DECD: Accounting Manual for DECD Financed Housing - Administration Funds and Other Programs

Accounting Manual for DECD Financed Housing - Administration Funds and Other Programs

Reference Materials

The purpose of this Accounting Manual is to provide guidance to entities administering State of Connecticut, Department of Economic & Community Development (DECD) assisted housing programs in the Administration or Management Phase and other related DECD housing programs accounted for in the Administration Fund. The manual is effective July 1, 2002 and supersedes the LHA Accounting Manual dated 1/1/85 and all the revisions to it. Personnel of the Department of Economic & Community Development have prepared this Manual. For the purpose of this manual, "Owner/sponsor" means a housing authority, non-profit agency, housing agency, municipality, or any other entity administering a DECD assisted housing program in the management or operational phase and other related DECD housing programs accounted for in the Administration Fund. This manual does not replace the Limited Equity Cooperative Accounting Manual, which is used to account for LECís in the operational stage. This manual also excludes For Profit entities and LLCís unless approved for use by DECD.

This Manual is presented on a regulatory basis for reporting to DECD and is not intended to be in accordance with generally accepted accounting principals (GAAP). Project reporting to DECD must be in accordance with the financial statements contained in this manual. If GAAP reporting is required for a particular audit or other funding source, the DECD project can be converted to GAAP by use of adjusting journal entries prepared by the Owner/sponsor, however the DECD project must continue to be reported on a DECD regulatory basis.

This Manual is provided to assist owners/sponsors in setting up and maintaining a proper accounting system that will allow for the accumulation of accurate accounting data, and timely reporting of financial information, for DECD assisted programs. The Manual is organized by budgetary chart of accounts. The accounts that are needed for a particular program may be obtained from the programís Management Plan and/or Project Financing Plan and Budget.

Some of the accounting procedures and methods defined may not be necessary, others may need to be modified to meet the individual circumstances of a particular program and/or the Owner/sponsor. All modifications must conform to the Department of Economic & Community Development Policies.

Assistance Agreements and Regulatory Agreements governing these programs provide that the Owner/sponsor maintains complete and accurate books and records. These books and records should be set up in accordance with this Accounting Manual and maintained in the State of Connecticut.

This Manual is intended to cover all projects and financial assistance contracts entered into with DECD, which are accounted for through an ongoing Housing Administration Fund under the direction and oversight of the Asset Management Division. Any questions regarding the use of this Manual should be directed to the appropriate DECD program staff. Activity should be recorded as accurately as possible by the accounts you feel most properly reflect the transaction. Each DECD program is governed by particular program regulations, policies and requirements that will be used to determine if a particular item or cost is permissible. Some items that are not acceptable to the State Project or State Grant/Loan program may be admissible and properly chargeable to the Local or Matching Share. This Manual is not intended to take the place of specific program requirements and instructions. Any program requirements, regulations, policies, etc. particular to an individual program should be followed. Any questions concerning specific program requirements should be directed to the appropriate DECD program staff.

DECD staff will be available to provide assistance in the understanding of this Manual and should be contacted for any questions regarding interpretation and modification. Any comments or suggestions that you have may be directed to the Audit Section of DECD at (860) 270-8209, (860) 270-8210 or (860) 270-8202. Any questions related to housing programs, accounting definitions and acceptability or allowability of a particular cost or item should be directed to the Asset Management Section at (860) 270-8171 or (860) 270-8204.

It is anticipated that this Manual will need changes as a result of experience with its use, revisions in the program regulations and input from Owner/sponsor users. Therefore, periodically, revisions will be sent to all recipients updating portions of this Manual. Owner/sponsor accountants and program staff administering State-funded programs covered by this Manual are encouraged to furnish the DECD with any suggestions for changes to this Manual based on their experience with its use.

NOTE: This Manual is not intended to take the place of specific program requirements and instructions. Any other required reports particular to an individual program (i.e., Status Report, copies of Bank Statements, etc.) should continue to be followed and submitted. Any questions concerning specific program requirements should be directed to your DECD project manager.