Dublin Core
Title
Box 8, Folder 18, Document 5
Text Item Type Metadata
Text
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‘a7
CITY OF ATLANTA
Le): jes
“eer
OFFICE OF MODEL CITIES PROGRAM
673 Capitol Avenue, S.W.
Atlanta, Ga. 30315
404-524-8876
Ivan Allen Jr., Mayor
J. C. Johnson, Director
ACCOUNTING AND FINANCIAL MANAGEMENT
PROCEDURES FOR OPERATING AGENCIES
AND CITIZENS PARTICIPATION ORGANIZATIONS
TABLE OF CONTENTS
Page
PuLpose and Accounting « « « @ 225.6 she Sere Rome © Oe Soe AL
Enternal Control «is: «ww we eR we ew Se te GS we ee wee
Books of Account and Records 4 « s © «.8 wes «© © « «6 « «= « 5
Brief Description of Account Classification. . «4s .ss«#+s«#+ee«s 7
Disbubschent Procedure: ats Gaw «@ Sie 7 eS is) eS; ue eee oe oo ee Sa ee eo
Eligible and Ineligvble ‘Costs. % 2s Gite swim 2 woe - eee © 10
Instructions for Completion of Monthly
Administering Agency Project Reports . . .. +. « « « « « e 13
PURPOSE
These instructions prescribe the accounting procedures and
related fiscal requirements to be followed by agencies which
are awarded contracts with the Comprehensive Demonstration
Agency to administer projects or activities as approved by
the Department of Housing and Urban Development.
The classification and description of accounts are the minimum
required by the Comprehensive Demonstration Agency. If the
agency desires to establish accounts other than these prescribed
herein, such accounts shall be established as subdivisions of
the prescribed accounts and should be maintained in such a way
that they can be readily combined into the prescribed classifi-
cations for uniform reporting purposes.
ACCOUNTING
The operating agency shall establish and maintain on a current
basis an adequate accounting system on an accural basis in
accordance with generally accepted accounting principles and
standards.
The accounting system, among other things, must be adequate
to enable the preparation of a statement of financial condition
and a cost control statement for submission to the
Comprehensive Demonstration Agency on a current and timely basis.
All such reports must be received by the Comprehensive Demonstration
Agency time to permit the data contained therein to be incorporated
into the CDA's records prior to the preparation and submission of
its reports to HUD.
INTERNAL CONTROL
The operating agency shall maintain an adequate system of
internal control. Internal control comprises the plan of
organization and all of the coordinate methods and measures
adopted within an organization to safeguard its assets, check
the adequacy and the reliability of its accounting data, promote
operating efficiency, and encourage adherence to prescribed
menagement policies.
The characteristics of an adequate system of internal control
include:
Os
A plan of organization which provides appropriate
segregation of functional responsibilities.
A system of authorization and record procedures
adequate to provide reasonable accounting control
over assets, liabilities, revenues, and expenses.
Sound practices to be followed in performance of
duties and functions of each of the organizational
units.
A degree of personnel competence commensurate with
responsibilities.
An adequate system of internal control contains the following
features:
Ae
No person should have complete control over all
phases of any significant transaction.
The flow of work should be from one employee to
another so that the work of the second, without
duplicating that of the first, provides a check
upon it. -
Record keeping should be seperated from operations
or the handling and custody of assets, such as:
(1) The function of receiving cash should be cen-
tralized in one person, who should not be con-
cerned in any way with approving or certifying
vouchers, acting as imprest fund cashier, pre-
paring deposits, making disbursements, or keeping
accounting records. In this connection, the
person who prepares or makes deposits, approves or
certifies vouchers, or disburses cash should have
no access to the accounting records.
=? = =a
(2)
(3)
At as early a point as possible in the mail
handling, preferably at the point where the
envelopes are opened immediately upon receipt,
all checks and negotiable instruments should
be stamped with a restrictive endorsement, all
cash items should be listed in duplicate, and
a copy of the listing delivered to the person
responsible for making bank reconciliations.
Periodic examination and count or other review
of cash balances should be made by employees
who do not handle or record cash or sign checks.
Physical and mechanical facilities should be used to the
fullest extent possible to insure security and accuracy,
such as using security vaults or safe cabinets and check
writing machines.
Responsibilities should be clearly established and then
accounted for as close as possible.
Where feasible, employees are rotated to various assign-
ments.
Other control features pertaining to cash include:
(1)
(2)
(3)
(4)
(5)
All cash receipts shall be deposited as soon
as possible, preferably the day received.
All cash receipts shall be deposited intact
and for the full amount received.
Collections and all other funds held within
an office, whether pending regular deposit or
in imprest funds, shall be, where possible, -
restrictively endorsed and kept under complete
control and under proper safeguards, prefer-
ably ina fire resistant combination safe or
safe-cabinet.
Uncollectible items and the related documents
shall not be handled by the person making up
deposits or by the person handling accounts
receivable.
Persons preparing payrolls or time reporting
records should not handle the related pay
checks.
(6)
The number of bank accounts and inter-bank
transfers should be kept to a minimum. A
single bank account for the agency is pre-
ferred.
BOOKS OF ACCOUNT AND RECORDS
The following is a brief description of the books of accounts
and records considered to be the minimum required for record-
ing transactions relating to the project or activity. However,
the agency may establish any additional accounting records it
considers necessary to provide adequate financial control of
its assets and liabilities and to account for project or activity
cost.
A.
General ledger shall be maintained in which to
record a summarization of all accounting trans-
actions relating to the project or activity and to
classify such transactions according to the accounts
listed in the project or activity budget.
A cash receipt and disbursement register shall be
maintained for the recording of funds received
in connection with theproject or activity and for
recording checks issued for the withdrawel of funds
from the project or activity bank account. All
disbursements shall be made by prenumbered checks
used in numerical sequence and must be supported
by appropriate documentation such as payrolls,
invoices, contracts, travel vouchers, etc., evidencing
the nature and propriety of each payment, and showing
the approval of the project or activity director or
- other authorized official. If the volume of receipts
and disbursements justify the seperation of the cash
receipts and disbursement registers, then the two
should be kept seperate.
Journal vouchers (or the agency's suitable substitute
therefor) shall be used to document and record trans-
actions in the general ledger which are not recorded
from the cash receipts and disbursement registers.
Each journal voucher shall contain a complete explan-
ation of the transaction being recorded and references
to the related documents or other sources of infor-
mation, if applicable. Journal vouchers shall be
numbered consecutively and filed in numerical sequence.
All journal vouchers shall be approved by an authorized
official of the agency.
Basic payroll records shall be maintained to accumulate
the payroll data required by Federal, State or local
law with respect to each employee, such as gross
earnings, Federal income tax withheld, State or local
income tax withheld, FICA withholdings, etc. The
record shall also include data relating to other
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deductions as may be required by the agency's
personnel policies, including the employer's
contribution to retirement plans, health insurance
plans, etc.
A record shall be maintained for each item of
non-expendable property acquired for the project
or activity. Non-expendable property is property
which will not be consumed or lose its identity
by being incorporated into another item of pro-
perty, which cost $100 or more per unit and is
expected to have a useful life of one year or more.
Grouping of like items, such as chairs, with an aggre-
gate cost in excess of $100 shall also be controlled
and accounted for as non-expendable property even
though the cost of a single item is less than $100.
The record shall include:
(1) Description of the item of property,
including model and serial number, if
applicable.
(2) Date of acquisition
(3) The acquisition cost or assigned value
to the project or activity.
(4) Information as to whether the property
was new or used at time of acquisition.
The aggregate of the individual costs shown on the
record cards shall equal the balance in the subsidiary
cost account for non-expendable property.
A physical inventory shall be taken and reconciled
with the record card annually or as frequent as
required by the Model Cities Program, City of Atlanta.
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
BRIEF DESCRIPTION OF ACCOUNT CLASSIFICATION
ACTIVITY COST
Personnel
Includes the cost of staff and support staff of the operating
agency as spelled out in latest approved budget.
Consultant and Contract Services
Includes the cost of services contracted to other agencies,
firms or individuals according to a written contract with
the operating agency. All contracts must be in writing and
must have prior approval of the CDA.
Travel
a- Auto allowance paid on the basis of actual mileage as
spelled out in latest approved budget.
b. Staff travel and expenses according to latest approved
budget.
Space Cost
a. Monthly office rental.
b. Telephone and telegraph expense if not included in Activity
Cost (7) and contained in latest approved budget.
c. Fire and extended coverage insurance on building and contents
if not included in activity cost (7) and contained in latest
approved budget.
d. Utility cost if not included in activity cost (7).
e. Building maintenance, if not included in Activity Cost (7)
and contained in latest approved budget.
Consumable Supplies
Includes the costs of blue prints, drafting materials, charts,
graphics, maps, stationery and all small items of non-expendable
property, the total cost of which does not exceed $100.
Rental, lease or Purchase of Equipment ©
ae Includes rental or lease cost of equipment not on loan or
not purchased.
b. Total cost of equipment purchased.
Other Costs
Costs not specifically covered in the above budget categories’
according to latest approved budget. ¥
PROJECT COST
Property Acquisition
The cost incident to the acquiring of land and structures and the
cost of demolition if necessary.
Land Improvement
The cost of improving site to neee the qualifications for the
(12)
(13)
type construction anticipated.
Construction
The cost of construction, rehabilitation, alteration and repair.
Professional Services
The cost of professional services rendered by individuals or
organization including legal, accounting and architectual '
services.
Carrying Charges
The cost of items such as types, interest and insurance premiums
incurred during construction.
Other
Costs not included in the above budget categories for capital projects
according to the latest approved budget.
The description of the budget categories listed above is by no
means exhaustive and in instances where there are questions as
to the proper classification of a transaction, the latest approved
budget and budget justification break down should govern.
DISBURSEMENT PROCEDURE
Disbursements (other than from Petty Cash) for goods, and
for services of persons or firms not payrolled by the Opera-
ting Agency shall be supported by executed purchase orders
or contracts. Purchase and contract procedures should follow
CDA practice and policy. Such policies and procedures shall
be approved by the CDA prior to implementation.
Disbursements must be supported by invoices or requisitions
which can readily be traced to the contract or purchase order
for the services, supplies, or equipment (except as noted
in Four (4) below).
Disbursements shall be made by pre-numbered checks counter-
signed by two officers unless the amount of the individual
disbursement is small (under $10) that payment from a Petty
Cash Fund is more economical. ;
A Petty Cash Fund may be established for use in making pay-
ment of minor items of expense whenever it is not practicable
to issue a check. An authorized official of the Operating
Agency shall approve the establishment and the amount of the
Petty Cash Fund. Each disbursement from the Petty Cash Fund
shall be supported by a receipted bill or invoice. However,
if a receipted bill or invoice is not obtainable, the dis-
bursement shall be supported by an itemized list of the items
purchased and the list shall be approved by an official of the
Operating Agency other than the custodian of the fund. The
Petty Cash fund shall be replenished at the end of each calen-
dar quarter or as frequently as may otherwise be required.
wa
ELIGIBLE AND INELIGIBLE COSTS
All cost must be reasonable and of a nature which clearly relates
to the specific purposes and end product of the contract under
which the services are being performed. Care must be exercised
by all concerned in incurring costs to assure that expenditures
conform to these general standards and the following criteria
for eligibility of costs.
l. To be eligible for inclusion in the program, cost must:
a. Be necessary and reasonable for proper and
efficient execution of the contractual
requirements and in accordance with the
approved budget.
b. Not. be a general expense required to carry
out regular responsibilities of the operating
agency.
c. Be in conformance with any limitations or ex-
clusions in these instructions, federal laws,
city ordinances, or other governing limitations.
d. Be no more liberal than policies, procedures,
and practices applied uniformly to both federally
assisted and other activities of the operating
agency.
e. Be accorded consistent treatment through application
of accounting policy and procedures approved and/or
prescribed herein.
£.. Not be allocable to or included as a cost of any
other federally financed program in either prior
or current periods. E
g.- Be net of all applicable credits such as purchase
discounts, rebates or allowances, sales of
publication or materials, or other income or refunds.
h. Be in accordance with budgetary or other restriction
of expenses established by the comprehensive
Demonstration Agency (City of Atlanta) and approved
by the Department of Housing and Urban Department.
i. Be fully documented.
=a
-10=—
Comply with policies governing administrative practices,
including policies with respect to employment, salary
and wage rates, working hours, and holidays, fringe
benefits (health and hopitalization insurance, retire-
ment, etc.) vacation and sick leave privileges, and
travel. The policies relating to the above must be in
writing and approved by the governing body of the
Agency, or Director, as authorized, as well as by the
City. Such policies and practices should take account
of situations where theoperating agency is a temporary,
non-governmental entity composes primarily of part-time
staff which may have full-time employment elsewhere.
2- In addition to costs ineligible under the above ceriteria,
the following costs are specifically ineligible:
a.
Accounting- Costs of maintaining central accounting
records necessary for overall agency purposes, such
as appropriation of fund accounts by the treasurer
or similar official, are considered to be a general
expense of the agency and are unallowable. However,
the cost of establishing and maintaining accounting
or other information systems required for the manage-
ment of the contract is allowable. This includes
costs incurred by central service agencies for these
purposes.
Bad Debts- Any losses arising from uncollectable
accounts and other claims, and related costs.
Contingencies. Contributions to a contingency
reserve or any similar provision for unforseen events.
Contributions and Donations. :
Entertainment. Costs of amusements, social activities,
and incidental costs, such as meals beverages, lodgings,
and gratuities, relating to entertainment.
Fines and Penalties. Costs resulting from violation
of or failure to comply with federal, state, and
local laws and regulations.
Interest and other Financial Costs. Interest on
borrowing (however represented), cost of financing
and refinancing operations, and legal and professional
fees paid in connection therewith.
=-l1=
Legal _ expenses. Legal expenses for the prosecution
of claims against the Federal Government. However,
the costs of legal expenses required directly for
the administration of the program are allowable.
Membership Expenses. Cost of membership in an
organization which devotes a substantial part of
its activities to influencing legislation.
Travel. Costs in excess of those allowed by the City
of Atlanta for its equivalent employees. In a case,
the difference in cost between first-class air
accomodations and less-than-first-class air accomodations
is not allowed expect when less-than-first-class air
accomodations are not available and is so documented.
Meeting Attendance. Costs of attending meetings which
are not open for attendance on a non-segreated basis.
Executive Expenses. The salary and expenses of the
chief executive officer of the agency are considered
a cost of the agency and are not allocable in any way
to the project or activity.
-12-
INSTRUCTIONS FOR COMPLETION OF MONTHLY ADMINISTERING AGENCY
PROJECT REPORTS
This report is to be delivered to Model Cities prior to the fifth
day of the month following the reporting month. This deadline is
imperative in order to report expenditures to HUD.
The heading of this report includes lines for Agency Name and
Address, Project Name, and Project Number. The Reporting Period item
should reflect beginning and ending dates (usually first to last
of month) of the report. The Cum. Supplemental Expenditures item
should contain a total of all funds designated supplemental which
have been expended on the project to date. The Cash Received item
refers to supplemental funds that have been deposited to your agency.
The Balance item should reflect the amount of supplemental funds
expended but not yet received by your agency.
The Cost Statement section of the report is a breakdown of
expenditures by line item and by source of funds. For projects
which receive supplemental funds, costs for each line item for
the Current Period should be listed. These should be broken down
between Supplemental funds and Other funds if the project or activity
is jointly funded.
For projects that do not involve the use of Model Cities supple-
mental funds, it is requested that a total amount expended on the
project for the current period be entered by line item 13 (non-con=
tracted agency).
Under the Cummulative Total column, funds expended to date on
the project should be broken down in the same manner as current period
expenditures.
The Work Program Status section of the Administering Agency
Project Report is designed to report against the Project Work Program
which was..formulated by your agency in cooperation with Model Cities
Personnel. Each month the various tasks listed on the work program
should be analyzed to determine if they are being started and com-
pleted in the planned time frame.
Any tasks which will have different start and complete dates
should be listed under the "Description of Task" column of the agency
project report. The applicable revised start and complete dates
should then be entered in the reporting month, that task should be
entered under the "Description of Task" column and the actual com-
plete date shown.
=-13-<
Start or complete dates for a task will be considered on
schedule if they are within three weeks of the originally planned
time frame. A variance of more than three weeks in a task should be
reported as described above. Every effort should be made to report
time revisions as soon as they become evident. For example, if it
becomes apparent that some operational phase of a project will be
delayed due to problems in acquiring equipment, this should be re-
ported as soon as it is known rather than at the time the operational
phase is to begin.
The Project Highlights section of the report should be used
to briefly summarize project activity for the month and to list any
unusual cirsumstances concerning the project. Amplifying information
about revised start or complete dates should also be given in this
section. An example of a completed Administering Agency Project
Report follows these instructions.
-~14—
ae ADMINISTERING AGENCY PROJECT REPORT
AGENCY__Georgia State Employment Service projECT__Employer Services
ADDRESS No. 1 Peachtree Room 408
Atlanta, Georgia 30301 NUMBER lo [2] ol2 |
REPORTING PERIOD: CUM. SUPPLEMENTAL CASH RECEIVED BALANCE
EXPENDITURES
FROM 8/1/69 TO 8/31/69 $30,000 $25,000 $5,000
COST STATEMENT CURRENT PERIOD CUMMULATIVE TOTAL
COST CATEGORY CODE | SUPPLEMENTAL OTHER SUPPLEMENTAL OTHER
PERSONNEL 91 10,000 "5,000 20,000 10,000
CONSULTANTS, CONT SERV 02 == 1,000 2,000 1,000
TRAVEL 03
SPACE 04 1,500 3,000
CONSUMABLE SUPPLIES 05 300 1,000
RENT, LEASE, PURCH EQP 06 500 1,000 4,000 2,000
OTHER 07
PROPERTY ACQUISITION 08
LAND IMPROVEMENTS 09
CONSTRUCTION 10
PROFESSIONAL SERV 11
CARRYING CHARGES 12
NON-CONTRACTED AGENCY 13. Bees ca Reet oo eee
TOTAL 7,000 30,000 13,000
WORK PROGRAM STATUS ACTUAL REVISED REVISED
DESCRIPTION OF TASK COMPLETE START COMPLETE
Occupy temporary facility 9/8/69 9/19/69
Establish contact with 66 employers
in MNA 10/6/69 4/30/70
Acquire supplies 8/15/69
Personnel orientation 8/20/69
PROJECT HIGHLIGHTS: During the month of August project personnel were given orienta+
tion sessions concerning project tasks and objectives. All supplies have been
purchased, but occupation of the temporary facility is being delayed due to
a carpenter's strike. This delay will also delay establishing contacts with
employers. Sample inquiries to employers have produced enthusiastic responses
and it appears that the project will exceed its objective of developing 200
jobs.
(USE REVERSE, IF REQUIRED)
THE UNDERSIGNED CERTIFIES THAT THE ABOVE INFORMATION IS CORRECT.
ve / oO 4 ¢ j afl ‘
siGNatuRE AND Tite_Jetun (2&1 fh, Likoc bey DATE_Sept. 2, 196%°
-(FORM MOD. 9) fi
-15-
‘a7
CITY OF ATLANTA
Le): jes
“eer
OFFICE OF MODEL CITIES PROGRAM
673 Capitol Avenue, S.W.
Atlanta, Ga. 30315
404-524-8876
Ivan Allen Jr., Mayor
J. C. Johnson, Director
ACCOUNTING AND FINANCIAL MANAGEMENT
PROCEDURES FOR OPERATING AGENCIES
AND CITIZENS PARTICIPATION ORGANIZATIONS
TABLE OF CONTENTS
Page
PuLpose and Accounting « « « @ 225.6 she Sere Rome © Oe Soe AL
Enternal Control «is: «ww we eR we ew Se te GS we ee wee
Books of Account and Records 4 « s © «.8 wes «© © « «6 « «= « 5
Brief Description of Account Classification. . «4s .ss«#+s«#+ee«s 7
Disbubschent Procedure: ats Gaw «@ Sie 7 eS is) eS; ue eee oe oo ee Sa ee eo
Eligible and Ineligvble ‘Costs. % 2s Gite swim 2 woe - eee © 10
Instructions for Completion of Monthly
Administering Agency Project Reports . . .. +. « « « « « e 13
PURPOSE
These instructions prescribe the accounting procedures and
related fiscal requirements to be followed by agencies which
are awarded contracts with the Comprehensive Demonstration
Agency to administer projects or activities as approved by
the Department of Housing and Urban Development.
The classification and description of accounts are the minimum
required by the Comprehensive Demonstration Agency. If the
agency desires to establish accounts other than these prescribed
herein, such accounts shall be established as subdivisions of
the prescribed accounts and should be maintained in such a way
that they can be readily combined into the prescribed classifi-
cations for uniform reporting purposes.
ACCOUNTING
The operating agency shall establish and maintain on a current
basis an adequate accounting system on an accural basis in
accordance with generally accepted accounting principles and
standards.
The accounting system, among other things, must be adequate
to enable the preparation of a statement of financial condition
and a cost control statement for submission to the
Comprehensive Demonstration Agency on a current and timely basis.
All such reports must be received by the Comprehensive Demonstration
Agency time to permit the data contained therein to be incorporated
into the CDA's records prior to the preparation and submission of
its reports to HUD.
INTERNAL CONTROL
The operating agency shall maintain an adequate system of
internal control. Internal control comprises the plan of
organization and all of the coordinate methods and measures
adopted within an organization to safeguard its assets, check
the adequacy and the reliability of its accounting data, promote
operating efficiency, and encourage adherence to prescribed
menagement policies.
The characteristics of an adequate system of internal control
include:
Os
A plan of organization which provides appropriate
segregation of functional responsibilities.
A system of authorization and record procedures
adequate to provide reasonable accounting control
over assets, liabilities, revenues, and expenses.
Sound practices to be followed in performance of
duties and functions of each of the organizational
units.
A degree of personnel competence commensurate with
responsibilities.
An adequate system of internal control contains the following
features:
Ae
No person should have complete control over all
phases of any significant transaction.
The flow of work should be from one employee to
another so that the work of the second, without
duplicating that of the first, provides a check
upon it. -
Record keeping should be seperated from operations
or the handling and custody of assets, such as:
(1) The function of receiving cash should be cen-
tralized in one person, who should not be con-
cerned in any way with approving or certifying
vouchers, acting as imprest fund cashier, pre-
paring deposits, making disbursements, or keeping
accounting records. In this connection, the
person who prepares or makes deposits, approves or
certifies vouchers, or disburses cash should have
no access to the accounting records.
=? = =a
(2)
(3)
At as early a point as possible in the mail
handling, preferably at the point where the
envelopes are opened immediately upon receipt,
all checks and negotiable instruments should
be stamped with a restrictive endorsement, all
cash items should be listed in duplicate, and
a copy of the listing delivered to the person
responsible for making bank reconciliations.
Periodic examination and count or other review
of cash balances should be made by employees
who do not handle or record cash or sign checks.
Physical and mechanical facilities should be used to the
fullest extent possible to insure security and accuracy,
such as using security vaults or safe cabinets and check
writing machines.
Responsibilities should be clearly established and then
accounted for as close as possible.
Where feasible, employees are rotated to various assign-
ments.
Other control features pertaining to cash include:
(1)
(2)
(3)
(4)
(5)
All cash receipts shall be deposited as soon
as possible, preferably the day received.
All cash receipts shall be deposited intact
and for the full amount received.
Collections and all other funds held within
an office, whether pending regular deposit or
in imprest funds, shall be, where possible, -
restrictively endorsed and kept under complete
control and under proper safeguards, prefer-
ably ina fire resistant combination safe or
safe-cabinet.
Uncollectible items and the related documents
shall not be handled by the person making up
deposits or by the person handling accounts
receivable.
Persons preparing payrolls or time reporting
records should not handle the related pay
checks.
(6)
The number of bank accounts and inter-bank
transfers should be kept to a minimum. A
single bank account for the agency is pre-
ferred.
BOOKS OF ACCOUNT AND RECORDS
The following is a brief description of the books of accounts
and records considered to be the minimum required for record-
ing transactions relating to the project or activity. However,
the agency may establish any additional accounting records it
considers necessary to provide adequate financial control of
its assets and liabilities and to account for project or activity
cost.
A.
General ledger shall be maintained in which to
record a summarization of all accounting trans-
actions relating to the project or activity and to
classify such transactions according to the accounts
listed in the project or activity budget.
A cash receipt and disbursement register shall be
maintained for the recording of funds received
in connection with theproject or activity and for
recording checks issued for the withdrawel of funds
from the project or activity bank account. All
disbursements shall be made by prenumbered checks
used in numerical sequence and must be supported
by appropriate documentation such as payrolls,
invoices, contracts, travel vouchers, etc., evidencing
the nature and propriety of each payment, and showing
the approval of the project or activity director or
- other authorized official. If the volume of receipts
and disbursements justify the seperation of the cash
receipts and disbursement registers, then the two
should be kept seperate.
Journal vouchers (or the agency's suitable substitute
therefor) shall be used to document and record trans-
actions in the general ledger which are not recorded
from the cash receipts and disbursement registers.
Each journal voucher shall contain a complete explan-
ation of the transaction being recorded and references
to the related documents or other sources of infor-
mation, if applicable. Journal vouchers shall be
numbered consecutively and filed in numerical sequence.
All journal vouchers shall be approved by an authorized
official of the agency.
Basic payroll records shall be maintained to accumulate
the payroll data required by Federal, State or local
law with respect to each employee, such as gross
earnings, Federal income tax withheld, State or local
income tax withheld, FICA withholdings, etc. The
record shall also include data relating to other
=a
So 5
deductions as may be required by the agency's
personnel policies, including the employer's
contribution to retirement plans, health insurance
plans, etc.
A record shall be maintained for each item of
non-expendable property acquired for the project
or activity. Non-expendable property is property
which will not be consumed or lose its identity
by being incorporated into another item of pro-
perty, which cost $100 or more per unit and is
expected to have a useful life of one year or more.
Grouping of like items, such as chairs, with an aggre-
gate cost in excess of $100 shall also be controlled
and accounted for as non-expendable property even
though the cost of a single item is less than $100.
The record shall include:
(1) Description of the item of property,
including model and serial number, if
applicable.
(2) Date of acquisition
(3) The acquisition cost or assigned value
to the project or activity.
(4) Information as to whether the property
was new or used at time of acquisition.
The aggregate of the individual costs shown on the
record cards shall equal the balance in the subsidiary
cost account for non-expendable property.
A physical inventory shall be taken and reconciled
with the record card annually or as frequent as
required by the Model Cities Program, City of Atlanta.
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
BRIEF DESCRIPTION OF ACCOUNT CLASSIFICATION
ACTIVITY COST
Personnel
Includes the cost of staff and support staff of the operating
agency as spelled out in latest approved budget.
Consultant and Contract Services
Includes the cost of services contracted to other agencies,
firms or individuals according to a written contract with
the operating agency. All contracts must be in writing and
must have prior approval of the CDA.
Travel
a- Auto allowance paid on the basis of actual mileage as
spelled out in latest approved budget.
b. Staff travel and expenses according to latest approved
budget.
Space Cost
a. Monthly office rental.
b. Telephone and telegraph expense if not included in Activity
Cost (7) and contained in latest approved budget.
c. Fire and extended coverage insurance on building and contents
if not included in activity cost (7) and contained in latest
approved budget.
d. Utility cost if not included in activity cost (7).
e. Building maintenance, if not included in Activity Cost (7)
and contained in latest approved budget.
Consumable Supplies
Includes the costs of blue prints, drafting materials, charts,
graphics, maps, stationery and all small items of non-expendable
property, the total cost of which does not exceed $100.
Rental, lease or Purchase of Equipment ©
ae Includes rental or lease cost of equipment not on loan or
not purchased.
b. Total cost of equipment purchased.
Other Costs
Costs not specifically covered in the above budget categories’
according to latest approved budget. ¥
PROJECT COST
Property Acquisition
The cost incident to the acquiring of land and structures and the
cost of demolition if necessary.
Land Improvement
The cost of improving site to neee the qualifications for the
(12)
(13)
type construction anticipated.
Construction
The cost of construction, rehabilitation, alteration and repair.
Professional Services
The cost of professional services rendered by individuals or
organization including legal, accounting and architectual '
services.
Carrying Charges
The cost of items such as types, interest and insurance premiums
incurred during construction.
Other
Costs not included in the above budget categories for capital projects
according to the latest approved budget.
The description of the budget categories listed above is by no
means exhaustive and in instances where there are questions as
to the proper classification of a transaction, the latest approved
budget and budget justification break down should govern.
DISBURSEMENT PROCEDURE
Disbursements (other than from Petty Cash) for goods, and
for services of persons or firms not payrolled by the Opera-
ting Agency shall be supported by executed purchase orders
or contracts. Purchase and contract procedures should follow
CDA practice and policy. Such policies and procedures shall
be approved by the CDA prior to implementation.
Disbursements must be supported by invoices or requisitions
which can readily be traced to the contract or purchase order
for the services, supplies, or equipment (except as noted
in Four (4) below).
Disbursements shall be made by pre-numbered checks counter-
signed by two officers unless the amount of the individual
disbursement is small (under $10) that payment from a Petty
Cash Fund is more economical. ;
A Petty Cash Fund may be established for use in making pay-
ment of minor items of expense whenever it is not practicable
to issue a check. An authorized official of the Operating
Agency shall approve the establishment and the amount of the
Petty Cash Fund. Each disbursement from the Petty Cash Fund
shall be supported by a receipted bill or invoice. However,
if a receipted bill or invoice is not obtainable, the dis-
bursement shall be supported by an itemized list of the items
purchased and the list shall be approved by an official of the
Operating Agency other than the custodian of the fund. The
Petty Cash fund shall be replenished at the end of each calen-
dar quarter or as frequently as may otherwise be required.
wa
ELIGIBLE AND INELIGIBLE COSTS
All cost must be reasonable and of a nature which clearly relates
to the specific purposes and end product of the contract under
which the services are being performed. Care must be exercised
by all concerned in incurring costs to assure that expenditures
conform to these general standards and the following criteria
for eligibility of costs.
l. To be eligible for inclusion in the program, cost must:
a. Be necessary and reasonable for proper and
efficient execution of the contractual
requirements and in accordance with the
approved budget.
b. Not. be a general expense required to carry
out regular responsibilities of the operating
agency.
c. Be in conformance with any limitations or ex-
clusions in these instructions, federal laws,
city ordinances, or other governing limitations.
d. Be no more liberal than policies, procedures,
and practices applied uniformly to both federally
assisted and other activities of the operating
agency.
e. Be accorded consistent treatment through application
of accounting policy and procedures approved and/or
prescribed herein.
£.. Not be allocable to or included as a cost of any
other federally financed program in either prior
or current periods. E
g.- Be net of all applicable credits such as purchase
discounts, rebates or allowances, sales of
publication or materials, or other income or refunds.
h. Be in accordance with budgetary or other restriction
of expenses established by the comprehensive
Demonstration Agency (City of Atlanta) and approved
by the Department of Housing and Urban Department.
i. Be fully documented.
=a
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Comply with policies governing administrative practices,
including policies with respect to employment, salary
and wage rates, working hours, and holidays, fringe
benefits (health and hopitalization insurance, retire-
ment, etc.) vacation and sick leave privileges, and
travel. The policies relating to the above must be in
writing and approved by the governing body of the
Agency, or Director, as authorized, as well as by the
City. Such policies and practices should take account
of situations where theoperating agency is a temporary,
non-governmental entity composes primarily of part-time
staff which may have full-time employment elsewhere.
2- In addition to costs ineligible under the above ceriteria,
the following costs are specifically ineligible:
a.
Accounting- Costs of maintaining central accounting
records necessary for overall agency purposes, such
as appropriation of fund accounts by the treasurer
or similar official, are considered to be a general
expense of the agency and are unallowable. However,
the cost of establishing and maintaining accounting
or other information systems required for the manage-
ment of the contract is allowable. This includes
costs incurred by central service agencies for these
purposes.
Bad Debts- Any losses arising from uncollectable
accounts and other claims, and related costs.
Contingencies. Contributions to a contingency
reserve or any similar provision for unforseen events.
Contributions and Donations. :
Entertainment. Costs of amusements, social activities,
and incidental costs, such as meals beverages, lodgings,
and gratuities, relating to entertainment.
Fines and Penalties. Costs resulting from violation
of or failure to comply with federal, state, and
local laws and regulations.
Interest and other Financial Costs. Interest on
borrowing (however represented), cost of financing
and refinancing operations, and legal and professional
fees paid in connection therewith.
=-l1=
Legal _ expenses. Legal expenses for the prosecution
of claims against the Federal Government. However,
the costs of legal expenses required directly for
the administration of the program are allowable.
Membership Expenses. Cost of membership in an
organization which devotes a substantial part of
its activities to influencing legislation.
Travel. Costs in excess of those allowed by the City
of Atlanta for its equivalent employees. In a case,
the difference in cost between first-class air
accomodations and less-than-first-class air accomodations
is not allowed expect when less-than-first-class air
accomodations are not available and is so documented.
Meeting Attendance. Costs of attending meetings which
are not open for attendance on a non-segreated basis.
Executive Expenses. The salary and expenses of the
chief executive officer of the agency are considered
a cost of the agency and are not allocable in any way
to the project or activity.
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INSTRUCTIONS FOR COMPLETION OF MONTHLY ADMINISTERING AGENCY
PROJECT REPORTS
This report is to be delivered to Model Cities prior to the fifth
day of the month following the reporting month. This deadline is
imperative in order to report expenditures to HUD.
The heading of this report includes lines for Agency Name and
Address, Project Name, and Project Number. The Reporting Period item
should reflect beginning and ending dates (usually first to last
of month) of the report. The Cum. Supplemental Expenditures item
should contain a total of all funds designated supplemental which
have been expended on the project to date. The Cash Received item
refers to supplemental funds that have been deposited to your agency.
The Balance item should reflect the amount of supplemental funds
expended but not yet received by your agency.
The Cost Statement section of the report is a breakdown of
expenditures by line item and by source of funds. For projects
which receive supplemental funds, costs for each line item for
the Current Period should be listed. These should be broken down
between Supplemental funds and Other funds if the project or activity
is jointly funded.
For projects that do not involve the use of Model Cities supple-
mental funds, it is requested that a total amount expended on the
project for the current period be entered by line item 13 (non-con=
tracted agency).
Under the Cummulative Total column, funds expended to date on
the project should be broken down in the same manner as current period
expenditures.
The Work Program Status section of the Administering Agency
Project Report is designed to report against the Project Work Program
which was..formulated by your agency in cooperation with Model Cities
Personnel. Each month the various tasks listed on the work program
should be analyzed to determine if they are being started and com-
pleted in the planned time frame.
Any tasks which will have different start and complete dates
should be listed under the "Description of Task" column of the agency
project report. The applicable revised start and complete dates
should then be entered in the reporting month, that task should be
entered under the "Description of Task" column and the actual com-
plete date shown.
=-13-<
Start or complete dates for a task will be considered on
schedule if they are within three weeks of the originally planned
time frame. A variance of more than three weeks in a task should be
reported as described above. Every effort should be made to report
time revisions as soon as they become evident. For example, if it
becomes apparent that some operational phase of a project will be
delayed due to problems in acquiring equipment, this should be re-
ported as soon as it is known rather than at the time the operational
phase is to begin.
The Project Highlights section of the report should be used
to briefly summarize project activity for the month and to list any
unusual cirsumstances concerning the project. Amplifying information
about revised start or complete dates should also be given in this
section. An example of a completed Administering Agency Project
Report follows these instructions.
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ae ADMINISTERING AGENCY PROJECT REPORT
AGENCY__Georgia State Employment Service projECT__Employer Services
ADDRESS No. 1 Peachtree Room 408
Atlanta, Georgia 30301 NUMBER lo [2] ol2 |
REPORTING PERIOD: CUM. SUPPLEMENTAL CASH RECEIVED BALANCE
EXPENDITURES
FROM 8/1/69 TO 8/31/69 $30,000 $25,000 $5,000
COST STATEMENT CURRENT PERIOD CUMMULATIVE TOTAL
COST CATEGORY CODE | SUPPLEMENTAL OTHER SUPPLEMENTAL OTHER
PERSONNEL 91 10,000 "5,000 20,000 10,000
CONSULTANTS, CONT SERV 02 == 1,000 2,000 1,000
TRAVEL 03
SPACE 04 1,500 3,000
CONSUMABLE SUPPLIES 05 300 1,000
RENT, LEASE, PURCH EQP 06 500 1,000 4,000 2,000
OTHER 07
PROPERTY ACQUISITION 08
LAND IMPROVEMENTS 09
CONSTRUCTION 10
PROFESSIONAL SERV 11
CARRYING CHARGES 12
NON-CONTRACTED AGENCY 13. Bees ca Reet oo eee
TOTAL 7,000 30,000 13,000
WORK PROGRAM STATUS ACTUAL REVISED REVISED
DESCRIPTION OF TASK COMPLETE START COMPLETE
Occupy temporary facility 9/8/69 9/19/69
Establish contact with 66 employers
in MNA 10/6/69 4/30/70
Acquire supplies 8/15/69
Personnel orientation 8/20/69
PROJECT HIGHLIGHTS: During the month of August project personnel were given orienta+
tion sessions concerning project tasks and objectives. All supplies have been
purchased, but occupation of the temporary facility is being delayed due to
a carpenter's strike. This delay will also delay establishing contacts with
employers. Sample inquiries to employers have produced enthusiastic responses
and it appears that the project will exceed its objective of developing 200
jobs.
(USE REVERSE, IF REQUIRED)
THE UNDERSIGNED CERTIFIES THAT THE ABOVE INFORMATION IS CORRECT.
ve / oO 4 ¢ j afl ‘
siGNatuRE AND Tite_Jetun (2&1 fh, Likoc bey DATE_Sept. 2, 196%°
-(FORM MOD. 9) fi
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