N.Y. Comp. Codes R. & Regs. Tit. 9 §§ 1642-4.10

Current through Register Vol. 46, No. 45, November 2, 2024

Section 1642-4.10 - Inactive or closed accounts

(a) As tenants vacate units, it is essential that proper disposition be made of the old accounts. Accounts of former tenants with a balance, either debit or credit, shall remain in the tenants ledger. It is recommended that this type of account be kept in the back of the ledger. Accounts of former tenants on which there is no balance shall be filed separately pending the periodic division audit. Subsequent to the audit they shall be transferred to a permanent alphabetical file.

(b) In the case of credit balances due vacated tenants with no known forwarding address or whose whereabouts are unknown, although every effort has been made to locate them, such credit balances shall be kept open for one year from the date unit was vacated, the checks returned undelivered being redeposited and credited to tenants accounts receivable. At the end of one year, such credit balances shall be transferred by journal entry to account 3590, Miscellaneous Project Income. The transfer entries in the miscellaneous project income account shall be made separately to show the name of each tenant, the tenant's account number, and the amount of the balance transferred. If, after such transfer is made to "Other Income", a tenant should make a claim for the amount, the payment therefor shall be charged to account 4140, Project Office Expense. A notation of payment of each such claim shall be made in the tenant's original ledger account and against the credit item in the miscellaneous project income account to preclude the possibility of a duplicate payment of a refund.