N.Y. Comp. Codes R. & Regs. tit. 9 § 1643-2.1

Current through Register Vol. 46, No. 25, June 18, 2024

Section 1643-2.1 - General

(a) The accounting procedure which follows is designed to record and disclose the essential facts with respect to financing, both temporary and permanent, on the books of account and in the financial statements of the local agency with the minimum number of entries consistent with the aims of simplicity, accuracy, and full disclosure. Some accounts and entries, indicated by the full application of accounting theory to the design, have been eliminated in the interests of simplicity. Basic to the design is the fact that all borrowing by a local agency, or commitments to borrow, must be authorized, in advance, by passage of appropriate resolutions by the local agency. The accounting entries thus reflect not only the borrowing transactions themselves but also the authorizations therefor. The local agency's borrowing is, further, identified with the uses to which the borrowed funds are to be put so that the financial documents (certificate of indebtedness, temporary loan notes, requisition agreements, advance loan notes, etc.) are supported not only by the authorizing resolutions, but also by the requisition papers, which include the Housing Loan Voucher (form HLV) and the Certificate of Purposes (form DH-216). The preparation of the latter is described in Part 1646, Development Period Accounting. All borrowing by the local agency must have the prior approval of the division and no accounting entries reflecting the authorization for and the issue of obligations by the local agency should be made until the terms of the financing and the supporting resolutions and documents have been reviewed and approved by the division. Financing transactions should be submitted to the division for review in advance of the date the funds will be required. A schedule will be provided the authority prior to the initial financing.

(b) Brief descriptions of the transactions involved and the authorizations required in financing a State-aided project, together with the accounting entries to be made and illustrative examples, are contained in this Subpart. The steps, transactions, and entries are summarized as Exhibit 1 of Appendix S-9.

N.Y. Comp. Codes R. & Regs. Tit. 9 § 1643-2.1