments
(V & C Reserve)
$1,050
Debit: Account 1113, Reserve Fund
(P & D Reserve)
$1,050
Credit: Account 1176, Reserve Fund
									 Investments
(P & D Reserve)
$1,050
Credit: Account 1113, Reserve Fund
(P & D Reserve)
$1,050
Explanation:
To record the transfer or $1,000 face value U.S.
						  Treasury certificate of indebtedness, due October 1, 1948, from the painting
						  and decorating reserve to the vacancy and collection loss reserve, as
						  authorized by resolution no. ____, dated ______, 19_.
New York Codes, Rules and Regulations › Title 9 - EXECUTIVE DEPARTMENT › Subtitle S - Division of Housing and Community Renewal › Chapter III - Low Rent Housing › Subchapter D - Accounting Manual For Public Housing Agencies › Part 1645 - Investments › Subpart 1645-5 - Reporting Of Investments › Section 1645-5.1 - General

Current through Register Vol. 46, No. 28, July 10, 2024
(a) With each
						financial report submitted to the division, there shall be included a schedule
						analyzing the balance of each investment account in the 1170 group of asset
						accounts. The analysis, in effect, is a recapitulation and trial balance of the
						investment ledger, by funds. The maturity value, interest rate, due date, and
						book value should be included, as follows:
Account 1172, Development Fund
									 Investments
Maturity
										value
Description
Book
										value
$10,000.00
U.S. Treasury Certificates of Indebtedness,
									 *7/8 per cent due June 20,
									 1947
$10,300.00
Total Development Fund
									 Investments
$10,300.00
(b) The schedule for reserve fund
						investments, should, in addition, be further analyzed to show the investments
						being held for each reserve. Financial reports are due monthly during the
						development period, and quarterly during the operating period.
New York Codes, Rules and Regulations › Title 9 - EXECUTIVE DEPARTMENT › Subtitle S - Division of Housing and Community Renewal › Chapter III - Low Rent Housing › Subchapter D - Accounting Manual For Public Housing Agencies › Part 1646 - Development Period Accounting › Subpart 1646-1 - General › Section 1646-1.1 - General

Current through Register Vol. 46, No. 28, July 10, 2024
Development cost budgets, requisitions for loan funds,
						  contract commitments, payments to contractors, reporting and other special
						  procedures applicable to the development period are described in this
						  Part.