Overview The third core reform under asset management is project-based
accounting. Project-based accounting provides the ability to track financial performance
at the project-level. Ultimately, project-based accounting provides the necessary
information to make effective decisions at the project-level. - As with
other federally-assisted housing programs, PHAs will be required to submit to
HUD year-end financial statements on each project. These financial statements
will include revenue, expense, and balance sheet items.
- Further, PHAs
will only be able to charge projects for services actually received. For example,
in accounting for project costs, PHAs will not be permitted simply to spread the
cost of central maintenance across projects.
- Lastly, any overhead fees
and any fees for centrally-provided property management services, must be considered
reasonable. This means that the costs must not exceed what other efficient operators
would incur for those same services in the local market.
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