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Scottsdale Arizona
September 23-25, 2012 presented by
Pete Koziol, HUD Financial Analyst, Phoenix Offfice

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
Financial Data Schedule (FDS) Reporting

Cap Fund expenditures are reported at the Project level

Each Project has two income statements- one for Low Rent
Public Housing and one for Capital Fund. The two income statement are combined for the Project income statement.

There is one balance sheet for each Project that combines the financial activity of both the Low Rent Public Housing and CFP program
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Refer to Capital Fund Reporting Accounting Brief #15: http://portal.hud.gov/hudportal/HUD?src=/program_offices/public_indian_housing/reac/pr oducts/fass/pha_briefs

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The general guideline for accounting for expenditures made after acquisition is that if the expenditures provide additional service potential beyond the current period they should be capitalized.
An entity may produce future services potential by making current expenditures that:
1.
2.
3.
Extend the useful life of an asset
Increase the quantity of services of an asset
Increase the quality of services provided by an asset
If an expenditure causes one or more of these results, then, according to GAAP the entity should capitalize.
Avoiding the additional record-keeping for fixed asset accounts is not a good reason to expense.

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

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Reported as Revenue in the Cap Fund Income Statement, FDS line item 70610
Equity transfer from Cap Fund to Low Rent for related amount
(FDS line item 11040)
Memo accounts in CFP column (FDS #11610 to 11660) must be completed to match amount in line 70610
Project Balance Sheet: The amount in 70610 must also be distributed to asset accounts on the Project Balance Sheet.
Additions to FDS accounts for Fixed Assets (#161 to 165) and
Construction in Progress (#167) should equal the amount in
70610

(BLI 1406)
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
Large PHA’s (250 +) limited to 20% of Cap Fund Award
Small PHA’s (non-troubled) : 100% of award as long as capital needs are being met
CFP funds used to supplement operations are reported as revenue on the Cap Fund portion of the income statement on
FDS line 70600 with a corresponding Operating Transfer Out
(#10020) entry
CFP funds for administrative expenses/management fee of
CFP are also reported as 70600 (CFP Income Statement) with matching amount under administrative expenses of Cap Fund
Income Statement
COCC cannot receive Cap Funds for Operations

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

Cap Funds for Management that are capitalized:

Cap Fund Inc Statement: Revenue listed on FDS line
70610

Memo accounts on Income Statement to be completed

Equity transfer to Low Rent and amount added to Fixed
Assets
Cap Funds for Management that are expensed:

Treated as transfers to operations

Revenue on 70600, Amount transferred to Low Rent

Expensed with other expenses in Low Rent Column
Management Improvements are limited to Project uses

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The only operating expenses that should be showing on the Capital Fund Income Statement are administrative expenses such as:

Management Fee Expense (COCC- fee for service
PHA)

Admin Salaries and Admin Benefits (non-fee for service
PHA)

Audit fee (allocation to Cap Fund)

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Force Account Labor refers to the use of PHA employees to capital and modernization work on its projects

Capitalized Force Account Labor. Is used to support capital works, the cost of such labor is capitalized and becomes an asset on the balance sheet of the project. From an FDS reporting standpoint, force account labor should be reported in the same way as other hard costs.

Non-Capitalized Force Account Labor. Is used to support capitaltype work that does not meet a PHA’s Capitalization threshold. Is treated like Cap Fund transfers to Operations. Because Cap Fund transfers to operations lose their identity these expenses will be included as maintenance expenses in the Low Rent income statement and will lose their distinction as CFP funds or force account labor.

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Submission Type: Audited/A-133
70300 Net Tenant Rental Revenue
70400 Tenant Revenue - Other
70500 Total Tenant Revenue
70600 HUD PHA Operating Grants
70610 Capital Grants
70710 Management Fee
03/31/2011
Low Rent
$406,427
$69,544
$475,971
$1,039,047
Project
Name:
Capital Fund Total Project
$0
$406,427
$69,544
$475,971
$191,452
$400,000
$1,230,499
$400,000

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11610 Land Purchases
11620 Building Purchases
11630 Furniture & Equipment -
13510 CFFP Debt Service
Factor Funds
Low Rent
$0
$0
$0
$0
$0
$0
$0
$0
Capital Fund Total Project
$0
$400,000
$0
$0
$0
$0
$0
$0
$0
$400,000
$0
$0
$0
$0
$0
$0

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Low Rent Capital Fund Total Project
11030 Beginning Equity $2,923,562 $0
11040 Prior Period
Adjustments, Equity Transfers and Correction of Errors
$400,000 ($400,000)
$2,923,562
$0


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INCOME STATEMENT: CAPITAL
FUND IMPACTS
70600 HUD PHA Operating
Grants
70610 Capital Grants
Low Rent Capital Fund Total Project
$1,039,047 $191,452
$400,000
$1,230,499
$400,000
91300 Management Fee Exp $155,000 $40,000 $195,000
10010 Operating Transfer In
10020 Operating Transfer Out
11040 Prior Period Adjustments,
Equity Transfer, and Correction of
Errors
11620 Building Purchases
$151,452
$400,000
$0
($151,452)
($400,000)
$400,000
$151,452
($151,452)
$0
$400,000

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BALANCE SHEET ACCOUNTS 2010
161 Land
162 Buildings
163 Furniture, Equipment & Machinery -
Dwellings
164 Furniture, Equipment & Machinery -
Administration
165 Leasehold Improvements
PROJECT #3
$167,657
$8,548,375
$87,504
BALANCE SHEET ACCOUNTS 2011
161 Land
162 Buildings
163 Furniture, Equipment & Machinery -
Dwellings
164 Furniture, Equipment & Machinery -
Administration
165 Leasehold Improvements
PROJECT #3
$167,657
$8,948,375
$87,504