Guidebook CHAPTER 4. IV. HUD Chart of Accounts IV. Chart of Accounts INTRODUCTION TO THE HUD CHART OF ACCOUNTS. Prescribed Accounts

Transcription

1 Guidebk CHAPTER 4 IV. HUD Chart f Accunts INTRODUCTION TO THE HUD CHART OF ACCOUNTS Prescribed Accunts The accunt categries prescribed in this chapter apply t a variety f assisted Public and Indian Husing (PIH) prgrams and reflect thse accunts which are used n apprved prgram budgets and n the HUD reprting frms in Chapter 3. It is imprtant that cnsistency be maintained in these accunts t allw HUD t review and evaluate budget prpsals fr cmpliance with regulatry requirements and t mnitr actual expenditures against apprved budget estimates. The HA must use the prescribed accunt categries fr the surce and applicatin f funds related t transactins fr perating incme and expense, and fr develpment and mdernizatin prgrams. If the HA establishes additinal accunts fr recrding transactins fr these activities, the accunts must be established as subdivisins f prescribed accunts and must be maintained in such a manner that they can readily be cmbined int the prescribed classificatins fr unifrm reprting purpses. Organizatin f the Chart f Accunts The Chart f Accunts uses the fllwing accunt categries: A ASSET ACCOUNTS CURRENT ASSETS 1400 FIXED ASSETS : Mdernizatin & Develpment Cst B LIABILITY & SURPLUS ACCOUNTS LIABILITY ACCOUNTS 2800 SURPLUS ACCOUNTS : Operating/Prgram Reserves 2900 MUTUAL HELP CAPITAL CONTRIBUTIONS PIH Lw-Rent Technical Accunting Guide January, 1996 IV-1 C. NOMINAL ACCOUNTS 3000 OPERATING INCOME ACCOUNTS 4000 OPERATING EXPENSE ACCOUNTS 5000 CREDITS AND CHARGES ON LONG-TERM DEBT 6000 CREDITS AND CHARGES AFFECTING SURPLUS 7000 MEMORANDUM ACCOUNTS 7500 Operating Expenditures fr Prperty

2 8000 HUD ANNUAL CONTRIBUTIONS 8100 HOMEBUYER PAYMENTS FOR PROPERTY ACQUISITION Althugh ver 200 accunts are included in the Chart f Accunts, n HA will use all f the accunts listed. IV-2 January, 1996 PIH Lw-Rent Technical Accunting Guide CHA RT OF ACCOUNTS ASSETS Cash General Fund (Develpment and/r Operatin) 1114 Security Depsit Fund 1117 Petty Cash Fund 1118 Change Fund Accunts Receivable 1122 Tenants 1123 Mutual-Help Hmebuyers 1124 Hmebuyers (Turnkey III Prjects) 1125 HUD 1125.P Accunts Receivable, HUD Prtability (Sectin 8) 1129 Other 1129.P Accunts Receivable, Issuing HA - Prtability (Sectin 8) Ntes and Mrtgages Receivable 1130 Ntes and Mrtgages Receivable Accrued Receivables 1145 Accrued Interest Receivable Advances 1155 Limited Revlving Fund 1156 Unlimited Revlving Fund 1157 Other PIH Lw-Rent Technical Accunting Guide January, 1996 IV-3 Investments 1162 General Fund and Security Depsit Fund 1163 Hmewnership Reserve Funds Hmebuyers Earned Hme Payments 1/ Hmebuyers Nnrutine Maintenance Reserve 1/ Mrtgagrs/MH Hmewners Maintenance Reserve MH Hmebuyers Mnthly Equity Payments

3 MH Hmebuyers Vluntary Equity Payments Debt Amrtizatin Funds 1171 Debt Service Fund 1172 Advance Amrtizatin Fund 1173 Investments 1176 HUD Annual Cntributins Receivable 1177 Depsits with HUD Deferred Charges 1211 Prepaid Insurance 1212 Insurance Depsits 1255 Maintenance Wrk in Prcess 1260 Inventries - Materials 1270 Inventries - Equipment 1290 Other Land, Structures, and Equipment Develpment/Mdernizatin Cst Develpment/Mdernizatin Cst - Cntra Land, Structures, and Equipment 1/ Applicable nly t Turnkey III Hmewnership Prjects. IV-4 January, 1996 PIH Lw-Rent Technical Accunting Guide Subsidiary Accunts t Ac cunt Administrative Expense 1408 Management Imprvements Nntechnical Salaries Technical Salaries Wrk - MH Cntributins Legal Expense Emplyee Benefit Cntributins Travel Publicatins Membership Dues and Fees Telephne and Telegraph Equipment Expended Sundry 1415 Liquidated Damages 1418 Cunseling and Training Csts Interest t HUD Interest - Incme frm Investments 1425 Initial Operating Deficit Planning Architectural Engineering Fees Cnsultant Fees Permit Fees Inspectin Csts Husing Surveys

4 Sundry Planning Csts Site Acquisitin Prperty Purchases Cndemnatin Depsits Excess Prperty Survey and Maps Appraisals Title Infrmatin Site-MH Cntributin Legal Cst - Site PIH Lw-Rent Technical Accunting Guide January, 1996 IV Optin Negtiatins Current Tax Settlements Sundry Site Csts Site Net Incme 1450 Site Imprvement Wrk-MH Cntributins Materials and Equipment - MH Cntributins Other MH Cntributins 1460 Dwelling Structures Wrk - MH Cntributins Materials and Equipment - MH Cntributins Other MH Cntributins 1465 Dwelling Equipment - Expendable and Nnexpendable Dwelling Equipment - Nnexpendable Dwelling Equipment - Expendable Dwelling Equipment - MH Cntributins 1470 Nndwelling Structures Wrk-MH Cntributins Materials and Equipment - MH Cntributins Other MH Cntributins 1475 Nndwelling Equipment - Expendable And Nnexpendable Office Furniture and Equipment Maintenance Equipment Cmmunity Space Equipment Cmputer Equipment Autmtive Equipment Expendable Equipment MH Cntributins 1480 Cntract Wrk in Prcess 1482 Develper's Cntract Price (Turnkey) Wrk in Prcess 1485 Demlitin Csts 1495 Relcatin Csts IV-6 January, 1996 PIH Lw-Rent Technical Accunting

5 Guide Undistributed Debits 1620 Ineligible Expenditures 1640 Payrlls 1660 Other Administratin Expense 1690 Other Cntracts 1800 Uncmpleted Cntracts 1810 Cntract Awards - Cntra Bid Guaranties 1820 Undepsited Bid Guaranties 1830 Returnable Bid Guaranties - Cntra Annual Leave 1840 Earned Annual Leave 1850 Allwance fr Annual Leave - Cntra ---- Cmpensated Absences PIH Lw-Rent Technical Accunting Guide January, 1996 IV-7 LIABILITIES Accunts Payable 2111 Vendrs and Cntractrs 2112 Cntract Retentins Cntract Retentins - Fixed Cntract Retentins - Payrll Nncmpliances Cntract Retentins - Liquidated Damages 2113 Perfrmance Depsits 2114 Tenants Security Depsits 2115 Unclaimed Salaries and Wages 2115.P Sectin 8 Prtable Vuchers 2116.P Sectin 8 Prtable Certificates 2117 Payrll Deductins and Cntributins 2118 HUD 2119 Other Ntes Payable 2122 Prject Lan Ntes - HUD 2123 Administrative Ntes - HUD 2126 Prject Ntes - Nn-HUD 2129 Sundry Ntes Accrued Liabilities

6 Interest Payable - Develpment Ntes - HUD Interest Payable - Administrative Ntes - HUD Interest Payable - Other Ntes (Deferred Payment) - HUD 2132 Interest Payable - Ntes - Nn-HUD 2133 Interest Payable - Bnds - Nn-HUD 2134 Utilities 2135 Salaries and Wages 2136 Insurance 2137 Payments in Lieu f Taxes 2139 Other IV-8 January, 1996 PIH Lw-Rent Technical Accunting Guide Trust and Depsit Liabilities 2161 Hmebuyers Earned Hme Payments 2/ 2162 Hmebuyers Nnrutine Maintenance Reserve 2/ 2164 Unapplied Payments n Resale f Dwellings 2/ 2165 Mrtgagrs r MH Hmewners Taxes and Insurance 2166 Mrtgagrs r MH Hmewners Maintenance Reserve 2171 MH Hmebuyers Mnthly Equity Payments 2172 MH Hmebuyers Vluntary Equity Payments 2180 Family Self-Sufficiency (FSS) Escrw Accunt Deferred Credits 2210 Prepaid Annual Cntributins 2240 Tenants Prepaid Rents 2241 Prepaid Mnthly Payments - Hmebuyers - Turnkey III Prjects 2245 Prepaid Mnthly Payments - MH Hmebuyers 2250 Investment Incme - Hmebuyers Earned Hme Payments - Unapplied 2/ 2251 Investment Incme - Hmebuyers Nnrutine Maintenance Reserve Unapplied 2/ 2252 Investment Incme - MH Hmebuyers Equity Payments - Unapplied 2260 Land MH Cntributin MH Hmebuyers Nn-land MH Cntributin Tribal Nn-land MH Cntributin 2290 Other Fixed Liabilities 2311 Permanent Ntes - HUD 2312 Permanent Ntes - F.F.B New Husing Authrity Bnds - Issued 2342 New Husing Authrity Bnds - Retired 2351 Other Ntes Payable t HUD (Deferred Payment) 2/ Applicable nly t Turnkey III Hmewnership Prjects. PIH Lw-Rent Technical Accunting Guide January, 1996 IV-9

7 Undistributed Credits 2690 Undistributed Credits Incme and Expense Clearing Accunt 2700 Incme and Expense Clearing Accunt SURPLUS 2810 Unreserved Surplus 2820 Reserved Surplus - Operating Reserve - Lcally Owned Prjects 2821 Reserved Surplus - Operating Reserve - Leased Prjects 2822 Reserved Surplus - Operating Reserve - MH Prjects 3/ 2823 Reserved Surplus - Operating Reserve - Turnkey III Hmewnership Prjects 2824 Reserved Surplus - Operating Reserve - Sectin 23 HAP Prjects 2825 Reserved Surplus - Cntingency Reserve - Unfunded - Sectin 23 HAP Prjects 2826 Reserved Surplus - Operating Reserve - Sectin 8 HAP Prjects 2827 Reserved Surplus - Prject/ACC Reserve Accunt - Unfunded - Sectin 8 HAP Prjects 2840 Cumulative HUD Annual Cntributins 2845 Cumulative HUD Grants Fr Develpment/Mdernizatin 2850 Cumulative Dnatins 2854 Replacement Reserve - Prceeds frm Sale f Dwellings (Retained by HA) 4/ 2855 Cumulative Prceeds frm Sale f TK III Dwellings (Remitted t HUD) Cumulative Prceeds frm Sale ff Dwellings (Remitted t HUD) Cumulative MH Unfunded Reserves Applied t Purchase Price f Dwellings 2860 Bk Value f Prjects Cnveyed by HUD 2870 Cntract Payments t HUD - Cnveyed Prjects 2880 Develpment Cst - Undevelped Prjects 2890 Surplus - Cst f Dwellings Cnveyed t Hmebuyers 4/ 3/ New MH: The cmparable accunt fr ld MH is Accunt 2815, Cumulative Residual Receipts. 4/ Applicable t Turnkey III and MH Prjects, and t Sectin 5h. IV-10 January, 1996 PIH Lw-Rent Technical Accunting Guide Capital Cntributins (New Mutual Help) 2912 Refundable MH Reserve (Refundable Old MH Accunts: ; 2920) 2914 Unrefundable MH Reserve (Unrefundable Old MH Accunts: 2910; )

8 OPERATING INCOME 3000 Operating Incme (Cntrl) Sectin 8 Incme Accunts 3300 Interest n Reserved Surplus - Operating Reserve 3300.P Incme-Prtability Fraud Recvery Funds Retained Subsidiary Accunts t Accunt 3000 Rental Incme 3110 Dwelling Rental 3120 Excess Utilities 3190 Nndwelling Rental Nnrental Incme 3610 Interest n General Fund Investments 3680 Assessments - Hmewners 3690 Other Incme OPERATING EXPENSE 4000 Operating Expense (Cntrl) 4000.P Sectin 8 Prtability Expense (Cntrl) PIH Lw-Rent Technical Accunting Guide January, 1996 IV-11 Subsidiary Accunts t Accunt 4000/4000.P Administrative Expenses 4010 Preliminary Administrative Expenses (Sectin 8)- Prir t ACC 4012 Preliminary Administrative Expenses (Sectin 8) - After ACC 4012.P Preliminary Administrative Expenses (Sectin 8) - Prtability 4110 Administrative Salaries 4130 Legal Expense 4140 Staff Training 4150 Travel 4170 Accunting Fees 4171 Auditing Fees 4180 Office Rent - HAP 4190 Sundry - Other Administrative Expenses Tenant Services 4210 Salaries 4220 Recreatin, Publicatins, and Other Services

9 4230 Cntract Csts, Training, and Other Utilities 4310 Water 4320 Electricity 4330 Gas 4340 Fuel 4350 Labr 4390 Other Utilities Expense Ordinary Maintenance and Operatin 4410 Labr 4420 Materials 4430 Cntract Csts 4431 Garbage and Trash Remval IV-12 January, 1996 PIH Lw-Rent Technical Accunting Guide Prtective Services 4460 Labr 4470 Materials 4480 Cntract Csts General Expense 4510 Insurance 4520 Payment in Lieu f Taxes 4530 Terminal Leave Payments 4540 Emplyee Benefit Cntributins 4570 Cllectin Lsses 4580 Interest n Administrative and Sundry Ntes 4590 Other General Expense Nnrutine Maintenance 4610 Extrardinary Maintenance 4620 Casualty Lsses Nncapitalized Rent fr Leased Dwellings 4710 Rent t Owners f Leased Dwellings 4715 Husing Assistance Payments (Sectin 8) 4715.P Husing Assistance Payments (Sectin 8) - Prtability Other Accunts Nt Affecting Residual Receipts 5230 Interest n Debt Amrtizatin Fund Investments 5240 Interest n Payments fr Off-Site Utilities 5610 Interest n Ntes and Bnds Payable 5640 Bnd Redemptin Premiums PIH Lw-Rent Technical AccuntIng Guide January, 1996

10 IV-13 Surplus Credits And Charges 6010 Prir Year Adjustments - Affecting Residual Receipts 6020 Prir Year Adjustments - Nt Affecting Residual Receipts 6110 Gain r Lss frm Dispsitin f Real Prperty 6120 Gain r Lss frm Dispsitin f Nnexpendable Equipment Prvisin Fr Reserves 7010 Prvisin fr Operating Reserve - Lcally Owned Prjects 7011 Prvisin fr Operating Reserve - Leased Prjects 7012 Prvisin fr Operating Reserve - MH Prjects 7013 Prvisin fr Operating Reserve - Turnkey III Hmewnership Prjects 7014 Prvisin fr Operating Reserve - Sectin 23 HAP Prjects 7016 Prvisin fr Operating Reserve - Sectin 8 HAP Prjects 7025 Prvisin fr Cntingency Reserve - Sectin 23 HAP Prjects 7027 Prvisin fr Prject/ACC Reserve Accunt -Sectin 8 HAP Prjects MEMORANDUM ACCOUNTS Operating Receipts Fr Repayment f Off-Site Utilities 7110 Receipts Frm Off-Site Utilities 7190 Operating Receipts fr Repayment f Off-Site Utilities - Cntra Operating Expenditures Fr Prperty 7520 Replacement f Nnexpendable Equipment 7530 Receipts Frm Nnexpendable Equipment Nt Replaced 7540 Prperty Betterments and Additins 7560 Casualty Lsses - Capitalized 7580 Prceeds Frm Dispsitin f Prperty - Reserved 7590 Operating Expenditures Fr Prperty - Cntra IV-14 January, 1996 PIH Lw-Rent Technical Accunting Guide Hmebuyers Mnthly Payments - Turnkey III Hmewnership Prjects 7710 Hmebuyers Mnthly Payments - Operating Expense 7712 Hmebuyers Mnthly Payments - Earned Hme Payments 7714 Hmebuyers Mnthly Payments - Nnrutine Maintenance Reserve 7716 Hmebuyers Mnthly Payments - Excess (r Deficit) in Break-Even 7790 Hmebuyers Mnthly Payments - Cntra HUD Annual Cntributins Earned 8010 Basic Annual Cntributin Earned - Current Year - Leased Prjects 8011 Basic Annual Cntributin Earned - Prir Year Adjustments -

11 Leased Prjects 8020 Cntributins Earned - Operating Subsidy -Current Year 8025 Annual Cntributins Earned - Sectin 23 HAP Prjects 8026 Annual Cntributins Earned - Sectin 8 HAP Prjects Grant Funds Received Develpment Grant Funds Received During Current Year Mdernizatin Grant Funds Received During Current Year Hmebuyers Payments - Prperty Acquisitin 8112 Prceeds frm Sale f Dwellings 5/ 8114 Hmebuyers Payments n Resale Dwellings 5/ Cash Applied t Purchase Price f MH Dwellings MH Unfunded Reserves Applied t Purchase Price f Dwellings 5/ Applicable nly t Turnkey III Prjects. PIH Lw-Rent Technical Accunting Guide January, 1996 IV-15 IV. Chart f Accunt (This Page Left Blank) IV-16 January, 1996 PIH Lw-Rent Technical Accunting Guide DESCRIPTION OF ACCOUNTS This sectin prvides a descriptin f the accunts t be used in recrding transactins invlving planning, develping, and perating rental prgrams (bth lcally wned and leased) and hmewnership prgrams assisted under the United States Husing Act f 1937 pursuant t the prvisins f any cntract fr annual cntributins r administratin. ASSETS Cash General Fund (Develpment and/r Operatin). The debit balance f this accunt represents General Fund cash n depsit r t be depsited with a bank r banks fr the planning, develpment and peratin f prjects in accrdance with a cntract with HUD Security Depsit Fund. The debit balance f this accunt represents the unapplied r uninvested security depsits held fr the accunt f tenants and depsited t this accunt. Where lcal laws r rdinances d nt require segregatin f these funds, they may be depsited in the General Fund Petty Cash Fund. The debit balance f this accunt represents the amunt f cash set aside, nt in excess f the amunt authrized by HA reslutin, as an imprest fund fr the payment f minr expenses and fr making refunds t tenants Change Fund. The debit balance f this accunt represents the

12 amunt f cash set aside, nt in excess f the amunt authrized by HA reslutin, fr the purpse f making change. Accunts Receivable - Tenants/Hmebuyers The tenant/hmebuyer accunts receivable ( ) shall be supprted by a subsidiary ledger shwing the balance applicable t each tenant/hmebuyer. Mnthly rental charges (i.e., tenant rent charges, utility reimbursement amunts, required mnthly payments fr hmebuyers) shall be psted t the accunts receivable recrds n the first, day f the mnth based n the mnthly rent rll. PIH Lw-Rent Technical Accunting Guide January, 1996 IV-17 Accunts Receivable - Tenants/Hmebuyers (cntinued) Any ther charges, such as retractive rent, maintenance charges, excess utility charges, r ther adjustments, are als psted t these accunts but separately frm the mnthly rent charge. Tenant/hmebuyer accunts receivable may be subdivided t cllect infrmatin by prject r by type f charge (rent, maintenance charges, etc.), but shall be reprted as aggregate debit and credit balances n the Balance Sheet. Accunts receivable may be written ff nly fr vacated accunts. Charges due t tenant fraud r misrepresentatin. Retractive rent charges due t tenant fraud r misrepresentatin are charged t Accunts nly at the time: (1) when the tenant/hmebuyer has acknwledged the debt by either (a) agreeing t immediately make full payment, r (b) entering int a frmal written repayment agreement; r (2) when repayment by the tenant/hmebuyer has been rdered by the curt. If the amunt f the curt rder differs frm the amunt f the HA calculated retractive rent charge, the amunt f the curt rder is established as the receivable Tenants. The balance f this accunt represents the net f the debit and credit balances f the individual tenant accunts, including retractive rent charges and indebtedness evidenced by ntes. Fr reprting purpses, the sum f the individual debit balances shall be reprted in the annual financial statement under this accunt in rder t disclse the grss amunt due frm tenants, and the sum f the individual credit balances shall be reprted under Accunt 2240, Deferred Credits - Tenants Prepaid Rents. This accunt may be maintained by prject r by any cmbinatin f prjects under the same cntract MH Hmebuyers. This accunt shall be charged with all amunts due frm MH hmebuyers, including the administratin charge and the mnthly equity payments due frm the hmebuyer. The mnthly charge entry fr MH Hmebuyers cnsists f (a) a debit t Accunt 1123 fr the amunt f the Required Mnthly Payment due t the IHA n r befre the first day f the mnth; (b) a credit t perating incme Accunt 3110 fr the amunt f the Administratin Charge; (c) a credit t Accunt 2171 (MEPA) fr the amunt, if any, by which the Required Mnthly Payment exceeds the Administratin Charge.

13 The balance f this accunt represents the net f the debit and credit balances f the individual MH hmebuyers accunts receivable. Fr reprting purpses, the sum f the individual credit balances shall be reprted in the annual financial statement under Accunt 2245, Deferred Credits-Prepaid Mnthly Payments - MH Hmebuyers. IV-18 January, 1996 PIH Lw-Rent Technical Accunting Guide 1124 Hmebuyers (Turnkey III Prjects). The balance f this accunt represents the net ttal f the debit and credit balances f the individual hmebuyers accunts receivable. Fr reprting purpses, the sum f the individual debit balances shall be reprted n the balance sheet under hmebuyers, and the sum f the individual credit balances shall be reprted under Accunt 2241, Deferred Credits - Prepaid Mnthly Payments -Hmebuyers. (Fr mnthly charge entry see preface t Accunts ) Accunts Receivable - Other 1125 HUD. The debit balance f this accunt represents amunt due frm HUD, including the basic annual cntributin fr leased prjects, if any, as a result f transactins fr which specific accunts are nt prvided P Sectin 8 Accunts Receivable. HUD - Prtability. The debit balance f this accunt represents amunts due frm HUD fr special preliminary fees fr Prtability Other. The debit balance f this accunt represents the amunt f receivables due frm thers than tenants, hmebuyers, r HUD. The debit balance in this accunt als includes accunts receivable due fr fraud recvery payments frm Sectin 8 tenants and wners. Accunt 1129 is debited (and Accunt 2690 credited) with the amunt f fraud recvery funds due frm a Sectin 8 tenant/wner and credited with the amunt f a cllectin received frm a tenant/wner. This accunt shall be subdivided r a subsidiary ledger shall be maintained t segregate the amunt due frm each debtr P Sectin 8 Accunts Payable. Issuing HA - Prtability. The debit balance f this accunt represents the amunt f receivables due frm ther (Issuing) HAs fr HAP payments and administrative fees fr Prtability participants whse assistance is administered by the HA. A subsidiary ledger shall be maintained t segregate the amunts due frm each debtr HA. Ntes and Mrtgages Receivable 1130 Ntes and Mrtgages Receivable. The debit balance f this accunt represents the amunts due the HA as evidenced by ntes, mrtgages, r cntracts f sale. It shall include amunts due the HA as evidenced by ther frmal instruments f indebtedness, such as lans t lcal ff-site facilities nt included in the develpment cst f the prject. This accunt shall be subdivided r a subsidiary ledger shall be maintained t segregate the amunt due

14 frm each debtr. PIH Lw-Rent Technical Accunting Guide January, 1996 IV-19 Accrued Receivables 1145 Accrued Interest Receivable. The debit balance f this accunt represents accrued interest receivable n ntes, mrtgages, and/r cntracts f sale. It shall als include accrued interest receivable n HA investments and n lans t lcal gverning bdies r lcal taxing bdies fr financing the cnstructin f ff-site facilities nt included in the develpment cst f the prject. The accrued interest paid n securities purchased shall be charged t this accunt. This accunt shall be subdivided r a subsidiary ledger shall be maintained t segregate the amunt due frm each debtr r fr each type f investment. Advances 1155 Limited Revlving Fund. The debit balance f this accunt represents the amunt advanced t a revlving fund nt cvered by a General Depsitary Agreement, fr the purpse f payment f items chargeable t prjects r enterprises f the HA, within limitatins. An example f such a revlving fund is a payrll accunt which is used slely t disburse paychecks and t remit payrll taxes. The use f such an accunt is limited t the payment f csts prratable t tw r mre cntracts. Advances may nt exceed the prrata share fa reasnable estimate f ne mnth's expenditures Unlimited Revlving Fund. The debit balance f this accunt represents the amunt advanced t a revlving fund, which is cvered by a General Depsitary Agreement, fr the purpse f payment f items chargeable t any r all prjects r enterprises f the NA. (See Chapter II, Pling f Funds.) 1157 Other. This accunt shall be debited with the amunt advanced frm the General Fund t a "Master Accunt" fr the purpse f payment f items chargeable t any r all prjects r enterprises f the NA (See Chapter II, Pling f Funds). This accunt shall als be debited with the amunt advanced frm the General Fund t a state agency r t a special accunt as security fr payment f FICA taxes, when required by state law, and with the amunt f ther advances fr which n specific accunt is prvided. This accunt shall be subdivided t segregate the advances made fr different purpses. IV-20 January, 1996 PIH Lw-Rent Technical Accunting Guide Investments This accunt shall be debited with the cst f securities purchased frm mnies n depsit in the General Fund r the Security Depsit Fund. This accunt shall als be debited with the amunt f such funds depsited in time r savings accunts and with the increment

15 in value f U.S. Savings Bnds if the HA elects t recrd such increments (see als the descriptin f Accunt 3610). This Accunt shall als be debited with the interest earned n time r savings accunts at the time such interest is credited t the accunt by the depsitary. Fr purpses f this descriptin, the "cst" f securities includes brkerage, fees, and ther csts f acquisitin, plus premiums paid r less discunts received, but excludes accrued interest at date f purchase. If the HA elects t amrtize peridically premiums paid and discunts received n the purchase f securities in accrdance with the ptin in the descriptin f Accunt 3610, this accunt shall be debited with the peridic amrtizatin f discunts received and credited with the peridic amrtizatin f premiums paid. This accunt shall be credited with the cst f securities sld and with the amunts withdrawn frm time r savings accunts. This accunt shall be subdivided t segregate and identify investment securities and/r savings accunts representing the investment f tenant security depsits and fr which investment incme will be paid t r credited t the tenant's accunt. When the funds invested are pled frm varius surces, the investment incme debited t this accunt shall be credited n an allcated basis t the apprpriate prgram accunt Hmewnership Reserve Funds. 6/ This accunt shall be debited with the cst f securities specifically purchased frm hmewnership reserve funds n depsit in the General Fund, with the amunt f such reserve funds depsited in time r savings accunts with Banks r ther institutins, and with the increment in value r U.S. Savings bnds if the PHA elects t recrd such increments. This accunt shall als be debited with the interest earned n time r savings accunts at the time such interest is credited t the accunt by the depsitary. 6/ Hmewnership reserve accunt funds may als be held in pled investments recrded in Accunt PIH Lw-Rent Technical Accunting Guide January, 1996 IV Hmewnership Reserve Funds (cntinued) Fr the purpses f this descriptin, the "cst" f securities includes brkerage fees, and ther csts f acquisitin, plus premiums paid r less discunts received, but excludes accrued interest at date f purchase. This accunt shall be credited with the cst f securities sld and with the amunts withdrawn frm time r savings accunts. This accunt shall be subdivided t segregate and identify investments specifically held by the HA fr hmewnership reserve

16 accunts. (See descriptins f Accunts 2250, 2251, and 2252.) Investments -TK III Hmebuyers Earned Hme Payment. The debit balance f this accunt represents ttal investments being held fr the hmebuyers earned hme payments accunts (smetimes called the "hmebuyers wnership reserve") Investments - TK III Hmebuyers Nnrutine Maintenance Reserve. The debit balance f this accunt represents ttal investments being held fr the hmebuyers nnrutine maintenance reserve Investments - Mrtgagrs/MH Hmewners Maintenance Reserve. The debit balance f this accunt represents ttal investments being held fr the mrtgagrs r MH Hmewners maintenance reserve Investments - MH Hmebuyers Mnthly Equity Payments. The debit balance f this accunt represents ttal investments being held fr the MH hmebuyers mnthly and vluntary equity payments accunt Investments - MH Hmebuyers Vluntary Equity Payments. The debit balance f the accunt represents investments being held fr the MH hmebuyers vluntary equity payments accunt. IV-22 January, 1996 PIH Lw-Rent Technical Accunting Guide Debt Amrtizatin Funds 1171 Debt Service Fund. The debit balance f this accunt represents the amunt f funds n depsit with the fiscal agent fr the payment f interest n and principal f bligatins f permanently financed prjects, the accumulated bnd service carry-ver, and fr such ther purpses as may be prvided in the Annual Cntributins Cntract. When all bligatins have been fully paid, any funds remaining in this accunt shall be remitted t HUD Advance Amrtizatin Fund. The debit balance f this accunt represents the amunt f funds n depsit with the fiscal agent fr advance retirement f debt r fr such ther purpses as prvided in the Annual Cntributins Cntract. When all bligatins have been fully paid, any funds remaining in this accunt shall be remitted t HUD Investments. This accunt shall be debited with the cst f securities purchased by the fiscal agent frm funds n depsit in any f the debt amrtizatin fund accunts (Debt Service Fund, Advance Amrtizatin Fund, Annual Cntributins Reductin Accunt, etc.). This accunt shall als be debited with the amunt f debt amrtizatin funds depsited by the fiscal agent in a time r savings accunt in a bank r ther institutin and with the amunt f interest earned and credited t such time r

17 savings accunt by the depsitry bank r institutin. This accunt shall be credited with the cst f securities sld and with amunts transferred by the fiscal agent frm a time r savings accunt t the apprpriate debt amrtizatin fund accunt. Fr purpses f this descriptin, the "cst" f securities includes brkerage and ther csts f acquisitin, plus premiums paid r less discunts received, excluding accrued interest at date f purchase. This accunt shall be subdivided t segregate investments purchased by the fiscal agent frm each debt amrtizatin fund accunt, such as Debt Service Fund, Advance Amrtizatin Fund, Annual Cntributins Reductin Accunt, etc HUD Annual Cntributins Receivable. The debit balance f this accunt represents the amunt f the Debt Service Annual Cntributin due frm HUD pursuant t the terms and cnditins f the Annual Cntributins Cntract. An accrual shall be made t this accunt nly fr thse amunts required annually fr the payment f interest and principal n bnds, and/r ntes sld t the Federal Financing Bank (FFB). Annual Cntributins need nt be accrued n HUD Permanent Ntes (Accunt 2311) subject t debt frgiveness. PIH Lw-Rent Technical Accunting Guide January, 1996 IV Depsits With HUD. The debit balance f this accunt represents funds remitted t HUD (by the HA r by the fiscal agent). Deferred Charges This accunt shall be credited (and the apprpriate accunt debited) upn ntificatin by HUD that the funds have been applied Prepaid Insurance. The debit balance f this accunt represents the unexpired prtin f stck and mutual cmpany insurance premiums. The unexpired prtin f mutual cmpany premiums shall be based n the difference between the amunt f depsit premium and the estimated amunt f returnable premium Insurance Depsits. The debit balance f this accunt represents the estimated amunt returnable n mutual cmpany premium depsits upn expiratin f the plicies. The debit balance shall als include advance premium payments n wrkmen's cmpensatin and emplyer's liability insurance plicies which may be applied against premium accruals at the end f the plicy year Maintenance Wrk in Prcess. This accunt shall be debited with all csts incurred by the HA fr rutine and nnrutine maintenance f hmebuyers' dwellings pending allcatin f such csts t the applicable reserve r equity accunt f each hmebuyer fr whm wrk was perfrmed.

18 1260 Inventries - Materials. If a perpetual inventry methd f accunting fr materials and supplies and expendable equipment is fllwed, this accunt shall be debited with the cst f materials and supplies and expendable equipment purchased and stred in a stckrm r warehuse pending issuance t prjects as needed. This accunt shall be credited with the cst f materials and supplies and expendable equipment issued t prjects. If a perpetual inventry methd f accunting fr materials and supplies and expendable equipment is nt used, this accunt shall be debited with the cst f unused materials and supplies and expendable equipment n hand at the end f the initial perating perid and at the end f each fiscal year. The entry establishing the inventry at the end f a perid may be reversed as f the beginning f the next perid, r it maybe allwed t remain in this accunt until the end f the next perid. If the latter methd is used, the accunt shall, at the end f the next perid, be debited r credited fr the net increase r decrease, as applicable, in the cst f unused materials and supplies and expendable equipment n hand at the clse f such perid. IV-24 January, 1996 PIH Lw-Rent Technical Accunting Guide 1270 Inventries - Equipment. This accunt shall be debited with the cst f items f nnexpendable equipment and with the cst f all ther items f a capital nature, such as water heaters, mtrs, and bathrm equipment which are nrmally cnsidered real prperty when attached r installed in a fixed psitin, purchased and held in warehuses r stckrms pending issuance t prjects as needed. The cst f nnexpendable equipment and the cst f ther items f a capital nature purchased and charged t this accunt shall nt be recrded in the 7500 r 4000 grups f accunts, respectively, nr shall the cst f nnexpendable equipment be charged t Accunt , Land, Structures, and Equipment, until the items are placed in use Inventries - Materials. The debit balance f this accunt represents the amunt f prepayments f expenses nt specifically chargeable t ther accunts. Land, Structures, and Equipment These accunts reflect the cst f the fixed assets f the HA prjects cvered by an Annual Cntributins Cntract (ACC). Capital asset expenditures fr develpment and mdernizatin are funded by specifically designated HUD resurces. These expenditures are recrded in Accunt and subsequently capitalized in Accunt Capital asset expenditures paid fr frm perating funds are recrded in Accunt and als in the Accunt 7500 series. The prescribed accunts fr fixed assets recrd the expenditure f funds;

19 the HUD accunting system des nt prvide fr the depreciatin f fixed assets fr prjects under an ACC Develpment/Mdernizatin Cst. This cntrl accunt shall be debited with all csts incurred in cnnectin with the develpment r mdernizatin f a prject. The charges t this accunt shall include the value f dnatins in kind and develpment csts paid frm cash dnatins. The accunt shall be supprted by a develpment r mdernizatin cst ledger which prvides detailed cst infrmatin in subsidiary accunt classificatins which crrespnd t the HUD apprved budget fr the individual develpment r mdernizatin prgram. PIH Lw-Rent Technical Accunting Guide January, 1996 IV-25 Subsidiary Accunts t Accunt : 1408 t 1495 A develpment r mdernizatin cst ledger is maintained fr each develpment r mdernizatin prgram fr the purpse f establishing a basis f HA accuntability fr HUD funding. The prescribed subsidiary accunt classificatins in the cst ledger (Accunts ) crrespnd t the HUD apprved budgets fr the capital expenditures and allw HUD t mnitr the HA cmpliance with the authrized develpment r mdernizatin prgram. After issuance f the Actual Develpment r Mdernizatin Cst Certificate, the develpment/mdernizatin cst ledger shall be retained as a permanent recrd f the develpment/mdernizatin cst f the prject. A descriptin f the subsidiary accunts fllws Accunt Develpment/Mdernizatin Cst - Cntra. The purpse f this accunt is t ffset (fr reprting purpses) the ttal cst f the develpment r mdernizatin prject as apprved by HUD in the Actual Develpment r Mdernizatin Cst Certificate, and as capitalized in Accunt This accunt is credited (and Accunt debited) fr the ttal develpment r mdernizatin csts fr each prject in the amunt charged t Accunt and reprted n the Actual Develpment r Mdernizatin Cst Certificate Land, Structures, and Equipment. This cntrl accunt is debited (and Accunt credited) with the capitalized cst f the develpment and/r mdernizatin f the HA prjects charged t Accunt and apprved by HUD in the Actual Develpment r Mdernizatin Cst Certificate. The capitalized amunt includes nt nly the direct cst f the fixed asset itself, but als any ancillary csts (e.g. administrative csts, site imprvements, legal fees, interest csts, etc.) assciated with the develpment/mdernizatin prgram as apprved by HUD. This accunt is als debited with the acquisitin cst f capitalized equipment and prperty betterments and additins which are paid frm Operating Receipts; and with the cst, when

20 paid frm Operating Receipts r frm insurance prceeds, f the recnstructin, restratin, r replacement f prperty destryed r damaged by casualty when the bk value f the prject is cnsidered t have been materially affected by the lss and subsequent restratin. IV-26 January, 1996 PIH Lw-Rent Technical Accunting Guide Land, Structures, and Equipment (cntinued) This accunt is credited with the actual (r estimated r allcated) cst f land, structures, and equipment sld, tradedin, r therwise dispsed f alter the Date f Full Availability (DOFA), except fr prperty destryed r damaged by casualty when such lss and subsequent restratin is cnsidered nt t have materially affected the bk value f the prject. Subsidiary Accunts t Accunt : Accunt shall be supprted by subsidiary accunts (Accunts ) in a Prperty Ledger as described in Appendix A. SUBSIDIARY ACCOUNTS TO ACCOUNT A develpment r mdernizatin cst ledger is maintained fr each individual develpment r mdernizatin prgram fr the purpse f establishing a basis f HA accuntability fr HUD funding. The prescribed subsidiary accunt classificatins (Accunts ) crrespnd t the HUD apprved budgets fr the capital expenditures and allw HUD t mnitr the HA cmpliance with the authrized develpment r mdernizatin prgram. The develpment/mdernizatin cst ledger is the surce f infrmatin fr the peridic cst data reprted t HUD and fr the Actual Cst Certificate issued at the cmpletin f the prgram. The accunt descriptins prvided belw may be mdified by specific prgram requirements in budgets apprved by HUD. The current prgram reference surces (HUD handbks, guidebks, and ntices) fr develpment and mdernizatin shuld be cnsulted fr current infrmatin n allwable csts and reprting requirements. The accunt descriptins fr the subsidiary accunts t Accunt are als the accunt descriptins fr the capitalized subsidiary accunts t Accunt PIH Lw-Rent Technical Accunting Guide January, 1996 IV-27 Administrative Expense 1408 Management Imprvements. This accunt shall be charged with all csts incurred by the HA fr management imprvements alter mdernizatin prgram apprval, including nntechnical salaries, technical salaries, emplyee benefit cntributins, and cnsultant fees. This accunt shall be charged nly in cnnectin

21 with the mdernizatin f a prject. Nn-expendable equipment shall nt be charged t this accunt, but t Accunt Nntechnical Salaries. This accunt shall be charged with the grss salaries, r applicable prtins theref, earned by HA persnnel engaged in nntechnical administrative wrk relating t the planning and develpment f the prject. It shall include the salaries f the executive directr, assistant executive directr, accuntants, accunting clerks, secretaries, stengraphers, clerks, typists, purchasing agents, file clerks, switchbard peratrs, ffice janitrs, and the salaries f all ther HA persnnel assigned t administrative wrk in cnnectin with the planning and develpment f the prject. Terminal leave payments t terminated emplyees shall be charged t this accunt in the same rati as the salary f such terminated emplyees was chargeable t this accunt as f the terminatin date f emplyment Technical Salaries. This accunt shall be charged with the grss salaries, r applicable parts theref, earned by HA emplyees engaged in architectural, engineering, r ther technical wrk relating t the planning and develpment f the prject. It shall include the salaries f architects, engineers, amen, and the salaries f all ther persnnel engaged in such technical wrk. If the entire architectural and engineering wrk is perfrmed by HA emplyees, the salaries f such emplyees shall be charged t this accunt and nt t Accunt Terminal leave payments t terminated emplyees shall be charged t this accunt in the same rati as the salary f such terminated emplyees was chargeable t this accunt as f the terminatin date f emplyment. This accunt shall nt be charged with the salaries f secretaries, stengraphers, r typists assigned t technical emplyees; such salaries shall be charged t Accunt The salaries f persnnel assigned t full-time inspectin wrk during cnstructin shall nt be charged t this accunt, but t Accunt IV-28 January, 1996 PIH Lw-Rent Technical Accunting Guide Wrk - MH Cntributin. This accunt shall be charged with the value f wrk furnished as mutual help cntributins by hmebuyers engaged in administrative wrk fr the IHA, relating t the planning and develpment f the prject Legal Expense. This accunt shall be charged with retainers and fees paid t attrneys fr general legal advice and assistance and fr the handling f litigatin in cnnectin with the planning and develpment f the prjects. This accunt shall als be charged with the grss salaries earned by staff attrneys 7/ fr legal wrk relating t the planning and develpment f the prjects, including title infrmatin and ther legal wrk relating t site acquisitin. The salaries earned by secretaries,

22 stengraphers, r typists assigned t such staff attrneys shall nt be charged t this accunt; such salaries shall be charged t Accunt Terminal leave payments t terminated emplyees shall be charged t this accunt in the same rati as the salary f such terminated emplyees was chargeable t this accunt as f the terminatin date f emplyment. This accunt shall nt be charged with: legal fees and expenses awarded by a curt t the wner f prperty acquired by cndemnatin; such amunts shall be charged t Accunt , legal fees and expenses fr btaining title infrmatin; such amunts shall be charged t Accunt , legal fees and expenses in cnnectin with site acquisitin; such amunts shall be charged t Accunt , any part f the salary f an attrney emplyed in an administrative psitin, such as executive directr, assistant executive directr, etc., althugh such attrney may perfrm certain legal wrk incidental t his administrative duties; such salary shall be charged t Accunt , and csts fr btaining pinin f cunsel in cnnectin with financing the prject; such cst shall be charged t Accunt / The term "staff attrney", as used in this descriptin, means an attrney emplyed at a fixed salary fr the primary purpse f furnishing general legal advice and assistance and/r fr handling litigatin relating t the planning, develpment, and peratin f HUD-aided prjects and any ther prgram being administered by the HA. PIH Lw-Rent Technical Accunting Guide January, 1996 IV Emplyee Benefit Cntributins. This accunt shall be charged with HA cntributins, r the applicable parts theref, t emplyee benefit plans, such as pensin, retirement, and health and welfare plans. This accunt shall als be charged with administrative expenses paid t the state r ther public agency in cnnectin with a retirement plan, if such payment is required by state law, and with trustee's fees paid in cnnectin with a private retirement plan, if such payment is required under the retirement plan cntract. This accunt shall als be charged with unemplyment cmpensatin expenses, as required by state law, related t csts f terminating emplyees hired n a temprary basis fr mdernizatin. Deductins frm cmpensatin f emplyees fr pensin, retirement, and health and welfare plans shall nt be charged t

23 this accunt, but shall be cnsidered a part f their grss earnings and charged t the apprpriate salary accunt Travel. This accunt shall be charged with travel expenses f fficials and emplyees f the HA traveling n fficial business; including travel expenses and registratin fees incurred in cnnectin with attending cnventins and meetings f rganizatins which the HA determines will be useful in the cnduct f its business. The charges t this accunt shall include the cst f autmbile hire, allwances paid t emplyees fr use f privately wned autmbile r ther transprtatin csts, taxi fares, subsistence allwances, etc. This accunt shall als be charged with travel expenses f HA fficials and emplyees traveling n fficial business in cnnectin with HUD apprved Cmprehensive Imprvement Assistance Prgram (CIAP) training. Prir apprval must be btained frm HUD befre CIAP training can be charged t this accunt Publicatins. This accunt shall be charged with the cst (ther than the cst f services f regular staff emplyees and the cst f supplies withdrawn frm stck) incurred by the HA in the preparatin, printing, and distributin f its annual reprts, exhibits, and ther infrmatinal literature relating t its husing prgram. This accunt shall als be charged with the cst f peridicals, bks, and any ther literature which the HA deems useful in the cnduct f its business Membership Dues and Fees. This accunt shall be charged with dues and fees fr membership in, and payment fr the services f, rganizatins supplying technical r prfessinal infrmatin r material cncerning the lw-rent husing prgram. IV-30 January, 1996 PIH Lw-Rent Technical Accunting Guide Telephne and Telegraph. This accunt shall be charged with the cst f telephne and telegraph services, including rental f equipment and lng distance tll charges Equipment Expended. This accunt shall be charged immediately when the transactin ccurs with the difference between the acquisitin cst and the prceeds. frm dispsitin f persnal prperty during the perid fr which prceeds frm the sale f persnal prperty are credited t the develpment cst f the prject. When the physical inventry f equipment is taken as f the end f the initial perating perid, this accunt shall als be charged with the acquisitin cst f equipment which has been lst, stlen, destryed, abandned, expended, etc Sundry. This accunt shall be charged with all items f administrative and general expense incurred in cnnectin with the planning and develpment f the prject fr which a specific accunt is nt prvided in the 1410 grup f accunts. Charges t this accunt include, but are nt limited t, the fllwing: rental f ffice space and cst f minr alteratins; rental

24 f ffice furniture and equipment; utilities services; and janitrial supplies, the cst f reprt and accunting frms; fees fr accunting and auditing services; printing f frms and ther dcuments, except annual reprts and ther infrmatinal literature; statinery and ffice supplies; pstage; messenger service; and incidental express, freight, and drayage nt identified with and charged t the same accunt as the article shipped, perating cst f mtr vehicles, such as gasline, il, grease, batteries, tires, and repairs, insurance expense fr wrkmen's cmpensatin, autmbile liability, public liability, fire cverage n furniture and fixtures, and fidelity bnds. When authrized in the develpment budget, insurance expense shall include the initial three year insurance premium fr fire and extended cverage, public liability and fidelity bnd cverage, advertising csts in cnnectin with prcuring bids fr demlitin, cnstructin, landscaping, and ther cntracts fr develpment wrk, PIH Lw-Rent Technical Accunting Guide January, 1996 IV Sundry (cntinued) cst f btaining the pinin f cunsel in cnnectin with financing the prject, and the cst f preparing the develpment prgram beynd that which is required as basic services under the architect's cntract when such wrk is nt perfrmed by HA persnnel. This accunt shall nt be charged with any f the fllwing types f cst: purchase f ffice furniture and equipment; such purchases shall be charged t Accunt , blueprints, duplicating specificatins, r ther printing related t planning; such csts shall be charged t Accunt , and travel expenses f architects and engineers r their authrized agents which are reimbursable t them under their cntracts; such cst shall be charged t Accunt Liquidated Damages 1415 Liquidated Damages. This accunt shall be credited with the amunt f liquidated damages cllected frm the cntractr pursuant t the terms and cnditins f the cntract. (see Public Husing Develpment Handbk , Rev. 1).

25 Cunseling and Training 1418 Cunseling and Training Csts. This accunt shall be charged with csts incurred in cnnectin with (a) the cunseling and training services prvided applicants and hmebuyers in Turnkey III and MH Hmewnership Prjects and (b) the rganizatin and initial peratin f the hmebuyers assciatin in a Turnkey III Prject. The csts chargeable t this accunt shall be limited t the items and amunts apprved by HUD in the prject's develpment cst budget. The charges t this accunt may include: IV-32 January, 1996 PIH Lw-Rent TechnIcal Accunting Guide 1418 Cunseling and Training Csts (cntinued) Salaries earned by HA persnnel (including hmebuyers emplyed by the HA) engaged slely in prviding cunseling and training services. If the emplyee's nrmal duties include ther duties besides prviding cunseling and training services, the salary f such emplyee shall be prrated n an equitable basis between this accunt and the ther apprpriate accunt(s) reflecting salaries. Materials, supplies and expendable equipment used in cnnectin with cunseling and training services. Nnexpendable equipment is charged t Accunt Cntract csts fr cunseling and training services (labr, materials and supplies) furnished by an rganizatin r by persns ther than HA persnnel. It may als include ther cntract csts directly related t the cunseling and training prgram which is generally incurred when the HA undertakes t carry ut its wn cunseling and training prgram, such as the rental and servicing f equipment and the fees f a prfessinal cnsultant r recgnized expert engaged t develp a cunseling and training prgram fr the HA. If the Bureau f Indian Affairs (BIA) Hmebuyer Training Prgram is used in the cunseling f MH hmebuyers, the BIA shall nt be reimbursed fr utilizatin f its staff r facilities. Other csts directly related t a cunseling and training prgram prvided by the HA staff, such as emplyee benefit cntributins applicable t emplyee salaries, the rental f space when the HA des nt have space available fr training sessins, telephne services, etc. Hmebuyers assciatin csts directly related t the rganizatin and initial peratin f the hmebuyers assciatin fr Turkey III Hmewnership Prjects nly. Fr budgetary cntrl purpses, subaccunts shall be maintained fr each f the abve categries f csts. PIH Lw-Rent Technical Accunting Guide January, 1996 IV-33

26 Interest Expense - Net Interest t HUD. This accunt shall be charged with interest accruing n develpment lan ntes payable t HUD thrugh the Date f Full Availability (DOFA). Interest shall be charged nly when specifically required by HUD. N interest is charged by HUD n grant funds Interest - Incme Frm Investments. This accunt shall be credited with interest earned n develpment funds up t the date f full availability (DOFA). Interest Incme earned between DOFA and the end f the initial perating perid is credited t Accunt 1425/3610. Initial Operating Perid 1425 Initial Operating Deficit. Incme earned and expenses incurred in cnnectin with the initial peratin f a prject shall be debited r credited t this accunt as applicable. Incme t be credited includes incme frm rental f structures cnstructed n the site, charges t tenants fr excess utilities and services, and interest earned n General Fund investments. Expenses t be debited include administrative and general expense applicable t the initial peratin f the prject, and cst f labr, materials and supplies, utilities, and cntract csts incurred in cnnectin with rdinary maintenance and peratin f that part f a prject available fr ccupancy. The initial perating perid usually begins with the date f initial ccupancy f a prject, arund the time f DOFA. Hwever, sme csts incurred prir t initial ccupancy may be debited t this accunt. These csts include but are nt limited t salaries f persns respnsible fr selecting tenants and/r handling tenant accunts, cst f statinery, frms, and ffice supplies used in peratin f a prject. All incme and expense items shall be classified accrding t incme and expense accunts prescribed fr use during the peratins perid, e.g., dwelling rental incme shall be recrded as 1425/3110. The End f the Initial Operating Perid (EIOP) is a time defined in the applicable prgram develpment handbk r regulatin. The EIOP is always at the end fa calendar quarter. A debit balance in this accunt at EIOP is a cst t the develpment prgram. A credit balance at EIOP remains in the accunt t reduce the develpment cst. IV-34 January, 1996 PIH Lw-Rent Technical Accunting Guide Planning Architectural and Engineering Fees. This accunt shall be charged with all fees fr architectural and engineering wrk under lump-