Professional Documents
Culture Documents
FOR
LP-67
ABSTRACT
place of existing financial management systems which would achieve the same
results.
ui
(Telephone
TABLE OF CONTENTS
Chapter
I.
II.
III.
Page
Abstract
Indirect Costs
19
iv.
V.
VI.
59
FIGURES
1.
2.
3.
/j,
5.
Sample Transactions
30
6.
31
7.
41
8.
11
CHAPTER I
The accounting procedures in this chapter are for basic and simplified
SYSTEMS.
A.
1.
2.
3.
4.
5.
6.
7.
-l-
B.
Minimum Records
1,
checks
2,
tion, or miscellaneous.
Project Ledger).
3.
4.
-2-
activities.
6.
C.
1.
-3-
2.
3.
4.
Written procedures concerning how things are done and who has the
responsibility of doing and approving them.
5.
6.
7.
8.
9.
-4-
TIME PERIOD
ORGANIZATION-^
~~~
DESCRIPTION OF WORK OR
DAY OF MONTH
LEAVE TIME
Public Part1c1pat1on(EPA)
2^ f
. . . .
tr
Vacation Time
2i
a'
A.
.
_.,.
10|11
1? lis
8j7
j
1 :
9 !8
......
28-pQ
4 j8
1
_8_ JSl.
||
I
_._p_
..
!
i
i..
TOTAL
30,^1
l
i
ftl1
-n
. . _
__..
11
--I
. . .
. . . _ .
._...
. . . .
OF EMPLOYEE
-mmadosl
_L54
1-
Holiday
17 ir iq ?t\ai.\9?.
51 cK T1ne
4* l^k'
_
SI>TUftE
OF SUPERVISOR
e
s-
CHECK
DESCRIPTION
DATE
RECEIPTS
PAYMENTS
ENGINEERING
CONSTRUCTION
NUMBER
ELIGIBLE
ELIGIBLE
INELIGIBLE
TOTAL
ELIGIBLE
1670
Invoice #600
1,263.00
1671
300.00
300.00
300.00
1,200.00
63.00
1,500.00
63.00
6-26-81
300.00
1,200.00
6-29-81
ABC Engineering
Invoice #601
General Supervision 952 Eligible
AAA Construction Co. (Estimates #1)
32 Complete
95% Eligible
6-30-81
6-30-81
cr
i
6-28-81
INELIGIBLE
Invoice #63
ABC Engineering
5-26-81
INELIGIBLE
ADMINISTRATIVE
AND FORCE ACCOUNT
INELIGIBLE
ELIGIBLE
-n
en
1,125.00
c=
m
316.00
1672
95% Eligible
300.00
300.00
(1) 16.00
22,800.00
22,800.00 1,200.00
1,200.00
1673
(2)
24,000.00
p. 507
p. 508
(3)
842.00
800.00
97.00
92.00
7-24-81
7-28-81
ABC Engineering
Invoice #602
Final Plan of Operations
300.00
22,800.00
~ 16.00
892.00
(1) 42.00
(1)
800.00
42.00
92.00
5.00
5.00
23,992.00 1,263.00
(4)
(2)
(3)
500.00
500.00
CHAPTER II
Federal regulations require that a grantee cowly with the following property
management standards.
A.
1.
2.
3.
4.
5.
6.
7.
8.
-9-
B.
YOUR
INVENTORY MUST VERIFY TFE CURRENT USE AND CONTINUED NEED FOR THE
PROPERTY.
C.
(You
D.
E.
F.
-10-
ENTITY:
PROPERTY AND EQUIPfEKT CONTROL
POLICY AND PROCEDURES
POLICY
other agencies.
the
GENERAL
$500 or more and a useful life of two years or more are covered by this
procedure.
procedure.
-11-
DEFINITIONS
structure that can be removed or replaced, and items that have been
installed on a vehicle.
an example is a radio
PROCEDURE
1.
-12-
AN
2.
a.
B.
ITEM.
THE
c.
the
(1)
(2)
(3)
(4)
-13-
(5)
(6)
(7)
(8)
(9)
(10)
d.
the
-14-
INDIVIDUAL ITEM.
REVISED EACH TIME THE ITEM IS MOVED TO A NEW LOCATION, AND/OR THE
THE PROPERTY CARD, AND ON THE PROPERTY LOG MUST AGREE AT THE TIME
OF ACQUISITION.
3,
ALSO BE NOTED.
WHO WILL VERIFY THAT THE DATA ON THE INVENTORY SHEET MATCHES THE
-15-
IF ANY PROPERTY ITEMS ARE LOCATED, WHICH ARE NOT TAGGED, THEN THESE
ITEMS SHALL BE TAGGED IMMEDIATELY, AND THE APPROPRIATE ENTRIES MADE IN
THE PROPERTY LOG, AND NEW PROPERTY CARDS PREPARED.
4.
THE
AND THE
SHALL ALSO BE
NOTIFIED OF THE LOSS, AND THE ACTION BEING TAKEN TO RECOVER THE LOST
ITEM.
5.
a.
b.
c.
-16-
SIGNATURE
DATE
SIGNATURE
DATE
SIGNATURE
DATE
SIGNATURE
DATE
SIGNATURE
DATE
-17-
CHAPTER III
Administrative Expenses
Costs of salaries,
-21-
B.
Force Account
Whenever a grantee uses its own employees or material for work under
a grant project, this type of work is called force account.
Use of the force account method requires prior written approval by the
mb project engineer when the costs are over $25,000 in step 3, unless
the grant agreement stipulates the force account method.
a grantee
should use EPA Form 5700-41 to detail the costs of the proposed force
account work in the grant application.
Labor costs should be supported by time sheets which account for all of
the time of each employee (see sample entries for time sheet).
payroll
Materials and supplies purchased for the project will require invoices
AND PROOF OF PURCHASE (CANCELLED CHECKS) AS SUPPORTING DOCUMENTS.
SOME INSTANCES, MATERIAL MAY BE OBTAINED FROM SUPPLIES ON HAND.
In
SOME
C.
Indirect costs are those costs incurred for a common or joint purpose
benefiting more than one cost objective.
-22-
ACCUMULATED IN A POOL.
-23-
FIGURE 4
Example - Indirect Cost Rate Computation (Rate includes both G&A and
Fringf Benefits)
Non-Allowable
Indirect Cost
Category
$143,000
Allowable
Indirect Cost
$46,200
10,200
1,900
800
1,200
1,500
10,000
1,200
9,900.
2,600
1,200
4,800
1,500
1,000
3,000
Indirect Salaries
Vacation Leave
Sick Leave
Military Leave
Holiday Leave
Group Insurance
FICA Tax
TEC Unemployment Tax
Maintenance and Repair
Supplies
Telephone
Rent
Utilities
Indirect Travel
Depreciation
Contingencies
Contributions
Entertainment
Interest Expense
$2,000
1,1100
6,000
7,000
Slb.lUU
COMPUTATION:
&wn nnn
-24-
$1(JU,UUU
CHAPTER IV
Background Information
THIS
GRANTEES.
Under the Texas Water Code, the Texas Constitution provides for finan
cial assistance in the construction of treatment works for political
financial
-27-
Construction Grants
2*
3*
4*
-28-
5*
6*
7*
9*
In ADDITION,
-29-
FIGURE 5
Sample Transactions
1.
to open a new bank account in the construction. fund, the clty of nearview
transferred $1,000.00 fpcm its general fund on october 2, 1976,
2.
The Third National Bank of Nearview charged the City of Neapview $10.00 for
printing checks.
3.
4.
The City of Nearview received the bond proceeds from the Water Quality
Enhancement Fund of $250,000.00 and the accrued interest of $3,437.00,
5.
Cheatham & Cheatham, Attorneys at Law, were paid legal fees of $6,000,00,
6.
Second Southwest Company, the City Financial Advisors were paid for
handling the bond issue. $7,500.00.
7.
8.
9.
10.
11.
12.
13.
14.
Total and rule journals for the month; Post totals to General Ledger.
-30-
CONSTRUCTION FUND
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CONSTRUCTION FUND
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CONSTRUCTION FUND
Cash Disbursement Journal
CD-/
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&k.r.k.fin,L
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lo-f
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SHEET NO..
ADDRESS
CREDIT LIMIT
name
RATING
ACCOUNT NO..
TERMS
DATE,
EK.-&SE g'n2-0 1 l.tlft
+B-=-
ITEMS
reus
OEBITS
CREDITS
_i7 s HiV po
W~t
it
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....
SHEET NO..
ACCOUNT NO..
RATING
name
CREDIT LIMIT
ADDRESS
TERMS,.
:i 'n
*
rife
ga3*ffsni GN2-D
DATE.
ITEMS
rout
OEBITS
CREDITS
. JJLlL..
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SHEET NO.
ACCOUNT NO.
address
CREDIT LIMIT
Construction in Progress
NAME
RATING
TERMS
DATE
10-
ITEMS
fOUS
OEBITS
CREDITS
_ 3.
? A t/4-7 Oc
ftp-/
-
--
--
. . .
II
...
SHEET NO..
ACCOUNT NO.
RATING
NAME
CREDIT LIMIT
address
TERMS
tec *
^JmLm CN2-0
rata
ITEMS
DATE
OEBITS
CREDITS
BALANCE
I?7d
rtAl
lo-
/ P
th-t
,f/
/ 000
OO
CO
-0-
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CO
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_ _ .
- -
_._
-
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..
kJ@sto 6N2-0
address
CREDIT LIMIT
name
RATING
ACCOUNT NO..
EPA
Se
TERMS
DATE
ITEMS
U0
>
DEBITS
C.fi-I
0jz_ U.
CREDITS
_2?12
*?
-;
._.
.._
- -
...__
S*&&hm GN2-D
SHEET NO..
ACCOUNT NO..
address
CREDIT LIMIT
name
RATING
Sewer
TERMS
OATE.
ITEMS
reus
lo- ,?/
OEBITS
tfi-l
CREDITS
^lOOQ_0_Q_
*f
1.J
_ _
gjSjqam "
SHEET NO.
ACCOUNT NO .
CREDIT LIMIT
NAME
RATING
TERMS
DATE.
ITEMS
mis
OEBITS
CREDITS
/57fr
^Ltllen
141 7
so-/
00
____
-
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11
FIGURE 7
City of Nearview
WPC-Tex 123
io-i-76
through
io-31-76
Month
RECEIPTS:
Fund Transfers
Federal Grant - EPA
Bonds - TWDB Enhancement
Fund
1,000.00
Year to Date
1,000.00
24,387.00
24,387.00
250,000.00
250,000.00
3,437.00
3,437.00
$ 278,824.00
$ 278,824.00
23,117.00
$ 23,117.00
7,500.00
6,000.00
7,500.00
6,000.00
200,000.00
200,000.00
1,000.00
1,000.00
3,437.00
3,437.00
Total Receipts
DISBURSEMENTS:
Architectural
Engineering Engineering Engineering -
- Engineering Fees
Staking/Inspection
0 & M Manual
Other
Construction Costs
Financial Advisor
Legal
Interest
Investments Purchased
Other: Transfer - to paid advance GF
Transfer - Debt Service Fd.
Bid Advertisement
30.00
30.00
10.00
10.00
Total Disbursements
$ 241,094.00
$241,094.00
$ 37,730.00
$ 37,730.00
(Signature)
(Date)
-41-
Project
Explanation
Payee
Date
19 76
October
10-5-76
10-5-76
Dailey Times
Checks Printed
Advertisement for Bids
10-12-76
Legal Work
10-12-76
10-12-76
10-15-76
10-26-76
#1
Check No.
Amount
Draft
10.00
01
30.00
02
6,000.00
03
05
7,500.00
200,000.00
4,197.00
Nodam S Swindam
06
18,920.00
07
1,000.00
08
3,437.00
10-26-76
City - G.F.
10-26-76
04
on
Bonds
$241,094.00
Total Disbursements
Project 1
$
Grant Allowable Cost
Project 3
Project 4
Project 5
Totals
29,157.00
Project 2
$
7,500.00
$36,657.00 $
List All Project Invoices that are unpaid as of End of this Month
Invoice Date
10-30-76
10-31-76
10-26-76
Payee
Pluckum Const. Co.
Explanation
Const, on Sewer Plant - Est. #1
Project
Amount
.1
$24.000.00
2.000.00
100.00
$26,100.00
-42-
CHAPTER V
Governmental entities must comply with many and varied legal regulations
that affect their financial management and accounting-
a government
restrictions, or limitations-
an
-45-
The journals must be closed at the end of each accounting cycle and
additionally, the
general ledger and subsudiary ledgers must be closed at the end of the
-46-
1.
monthly,
2-
3-
no summariza
tion takes place in this journal, thus the debit and credit
elements of each entry must be posted to the general ledger-
specific
ledger accounts-
-47-
General Ledgers
ledger referred to is known as the "general ledger"For governmental entities the general ledger is a multi-fund general
ledger-
each account
has spaces for entering the date of the entry, the source of the entry,
debit and credit amounts, description of the entry, and the account
BALANCE-
Subsidiary Ledgers
in subsidiary accounts.
control account.
-48-
subsidiary ledger has columns for entering the date of the transactions,
the source document number, a description of the transaction and monetary
Files
The document files maintained by a governmental unit can be grouped
Transaction Source Document Files The following discussion outlines those documents which
These
A*
RECEIPTS TRANSACTIONS*
b*
-49-
paid and with the date of payment are batched and attached
to a cash receipts source document-
D-
e-
to fixed assets-
F-
OF FIXED ASSETS-
G-
-50-
2-
Accounting Related Document Files The following dicusssion outlines some typical document files
which contain information of some accounting significance,
but do not directly support an entry to the accounting records-
no document sequence is given for the files described belowIt is recommended that these files be maintained in chronological
sequence in the absence of a better method-
a-
B-
c-
-51-
d-
E-
3*
group*
a*
Directors or Council-
-52-
b-
c-
D-
Internal Control
Internal control is a form of utent control, exercised in urge part
through the accounting system-
organization and all of the coordinate methods and measures adopted within
a business or entity to safeguard its assets, check the accuracy and
one of the
-53-
Chart of Accounts
IN TABULAR FORM-
WILL SERVE TO CONTROL THE LEDGER ARRANGEMENT, THE COLUMNAR HEADINGS OF THE
STATEMENTS-
THE ADDITION OF NEW ACCOUNTS IN SEQUENCE FOR REASONS AT FIRST NOT FORESEEABLE
THE
-54-
FIGURE
Account Title
ASSETS
LIABILITIES
FUND BALANCES
Unallocated Fund Balance
Allocated - from Net System Revenues
-55-
The accrual basis of accounting is recommended for all funds used by the
governmental entity.
from this rule and these items should be recorded on the cash basis.
Additional Information
-56-
60601
VI
On April 12, 1985, the Office of Management and Budget (OMB) issued OMB Circular
a-128 which implements the single audit act of 1984 (pub. l. 98-502). the
Single Audit Act establishes audit requirements for State and local government
recipients of federal assistance.
programs (40 CFR 30, Appendix E) currently requires State and local government
recipients to comply with the audit requirements of omb circular a-128.
The Act requires State or local governments that receive $100,000 or more
a year in Federal funds to have an audit made for that year in accordance with
the Act.
-59-