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 1646-6 - Initial Operating Period › Section 1646-6.4 - Procedure at end of initial operating period

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Determination of net income or deficit.
						Inasmuch as account 1470.3, Net Deficit or (Income), will operate as a control
						account, in accordance with the procedures described in sections 1642-3.8 and
						1642-3.9, the balance of account
						1470.3, as of the date of substantial completion, will automatically reflect,
						after all adjustments are made for income and expense applicable to the initial
						operating period, the net deficit or income resulting from the operation of the
						project proper during the initial operating period. When the date of
						substantial completion, as concurred in by the commissioner, has been
						determined and the adjustments for income and expense as of the date of
						substantial completion made, a journal voucher shall be prepared closing the
						subsidiary income accounts (3000 group) and expense accounts (4000 group)
						individually. The difference between the sums of the debits to the income
						accounts and the credits to the expense accounts will appear as a balancing
						figure on the voucher and shall agree with the balance of the control, account
						1470.3.
(b) Allocation of prepaid
						expense, inventories, and payables. After the net income or deficit for the
						initial operating period has been determined, it may be found that prepaid
						expenses, as of the date of substantial completion, may have been paid out of
						the development fund but are applicable to the operating period and that a
						transfer of funds from the administration fund to the development fund will be
						in order, or vice versa, that prepaid expenses may have been paid out of the
						administration fund but are applicable to the development period, etc. Similar
						situations may arise with respect to inventories (such as for fuel and paint
						supplies) reflected in the balance sheet, accounts payable and accrued
						payables. The local agency shall prepare a schedule analyzing and allocating
						such items as between the development and administration funds so that it will
						be in a position to make the proper transfer of funds. The schedule should also
						take into account the possible reimbursement of the development fund for such
						items as petty cash and change funds established therefrom.
(c) Transfer of funds.
(1) At the end of the initial operating
						period, a transfer of funds shall be made, by means of an account payable
						voucher drawn on the appropriate fund, from the development fund to the
						administration fund, or vice versa, as the case may be, which shall reflect the
						following:
(i) Advances made by the
						development fund to the administration fund.
(ii) Net income or deficit for the initial
						operating period.
(iii) Allocation
						of prepaid expenses, inventories, and payables.
(iv) Reimbursement for petty cash and change
						funds.