N.Y. Comp. Codes R. & Regs. tit. 9 § 1646-6.4

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

Section 1646-6.4 - Procedure at end of initial operating period

(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.

(2) The amount to be transferred shall be determined immediately after the end of the initial operating period and the transfer shall be made as soon as funds are available. The amount transferred or to be transferred, may, however, be subject to adjustment as a result of the audit of the initial operating period which will be made by the division as soon as practicable after the end of the period.

N.Y. Comp. Codes R. & Regs. Tit. 9 § 1646-6.4