DECD: Accounting Manual for DECD Financial Assistance Contracts

Accounting Manual for DECD Financial Assistance Contracts

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 programs. Personnel of the Department of Economic & Community Development have prepared this Manual. For the purpose of this manual, "Agency" means a non-profit agency, housing authority, municipality, for profit developer, corporation or any other entity administering a DECD assisted program.

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 Agency, however the DECD project must continue to be reported on a DECD regulatory basis.

This Manual is provided to assist agencies 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 programs Project Financing Plan and Budget.

In consideration of the nature and the number of programs that this manual is intended to cover, 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 Agency. All modifications must conform to the Department of Economic & Community Development Policies.

Assistance Agreements and Regulatory Agreements governing these programs provide that the Agency maintain complete and accurate books and records. These books and records should be set up in accordance with this Accounting Manual.

This Manual is intended to cover all financial assistance contracts entered into with DECD with the exception of the Rental Assistance, Congregate Services, Resident Services Coordinator and Housing Rehabilitation programs which are accounted for through a Housing Administration Fund under the direction and oversight of the Asset Management Division. Any questions regarding the use of this Manual should be directed at the appropriate DECD program staff. Many or most of the accounts in this manual will not be needed for a particular program. 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 in determining the allowability of a particular item or cost. Some items that are not allowable to the State Grant/Loan program may be allowable 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 Division of DECD at (860) 270-8209, (860) 270-8210 or (860) 270-8202.

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 Agency users. Therefore, periodically, revisions will be sent to all recipients updating portions of this Manual. Agency 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.