Procedure at end of initial operating period
Compiled text through Sep 15, 2021
Register checked through Jul 29, 2026
No later Register activity identified in this check.
Dates and status
- Compiling agency
- Executive Department
- Text status
- Source receipt
- Compiled text through
- Sep 15, 2021
- Register checked through
- July 29, 2026/Vol. XLVIII, Issue 30 (2026-07-29)
- Activity status
- No later Register activity identified in this check.
- Source snapshot
- Jun 6, 2026
Inasmuch as account 1470.3, Net Deficit or (Income), will operate as a control account, in accordance with the procedures described in sections 1642-3.8 and 1642-3.9, the balance of account 1470.3, as of the date of substantial completion, will automatically reflect, after all adjustments are made for income and expense applicable to the initial operating period, the net deficit or income resulting from the operation of the project proper during the initial operating period. When the date of substantial completion, as concurred in by the commissioner, has been determined and the adjustments for income and expense as of the date of substantial completion made, a journal voucher shall be prepared closing the subsidiary income accounts (3000 group) and expense accounts (4000 group) individually. The difference between the sums of the debits to the income accounts and the credits to the expense accounts will appear as a balancing figure on the voucher and shall agree with the balance of the control, account 1470.3.
After the net income or deficit for the initial operating period has been determined, it may be found that prepaid expenses, as of the date of substantial completion, may have been paid out of the development fund but are applicable to the operating period and that a transfer of funds from the administration fund to the development fund will be in order, or vice versa, that prepaid expenses may have been paid out of the administration fund but are applicable to the development period, etc. Similar situations may arise with respect to inventories (such as for fuel and paint supplies) reflected in the balance sheet, accounts payable and accrued payables. The local agency shall prepare a schedule analyzing and allocating such items as between the development and administration funds so that it will be in a position to make the proper transfer of funds. The schedule should also take into account the possible reimbursement of the development fund for such items as petty cash and change funds established therefrom.