N.Y. Comp. Codes R. & Regs. tit. 9 § 1648-4.2

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

Section 1648-4.2 - Recording subsidy revenue

(a) The entry taking subsidy into revenue shall be made at the close of the fiscal year, after all adjusting entries have been made and the books are about to be closed. At this point, the amount of State subsidy computed as being payable against the operating deficit of the project for the fiscal year (see § 1648-3.7 ) shall be taken into project revenue, to the extent of the credit balance available in account 2250, by the following journal entry:

Entry (3):

Debit: Account 2250, Prepaid State of New York Subsidies $XXX

Credit: Account 3810, State of New York Subsidy $XXX

(b) The local cash subsidy, if any, payable against the operating deficit for the fiscal year, is recorded in a similar manner.

(c) If the balances in the prepaid subsidies accounts (account 2250 and 2260) are less than the amounts of subsidies computed to be taken into project revenue for the fiscal year, or if there are no balances available, the following typical journal entry accruing the subsidy, to the extent that the balances in the respective prepaid subsidies accounts are not available, shall be made:

Entry (4):

Debit: Account 1141, Accrued Subsidies, State of

New York $XXX

Credit: Account 3810, State of New York Subsidy $XXX

(d) The entries closing the books for the fiscal year may then be made (see § 1647-7.5 ) local agencies should, however, bear in mind that subsidies taken into revenue by them may be subject to adjustment as a result of the division's audit and that the final amount of subsidy for a given fiscal year will not be definitively determined except after such audit.

N.Y. Comp. Codes R. & Regs. Tit. 9 § 1648-4.2