Project-Based Accounting Guide

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This report was produced by OKM Associates, Inc. forthe United States Department of Housing
and Urban Development. The views and conclusions contained herem are those of the authors
and should not be interpreted as necessarily representing the official views or poliCies of the
Umted States Government.
. Project-Based Accounting
Guidebook
•
Prepared for:
u.s. Department of Housing and Urban Development

Office of Policy Development and Research
Prepared by:
OKM Associates, Inc.

Boston, Massachusetts
Contract HC-5834
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October 1990
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PREFACE
This ProJect-Based Accounting GUidebook is the final product of a research

effort to develop a standard project-based accounting system for pUblic housing
agencies (PHAs). The Guidebook IS a document for PHAs to use in converting from a
consolidated to a project-based accounting system.
The following is a list of the GUidebook chapters. Each chapter buiids on

• the information provided in the prevIous chapters, leading PHA staff through a
process for designing, selecting and Implementing a P-BA system which meets the
particular management needs of a PHA.
Chapter One - Introduction to Project-Based Accounting
Chapter Two - Mimmum ReqUirements for a Standard ProJect-Based

Accounting System
Chapter Three - Enhancements to the P-BA System Which Supports Internal

Management Needs
Chapter Four - The Process for Deslgmng, Implementing and Maintaining a

Project-Based Accounting System
Chapter Five - Determining the Cost to Convert to a P-BA System
Supplementing the Information contained In the five chapters are four

appendices. Appendix I provides Sample P-BA Report Formats. Appendix II offers a
model Project-Based Solicitation Package for a PHA that wishes to obtain technical
assistance in the development, installation, and maintenance of a P-BA system; and
an RFP for procuring an automated P-BA system. Appendix III includes a Sample
Checklist for Steps to Follow In Evaluating P-BA Systems, and Appendix IV provides
"
four PHA Case Studies examining the process the PHA underwent to install P-BA.
TABLE OF CONTENTS
CHAPTER ONE: INTRODUCTION TO PROJECT-BASED ACCOUNTING 1

INTRODUCTION 1
WHAT IS PROJECT-BASED ACCOUNTING? 2
MANAGEMENT USES OF PROJECT-BASED ACCOUNTING 3
WHAT TYPES OF PHAs WILL BENEFIT MOST FROM P·BA? 8
CONTENTS OF THIS GUIDEBOOK 11
SUMMARy 12
CHAPTER TWO: MINIMUM REQUIREMENTS FOR A STANDARD

P-BA SySTEM 15
INTRODUCTION 15
MINIMUM REPORTING REQUiREMENTS 16
MINIMUM REQUIREMENTS FOR ACCOUNTS TO BE
INCLUDED IN A P-BA SySTEM 18
COST ALLOCATION AND DISTRIBUTION OF INCOME
AND EXPENSES 27
SUMMARy 29
CHAPTER THREE: ENHANCEMENTS TO A P-BA"SYSTEM WHICH

SUPPPORTS INTERNAL MANAGEMENT NEEDS 31
INTRODUCTION 31
DESIGN AND DEVELOPMENT OF COST CENTERS 32
ENHANCEMENTS TO ACCOUNTS WHICH CAN BE
CONTROLLED AT THE PROJECT-LEVEL... 36
COST ALLOCATION DECISIONS UNDER PROJECT-BASED
ACCOUNTING 45
ENHANCED REPORTING CAPABILITIES OF A P-BA SYSTEM 52
PROJECT-BASED BUDGETING 60
SUMMARy 62
• CHAPTER FOUR: THE PROCESS FOR DESIGNING, IMPLEMENTING AND

MAINTAINING A PROJECT-BASED ACCOUNTING SYSTEM 65
INTRODUCTION 65
SETTING GOALS 66
Step 1: Define the Process and Goals 69
Step 2: Define the Roles of Key Parties in the Process 71
Step 3: Examine the Current System and ~eeds forManagement
Changes 75
Step 4. Develop System Specifications 77
Step 5: Develop a Request for Proposals 81
Step 6: Select the System 83 .
Step 7. Install the System 85
OPERATION OF A PROJECT-BASED ACCOUNTING SySTEM 93
SYSTEM EVALUATION AND MAINTENANCE. , 94 •
THE ONGOING ROLE OF USER GROUPS.................•....................................95
ONGOING TRAINING 96
SUMMARy 97
CHAPTER FIVE: DETERMINING THE COST OF CONVERTING

TO A P-BA SySTEM 99
INTRODUCTION 99
THE COMPONENTS OF COST 100
DESIGN AND PROCUREMENT COSTS 102
DATA CONVERSION COSTS 103
OPERATIONAL AND STAFFING CHANGES 104
TRAINING 104
OPERATING COSTS 104
SOURCES OF FINANCiNG ~ 105
SUMMARy 106
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EXHIBITS
1-1 PROJECT BASED ACCOUNTING SYSTEM 5
2-1 MODIFIED HUD FORM 52599 - MINIMUM ACCOUNTS FOR

A P-8A SySTEM 19
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3-1 HIERARCHAL COST CENTER STRUCTURE. 35
3-2 ANYTOWN PHA PROJECT-BASED ACCOUNTING SYSTEM:

MONTHLY REPORT ON PROJECT EXPENSES 39
3-3 FLOW CHART OF TYPICAL ALLOCATION PROCESS 51

MONTHLY REPORT ON PROJECT EXPENSES - ELDERLY 55

MONTHLY REPORT ON PROJECT EXPENSES - FAMILY 56

MONTHLY REPORT ON MAINTENANCE LABOR COSTS 57
4-1 DESIGNING AND IMPLEMENTING A P-BA SYSTEM 68
4-2 P-BA IMPLEMENTATION FLOW CHART 87
4-3 P-BA IMPLEMENTATION CHECKLIST 91
5-1 COST ESTIMATES FOR A PROJECT-BASED

ACCOUNTING SYSTEM 100
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APPENDICES
APPENDIX I: SAMPLE P-BA REPORT FORMATS
APPENDiX II: P-BA SOLICITATION PACKAGE

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APPENDIX IIA: REQUESTS FOR PROPOSALS TO

PROVIDE AUTOMATION SERVICES
APPENDIX liB: REQUESTS FOR PROPOSALS TO

PROVIDE TECHNICAL ASSISTANCE IN
DEVELOPING A P-BA SYSTEM
APPENDIX III: SAMPLE CHECKLIST FOR PHAS TO FOLLOW

IN EVALUATING P-BA SYSTEMS
APPENDIX IV: PHA CASE STUDIES
•
CHAPTER ONE
INTRODUCTION TO
PROJECT-BASED ACCOUNTING
INTRODUCTION
•
Public Housing Agencies (PHAs) have evolved as some of the most complex
• real estate operations in the country. PHAs operate housing In a-highly regulated
environment which IS constantly changing. Funding programs have become more
numerous and complex. Over the past several decades, the housing stock has aged,
and houses a more diverse and lower income population than in the past. PHAs are
expected to provide both housing and social services to their reSidents, but limited
public funding and high public expectations make it increasingly difficult to allocate
limited resources to meet all needs of low-income reSidents and sustain the operations
of PHAs.
In this context, strong and competent management is even more essential than
in most private real estate operations. Cost-effective management reqUires managers
to have sufficient I~formation so that appropriate deciSions can be made concerning
allocation of limited resources. This dictates that effiCient financial and management
systems be implemented to support the difficult deciSions regarding allocation of
resources among a PHA's housing developments
Most PHAs maintain a consolidated budgeting and accounting system. The

consolidated system, which combines the operating revenues and expenses of the
entire public housing portfolio of a PHA, is the budgeting and reporting method which
has been required by the U.S. Department of HOUSing and Urban Development (HUD)
for Low Rent Public HOUSing since the 1950s. From the HUD perspective of
managing the program, the consolidated ACC budgeting and reporting system has
worked well and has Simplified monltonng and reporting requirements. However, from
• a property management perspective, a consolidated system may not provide all the
accounting and budgetary Information that is needed for deCision-making and
accountability for proJect-level operations. HUD recognizes that the management
information needs of PHAs extend beyond the baSIC reporting requirements, and that
Significant technological advances in computer technology make It both possible and
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cost effective to collect project-level information in support of management.
Collecting umform data at the project level will serve to expand analysis of public
housing Issues. Information on uniform project level financial data is useful to HUD in
its efforts to stUdy and analyze public housing. Accordingly, HUD supports
improvements to public housing management through implementation and use of
Project-Based Accounting (P-BA) systems.
•
This gUidebook is for PHAs that want to convert from a consolidated to a P-BA
system. It addresses the minimum reqUirements for operating a project-based
accounting system, enhancements and modifications which support management at •
the project level, and mechanisms needed to implement and operate a project-based
system. It is not intended to replace or interpret any HUD regulations, handbooks,
recordkeeplng standards, or reporting requirements. This guidebook has benefited
from the expenences of 15 PHAs ",:,ho partiCipated in the study of P-BA in the winter of
1989-90. It reflects a broad set of P-BA expenences and applications, including
several PHAs which have not implemented P-BA.l
WHAT IS PROJECT-BASED ACCOUNTING?
Project-based accounting ~s the term used to describe accounting systems

which track income and expenses at the project level. A P-BA system permits a PHA to
direct-eharge items to a project, or to allocate items among projects when dlrect
charging is not pOSSible or cost effective. By direct-charging and allocating expenses
to projects, a PHA can track and report on operations at the project level, and use that
information to make managerial deCisions. As such, P-BA is more than just a system of
accounting, It is also a management system that provides information on the operation
ofpublic housing at the project level.
To be considered a functional P-BA system, the system must incorporate at

least the following components: "
•
1The 15 PHAs represented both medium size (500 - 1,250 conventional public housing units) and
large size (over 1,250 units). Of the 15 PHAs selected for the study, 9 were P-BA sites Of the SIX
PHAs categonzed as non-P-BA sites, four had the informational systems capacity to implement
project-based accounting
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• It must be capable of tracking fInancial and operational information by
prOject number'
• it must have the capacity to track all relevant Income and expense
account categones which can be controlled at the project level;
• it must incorporate an acceptable methodology for allocating income

•
and expenses which cannot be direct-charged to the project level,
namely those items that are non-project-specific or are related to central
• office operations; and
• it must report timely, accurate, and useful financial and operational

information to management staff to enable them to make deciSions about
operations at the project leve\.2
Although the minimum requirements of a P-BA system are defined In Chapter

Two, P-BA may take different forms depending on the charactenstics and needs of
individual PHAs. Factors such as organizational structure, Size, hOUSIng stock,
reSident population, management and maintenance delivery systems, and financial
condition influence the deSign of the P-BA system and the information it reports to
PHA managem~nt. Further, it is possible for the PHA to decide to partially adopt a
P-BA system, or to implement components that are useful to the organization and ItS
operations. Such deCisions, Including the definition of P-BA as it applies to the
speCifiC agency, must be made by PHA management.
MANAGEMENT USES
, OF PROJECT-BASED ACCOUNTING
ProJect-Based Accounting systems are management systems as well as systems

of accounting. The P-BA system functions in conjunction with PHA operations, and
must support management deCision-makIng. The eXistence of project level
accounting alone IS insuffiCient to justify P-BA. The P-BA system will fall, or at least
•
2 To minimize confusion and be consistent With HUD terminology the term "development" will be used
in this gUidebook instead of proJect, atthough denvatlons such as "Project Manager" continue in
common usage Also HUD refers to occupants of public hCusmg as reSidents rather than tenants,
however, the term "tenant" has generally accepted uses In the accountmg area, such as Tenant
Accounts Receivable.
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will be of marginal use, if it is viewed as a static, stand-alone system. The information
must also be recognized and used in internal management decisIon-making.
Following is a depIction of the dynamic elements of a P-BA system: its Inputs,

outputs and management uses. The management uses are the feedback loop, the
dynamic elements of the system whereby P-BA mformation IS used to influence a
variety of management systems. (See Exhibit 1-1) •
If used to ItS full capability, P-BA can provide important management

informatIon on a vanety of topics. These Include: financial planning, budgeting,
..
intemal audit and control, project-level management decision-making, and
performance monitoring.
Financial Planning
P-BA Information can support financIal plannmg activities with respect to cash
management, funding requirements at the proj~ct level, matenals requirements, and
the investment program. It can also link operating statistics of public housing
developments with financial data, whIch supports the management of the
Comprehensive Occupancy Plan, Tenant Accounts Receivable, and work orders.
P-BA operating charactenstlcs can provIde useful informatIon on the

management and mamtenance needs of a particular project. P-BA information can be
used to assess the financial Impacts of operatIonal and capital needs and
improvements, whIch then can be reflected in a PHA's Comprehensive Plan for
Modernization (CPM), Comprehensive Occupancy Plan (COP), and other plans
which are designed to link capital and operating activities. P-BA systems can provide
information needed to monitor the effectiveness of prOJect-based management and
capital Improvements
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EXHIBIT 1-1
PROJECT-BASED ACCOUNTING SYSTEM
INPUTS ACCOUTING SYSTEM OUTPUTS

•
PrOject level AccountstSubaccounts HUD RepOrts
:mQtlmamtenance actIvities
I--~
.. Cost Centers ~ Internal Reporllng
Income/Expenses
Cost AllocatIon
inventory. purchase orders and
contracts
t
P-BA System Mamtenance
i
MANAGEMENT USES
Financial Planmnq
Budgellng
Internal Audit/Internal Control
Prolect-level DecIsIon Makmq
On-site Performance Monitoring/Accountability
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Project-8ased Budgeting
For many PHAs, project-based budgeting is an Important component of project

based accountmg. 3 Budgeting at the project level helps a PHA to consider the
needs of each development as fmanclal resources are allocated. P-BA mcome and
expense information guides PHA staff as they develop a management plan and
bUdget which reflects each development's priorities, goals, and needs.
Project-based budgeting can be used to place financial accountability on field

staff. By providing field staff with an approved operatmg plan and the dollars needed •
to implement that plan, management is able to compare actual income and expenses
to budget, and monitor progress In meeting the development's goals and completing
the activities mcluded in the operating plan. By mOnltonng actual vs. budget for each
project level, a PHA can also Identify potential over-expenditure locations and
pinpoint corrective measures to prevent a budget over-run.
Internal Audit and Internal Control
P-BA is a valuable method of promoting and supporting internal audit and

internal control within a PHA's operation. 4 The baSIC objectives are to safeguard the
PHA's assets, ensure that performance standards are being met, and determine
whether the PHA's policies and procedures are operating effectively. These
objectives can only be achieved with timely and accurate information.
..
P-BA can proVide much of the information needed for internal audit and control
because a majority of the PHA's controllable fmancial activity is directed toward the
operations at the project level. P-BA can provide information on the utilization and
costs of personnel, materials, eqUipment and related items at a particular public
housmg deveiopment. ThiS Information can be used to detect abnormally high rates of
••
31n PrOiect-Based Budgeting/Management and Supporting APP Systems. HUD defines Project-Based
Budgeting as "a method of budget preparation that involves developmg a separate budget for each "
development on an IndiVidual baSIS It requires identifying the income and expense items for each
development in the PHA. "
41nternal Audrt IS an independent appraisal function established within the Authority to ensure that
the systems and procedures reqUired by the PHA and HUD are functioning effectively. Internal
control activities are those Which are designed to safeguard and protect the Authority's assets.
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expenditures for certain accounts and other financial factors which may be difficult to
track without further examination. 5
Project Level Management Decisions
P-BA information can provide a complete picture of PHA operations and

identify areas for improvement at the project level. PHAs usually convert from
•
consolidated accounting to P-BA because they want more detail about income and
expenses at the development level, in order to improve operations, and ensure cost
• efficiency. For example, in response to rent collection and maintenance delivery
problems, a large New England PHA decentralized management and maintenance
responsibilities and formulated development-specific income and expense data to
support and evaluate the new system.
Many PHAs have found that rent collection percentages vary among
developments. This raises the questions: Why do some Housmg Managers have
more success with collections than others? Do elderly residents have better rent
payment than families? Which rent collection procedures work well, and which fail?
P-BA can provide uiformatlon which management can use to answer these questions
and develop responses to improve rent collectIons.
P-BA expense mformatlon can be used by management to compare operating

costs in similar and diverse types of developments. For example it can answer the
following questions: Why do similar developments have different levels of
effectiveness? Are row-house developments more or less costly to operate than
scattered-site developments? Are mamtenance costs higher at developments located
in socially-troubled neighborhoods than in stable neighborhoods? P-BA information
can be used to analyze the different operating requirements of each type of
development, and to customize operating procedures to meet the needs of each
development type.
5The level of detail and the baSIS for tracking financial acIlvrty will likely affecI the usefulness of P-BA
Information under an internal audrt program
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On-site Performance Monitoring and Accountability
P-BA fmanclal and operating statistics 'relate to staff performance at the project
level, they can enhance a PHA's ability to hold staff accountable for the use and
allocation of resources at the public housmg development level. P-BA can also be
used to decentralize responsibility for budgeting and expenditures within the
organization.
•
WHAT TYPES OF PHAs WILL BENEFIT MOST FROM P-BA? •
Public Housing Agencies across the nation are orgamzed differently and face
different problems Some PHAs have highly centralized operations while others are
more decentralized and assign both staff and authOrity to regional and project levels.
PHAs range in size from a handful of Units to tens of thousands of units. Projects can
be structurally diverse, geographically dispersed, of different ages, and in varying
physical condition. PHAs can be fiscally sound, or have fiscal problems.
The study which resulted In this gUidebook included 9 PHAs with project level
accounting systems, ranging In size from fewer than 750 federal public housing units
in 10 developments to nearly 40,000 public housing units in approximately 130
developments. The research suggests that P-BA can be readily adapted to most
PHAs:
• A PHA's size does not dlmimsh the utility of P-BA. While large PHAs
with regional and project management may fmd P-BA especially useful
to their operations, medium PHAs have also applied P-BA with great
success.
• A PHA's management operation does not have to be decentralized to

make use of P-BA. FUlly or partially centralized operations can also "
benefit from project-level information.
• A PHA does not have to automate its management and accounting

mformation systems to make use of P-BA, although it IS recommended.
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• A PHA does not have to adopt elaborate and expensive systems that
permit tracking of all income and expense information at the project level.
It can choose to adopt certain modules or components of P-BA systems
which best enhance its management operations, and design
methodologies for allocation of rtems that are too expensive or otherwise
unable to be tracked at the project level.
• A PHA does not have to be distressed to benefit from P-BA. While a

distressed PHA may be in a position to denve more Significant and
Immediate benefits from the project-level information generated by a
P-BA system, even highly successful PHAs may derive operating
benefits.
• A PHA does not have to signIficantly disrupt operations and reassign

staff to Implement P-BA. With the help of TechnIcal Assistance
Providers, vendors, and phased implementation plans, the conversion
to P-BA can mvolve mmlmal disruptions.
Automation is a major consideration in a PHA's deCision to Implement a P-BA

systems. If a PHA is already automated, It should examme the capacity of ItS current
system to be converted to P-BA. If a PHA IS automatmg ItS accounting system, it
should consider Implementmg P-BA or at least design the capacity for P-BA into its
automated system, so that it has the option of implementing P-BA in the future.
Nevertheless, a PHA does not have to be computerized to operate aP-BA system; m
fact, two of the PHAs mcluded in the study introduced P-BA as manual systems. 6
Automation is becommg more common in PHA operations as the technological
advances have made It cost effective for most PHAs. Chapters Four and Five will
discuss automation and P-BA.
PHAs with a dIVerse housing stock can use P-BA information to compare
operating income and expenses among similar and different types of developments.
'Thls information can also be used to analyze PHA-wlde patterns of rent collection and
spending, determme the resource requirements of different development types, and
SAil of the PHAs with P-BA In the study, as well as all the PHAs without P-BA, have varying degrees
of automation. Those PHAs which first introduced manual P-BA systems later chose to automate.
Page 9
establish cost efficient methods of managing and maIntaIning eacn type of
development.
The degree of decentralization vanes widely among PHAs. Any level of

decentralization can be enhanced with mcome and expense information at the project
level. However, P-BA can also provide information useful to PHAs with centralized
operations. Without on-site staff, It may be more difficult to obtain income and expense •
information that reflects the day-to-day operations and needs of the IndiVidual hOUSIng
development, but P-BA reporting can provide Information to Identify development
weaknesses and compare needs among developments.
P-BA can be useful to PHAs which experience certaIn fmancial problems, such
as recurnng budget over-runs and poor rent collection. Project level Income and
expense mformation may help PHA management to identify specific areas of
weakness. It can raise important management questions: At which developments is
spending too high? At which developments is rent collection too low? While PHAs
can detect vanance between actual and budget expenditures on a consolidated
basis, development-level Information enables the Executive Director, the Fiscal
Director, and the Directors of Management and MaIntenance to Identify the precise
locatlon(s) of problems
P-BA can also be of significant benefit to PHAs that are maIntaIned in sound
financial condition. When budget-te-actual variances occur dunng the course of the
year, the cause of the variance may be identifiable through development-level
income and expense Information. By lookIng at the indiVidual development, a PHA
can Identify those With the best and worst performance. The procedures and
management strategies used in the best developments can be adapted by
developments that do not perform as well.
Dependmg on the local conditions and needs, a PHA may develop an

application of P-BA that IS unique:
.,
A PHA in the Southeast began proJect-based accounting with its first
development and has maintained P-BA while it has grown to 10
developments. The PHA has a blend of centralized and decentralized
operations, with Project Managers assigned to each development.
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According to the Executive Director, "P-BA makes it easy tc monitor
expenses" compared to consolidated accounting.
A PHA with 2,500 units in 23 developments is organized into six

geographic regions for delivering services to indIVidual development sites.
The Executive Director believes that income and expense information at
the regional level, rather than at the development level, is appropriate to
the PHA's operating needs.
A large New England PHA with a mixture of federal and state public
housing developments, decided that its size and condition warranted
conversion to decentralized management and analysis of development
level data. According to the PHA, it appears that decentralization, and
project-based accounting and budgetmg at the cost center level have
contributed sigmficantly to improvements in maintenance and rent
collection.
CONTENTS OF THIS GUIDEBOOK
The remainder of this gUidebook consists of four chapters. Each chapter bUilds
on the Information provided In previous chapters, leading PHA staff through a process
for designing, selecting and implementing a P-BA system which meets the particular
management needs of a PHA.
• Chapter Two contains a diSCUSSion of the Minimum ReqUirements for a

Standard ProJect-Based Accounting System. These requirements
Include the accounts, cost allocation method, and reporting capabilities
which are minimally needed for a ProJect-Based Accounting system.
• Chapter Three considers Enhancements to a P-BA System Which

• Supports Internal Management Needs. The chapter examines expanded
use of cost centers, accounts and subaccounts, alternative allocation
methods, and internal reporting. It also discusses proJect-based
budgeting.
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• Chapter Four offers advice regardmg The Process of Designing,
Implementing and Maintaining a Project-Based Accounting System. It
provides a step-by-step approach to evaluating automated P-BA
systems and determining the rIght system and capabilIties for individual
PHAs. Information on evaluating proposals, conducting negotiations,
and monitoring installation IS presented. The chapter also addresses
ongoing system maintenance, training, organizational items,
enhancements, and evaluations.
• Chapter Five offers a methodology for Determining the Cost of

Converting to a P-BA System. Pnmary categories of costs are
delineated, including hardware and software, consultants, training,
maintenance costs and opportunity costs. The methodology for arnving
at the costs is descnbed.
Supplementing the mformatlon contained In these five chapters are four

appendices. Appendix I provides Sample P-BA Report Formats. Appendix II offers a
model Project-Based Solicitation Package for a PHA that wishes to obtain technical
assistance in the development, installation, and maintenance of a P-BA system and
assistance In automation services. Appendix 11/ includes a Sample Checklist for Steps
to Follow In Evaiuating P-BA Systems, and Appendix IV provides four PHA Case
Studies examining the processes the PHA underwent to install a P-BA system.
SUMMARY
ProJect-Based Accounting is the term used to define an accounting system

which is capable of tracking Income and expenses at the project level. P-BA is a
source of Important financial and operational Information that can be used by
management to help improve management and planning in PHAs with a wide variety
of characterIstics. Key management uses include financial planning, budgeting,
internal audit and control, project level management, and performance monitoring and
accountability. ••
The remaining chapters of this GUidebook will further defme the reqUirements of
P-BA, describe its benefits and uses in greater detail, and assist PHAs in selecting,
Page 12
implementing, and maximizing the effects of P-BA systems. Chapter Two will begin by
providmg an overview of the minimum components of a P-BA system.
..
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CHAPTER TWO
MINIMUM REQUIREMENTS FOR A

STANDARD PROJECT-BASED ACCOUNTING SYSTEM
INTRODUCTION
The design of a P-BA system for a PHA should reflect the PHA's specific
organizational structure, management culture, staff capacity, and organizational
obJectives. Consequently, each PHA's P-BA system may have unique features or
capabilities. However, while each P-BA application may be customized, a functional
P-BA system must meet certain minimum or threshold requirements. The purpose of
these minimum requirements IS to ensure that the system is capable of generating
sufficient Information at the project level both to make the system useful to the PHA
and to meet HUD reporting requirements
This chapter examines the minimum requirements for P-BA. Minimum

requirements are those accounts, allocation methodologies, and reporting
capabilities which are needed to report on the operation of any and all types of public
housing. They are defined in part by HUD reporting requirements and the Chart of
Accounts for income and expense items. They must relate to Individual public
housing development project numbers.
The minimum reqUirements discussed in this chapter are not Intended to limit
the possibihties of a P-BA system. It IS Important that the system be designed to
accommodate all current needs and future growth of a PHA, its housing portfolio, and
its management systems. Over a penod of time, the system may demand a greater
capacity to accommodate new subaccounts, cost centers, reporting formats, and
other changes in the types and levels of information needed to support PHA
operatIons. The next chapter contains a discussIon of enhancements to P-BA
systems which PHAs can consider to maXimize the benefits they can derive through
the implementation of P-BA systems.
The use of automated management information systems along With P-BA is

desirable, but not mandatory. If a PHA cannot report on financial activity in a timely
Page 15
and accurate manner, the development and installation of a P-SA system will be of
limited value. Automated systems can improve the timeliness of reporting.
This chapter begins with a discussion of minimum reporting requirements,

detailing consolidated reports that the P-SA system should be able to provide. This is
followed by a definition of the minimum or threshold accounts for P-SA and the
minimum accounting capabilities of a P-SA system. Finally, thiS chapter explores the
methodology of allocating costs which cannot be reasonably assigned directly by the
PHA.
MINIMUM REPORTING REQUIREMENTS
The fundamental characteristic of a P-SA system is the capacity to track

expenses and Income at the project level. The baSIC minimum requirement for a P-SA
system is that it have the capability of reporting on Income and expenses by public
housing development project number.
In order for a P-SA system to be considered fully operational and effective, it

must have the ability to report specified Income and expense Items to PHA staff who
can use the P-SA information. A diSCUSSion of the mimmum external reporting
capabilities of P-SA systems IS included here. Internal reporting and management
uses of P-SA information are covered in greater detail in the next chapter.
A P-SA system should have the capacity to report on Income and expenses as
frequently as the needs of management dictate. A mlmmum P-SA system must be
capable of providing reports on Income and expenditures on a HUD Form 52599
(through Line 620) or facsimile at the end of the first SIX months of the fiscal year and
again at the end of the fiscal year. More frequent reporting -- such as quarterly or
monthly reporting -- IS preferred by most PHAs.
In regard to P-SA accounting and reporting capacity there are four

consolidated reports reqUired by HUD which must be generated by a PHA accounting
system.
• HUD-52295 Report On Tenant Accounts Receivable -- PHAs usually

account for Tenant Accounts Receivable by development because they
Page 16
are required to submit a HUD-52295 for each development or for each
cluster of units combined for rent collection purposes. Typically', the rent
roll is maintained by development because each unit included In the rent
roll has a discrete address. As a result of these record-keeping practices,
all PHA accounting systems (with or without P-BA) are capable of
producing the data needed for the HUD-52295 submission.
Although consolidated figures can obscure the performance of individual

developments, development-level information on dwelling rentals enables
both a PHA and HUD to Identify problems. For example, a PHA may have
achieved an overall rent collection rate of 90 percent, but the overall rate IS
lowered by one development With a collectton rate of only 75 percent.
Consolidated reporting obscures the problem of lower rent collection at one
development understating the adequate performance of other
developments.
• HUD·52598 Analysis of Nonroutine Expenditures -- Since non-routine

expenditures are typically development-specific (except when eqUipment IS
purchased for use PHA-wide), PHAs tend to maintain development-specific
information on non-routine expenditures, even if they do not have P-BA.
Development-level information should be consolidated for submission on
the HUD-52598. Project level expenditure information helps both HUD and
the PHA to identify the types and location of work being completed with
0PEirating funds.
• HUD-52599,Statement of Operating Receipts and Expenditures -- As

noted previously, this HUD form serves as a model of budgeted vs. actual
,expenditure analysis. For internal PHA purposes, this can be replicated for
each development. While PHAs may want more Informatton, including ,
greater detail and subaccount data, the HUD-52599 provides a useful
format for companng actual to budgeted expenditures. Information at the
project level serves as easily acceSSible back-up to amounts included in
, 8 the HUD consolidated reports. When HUD raises questions regarding
mformatlon included in the HUD reports, the PHA can easily locate and
analyze data If it is available at the project level. PHAs must therefore .
include, for all projects, a report In the modified HUD 52599 format (see
Exhibit 2.1) through Line 620.
Page 17
• HUD·52722B Adjustment For Utility Consumption and Rates - PHAs
can track actual utility consumption at the meter (or tank) level and on a
development, site, building, or umt basis by analyzing utility invOices
Where Invoices are for specific meters (or tanks), development-level utility
cost and consumption data already exists.
Automated PHA accounting systems with P-BA capabilities can generate

consolidated HUD reports automatically. In a PHA with a manual accounting system,
the procedures for preparing HUD reports should already be in place.
MINIMUM REQUIREMENTS FOR ACCOUNTS TO BE INCLUDED IN A P-BA

SYSTEM
The minimum set of accounts for a P-BA system IS defined as the HUD Chart of
Accounts included on the HUD Form 52599 Statement of Operating Receipts and
Expenditures, covering all income and expense line numbers from line 060 through
line 620 (see Exhibit 2.1 Modified Form 52599 - Minimum Accounts For a P-BA
System). These accounts must be applied to each public hOUSing development
number.
In addition to deciding upon the frequency of reports, a PHA must consider

how It can provide project managers the information they need to get a clear picture of
expenses Incurred. If the reports reflect only expense data on a cash baSIS, the
information provided is considered to be Incomplete and will not be viewed as useful
by the staff. PHAs can experience difficulty With P-BA systems if the system produces
reports which, for example, include expense data from pnor periods or which do not
include all expenses incurred. Accordingly, the system must be designed to ensure
that reporting is timely, accurate and complete.
Automation can .enhance the ability of a PHA to deliver timely reports. PHAs
need not automate to use P-BA, but a PHA that intends to convert from a manual to an
automated system should conSider developing and Implementing a P-BA system.
..
Shifting to automated data processing for finance and accounting activities creates a
Significant advantage In adopting P-BA systems. There are numerous computer
software and hardware prOViders who offer automated accounting systems which can
accommodate chart of accounts numbering structures and are capable of supporting
Page 18
very large and sophisticated P-BA systems. This will be explained further in Chapter
Four.
An effective P-BA system is contmgent upon the ability to track expenses at

the public housing development level. Many PHAs without a P-BA system already
account for some income and expenses at the public housing development level. A
PHA should take steps to track items that can and should be direct charged. For
those it cannot direct charge, the PHA should follow the allocation process for
distributing central office and non-project specific expenses.
EXHIBIT 2-1
MODIFIED HUD FORM 52599

MINIMUM ACCOUNTS FOR A P-BA SYSTEM
STATEMENT OF OPERATING RECEIPTS AND

EXPENDITURES
Name of Authority Development

Number
Report Period Dwelling
Umts
Une # Account Account TItle Budget _ Actual

#
Pum Amount Pum Amount
Operating Receipts
060 3110 Dwelling Rental
070 3120 Excess Utrhtres
080 3190 Non-dwelling Rental
090 Total Rental Income (Lines 060
080)
. 100 3610 Interest on General Fund
Investments
Page 19
EXHIBIT 2-1 Continued
130 3690 Othermcome

140 Total Operatml;Income (Lines
090-130)
150 7110 Receipts from off-site utilities
160 7530 Receipts from non-expendable
, equip.
170 Total Operating Receipts
ExclUSive of HUD
Operating Expense/Administration ,-
-
180 4110 AdmlIDstratlve Salanes
190 4130 Legal.Expense
200 4140 Staff TramIng
210 4150 Travel
220 4170 AccountIng and auditing fees
230 4190 Sundry
240 Total AdmInistratIon Expense
<Lines 180-230)
Tenant Services
250 4210 Salanes
260 4220 Recreanon, pubhcatIons, and
other sel"VIces
270 4230 Contract costs, traInmg and
other
280 Total Tenant Services Expense
(LInes 250-270>
I;Ttilitie 5
290 4310 Water
300 4320 ElectriCity
310 4330 Gas
320 4340 Fuel
330 4350 Labor
340 4390 Other UtIhnes Expense
350 Total UnhtIes Expense (LInes
290-340)
Ordinary Maintenance and

Oneration
360 4410 Labor
370 4420 Matenals
380 4430 Contract Costs
Page 20
390 I~~l Ordinary Maintenance & ,

eratlOn
(Lmes 360-380)
Protective Service
400 4460 Labor
410 4470 Matenals
420 4480 Contract Costs
430 Total ProtectIve Sel"Vlces (Lmes
400-420)
General Expense -
,
440 4510 Insurance
450 4520 Payments m heu of taxes
460 4530 Termmal leave payments
470 4540 Employee benefit contributIons
480 4570 CollectIon losses
490 4580 Interest on admInistratIve and
sundrv items
500 4590 Other general expenses
510 Total General Expense (440 -
500)
520 Total RoutIne Expense
(240,280,350,390,430,510)
Non-Routine Maintenance
530 4610 Extraordmary Maintenance
540 4620 Casualty Losses -
noncapitallZed net -
550 Total nonroutine maintenance
(Lmes 530-540)
Rent for Leased Dwellings

570 TOTAL OPERATING EXPENSE
(Lmes 520 & 550)
Capital Expenditures
580 7520 Replacement of non-expendable
I eanipment
590 7540 Property betterments and
additions
•• 600 7560 Casualty Losses - net capItalIZed
610 Total CapItal Expenditures
(Lines 58£H500)
620 Total Operating Expenditures
(Lines 570 & 610)
Page 21
Treatment of Income and Expenses Under P-BA
A "primary objective" of any P-BA system IS to track as many transactions as

possible in such a manner that they can be direct charged or allocated to a public
housing development. For purposes of determining which income or expenses
should be direct charged or allocated to a project, a PHA may have to group
transactions into three categories.
1. Direct project level income and expenses -- These are income and
expenses which can reasonably be directly assigned to a project.
Examples of direct expenses are wage and salary costs of staff assigned to
a specific project, office supplies, maintenance expenses, protective
services, and other expenses which relate to specifiC projects. Examples of
direct project level income include dwelling rental income, non-dwelling
rental Income, and excess utility charges. As a general rule, if the Income
or expenditure IS directly attributable to the operation of a pUblic hOUSing
development and can be tracked to the relevant project, then it should be
charged as a direct project level Income or expense.
2. Non-project-specific income and expenses -- These Items pertain to a

wide variety of activities and operating services provided to more than one
public housing development. PHAs may-have staff organized for clusters of
hOUSing developments or certain central divisions within the organization
which are organized to provide services on-site to all pUblic housing
developments. Examples Include regional management offices, central
maintenance departments, resident services divisions, and agency-wide
security forces. Depending upon the capability of the PHA's accounting
system and the nature of the services which generate the transactions,
these costs may need to be distributed uSing a "pro-rata" allocation
methodology. Income which is based or grouped in a centralized or
clustered manner for record-keeping purposes will similarly need to be
distributed to prOjects.
3. Central office income and expenses -- These income and expense Items
relate to the general overhead of the organization, including the costs of
services pertaining to accounting, tenant selection, the Executive Director,
and other centralized administrative and supervisory personnel Non-
Page 22
personnel expenses include the costs of insurance, office supplies, central
office rent, and non-housing development legal costs. Central ?fflce
income can include non-dwelling office rent for space in a PHA owned
central office space, Investment income on PHA General Fund balances,
and other non-project based income from vending or other operations or
activities.
.. For purposes of allocating income and expenses, a PHA should allocate both
non-project and central office items in the same manner using an identical proration
methodology. The reqUired allocation method is discussed later in this c~apter.
In order to derIve the most useful and accurate information from a P-BA system,
a PHA should strive to maximize direct charged items and minimize those items which
must be allocated. This can be done by improving procedures used to track these
transactions at the project level. For example, a PHA may develop the ability to track
disbursements of materials and supplies at the point of issuance to a public housing
development, which will enable it to direct charge matenals and supplies to a project.
Another example is a work order system which tracks all maintenance labor hours by
public housing development. Often, automating systems or implementing improved
automated systems can give PHAs the capability to limit the amount of transactions
(both income and expenses) assigned to the non-project specific category.
Tracking Operating Income
Most PHA Income is generated at the project level and therefore must be
tracked at the project level. However, fo~ items such as investment income, it may not
be practical or cost-effective to maintain a system which can directly allocate
Investment earnings, attributable to a specific public housing development, to the
project level. A discussion of the preferred methodology for each of the major income
. accounts is presented below.
• Dwelling Rental (account 3110) -- This account consists of rental charges

to reSidents. The rent roll for a public housing development should relate to
actual addresses, and therefore thiS category of income should be credited
directly to the project level.
Page 23
• Excess Utilities (account 3120) -- This account covers charges to
households for excess utilities consumption. Since income should be
household-based,Jt should be directly credited to the project level.
• Nondwelling Rental (account 3190) -- ThiS account covers charges for

space that is not used for habitation by residents, such as social service
space and community room rental charges. If thIS space is located in a ,-
public housing development, it can be tracked directly at the project level.
o.
• Interest on General Fund Investments (account 3610) -- This-account
covers Interest earnings on PHA funds in the General Fund Account.
Therefore, it is more practical for thIS category of income to be distnbuted or
prorated to projects.
• Other Income (account 3690) -- This account covers all mcome not
properly included under the above accounts. The types of income included
under this account can vary, but Items typically included are vendmg
machme earnmgs and income from the operation of laundry machmes.
Where such income IS generated at specifIC public housing developments,
it is pOSSible to track and directly credit It to the project level. Other types of
income may have to be allocated across projects.
• Receipts from off-site utilities (account 7110) -- ThiS account covers

. any collectIons made by a PHA for the provision of off-site utilities. If this
type of mcome account applies to a PHA, it is probably not directly related
to a specific public housing development.
• Receipts from nonexpendable equipment not replaced (account 7530)

This account covers collection of any funds paid to a PHA for
nonexpendable equipment whIch is not replaced by the PHA. Where
nonexpendable equipment Items are directly attributable to a public housing
development, they should be directly charged to the project level.
Treatment of Operating Expenses
A PHA must Include all operating expense items covered by the HUD Chart of
Accounts In its P-BA system. The minimum accounts a PHA must include under its
Page 24
project-based accounting system are those covered from Line 180 through Line 620
listed on the HUD Form 52599.
• Administrative Salaries (account 4110) -- This account covers the

administrative salaries of PHA personnel. The PHA should give speCial
attention to direct charging the admInistrative salanes of personnel
responsible for activities and assigned at the project level.
• Administrative Expenses Other Than Salaries (accounts 4130, 4140,

4150,4170, and 4190) -- These accounts cover legal expenses, staff
training, travel, accbunting fees, auditing fees, and sundry. To the extent
that any of these Items are controllable and provide useful information at the
project level, the PHA should consider taking steps to direct charge the
Items.
• Tenant Services (accounts 4210, 4220 and 4230) -- These accounts

cover the salaries of tenant services personnel for recreatIOn, publications,
and other services, In addition to contract costs, training, and other related
expenses. There is considerable variation among PHAs In tenant services
delivered. To the extent that tenant services are provided and are offered or
managed at the project level, the PHA should consider a process for direct
charging the expenses to the project level.
-
• Ordinary Maintenance and Operation (accounts 4410, 4420 and 4430) --
These accounts cover labor costs of maintenance personnel, maintenance
materials and supply expenses, and the contract costs associated with
maintenance services provided by other organizations under contract with
the PHA. Many PHAs have the ability to direct charge most components of
these expenses to the project level. Many PHAs develop subaceounts in
order to track these expenses in greater detail.
• Protective Services (accounts 4460, 4470 and 4480) -- These accounts

• cover labor, materials, and contract costs associated with providing
security-related services. If the services are funded through the federal
conventional operating program, the PHA must account for the expenses of
ItS protective services program either by direct charge or allocation,
depending on the services provided and how staff are assigned.
Page 25
• General Expenses (accounts 4510, 4520, 4530, 4540, 4570, 4580, and
4590) -- These accounts cover Insurance, payments in lieu of taxes
(PILOT), terminal leave payments, employee benefit contributions,
collection losses, interest on administrative and sundry notes, and other
general expenses. Many of these expenses must be distributed or prorated
to the project level. But not all of these costs have to be distributed. With
proper planning, such costs can be direct-charged to the project level. For
".,
example, collection losses are an Important measure of project level
management performance and should be tracked at the project level.
"
• Non-Routine Maintenance (accounts 4610 and 4620) -- These accounts
cover extraordinary maintenance and noncapitalized net casualty losses.
Many PHAs assign responsibility for managing and controlling activities
under these accounts to the project level. PHAs who do not assign specifiC
responsibility for these accounts to the project level often discover they
must track these accounts and monitor financial activity at this level. The
PHA should therefore, take steps to direct charge these expenditures to the
project level.
• Capital Expenditures (accounts 7520, 7540 and 7560) -- These accounts

cover replacement of non-expendable equipment, property betterments and
additions, and capitalized net casualty losses. These accounts are similar
to non-routine maintenance listed above, and PHAs should take steps to
have these expenditures charged directly to the project level.
• Utilities (accounts, 4310, 4320, 4330, 4340, 4350 and 4390) -- These
accounts cover water, electricity, gas, fuel, labor, and other utility
expenses such as sewer charges. PHAs differ 10 how they manage and
report utility consumption and expenses as well as in the level and types of
utiltties provided. For the purpose of budgeting and tracking expenses, ",.
there is a degree of standardization reqUired to produce the HUD Forms

52722-A and 52722-B. Generally, utility consumptIon and expenses are
available at the project level, except in cases where projects share heating
plants, for example. Therefore, PHAs should include a process for direct
charging utility expenses to the project level.
Page 26
One of the greatest challenges in developing a P-BA system is to identify the
best method for tracking expenses and determinmg how to represent that data in a
manner which gives semor PHA management the information it needs to evaluate
programs and activities at the public housing development level. Each account
should be reviewed and evaluated to determme how expenses can be reasonably
charged In a direct manner to an account. In cases where it is deemed too costly or
difficult to directly assign or charge expenses to a project level, the PHA should
classify and distribute the expenses according to the methods discussed in the
following section.
The use of the accounts descnbed above and listed on HUD Form 52599
enables a PHA to give a detailed profile of both Income and expenses at the<project
level. However, thiS list of accounts should not discourage a PHA from including
other accounts or developing subaccounts. P-BA IS a system designed to assist
those responsible for supervising and monitoring public housing operations, and
therefore it should include features which give PHA management the mformatlon
needed to effectively deliver services to its residents.
COST ALLOCATION AND DISTRIBUTION OF INCOME AND EXPENSES
In designing a P-BA system, a PHA should take steps to direct charge as many
income and expense items to the project level as are reasonable and justifiable, or to
adapt its P-BA system to permit direct charging of Items In the future-as its capabilities
and needs evolve. However, not all PHA public housing program costs can be direct
charged to a project level. There are central office and non-project-specific income
and expenses w~lch often cannot be direct charged, including:
• operating costs of the central office;
• costs Incurred that benefit more than one fundmg source;
• costs incurred that benefit more than one program; and
• costs for which the benefits of tracking to specifiC programs, funding

sources, or housing developments are less than the effort required to track
such costs suffiCient to resolve or direct charge the income or expense Item.
Page 27
For the most part, costs that fall into the first three categories are easy to
idemir-f. However, those costs which fall into the fourth category can only be
determined based upon a car~ful analysis of a PHA's accounting capabilities.
To satisfy the requirements for aliocating non-project specifiC income and

expenses in a minimum P·BA system, PHAs must use a single proration
methodology based on the distribution of bedrooms within each project. Proration
by bedroom count IS a method which allocates costs based upon the ratio of the
number of bedrooms per project to the total number of bedrooms for all projects of the
PHA. When utilizing this method of proration, a PHA should multiply the unit months
available for each public housing development by the total number of bedrooms in a
pUblic housing development. The distribution of non-project specific and central
office income and expenses to each project should be allocated based upon the total
for each project diVided by the total for the PHA.
In comparison to proration by unit count, this method allocates a higher portion

of costs to projects which consist of housing developments comprised of larger
bedroom units, typically occupied by large families. Scattered site units also tend to
have a large number of bedrooms per unit. Since operating costs are higher on a per
unit basis for larger size family units, the distribution provided by the bedroom
allocation method better reflects the relatively higher costs associated with the
delivery of on-site operating services at public housmg developments comprised of
large families and scattered sites.
ThiS minimum allocation method does not apply to cost centers a PHA may
have established which are unrelated to public housing developments. As the next
chapter explains, a PHA may pursue additional allocation methodologies which
would benefit other internal review and reporting needs. Also, for internal
management purposes, a PHA may want to develop cost allocation schemes which
prOVide different methods of distribution for different types of central office and non
project-specific costs to projects. Yet, It is Important that a PHA be consistent in the
baSIS and method of allocation or proration.
SUMMARY
'.
This chapter has examined the minimum reqUirements for a P-BA system,
mcludmg the deSignation of project level, accounts, and reportmg and accounting
Page 28
capabilities of the system. For the minimal P-BA system to function properly, it'must
be structured to relate the information generated to the mqnagement and delivery of
essential operating services at the public housing development.
Project-based accounting systems appear to be used most often by PHAs who

have some form of decentralized management structure However, implementation of
decentralized management for pUblic housing is not necessary in order to effectively
utilize the minimum features of a P-BA system.
A PHA should maXimize the income and expense Items which it can direct
charge to the project level. Those items which fall Into the categones ornon-proJect
"
speCific or central office must be distributed or prorated by bedroom count as
described in this chapter.
While P-BA reporting for internal management can be quite broad, the minimum
reqUirement for a system is that it must be capable of generating the consolidated
reports reqUired by HUD, as well as a modified St~tement of Operating Receipts and
Expenditures as defined In this chapter.
P-BA systems can greatly expand the capabilities of a PHA to collect and
report information on performance at the public hOUSing development level. Yet, there
are direct and mdlrect costs associated With collectmg and reporting more financial
information than is reasonably reqUired. If the P-BA data is not relevant to users with
responsibiliti~ at the project level, It will be difficult for the PHA to ensure that the
features of the system are utilized effectively.
Chapter Three examines the capacity of a P-BA system to be expanded and

enhanced beyond the minimum requirements and to meet the specific internal
management needs of the PHA.
Page 29
CHAPTER THREE
ENHANCEMENTS TO A
P-8A SYSTEM WHICH SUPPORTS INTERNAL
MANAGEMENT NEEDS
.
INTRODUCTION
Chapter Two presented the set of mimmum requirements that a PHA must
include in the development of a project-based accounting system. This chapter
suggests a range of enhancements that can be added to a P-BA system which go
beyond those contained in the mimmum requirements.
To some extent, each PHA has unique operating requirements and objectives
which will influence the design of its P-BA system. Minimum requirements comprise
the basic threshold standard, but a PHA should strongly consider how the system can
be designed to meet speCific requirements.
In considenng the development of a P-BA system it is important to note that cost

centers are the units or levels at which information is reported. Cost centers can be
project numbers, housing developments, or parts of hOUSing developments, or some
other combination of units that relates to how a PHA manages ItS op,:ratlons. As a
minimum reqUirement, the PHA must develop cost centers which enable it to report on
income and expenses at the public hOUSing project number level. Other methods of
creating cost centers to enhance a P-BA system are discussed 10 this chapter.
This chapter is organized along the same four major P-BA system components
as used in Chapter Two, but explores alternatives and expanded applications of these
components to an enhanced P-BA system:
• Cost centers -- Beyond the cost centers established by public housing

project number, there are hierarchical cost centers and cost centers
relating to agency departments, programs, and functions that can enhance
the ability of the PHA to momtor all aspects of its operations.
Page 31
• Accounts -- Many PHAs choose to use expanded accounts and
subaccounts to Improve the information available from a P-BA system.
• Cost allocation -- In addition to cost allocation by number of bedrooms per

project cost center, there are other allocation methoqs which may be
considered.
• Reporting -- There are many potential uses of P-BA data within the PHA
which extend beyond the basic HUD reporting requirements. Data can be
used to Improve monitoring of management performance-and changes in the
operating condItion of public housing developments.
The desirability of Including the enhancements dIscussed in this chapter

relates to the type of housing managed, the organizational structure of the agency,
the size and complexity of the programs administered, and the capabilitIes of the
agency. If the PHA is Implementing a new or-updated automated data processing
system along with P-BA, many of these enhancements can beJncorporated (or
desIgned for future Implementation) without significant additional cost of design or cost
of implementation.
It is Imperative that the benefIts of Improved management and operation drive

the design and development of a P-BA system at each PHA. Minimum threshold
requirements should be the basIc framework for a system but should not exclude those
elements of al'l¥ management system which are of value to the organization. The
design of a P-BA system must reflect management's needs and be built upon the
requirements of the PHA. Some of the enhancements discussed below may not be
benefIcial to all PHAs, but it is recommended that every PHA review each of the
enhancements addressed In this chapter before deciding which enhancements will
benefit its public housing operatIon.
DESIGN AND DEVELOPMENT OF COST CENTERS
What is a Cost Center? A cost center is a cluster of units, activities, staff,

or programs which are grouped for purposes of financial monitoring and
analySIS. Cost centers can be delineated by administrative departments,
dIVISions within an agency, offIce locatIOns, indIvidual public housing
Page 32
developments, regions or clusters of public housmg develo;>ments, or
related orgamzational components or programs at the PHA.
Cost centers are a critical element of any P-BA system since they provide a
basIs for tracking data pertaining to income and expenses. The design of cost centers
must clearly reflect the operation of a PHA. For the purpose of P-BA, the minimum set
of cost centers must support the tracking of income and expenses at the public
housmg development level by project number. However, tracking costs solely at the
public housing project number may not always relate to how a PHA manages its
housing stock. Therefore, the PHA should consider grouping and supplementing the
project cost centers based on the perspective of ensuring that P-BA is a useful and
significant management system which assists the agency in operatmg its public
housing.
A number of factors may influence the selection of cost centers:
• Type of housing stock - a PHA may cluster unrts and bUildings of similar
type, such as low-rise, mid-nse, hlghrise, and scattered site;
• Geographic area served -- dependmg upon the size of the geographic

area served, a PHA may cluster certain contiguous units which fall under
different project numbers, or separate scattered units under the same
project numbers into different cost centers;
• Size of the PHA -- it may not be feasible for large PHAs to have separate
cost centers for each development; and
• Management structure of the PHA -- where decentralized site operations

exist for both management and maintenance, the organizational structure
may lend itself more easily to development-level cost centers. But cost
centers can also be useful wh~re centralized operations exist.
'> Cost centers can be used to track finanCial activity by a cluster of public housing
developments, by department or administrative division, for the centrai office as a
whole, or for any other program or category of financial activity. What follows is a
discussion on the types and organization of cost centers which can be considered In
order to enhance a P-BA system.
Page 33
In cases where more than one housing development eXists on the same site or
is clustered in the same geographic area, the PHA may fmd it useful to establish cost
centers combining units in more than one project or development, or to assign
portions of one project or development to more than one cost center. Situations where
a PHA might delineate cost centers that do not follow project numbers include the
following'
• scattered site housmg has been developed throughout the PHA service
area under one project number next to larger, more conventional housmg
developed under another project number(s);
•
• one conventional (non-scattered site) project has been developed next to

another conventional project(s);
• housing developments or even bUildings provide housing of one specific

occupancy type (I.e. disabled or elderly) and the PHA desires to group
these types of umts into separate cost centers; or
• the entire public housing portfolio can be divided mto overall geographiC
areas or regions throughout the PHA's service area and the housing stock
IS grouped Without regard to project numbers (or perhaps even occupancy
type) into cost centers by area or region.
Some PHAs have found it useful to establish a hierarchical structure to cost

centers. A PHA might choose to have cost centers comprised of two or more smaller
cost centers for purposes of tracking certam types of expenses. For example,
dwelling income and maintenance labor expenses may be tracked for a specific
portion of a development (e.g., highnse buildings), but admmistrative, materials,
equipment and other expenses may be tracked at a project cost center level that
combmes two or more smaller cost centers. Or, a PHA may group two or more project
level cost centers into a cluster or regional cost center for purposes of reviewing
performance at the regional office level. See the attached example of a Hierarchical
~
Cost Center structure m Exhibit 3-1. "
Page 34
EXHIBIT 3-1
HIERARCHICAL COST CENTER STRUCTURE
Consolidated Cost CenteI

(all cost centeIs Iolled ,
• into one total unit) -
I CentIal Office Depts.

I I
Re~onal Cost CentelS
(clusteIs of dE!l1elopments
Iolled up into an aIea)
ClusteI Cost CenteIs

(sE!l1eIal sites glouped
based on geoglaphy/type)
DE!I1elopment Cost CenteIs

(the most common ltem)
- L- - -
r StIuctme Cost CenteIs -,
(typ1Calslib gloupitem)
L __ ~ -=- ~J
r Unit Cost CenteIS 1
(typlcal slib-gloup item)
L__ J
Most PHAs WIll not have cost centers

below the development level. Ousters
and RegIons may be common for some
medium and large PHAs
Page 35
Cost centers might also be designated for items or activities which are not
project-specific. For example, a PHA may create cost centers for departments or
similar organizational divisions within the agency, ItS Central Office, or certain
program activities. This can h!il1p identify and isolate income and costs related to
specific functions or administrative areas of the agency.
While a greater number of cost centers potentially provides a greater amount of

management Information, there are direct and indirect costs associated with creating
and sustaining a P-BA system and these costs Increase with the level of detail. Some
PHAs have found that their P-BA systems provide information to a level of detail •
greater than what they need for management purposes; some have even terminated
use of their P-BA system. The type of cost centers used can also Impact a PHA's
ability to undertake vanous methods of cost allocation. Therefore, it is cntical that the
deSign and scale of the P-BA system be proportionate to the information needs of the
agency and ItS management personnel.
ENHANCEMENTS TO ACCOUNTS WHICH CAN BE CONTROLLED AT THE

PROJECT-LEVEL
Chapter Two established a minimum level of line items and accounts for a
functional P-BA system to Include those accounts listed on the HUD Form 52599
through line number 620. PHAs will be able to meet minimum requirements if they are
able to generate income and expense.informatJon regarding these accounts at the
project cosf center level through direct charges and allocations uSing the minimum
bedroom method. However, management uses of project-level Information can be
greatly enhanced if the PHA conSiders extensive and careful use of these accounts.
This section consists of a more careful examination of the major account categories
and the benefits of enhanCing the information through direct-charging (rather than
allocation) and the use of subaccounts.
Most accounts which are used in a P-BA system will relate to controllable on
site financial actiVity. A controllable account is one for which management level
personnel responsible for the operation of public housing developments can have a
meaningful effect on the Income produced or the expenses incurred. It is!1Q1 necessary
for all HUD line Items or accounts to be Incorporated or "direct-charged" in a P-BA
system. Rather, it IS important that the F?HA select the accounts and subaccounts
Page 36
which are necessary to relate proJect-level activity to the PHA's operating budget and
the mcome and expense reports.
It should be noted that while quite useful for mternal management purposes,
subaccounts are not considered part of the minimum requirements of a P-BA system.
As long as the subaccounts support, but do not replace or alter, the major accounts
defined as part of the minimum P-BA requirements, a PHA can and should consider
w.'
them as part of the development of its system.
PHAs with P-BA systems generally follow the HUD Chart of Accounts'and
report usmg the numbering system specified by HUD. However, the PHA may elect to
create subaccounts which enable the agency to account for expenses (or rncome) to
a higher degree of detail than permitted by the basic HUD Chart of Accounts structure.
The HUD Chart of Accounts may be expanded either through the use of new line items
or subaccounts. This enables an agency to isolate certain types of income and
expenses in order to mOnItor and control them. In particular, subaccounts are
considered most useful under P-BA when used to provide greater detail for
admmistratlve expenses other than salanes, mamtenance matenals and supplies,
maintenance contract costs, and extraordinary maintenance. Subaccounts can help
PHAs to isolate certam types of income or expenses in order to monitor and control
them. For example, a breakout from the maintenance labor Ime Item for labor related
exclusively to vacancy turn-over may be of value to certam PHAs.
-
A P-BA system should include income as well as expenses, since many forms
of operating receipts are generated at the project level (e.g. dwelling rental income).
Non-dwelling rentals and other income (e.g., for laundry machines, vending
machines, etc.) which are controllable and significant should also be included as
direct income under a P-BA system.
Effective control over operating expenses IS a major responsibility of a PHA

and an important objective of P-BA. The majority of conventional public hOUSing
expenses relate to the direct operation of public housing developments. The
assignment of responsibility and the degree of control exercised over various
expenses can directly Impact the structure and effectiveness of a P-BA system.
The accounts discussed below are defined in Chapter Two of the HUD
Financial Management Handbook (7475.1 REV). The deSCriptions Included herein
Page 37
are not intended to be definitive, but rather to illustrate the income and cost
components that can be directly charged to the project cost center.
•
Also, inqluded here are some report formats a PHA can consider for its P-BA
system. Appendix I contains sample report formats and illustrations of report formats
currently m use by agencies that can be considered. Later in this chapter, more
extensive use of P-BA information for internal reportmg is discussed.
Operating Receipts
Income accounts which can be reported at the project cost center level are:
• Dwelling Rental (Accol,Jnt 3110) - In order to maximize rent collections,

PHAs should review tenant accounts receivable on at least a monthly
basis. Reports which mdlcate amount of rent roll actually collected are
essential in determining where rent collection problems exist, and which
staff and procedures are most effective in collecting rent.
A useful report on dwelling rental income collected would include:
total rent roll for the month

amount of rent roll collected for the month
percent of rent roll collected for the month
percent of rent collected this month last year
amount of receivables collected
percent of receivables collected
• Non-dwelling Rentals (account 3190) - Smce PHAs must mclude some

. types of non-dwelling rentals in their PFS calculation, the inclusion of
the actual collection of non-dwelling rents is Important. A useful report ,-,
on non-dwelling rentals would consist of a spread sheet with the
following three column headings:
Agency Name
Rental Under Contract
Rental Paid
Page 38
Operating Expenditures
The expense accounts included in a PHA's P-BA reports may vary according
to: (1) the ability to control line items at the development or project cost center level;
and (2) the degree of decentralization in the PHA. The more expense account detail
included in the P-BA report, the more complete will be the picture of development
operations.
Preferably the format for P-BA expense reports should indicate the Month for
which information is being reported and the Percent Of The FiscafYear That Has
Passed as of the end of the month. Exhibit 3-2 below is a sample P-BA report following
this format.
EXHIBIT 3-2
ANYTOWN PHA PROJECT-BASED ACCOUNTING SYSTEM

MONTHLY REPORT ON PROJECT EXPENSES:
PERCENT OF FISCAL YEAR ELAPSED: 17%
Project: Cedar Hills 003
Account Expended Expended Percent of Total Balance of

this month Y-T-D bUdget Budget budget
expended remaining
Y-T-D V-T-D
AdministratiOn $1,596 $3,196 17% $19,176 $15,980
Tenant Services $21 $75 13% $600 $525
UtIlities $8,997 $18,219 38% $48,350 $30,131
OrdInary $2,654 $4,992 17% $30;000 $25,008
Maintenance
ProtectIve $332 $476 13% $3,565 $3,089
Services
General $145 $266 15% $1,810 $1,544
Exoenses
Non Routine $250 $250 11% $2,300 $2,050
Total $13,895 $27,474 26% $105,801 $78,327
Page 39
This format can be used for each of the individual expense accounts discussed
below.
• Administration Salaries & Other Expenses (accounts 4110 - 4190) -- The

administrative costs of an individual development include: on-site adminIstrative
staff; a share of area or regional staff, central office staff, or other centralized staff;
on-SIte administrative expenses other than salanes; and a share of non-salary ,
administrative expenses of regional and centralized staff, including legal
expenses, staff traming, travel, accounting fees, audltmg fees and sundry items.
PHAs may designate other subaccounts to provide more detail of expense items
within expense categones.
Salanes of staff associated with the operatIon of public housmg developments

are an important and often controllable expense. The salaries of management
personnel, clerical staff and other personnel either located on-site or who work
directly on a housing development (but are not located at the development) are
considered critical for direct-charge in a P-BA system. PHAs can also Include
allocations of indirect expenses or supervisory personnel who oversee those
involved in the operatIon of a public housing development, but is not necessary
for management purposes.
In order to have a complete picture of a development's admmistrative costs, a

report with the following information would be useful for the Executive Director,
the Fiscal Director, and other appropriate senior staff:
Administrative Salaries:
• Administrative Salaries
• Share of Area Administrative Salanes
• Share of Central Office Administrative Salanes
Other Administrative Expenses:

• Development-specific Non-salary Administrative Expenses
• Share of Area Non-Salary Administrative Expenses
• Share of Central Office Non-Salary AdminIstrative Expenses
Page 40
A report which shows only development-specific information may be more useful
for the Housing Manager, who typically has no control over the Shares of Area
and Central Office costs.
~
A consolidated line Item for administrative expenses other than salaries might be
sufficient for a Housing Manager. However, In an effort to control specific
11,
administrative costs, the Director of Finance might want more detailed cost
information, broken down into the Individual HUD accounts contained in the HUD
Form 52599:
4130 Legal Expense

4140 Staff Training
4150 Travel
4170 Accounting and Auditing Fees
4190 Sundry
The Director of Finance might also want a more detailed accounting of the 4190
accounts, including the follOWing sample of 4190 subaccounts:
4190000 Sundry Miscellaneous

4190010 Sundry Publications
4190020 Membership Dues and Fees
4190030 Sundry Telephone and Telegraph
4190040 Forms, Office Supplies
4190050 Postage
• Tenant Services (accounts 4210 - 4230) -- The Tenant Services costs of an

individual development are comprised of Tenant Services costs specific to the
development and a share of tenant services costs that are not specific to any
development.
Tenant services expenses usually do not comprise a significant portion of the

total operating bUdget or expenses of a PHA, but often they are controllable at
the development level. A PHA can consider tracking accounts for Salaries,
Recreation, Publication and other Services, Contract Costs, Training and Other
Costs at the development level. How to Include these expenses (through either
direct charge or allocation) in a P-BA system depends upon the degree to which
Page 41
the PHA feels it should monitor and control these expenses at the project cost
center level.
A report with the following information would be useful to central office staff:
Tenant Services Salaries:

• Development-specific Tenant Services Salaries ,!'
• Share of Central Office Tenant Services Salaries
Recreation, Publications, and Other Services

• Development-Specific Expenses
• Share of Central Office Expenses
Contract Costs:
• Development-Specific Expenses
• Share of Central Office Expenses
A report which shows only development-specific costs may be more useful for
the Housing Manager since he/she ordinanly cannot control central office costs.
• Utilities (accounts 4310 - 4390) -- Expenses for utilities can be tracked by

development or project, sometimes even by building or unit if needed. Accounts
for these expenses include Water, Electricity, Gas, Fuel, Labor and Other Utility
expenses. Under the Performance Funding System, HUD provides funds to
PHAs for some or all cost Increases attributable to changes In utility prices, and
shares savings re$ulting from a reduction in energy consumption from the base
consumption level with the PHA.
Labor (account 4350) - Utilities Labor charged to a development reflects

the wage cost of workers who spend time working on utilities at the
development. Two subaccounts of Utilities Labor, Regular Labor and
Overtime Labor, would facilitate evaluation of routine vs. emergency utilities
work by identifying which utilities systems have problems and are in need of "
ClAP work.
Utilities (accounts 4310 - 4340) - ThiS account is comprised of Water

(account 4310), Electricity (account 4320), Gas (account 4330), and
Page 42
Heating Fuel (account 4340). Frequent (Le. monthly) expenditLtre
information on each of the four utilities accounts would be usefui in
monitoring energy consumption to improve utilities management, catch
problems such as leaks, and evaluate the results of energy-related capital
improvements.
• Ordinary Maintenance and Operations (accounts 4410 - 4430) -- Accounts

for ordinary mamtenance and operation tend to be the accounts with the greatest
impact on the operation of public housing developments. These accounts
include Labor, Matenals, and Contract Costs. Labor expenses associated with
the delivery of maintenance services can be tracked by whatever method
maintenance personnel are assigned -- by housing development, by geographic
area, centrally, or by program. Materials and supplies expenses can also be
incurred or tracked by the same manner as is labor described above.
Maintenance contract cost expenses cover costs of outside firms providing

maintenance services. They can often be tracked by purchase order or by
contract since they tend to provide information about where the services are
being provided. Many PHAs without P-BA systems already have procedures in
place to track some or all maintenance expenses at the project level. They may
also have designated other subaccounts to cover a Wider range of expense
Items than provided by this category under the HUD Chart of Accounts.
Mainten§lnce
,. Labor - Maintenance Labor charged to a development
represents the wage cost of maintenance staff who spend time working at
the development. In some PHAs, a subaccount breakdown by category of
maintenance labor, such as Pamters, Glaziers, Mamtenance Mechanics,
Plasterers, Laborers, etc. would be very useful. A separate breakdown of
these categories for overtime would also help Mamtenance and
Area/Regional Directors, and Housing Managers and Maintenance
Supervisors, to analyze specific deVelopment maintenance needs by
providing information for future operations, ClAP, and vacant unit reduction
planning.
Mamtenance Materials and Supplies - Materials and supplies charged to a

development represent the cost of Items obtained through stock reqUisitions,
or purchase requisitions for the specific development. A breakdown of
Page 43
costs by category, such as Electrical, Plumbing, Plastering, etc. would be
useful.
Contract Costs - Contract costs charged to a development represent the

cost of contracted services provided specifically for the individual
development. A breakdown by category, such as Electrical, Plumbing, etc.
would help the Housing Manager and/or Maintenance Supervisor plan for
the rest of the fiscal year and for the next fiscal year.
• Protective Services (accounts 4460 - 4480) -- Protective services accounts

cover Labor, Matenals, and Contract Costs expenses. The costs incurred by
PHAs for protective services can vary. When such costs are incurred the PHA
should track or allocate them at the prOject level. The PHA should give careful
thought to which subaccounts (If any) would enhance these accounts in a P-BA
system.
Protective Services Labor - Labor charged to a development represents the

wage cost of employees who prOVide direct services to the development, as
well as a share of central office Protective Services staff salaries. A report
with the following Information would be useful to central office staff,
especially the Executive Director and the Director of Protective Services in
evaluating the public safety needs of each development:
Development-specific Protective Services Labor

Share of Central Office Protective Services Labor
A report wrth information on development-specific labor may be more useful

for the Housing Manager since he/she is typically knowledgeable about,
and responsible for, services actually provided on-site.
Protective Services Materials and Contracts - Materials and Contracts

charged to the development represent the cost of actual matenals used or
services delivered to the specifiC development.
• General Expenses (accounts 4510 - 4590) - The general expense categories

include the cost of Insurance and of employee benefits, which are directly
related to the amount of Administrative Salanes, Utilities Labor, Maintenance
Page 44
Labor, and Protective Services Labor charged to the development. It is useful
for central office staff to review development-level expenditures on these line
items in order to get a c.omplete picture of development operating costs.
Information on these general expenses may not be useful to the Housing
Manager, who cannot control insurance and employee benefit rates. However,
the general expense accounts also include Collection Losses. These are
related to rent collection and therefore may be controlled by the Housing
Manager or other staff responsible for public hOUSing development-based
operations.
• Non-Routine Expenditures (accounts 4610,7520, and 7540) Non-routine

expenditures charged to a development include Extraordinary Maintenance,
Replacement of EqUipment, and Betterments and Additions. Extraordinary
maintenance can often be done under contract with an outside vendor rather
than with PHA staff. An attachment which lists expenditures by vendor would
assist Housing Managers and other staff in keeping track of the following: non
routine Items which have been completed, the actual cost of an individual item,
what unfinished Items remain, and what budget balances remain from completed
items. This type of detailed analysIs by speCific work Item IS needed for the HUD
52598 AnalySIS of Non-routine Expenditures submitted to HUD at the close of the
fiscal year.
COST ALLOCATION DECISIONS UNDER PROJECT-BASED ACCOUNTING
The goal of P-BA IS to direct charge those income and expense accounts
which relate most directly to the effective delivery of essential on-site operating
services at the public hOUSing development level. Not all PHA public hOUSing
program costs can be "direct charged" to a project cost center and therefore may
have to be allocated using some form of a pro-rata methodology. Allocation methods
are useful in cases where systems (I.e. data processing) or other resource limitations
make a detailed direct-charge process less practical.
Project-based accounting cost allocation refers to the methods used to assign

costs to specific project-level cost centers. Costs which are usually allocated can be
put Into the follOWing four categories:
Page 45
• costs pertaining to more than one program or funding source;
• central office costs;
• costs that are not project-specific; and
• whereby tracking costs exceed the benefit of direct charging.
For example, central office costs can be related to the operation of a central
office facility or administrative departments which are not based on-site or do not >.
deliver services to one sIte. Even if it is possible to assign certain cost information to
a project level cost center, It may not be necessary or the systems required may cost
more than the benefit of the assignment. This section covers Issues and procedures
that a PHA can consider In determlOing methods of allocating costs and, in some
cases, income under a prOJect-based accountlOg system. It covers allocation
methods and activities a PHA can undertake in addition to, but not in in place of, the
minimum or threshold allocation requirements in Chapter Two. The purpose of thiS
discussion of the allocation of costs is not to cover the compliance aspects of
accounting, but rather to examine how a PHA can allocate income and expenses to
maximize the usefulness of the financial information.? P-BA systems are designed to
help managers plan, control, and evaluate operations and to allocate or re-allocate
resources among management units or cost centers. The allocation system, and the
resulting reports, must provide the information managers need to make these
decisions.
ThiS discussion is limited to costs and methods that pertain exclusively to the
financial activity which occurs withlO the federally-assisted Low Renf Public Housing
Program. It does not examine issues of allocation between programs, such as the
allocation of central office costs between Section 8 and Public Housing. HUD and
others who regulate PHA actiVities must ensure that PHAs dlstnbute income and
expenses among funding sources and programs in a way that is consistent with
specific program requirements and standard practices. However, allocations within a
program, such as Public Housing, for purposes which are essentially internal to the
agency are not necessanly regulated or supervised by HUD.
7 The discuss;on of allocation methods IS based on the assumption that the reader has a
working knOWledge of HUD policies and procedures pertaining to the operalion of the Low
Rent Public Housing Program I particular assumes that the reader IS familiar with Handbook
7475.1 REV, The Financial Management Handbook and HUD 7510.1 REV-1, The Pyblic and
Indian Hoyslng A<?lXlUnting Handbook
Page 46
Certain PHAs may find it useful for purposes of tracking financial activity
related to speCific program mitiatives to use different (and other widely accepted)
methods of allocating costs. For example. for modernization type work many PHAs
do, and are recommended to use an allocation method based on full-time equivalent
(FTE) employees, if the work is funded under the Comprehensive Improvement
Assistance Program (ClAP). If the PHA is trackmg non-routine expenses for internal
purposes it may wish to use FTE allocation. Likewise, for purposes of conducting an
internal examination of non-project specific expenses, a PHA may fmd it more useful
not to distinguish between developments in any way and use an allocation method
based on unit months available. At times, a PHA may find it useful or even a'
requirement of another organization which is providing grants or other forms of support
for public housmg to represent project-based expenses using a method other than that
defined as a part of the minimum reqUired for a P-BA system.
A PHA may conclude that it is not necessary to allocate all costs, other than
those pertaining to the HUD Low Rent Public Housing Program, to the project cost
center level. PHAs which establish a P-BA system exclusively for the operation of
housing under the Federal Low Rent Public Housing Program have a high degree of
flexibility in dlstnbuting expenses at the project cost center level.
A PHA should begin development of a cost allocation methodology by

determining: (1) which accounts are controllable; and (2) what information on the
direct expenses of a project level cost center are important to the agency's
operations. A controllable Income or expense account is one which project level
management personnel can control or upon which they can have an effect. Most
accounts used in a P-BA system will relate to controllable on-site fmancial activity.
A PHA should, to the greatest extent possible, try to develop and install a P-BA
system which can track directly those costs and Income which relate to activities
which occur at the project cost center level. The fewer the categories and types of
expenses which are not project-specific, the better the PHA's P-BA system will
perform by provldmg information on management performance at public housmg
developments. Any methodology for allocatmg income and expenses should be
based on the elements which compnse the project level cost center.
Page 47
Alternative Methods of Cost Allocation
The threshold or minimum P-BA cost allocation method IS the allocation by

bedroom size PHAs USing Project-Based Accounting may elect to use more than one
method or approach to allocate expenses Internally, if the additional methods are
rational, justJfJable, and supportable. The PHA may determine that a truer indication of
their allocated income and expenses is captured In an alternative cost allocation.
However, allocation by bedroom size must always be calculated so all PHA's have a
consistent measure of across the board allocations for comparison purposes. The
baSIS for the allocation must be consistent with the need for distributing cost elements
which are not or cannot be assigned directly under the P-BA system. In addition, the
distribution of costs must be relevant to the cost center to which the expenses are
being assigned. This is especially true for Internal reporting and tracking of costs
which are considered extraneous to an operation and need not be directly assigned
or charged by a PHA to a housing development.
Several baSIC methods for allocating costs are described below. The list is not
comprehensive but represents a range of allocation schemes in use by many PHAs.
1. Unit Proration by Bedroom Count - This method of proration is based

upon the ratio of the number of bedrooms per project level cost center
compared to the total number of bedrooms for all project level cost centers
of the PHA The purpose of this method of allocation is defined In the
prevIous chapter, and it is considered the minimum requirement for cost
allocation under P-BA.
2. Unit Proration - ThiS method of allocating expenses relies upon the

distribution of Units within the public housing program. The most common
method IS the use of the Unit MonthS AVa/labJ/ity (UMA) within each project
level cost center. Each project is allocated a pro-rata share of Income or
expenses based upon the ratio of UMAs for that cost center to the total
number of UMAs for the PHA. This IS probably the most common type of
cost allocation method used by PHAs.
3 Proration based on Full Time Equivalent (FTEs) Employees - ThiS

method of allocation is based upon the ratio of FTEs per project level cost
center to the total FTEs for all project level cost centers Many costs are
Page 48
dnven by personnel costs and activities. Thus, the use of FTEs as the basis
for allocation is considered to be an effective method for some PHAs. Such
IS the case for ex~enses which appear to have a strong relationship to
employee expenses such as employee benefit costs.
4. Allocation Based on Time Spent - This method allocates costs among

cost centers based upon time spent by staff on each cost center. Some
programs and activities seem to lend themselves more to thiS method, such
as modernizatIOn programs. The HUD Office of Inspector General has Cited
this as one basis which could be better utilized by PHAs for allocating
"
charges to the ClAP program. ThiS method of allocation can be useful when
a PHA has department or diVision-based cost centers. Non-project level
cost center charges are more reasonably distnbuted based on the
prOjection of time spent per program and by type of service (such as
accounting, legal, and other centrally or regJonally based functions).
5. Allocation Based on Job or Activity - ThiS method of allocatIOn IS based

upon the activities or actual distribution of work undertaken at the project
cost center level. For example, PHAs can allocate inventory charges
based on the work orders completed by mamtenance personnel or distribute
certain types of general expenses us109 thiS method. As PHAs have
become more sophisticated 10 the ways they track time and activities at the
project cost center level, their capacity to allocate based on actual
actiVities and events has expanded.
6 Allocation Based on the Distribution of Direct Project Level Expenses

This method provides for allocation of costs among project cost centers.
Allocation is based on the overalL distribution of costs which are conSidered
to be direct and controllable at the project cost center level. In P-BA these
costs should be budgeted pnor to the start of the fiscal year and tracked
throughout the fiscal year. Then the distributIOn of these expenses can be
used to create a pro-rata methodology or allocation for project level non
controllable or mdlrect expenses.
Each of these allocation methods gives the PHA an opportumty to accurately

reflect actiVities at the cost center level. This can be done Without the capacity to
direct charge each and every item.
Page 49
A PHA may consider using more than one allocation scheme. For example,
the allocation of costs for a centralized maintenance administrative department to
project level cost centers could be based on Full Time Equivalent (FTE) assignments
for maintenance personnel per cost center. Per unit proration could be used for non
project-specific insurance expenses. Per bedroom proration could be substantiated
for allocation of administrative staff supporting on-site housing management. fQr
internal review purposes. PHA's could also choose not to allocate certain non
project-specific expenses and income (if such allocations will not enhance
management's understanding and control of project level operations).
....
Allocation Procedures
After a PHA has specified the line items which are to be allocated to each
project, it must develop a coding system which passes the same test as a
consolidated system. Costs recorded as project level charges must also be
reconciled to the General Ledger. Audit trails must be followed to ensure that all costs
Incurred are allocated to prOject level cost centers or to the administrative cost
centers. The system should not duplicate charges to more than one project cost
center or administrative cost center. Below is a discussion of how source information
can be used.
Estimates may be used to allocate cost. For example, when certain supplies
are used on more than one project, estimates may be used to allocate these costs
through an InvenJory Account. Differences resulting from Inventory adjustments
should not be significant and can be allocated as a proration charge, or left as an
administrative cost center.
Generally, allocation IS easier if costs are generated through the invoice

recording (voucher/accounts payable) system. The purchase requisition is often the
basis of the allocation deciSion when the invoice is received. Recognition of the cost
at time of invoice, through use of purchase requisitions, is especially important if
requisitions are combined to take advantage of volume discounts. If the cost is
identified in the accounting system when the liability is recorded, the allocation of the
cost elements to the project level cost center can be done when the party requesting
the services or supplies still recalls the requisition or use. If the cost is identified at a
later time, recollection of the requisition or use may not be clear and the allocation
decision is conSiderably more difficult.
Page 50
EXHIBIT 3-3
FLOW CHART OF TYPICAL ALLOCATION PROCESS
'0
No
No
"
4 5
1.YTD budget status report 4. Purchasing receives and 9. (If Y), Can rtem be
prepared by accounting each consolidates reqUlsrtlons directly allocated to a
month which includes charges into purchase orders. cost center (Y or N).
based on P.O.
5. Review and approval by 10. (If Y), Accounts
2. Each month Project level Director of Finance Payable allocates
and Central Oflce Cost Centers against the
review YTD expendrtures against 6 Copy to Accounting requisrtloners budget
planned expendrtures to determine (Accounts Payable) - at the time the invoice
funds available for reqUlsrtions IS received.
of needed matenals or services 7 Can accounting make
allocations based on P 0 11. (If N), Accounts
3. Project level and Central Office informalion (Y or N)? Payable allocates erther
Cost Centers prepare and send across the central
reqUisitions to purchasing. 8. (If N), Accounting contacts departments or across
procurement for breakdown a development (using
of requiSitions. an allocation method
like Unit proration) .
'II
PAGE 51
Payroll distribution systems via time sheets or other methods of generating the
hours for 'payroll payment provide a place to ensure proper allocation of this cost.
Maintenance staff can be pooled and allocated via the work order system.
Differences in the pool are treated the same as adjustments to the inventory.
When adjustments need to be made In allocation decisions, general Journal

entries should be used to make the correction entries. Standard Journal entnes
should be used to recognize cost through the allocation or distribution system. In all
cases, it is Important that the appropnate systems and procedures are in place before
undertaking the allocation of income and expenses.
ENHANCED REPORTING CAPABILITIES OF A P-BA SYSTEM
A P-BA system can generate reports that meet HUD reporting requirements,
and can also generate internal reports designed to meet the specific internal
management needs of the PHA. P·BA reports turn accounting information into
management tools. Reports provide income and expense data that can be used to:
• Identify expenditure or rent collection problems at specifiC developments;
• evaluate staff performance by enabling development-by-development

comparisons;
• analyze the budgetary Impacts of capital improvements;
• determine the special operating needs of Individual developments or

specifiC types or clusters of developments; and
• analyze pilot programs or corrective measures, by comparing the results at

,"
"test site" developments with results at developments where the programs
are not taking place.
The appropnate level of detail and the inclusion or exclusion of particular

income and expense accounts in P-BA reports will depend on the size, orgamzation,
and operating capabilities of the Individual PHA.
Page 52
In small and medium-size PHAs, where the Executive DIrector and other Senior
staff are familiar with the administrative details and regulatory requirements as well as
the day-to-day operations of each development, less detailed project cost center
•
level information is required. A large PHA, whose central staff has less direct
knOWledge of all levels of activity, may require more information.
The organizational structure of a PHA, such as centralized vs. decentralized

management and maintenance, will affect the content and format of P-BA reports. In
PHAs with centralized management, greater detail In P-BA reporting may be needed
to provide a clear operating picture of each development or project cost center. In
decentralized PHAs, the on-site staff, who are intimately acquainted WIth day-to-day
operations, may require less detail. The level chosen by the PHA for management
and maintenance responsibilities will greatly impact the content of useful P-BA
reports.
The methods of stonng, sorting, summarizing, and reporting the data under
P-BA are as critical as the decisions regarding accounts, cost centers, and reporting
levels. Automation greatly increases the capability of the PHA to track
Information and to allocate costs. PHAs with automated database systems may
have the capacity to store and report information in several ways. Automation adds a
third dimension to storage and reporting. When the system can store and access
individual transactions as well as compiled account information, it IS possible to
recompile the data in formats that are limited only by the extension of the chart of
account structure and the modifications (If any) made by the PHA. Other fields m the
transaction recording can also be accessed. Examples of fields are: date; unit
requesting within the reporting unit; worker performmg or approving the transaction,
and so on.
A fully functional P-BA system has the capacity to generate reports tailored to
the specifiC mterests and needs of different users Within a PHA:
• The Executive Director is interested in, and responsible for, each

development and for overall PHA operations. A report covering the 1Q1a!
cost of operating a PHA would include on-site as well as central and area
costs attributable to the mdividual development. For instance, the P-BA
report would include total Administrative Salanes (account 4110); on-site as
well as central office and area or regional administrative staff.
Page 53
• The Housing Manager may reqUire only development-specific Information.
On-site staff do not require a report as inclusive as that of the Executive
Director and other senior executives. Instead, they need to see income and
expenses for which they are responsible, such as costs of staff who actually
work on-site or are under the Housing Manager's supervision.
• The Director of Management or Area/Regional supervisors may need

reports containing information on the cost of staff time spent on each
development. This helps them to analyze which developments require
special attention and to plan operations for the current fiscal year. 't,
• The Director of Maintenance or a Maintenance Supervisor may want

reports which only include information related to Maintenance Labor
(account 4410), Maintenance Materials and Supplies (account 4420) and
Maintenance Contracts (account 4430). If each of these accounts is
broken into subaccounts, the P-BA report can provide useful detail on costs
in categories, such as masonry or pest control.
Reports which include information on more than one development can help
Senior Staff to identify problem areas among similar and different types of
developments. They can also provide information for evaluating staff and program
performance. Figure 3-4 is a sample format of expenses for a project cost center
consisting of all elderly developments in the PHA. Such a report would enable the
Executive Director to analyze differences among elderly developments, to compare
staff performance at each development, and to evaluate the effects of management or
capital improvements made at elderly deyelopments.
Page 54
EXHIBIT 3-4

MONTHLY REPORT ON PROJECT EXPENSES
PROJECT: ELDERLY - PER UNIT EXPENSE
-
• Account Baywood 007 Burns 011 Fuller 012 Average per
Unit
Administration $6.21 $7.35 $6.84 $6.80
Tenant $0.20 $0.00 $0.19 $0.13
Services
Utilities $8.45 $6.99 $7.38 $7.61
Ordinary $3.36 $3.78 $2.96 $3.37
Maintenance
Protective $1.12 $0.00 $0.45 $0.52
Services
General $4.68 $4.97 $4.12 $4.59
Expenses
Non-Routine $0.00 $1.30 $0.75 $0.68
Total $24.02 $24.39 $22.69 $23.70
"
Figure 3-5 IS a sample format shOWing average per unit costs at different types
of family developments, such ~s hi-nses, townhouses, etc. ThiS report would enable
the Executive Director to Identify which types of developments require the greatest
non-utilities and utilities resources, and faCilitate the development of specifIC
operating programs to meet the needs of different types of developments.
Page 55
EXHIBIT 3-5

MONTHLY REPORT ON PROJECT EXPENSES
PROJECT: FAMILY - PER UNIT EXPENSE
Account - Family HI- Family Mid- Family Family "

Rise Average Rise Average Townhouse Average
Averaae
Administration $8.42 $7.98 $6.65 $7.68
Tenant $0.67 $1.13 $0.12 $0.64
Services
Utilities $7.31 $8.56 $9.13 $8.33
Ordinary $5.64 $4.89 $4.21 $4.91
Maintenance
Protective $1.03 $2.21 $0.00 $10.80
Services
General $5.12 $4.79 $4.99 $4.97
Expenses
Non-Routine $0.37 $0.87 $0.73 $0.66
Total $28.56 $30.43 $25.83 $28.27
PHAs may want to consider establishing an on-going internal process through

which staff can request P-BA reports. These reports would help staff members to do
their jobs better Such a process would maximize the effectiveness of P-BA
information, and enable P-BA reporting to evolve to meet the changing needs in the
PHA.
In PHAs without such a procedure, development management staff may not

•
know how to request or suggest changes in report format, content, or detail. For
example, an Area Director in a large PHA often moves maintenance workers around ,¥
wltnin hiS Area in order to meet changing needs. To help the Area Director keep track
of where staff are deployed, a monthly report would be useful. Such a report would
include: maintenance labor charged to each development, broken down by labor
Page 56
category (pamter, carpenter, mamtenance mechanic, etc.), a column for total dollars
of regular time charged, and a column reporting "full-time-equivalent" (FIE) - to show
the number of each type of vmaintenance worker charged to each development. A
procedure is needed by which the Area Director can request this type of report. The
sample report format in Figure 3-6 includes FIE mamtenance labor information.
EXHIBIT 3-6
• ANYTOWN PHA PROJECT-BASED ACCOUNTING SYSTEM

MONTHLY REPORT ON MAINTENANCE LABOR COSTS
Expended this Hours worked this Full-Time

month month . equivalent
Account
Regular Time
Pamter $144 12 0.07
Plumber $378 27 0.16
Laborer $444 74 0.43
Maintenance $369 204 1.18
Mechanic
Electrician $84 6 0.03
Groundskeeper $405 81 0.47
Total $1,824 241 1.39
Overtime
Pamter $0 0 0.00
Plumber $196 14 0.08
Laborer $0 0 0.00
Maintenance $0 0 0.00
Mechanic
Electrician $238 17 0.10
Groundskeeper $0 0 0.00
Total $434 31 0.18
Page 57
Use of P-8A Reports as Management Tools
Effective use of P-BA reports depends on accurate Information and staff who
are trained to use that Information. The system must have the, capability of responding
to changing needs and requests for additional or modifIed information.
The first use of P-BA generated information is verification and reconciliation. •

This should be done by someone who can reasonably ascertain that information IS
inaccurate or incomplete. Senior staff In larger PHAs may have to rely on subordinate
personnel with first hand knowledge of the P-BA data to review the ihformation for
accuracy. In smaller PHAs, this function is usually performed by semor staff.
To ensure the integrity of this review and use function, there should be a
program for training staff who use the reports. They should fully understand how to
examine and determine the significance of the data presented. Staff should also be
trained and capable of understanding the criteria for determining whether the
additional supplementary information or changes in the existing reporting formats are
needed to better utilize the information.
A PHA should have the capacity to fully update and modify reports to meet
changes in its management informatIon needs. Staff must be given the opportunity to
request changes In reports and supporting informatIon to evaluate data presented in
standardized reports.
P-BA reports and data can be used in evaluating the causes and effects of
certain changes in the operation of public housing at the project cost center level.
P-8A systems can generate information on project vacancy rates, housing unit
inspections and conditions, work order performance, and other non-financial
operating statistics as well as financial information. The combined use of financial
data and operating statistics can assist the PHA in detecting problems in publIc
housing development-based operations and in strengthening its processes for
ensuring accountability for key aspects of its management at the project cost center
level.
By providing a complete picture of financial and operating status at the project

cost center or development level, P-BA reports become important management tools.
Page 58 .
They facilitate informed decision-making and planning at all levels of PHA operations.
Following is a discussion of how P-BA reports serve as management tools.
• P-8A rent collection reports - project cost center information on rent

collections can be used to:
Identify developments with poor rent collection, so that collection

•
efforts can focus on developments with problems.
Identify developments with good rent collection so that procedures

used at these developments can be replicated at developments that
have rent collection problems.
Analyze the effectiveness of current rent collection priorities. For

example, One Northeastern PHA reported that it had been focusing
most of its attention on rent collection problems at family developments,
but a P-BA analysIs of rent collections by development showed that
collections at elderly developments were more significant.
Compare rent collection at Development A dunng the current fiscal

year with rent collection at Development A in prevIous years, to
identify Improvements or increased problems.
-
Measure the effectiveness of new rent collection procedures being
tested at Development B, but not at Development C.
• P-BA expense reports - Expense information on a project cost center

level can be used to:
Compare mamtenance costs for all PHA developments in order to

•
identify which types of developments have high or low operating costs.
Do family developments have higher operating costs than elderly
developments? Do hl-nse developments have higher operating costs
than row-house developments? How do the operating costs of
scattered-SIte developments compare With developments that are not
scattered-site? Does the PHA need to develop different maintenance
delivery systems to meet the needs of different types of developments?
Page 59
Compare maintenance costs for similar type developments. For
example, compare costs in all mid-nse family developments in order to
analyze why their operating costs vary. Are operating COl?ts higher in a
mid-rise with economically and socially troubled families, and if so,
why? Are operating costs higher in blighted neighborhoods, and if so,
why? Does the PHA need to develop programs (such as vandalism
protection or resident education) to address problems that contribute to
high maintenance costs?
.'
Compare maintenance costs In Development A during the current -.,
fiscal year vs. costs in previous years to determine if changes In
management staff or maintenance delivery procedures are cost
effective.
Analyze maintenance costs in each individual development to identify

capital improvement needs. For example, why are heating costs in
Development A so much higher than in Development B? Does
Development A need heating system repairs? Such information is
useful in planning for extraordinary maintenance in the upcoming
operating budget and for ClAP planmng.
Educate residents and staff about the budgetary effects of vandalism,

littering, wasting water, leaving doors and windows open in winter
months, etc.
These examples suggest how reporting can be used to benefit the operation of
public housing. The effective use of P-BA greatly depends on the quality and
"usability" of P-BA reports. Reporting is the method by which financial data can be
linked with operating statistics to provide for improved decision-making and planning
at the development and region, and PHA-wide. P-BA reports that are clear, concise,
and easy to read, and that provide information that is specifically useful to the person
receiving the report, will maximize the benefits of P-BA.
PROJECT-SASED BUDGETING
Project level cost center budgeting is a component of project-based

accounting, and serves as an additional management tool. Not all PHAs which
Page 60
operate project-based accounting systems have project level cost 'center bUdgeting.
However, those PHAs which do create budgets at the project cost center level can
enhance the effectiveness of financial Information at that level.
•
The budgeting process is a planning process. A PHA must develop an

operating plan for each development for the coming fiscal year. The plan reflects the
prionties and operating goals for the specific development for rent collection, tenant
• services, utilities, maintenance, secunty, etc. Project-based budgeting requires the
PHA to anticipate and plan for operatmg needs for the upcoming fiscal year. The
• development bUdget translates the operatmg plan into dollars.
Throughout the country, PHAs differ in the level of involvement of development

staff in the preparation of development-level budgets. In some PHAs, cost center
budgets are prepared by the Budget or Finance Director, with little input from
development staff. In others, the Housing Manager is given primary responsibility for
preparing the public housing development budget, (seeking mput from development
administrative and maintenance staff) with review and approval by supervisory staff.
Preparation of the public housing development bUdget in some PHAs mcludes both
central office and development staff participation.
Some PHAs believe that the most effective development budgets are those
prepared by housing development staff. On-site staff are most familiar with the
development. They know the residents and their rent payment patterns, as well as the
condition of each bUilding, and each umt. They are familiar with the particulars of
systems and structures throughout the development. Working on site daily, they know
what the development needs.
PHAs which have project cost center budgeting can maximize the use of P-BA.
By comparing actual to bUdgeted income and expenses at the housing development
level, PHA management and development staff can determme if the development
• operating plan and budget goals are being met. If half of the fiscal year has elapsed
but only 25 percent of the maintenance matenals and supplies budget has been
spent, this may indicate that maintenance work IS not proceedmg as planned in the
budget. However, if 75 percent of the matenals and supplies budget has been spent
when only half the fiscal year has passed, the development may be headed for a
budget over-run and activity levels need to be adjusted.
Page 61
When a Housing Manager has a specific bUdget with which to operate, the
Manager can be held responsible and accountable for managing the resources of the
development. Accountability is most effectjve when the budget is prepared by the
Housing Manager or similar individual responsible for on-site operations. Housing
Managers who are responsible for preparing devefopment budgets and are
accountable for managing those budgets, believe that they have a great deal of
control and autonomy. When their bUdget is approved for the fiscal year, they can
undertake all of the work included in the operating plan represented by the project "
cost center budget.
•
SUMMARY
P-BA is a management tool which should be used to provide improved

information on financial activity affecting the operation of the public housing program.
The system should be designed in a way that assists the PHA in its efforts to improve
the delivery of on-site operating services to public housing. Any enhancements
made to a P-BA system must reflect the specifiC operating requirements of the housing
agency.
In considering the enhancements to be made to P-BA, the agency should

consider how the enhancements will compliment existing systems and procedures for
meeting the agency's key organizational objectives. P-BA can assist a PHA In
improving perf0rJllance monitoring, assessing the financial and operating condition of
public housing developments, increasing planning capacity through the use of
imprc:lVed Information and m bUdgeting. Other objectives can also be met with the
help of a fully functiOning P-BA system. Therefore, it is the objectives and needs of
the organization which should be the basis for the design of an enhanced P-BA
system.
An Important consideration for implementing or enhancing P-BA is automated

data processing. Certain systems now available to PHAs provide the capability of
.y
developing enhanced P-BA systems. These systems can offer a variety of internal
reports, allow for the creation of many types of cost centers, and provide options for
using different methods of cost allocation among housmg developments. The use of
automated data processing systems is not a prerequisite for Implementing P-BA. But
often it provides a PHA with many options for designing a P-BA system. This can be
Page 62
accomplished without incurnng substantial data processing costs over and above
those already to be incurred in implementing the data processing system which has
been selected or purchased by the PHA. Data processing is intended to.increase the
capacity of the organization. P-BA. in addition to automation, may provide a PHA
with an opportunity to take greater advantage of the increased capacity. This aspect
of P-SA is explored even further in the following chapters.
Careful attention to the management information needs of the various users of

P-BA information and the actual presentation of the information can result in a more
• effective system. In Appendix I examples of customized reports produced by other
PHAs through P-SA are presented for purposes of illustration. Automation offers
important opportunities for PHAs in creating and producing reports which provide
detailed information on public housing development operations. The information
requirements of management must be a major consideration in the development of a
P-BA system.
It IS important that a PHA consider its P-BA system as a dynamic and not a
static system. The PHA should take steps to ensure that ItS P-BA system can keep
pace with the changes at the PHA and that it IS constantly relevant to the information
needs of PHA management.
Page 63
CHAPTER FOUR
THE PROCESS FOR DESIGNING, IMPLEMENTING

AND MAINTAINING A PROJECT-BASED
ACCOUNTING SYSTEM
• INTRODUCTION
This chapter provides an overview of the process a PHA might follow in

deslgnrng and implementing a project-based accounting system.
This discussion assumes that the PHA IS adopting an automated system, or is

adapting its current automated system to project-based accounting. A PHA can
implement a P-BA system manually, or use personal computer (PC) systems for
various accounting and information components. The size of the agency IS an
important factor In determining if the PHA can handle P-BA manually. The larger the
PHA, the better it is served by an automated system. Nonetheless, the Issues and
steps discussed herein, with the exception of selection of an automation vendor, also
apply to a PHA which chooses to adopt a P-BA system without automating. For those
PHAs with manual systems, the user group planning process is even more critical
because of the time Involved In compiling and recompilIng manual reports.
-
Not every PHA will have to undertake full redesign and development of its
accounting system. A PHA may determine by doing a needs assessment that
adapting its current system or adding a few accounting components to it will create a
functional P-BA system that meets its needs. Not all of the steps described in this
chapter and the following chapter will be necessary for all PHAs. But It is still
recommended that user group(s) conduct a full review of the adequacy of ItS current
system's reporting capabilities and the use of ItS information.
Throughout the planning and implementation process, the essential message to

the PHA is the Importance of involving users in designing the P-BA system. P-BA is
intended to provide information which can be used by management to make deCISions
and monitor performance at the project cost center level. It is essential that the staff
who are to use the report have input into its creation. They must also be able to
Page 65
request additional or slightly different information. Failure to involve the users will
decrease their commitment to, and use of the system. It will also dimimsh the potential
value. of P-BA to the agenc~.
SETTING GOALS
,
Before proceeding with design of a P-BA system, the agency should determine
its objectives for the system. These objectives should relate to the managerial or
operational ob~ectlves of the agency. They should be completed before any of the
system components are designed. These goals should be the basis for evaluating the
design of the system.
While the goals and objectives of each PHA Will be unique, the general goals
of converting to a project-based accounting system are: ,
• To provide detailed financial mformatlon regarding the financial activity that

can be control/ed on site, such as administrative and maintenance
expenses;
• To provide information on program and financial activities that, while not

control/ed at the site, may have an impact on control/able costs, including
such non-site expenditures as district maintenance, authority-wide security,
and In-house legal costs for evictions; .
• To provide mformation on finanCial activities that may be used to affect

operations. For example, tracking vacancy reduction costs and
maintenance staff costs to determine how changes in the resources
allocated to these items might impact operating results;
•
• To provide information which Imks operating costs to the costs of capital
improvements. For example, identifying non-routine maintenance or
Improvements that will correct project conditions that distort the level trend
of maintenance.
In essence, P-BA proVides mformatlon that can be used to quantify agency

goals. It relates budget, fmanclal performance, and operating statistics in a manner
Page 66
which enables the PHA to evaluate its performance against agency goals. Further, it
enables this performance evaluatiOn to be conducted at the cost center level.
While the objectives will probably vary from agency to agency, any P-BA
system should be designed to Include the capacity to track and report on the
following:
• Progress towards goals
• Actual Expenses and Obligations compared to projeCted or budgeted
• Fund reporting requirements, such as may be delineated by the funding

agencies.
In addition to meeting the above goals, automated systems should be able to

compile information for varIOUS analytical purposes such as:
• Comparison of costs by various demographic and physical

characterIstics, such as type of bUilding, category of occupancy,
geographical location, denSity etc.
• Performance trends of key elements of buildings down to the most

elementary level
• Comparative costs (historical and by staff/contractors) for work items
• Productivity characteristiCS by staff, units etc.
FollOWing IS a flowchart (Exhibit 4-1) of the key general activities which

occur in the deSign and implementation of a P-BA system.
Page 67
EXHIBIT 4-1
CRITICAL PATH FOR DESIGNING AND

IMPLEMENTING A P-BA SYSTEM
1
Defme the Process and Goals
•
9
2 ,
Define the Roles of Key PosItIons m
the process
9
3
Examine the Current System and
Need for Management Changes
•4
Develop System SpecificatIons
•
5
Develop a Request for Proposals
•6
-.
Select the System
7
Install the System
Page 68
Step 1: Define the Process and Goals
- _ Once a PHA has determined that it wants to establish a project-based

accounting system, it should establish the process to be used In specifying the
system. This first step consists of determining who will be involved and what steps will
be taken. These decIsions will be made by the senior executives of the PHA.
Designing The Process
The process of designing and installing a P-BA system is potentially

complicated and lengthy. To manage the process requires an understanding of all the
activities and actors and their interrelationships Laying out the full process helps to
identify the critical path of activities and provides management with a tool for
monltonng the process.
ThiS chapter divides these many activities into four key phases:
• Set up the Process -- ThiS phase Includes the tasks of:

--defining the scope;
-time frame and;
--actors.
The time required to complete this phase should be minimal: no more than a
couple of months to make decIsions on goals and participants.
• Assessment and Specifications -- This phase involves:

--the assessment of agency needs; and
--the determination of specifications for the new.or modified P-BA
system.
If a consultant IS selected to assist the agency, allow approximately two to

three months for the needs assessment and draft specifications, two months
for internal reView, and two months for HUD review and approval of the
specifications (If funds are being used that require HUD approval).
Page 69
• Procurement - This phase entails:
--advertising the Request F~r Proposals;
--selecting the successful offerer; and
--negotiating a contract.
Assume a period of six to eight months to complete this phase -- two months
allotted to advertising and response; one to two months for review of ,
proposals and visiting installation sites; two months for HUD review and
approval; and up to two months for negotiation of the contract.
• Installation
, -- Installation encompasses:
--the delivery and testing of the hardware and software;
~-conversion of any manual or old system data;
--training; and
--parallel processing. -
Delivery of hardware may take three months; Installation and testing can
take from several months up to two years depending upon the phasing of
installation to minimize disruption of operations; and parallel processing can
usually be concluded within six months.
The time frames described for these phases assume a full-scope conversion
and automation of accounting systems. Where the PHA is already automated, and
wishes only to adapt certain components for P-BA, the time frames are substantially
reduced. In addition to the scope of the conversion and size of the PHA, the most
significant variables which impact time are:
• Phasmg of installation, testing and training -- Where a full-scale

conversion IS occurring and the PHA wants to minimize disruption to
ongoing operations, the modules may be installed in phases over as much
as two years;
• In-house or consultant system design - The assessment and design may

be accomplished more quickly with a consultant, who can conduct the
assessment and design specifications without diverting PHA staff or
disrupting PHA operations;
Page 70
• In-house or vendor data conversion -- The system vendor can assign staff
to conversion of current data, and may be able to accomplish conversion
more quickly than PHA staff who have other administrative responsibilities
(particularly If the vendor payment schedule IS tied to completion of the
conversion); and
• HUD approval -- HUD approval of the specifications and contractor

'. selection is required where ClAP or other HUD-regulated funds are utilized.
The process adopted by a particular PHA may vary depending upon the actors
involved, the capabilities of the organization, the type of system selected, and the
method of implementation. However, the process should generally reflect these
phases and activities.
Step 2: Define the Roles of Key Parties in the Process
The executive staff of the PHA makes the decIsion to initiate the planning and
implementation of a P-BA system and designates the staff who will be involved in the
process. In addition, the executive staff is involved in setting the goals for the
process. While executive staff generally does not assume a day-to-day involvement
in the design of the system, it makes major decisions. These decisions are based
upon the findings and recommendations of the user group, informat~on systems staff,
and technical assistance providers.
User Groups. P-BA systems are established to link financial and operating
statistics. This IS done In a way which allows staff, at the project cost center level, to
monitor operating performance and control costs. The system requires involvement of
staff who operate at the cost center level and are in a position to control costs and
evaluate performance.
The success of the system relies heavily upon the enthusiasm for, and
commitment to, Its procedures and use. Success depends upon entering accurate
data into the system, timely and accurate processing of the data, and usable
reporting. It will also depend on staff training and the degree to which people
perceive the system as directly benefiting them in the performance of their Job.
Page 71
An effectlye method for planning the design and implementatIOn of a P-BA
system is the method or technique of user groups. This approach is frequently used
in automating or re-designing management information systems. Its purpose is to make
certain that all specifications for the system are detailed and reporting reqUIrements
meet the needs of the users in the agency. Project-based accounting as a system
which supports the management of the agency, can be designed to mirror the
operational informatIOn needs of the agency. "
User'groups are important forums for defining what information should be

provided by the P-BA system. The user group can assemble information on how
things actually work or why they don't currently, such as why work orders are not
completed fully and accurately. It can proVide a means for people to give input on
which reports or parts of reports are useful. It can help to formulate reports which
improve productivity. And, it can mOnitor system implementation to ensure that goals
are being met and that the system IS, in fact, helping people to do their jobs.
User groups usually include the end-users or managers of the informatIOn

collected and reported through P-BA. Depending on the size of the agency, the
groups can vary In size. They range from just a !ew indiViduals in one group, to a set
of working groups for each function of the agency, coordinated by a core group.
Whi!e each PHA vanes in its organizational structure and staffing pattems, the user
group should probably Include key personnel representing the following positions:
• information systems management and computers (MIS)

• director of accounting (or representative)
• director of property management (or representative)
• representative of regional level management staff (if applicable)
• representatlve(s) of property level management staff
• director of maintenance (or representative)
• director of contracts and/or procurement (or representative) •
• director or Internal audit and control (or representative, if applicable)
The groups can be directed through the coordinated efforts of the managers of
the Accounting and MIS areas. _These two functional areas bear the largest burden in
organizing and presentmg the reporting Information. If multiple groups are convened,
accounting and MIS staff should be part of each group.
•
Page 72
The key functions of the user group are to:
• Conduct a review of existing accounting and information systems reporting

from the perspective of the users;
• Provide user review of system specifications as they are developed by the

accounting/MIS staff and/or Technical Assistance Provider;
.
• Design and oversee trainrng programs for staff who will provide Information
into the system and use the information generated by the system;
• PartiCipate In appropriate testing of any new system components;
• Review all system documentation to determine whether It is of sufficient

detail and clarity to be used by staff; and
• Provide a forum for PHA staff to have input into the process at any stage.
Staff assigned to the user group(s) should have their current job responsibilities
examined, and In some cases shifted, to ensure that they Will have time to fUlly
participate. The user group(s) can be expected to meet at least monthly dunng the
planning stages, and at some points every other week. Allow one-half day for each
meeting to permit time for preparation and review of information m advance of the
meetings. ~
Technical Assistance Providers. A PHA should assess the capabilities of its

staff to determine whether it can design the specifications for the system in-house or
whether to involve a Technical Assistance Provider. As noted above, it IS logical for
staff associated with the information systems and accounting unrts to participate in the·
user groups. Dependmg upon the capacities of these staff, the work may be
conducted by the current staff or by neWly hired staff added to design and oversee
implementation.
While many PHAs can conduct their own needs assessments and specify
system objectives using PHA staff, there is a creative value in having a Technrcal
ASSistance PrOVider be part of the process:
Page 73
o The Technical Assistance Provider can provide expertise and technical
information regarding P-BA and automation that current PHA staff may not
possess.
• The Technical Assistance Provider provides a perspective that is external

to the agency. He/she raises options and suggests Improvements which
agency staff may not recognize on their own. The Technical Assistance
Provider may have experience with other PHAs and how they Implement '.
P-BA. He/she may also have knowledge about the strengths and
weaknesses of automation vendors and financial programs.
• The Techmcal Assistance Provider can take on certain time-intensive tasks

to minimize disruptions of the ongoing operations of the PHA. If PHA staff
were to undertake such tasks: normal operations of the PHA might be
interrupted.
• The Techmcal Assistance Provider can be an objective listener during user

group discussions and the concerns underlYing staff involvement and
responses during the process.
If a Techmcal Assistance Provider will be involved In the process, the PHA

should develop and Issue a Request For Proposal (RFP) defining the process, the
scope of services, the reporting relationships, and other contractual requirements.
For gUIdance In developing the RFP, Appendix II contains a sample scope of
services. The PHA should review this comprehensive scope, reducing or amending
the scope to reflect the specific needs of the agency.
The PHA may also choose to define a role for the Certified Public Accountant
firm which provides accounting and audit services to the agency. Above all, a P-BA
system must be audltable and comply with the requirements of the Single Audit Act
and HUD regulations. The agency's CPA can review the planned system to
determine whether or not it complies.
In cases where the PHA plans to maintain a manual P-BA system or will not
adopt a new computer system, an automation contractor probably will not become
Involved. Thu.s, the scope of the accounting changes may be handled by the PHA, in
consultation with its CPA firm.
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Step 3: Examine the Current System and Needs for Management Changes
Tne next step IS to determine the scope of changes that the PHA must make to
adopt a P-BA system. The scope of the changes IS determined by the adequacy and
adaptability of current accounting and management information systems, and the
needs of management level staff for additional or more useful Information.
Accordingly, a needs assessment should be conducted, the scope of which should
include:
• interviews With management level staff at central, district/regional, and

project levels to determine their needs for information and the adequacy of
the current systems In providing the Information;
• assessment of the PHA's current accounting capabilities to determine what

information can and cannot be reported at the project cost center level;
• analySIS of the PHA's reporting capabilJtJes and management systems to

determine the levels at which P-BA informatIOn should be reported to be
useful for operations; and
• evaluation of the capabilities of the PHA to implement a P-BA system,

including what external staff and financial resources, if any will be needed
to design and implement the system.
PrOject-based accounting activities can be Implemented in part or In whole

without Implementing prOject-based maintenance or management. There are many
agencies who have central and regional organIzational structures for the delivery of
services and still use project-based budgeting and accounting as a tool for improving
agency performance.
A PHA may want to Incorporate some of the features of a P-BA system without
abandonmg its consolidated accounting system. Its investment in, and comfort with,
the current fmancial accounting system may be too great to abandon it. The a!ijency
may prefer to experiment With pieces of a P-BA system which are most immediately
useful to operations; or it may believe that partial Implementation of prOject-based
accounting features is compatible with its current accounting system and may be cost
effective. Partial implementation entails different levels of activity depending on the
Page 75
PHA. The use ofthe reportmg system and budgeting at the cost center Jevel is not as
involved as with a fully implemented P-BA system. The PHA selects particular items
that are Important to its operations. However, in order to be considered a fully
operational P-BA system, it must incorporate the minimum requirements as delineated
in Chapter Two. Consequently, an agency may want to compare the cost of partial
implementatiOn with full implementation of P-BA, or adopt a gradual changeover to
P-BA.
If a PHA determines that it is preferable to enhance the current system to

perform some functions of P-BA, it must analyze the elements of P-BA which are most
useful to the agency. For example, an agency might consider It useful to prepare
maintenance labor budgets by project and compare actual maintenance labor costs.
Tracking maintenance labor costs could be done through payroll or work orders in a
consolidated system, particularly in an automated system with a job costing module. It
may require that staff time records be changed and that someone be assigned the
data entry job responsibility. But the actual costs of implementing this change would
be quite low.
A PHA may find it useful and appropriate to make organIzational changes

along With changes in Its fmancial management and information systems. Changes in
organization may faCilitate P-BA changes, but P-BA should not be undertaken as a
tool for organizational change. It is a management tool deSigned to improve the
operations of the organizatiOn. It can complement, but IS not a substitute for,
orgamzatlonalfhange. Therefore, organizatlon?l changes that are to be enhanced
by P-BA should be undertaken separately from the design and installation of a P-BA
system.
A PHA may determine that it needs to improve its management information

systems (M~S), orto implement automated data processing systems. The desire to
improve management capacity and to track key actiVities at the public housing
f
development level should be compatible With the goals of P-BA.
The ability to budget and report fmanclal and operating mformation at the
project level increases the opportunities for Property Management to control actiVities
and to hold personnel accountable. For example, site managers can become more
mvolved in supervision of maintenance activities on site, but only if they acquire
some baSIC knowledge of accounts and accounting practices, administrative and
Page 76
personnel management Skills, and identifIcation of maintenance and capital
improvement needs. Site staff may also become involved in project-based budgeting,
provided staff receive the appropnate gUidance and supervision. This may require:
development of a budget procedures manual on how to prepare budgets; a review
process for proposed budgets to determine pnoritles; and traimng to line staff on the
funding and funding sources so that a context for bUdget limitations can be
understood.
P-BA can provide financial and operating Information the agency can use to
identify orgamzational performance that strays from commonly defmed standards.
Regular P-BA reporting can be used for purposes of Internal control to monitor
performance. Where performance negatively impacts a development corrective
actions can be planned and implemented before developments become distressed. In
the case of PHAs With distressed properties, a P-BA system can provide information
for assessing the impact of new operational systems such as a vacancy reduction
program or rent collection program.
Because P-BA provides financial and operating information for review by

managers and other staff, improper allocation or dIstribution of charges to a cost
center can be rapidly identified by cost center managers This quality control is
possible only if the managers and other users know how to review the information and
actually use it.
PHAs can also use P-BA to support an Internal audit function which can be an
individual or group whose organIzational responsibIlities are to review agency
operations in IJght of the internal control and quality control features discussed above.
In essence, thiS function reviews and tests the organization against its own
performance cnteria (which consists of polJcies, procedures and objectives).
Step 4. Develop System Specifications
The responsibilJty for Developing the specIfications for the system is assigned
to the user group(s) and the system staff or Technical Assistance Provider as
appropnate. Using the goals and needs assessment results, system specifications
can be developed, including definition of:
Page 77
--------------------------------- --
• cost centers
o accounts to be reported at the cost center level
o allocation methodologies
• outputs (reports) required
• inputs (data) needed

• processing (production) necessary
• equipment needed (workstations, printers, remote site workstations and
printers)
• internal controls needed
• testing specifications
• training, documentation required
Followmg IS a discussion of some of these key components.
Reports
Reports are the outputs of P-BA systems. They are also the starting pomt for
designmg a P-BA system. Specifying what the system needs to produce will help to
specify what inputs and processes are needed to yield the required output.
Chapter Two Identified external reports reqUired by HUD and other regulatory
agencies. These reports are required of all PHAs, whether or not an agency has
P-BA, and do not necessanly relate to a PHA's internal operations or management
structure. Chapter Three explored the Internal reports that are designed specifically
to meet the management needs of the agency. They can be categorized as follows:
• Routine Management Reports - These are the regular reports to senior

level management. They summarize cost center and agency overall
operating and financial statistics. These statistics are used for financial
planning, budgeting, performance monitoring, and other management
purposes.
• Routine Project Cost Center Reports - These reports are distributed on a

regular basis (either monthly or quarterly) to staff at the project cost center
level. They provide operating and financial information generally confined
to those accounts and line items which are considered controllable by staff
Page 78
at the cost center level. They are used by supervisors at the cost center
level to monitor performance and control costs.
• Internal Audit and Internal Control Reports - These occasional reports are
requested for purposes of conducting internal audit or internal control
reviews of specific areas of PHA operations. These are designed to
provide summary statistics, as well as random verification of individual
transactions recorded in the system.
• Ad Hoc or Special Purpose Reports - These occasional reports are

specified by senior staff to address short-term needs or proJects, and to
examine particular areas of management concern.
Development of reporting formats and specifications is usually done through a

user group or a Similar process which allows for user inputs. As needs change or
reporting problems are identified, the user group develops new reporting formats and
specificatiOns te respond to these needs. This ability to expand, contract, or
otherwise change reporting is a critical feature of the P-BA system. The design
should Incorporate speCificatiOns that permit reporting flexibility and adaptability. The
most flexible system IS represented by automated software programs which
incorporate a report writing feature. This allows people to design their own reports
without the help of a programmer. Flexible data storage systems, such as automated
database management programs, also increase the options available in combining,
analyZing, and restructuring data for analySIS. When a database is-combined with
report writer capability, the PHA has maximum flexibility.
Data Input Parameters
It is important to specify all data that may be needed to produce the reports the
agency requires, but to avoid unnecessary over-specification of data. In the case of
consolidated systems, which are automated and use so-called hard-coding, data
needs will have to be carefully developed because the cost of making changes is
usually very high. Changes may have to be made by a programmer. Each change
can trigger a number of other changes throughout the system. In the case of
automated systems using a database design, the cost of making changes to the data
parameters is much lower but nonetheless needs careful forethought and planning.
Page 79
The recommended approach is to analyze the prospective data elements
needed to produce a report, which allows data input to be defined by output needs.
Earlier chapters examined the issues of cost centers and accounts. The standard is to
find the most cost efficient method of ensuring that only the requisite data be
collected, and that it be collected and inpu: reliably.
Part of this process involves considering how obtrusive and burdensome data
collection and input reqUirements can be on staff and operations. Some data may
cost more to collect than its value to management, and may be more appropriately
addressed through a cost allocation methodology.
An Important input issue is whether the system components and modules are
integrated so that redundant data entry IS mmimized. The objective should be to
integrate the modules so that data (tenant information, for example) can be Input only
once, but be used for multiple applIcations and modules.
Processing Parameters
Processmg is the way 10 which the system takes raw data mputs and compiles
the mformation for reporting at different levels or cost centers. Defining the processing
req!Jirements of the system consists of defmmg the compilations and correlations of
data required, the frequency with which that data is updated, and the correlations run.
Some information may need to be updated only once a year while other mformatlon,
such as work orders, may need to be entered and updated daily.
It is usually the processmg reqUirements that motivate an agency to consider

automation. If the agency is already fully or partially automated, then It needs to
re-evaluate the software and hardware capabilities of the system.
Automated entry and processing can be done in a couple of ways. In batch

processing systems, data is collected and then input by a data entry person in
groups, or batches. For example, withdrawals of items from mventory are recorded
manually or electronically dunng the day. At the end ot'the day, all Inventory
transaClions are entered mto the database either by a person entenng it or by
electronically releasing the batched data to the system. Another option is real time
processmg, under which the data is input by a vanety of people as it is generated,
and the database IS updated Immediately.
Page 80
The methods for processing have direct staff and cost impacts. The batch
system requires someone dedicated or available to make data entry at night or some
oth.er desIgnated time. But the inventory report at any given time, may not be
completely current. In a real time system, data entry is done at the time the transaction
occurs so reporting is always current. Real time processing requires that the ,
computer have the capacity to process entries at all times, and that many more people
be trained in USIng the computer. Quality control needs to be carefully designed
~J
when system access and inputs are so dispersed.
Step 5: Develop a Request for Proposals
Estimate Costs and the Source of Funds
Procurement of a computer system is a critical agency decision. It affects all

parts of the agency. Selection of a computer that does not have enough capacity
may create a bottleneck, slow agency operations, and have other serious
consequences. This phase addresses the process for selecting an automated system
appropnate to the needs of the agency.
Chapter Five contains a diSCUSSion of the costs involved in converting to a

P-BA system. Since P-BA systems are to some extent customized to the unique needs
and structure of each PHA, it is not practIcal to provide precise cost guidelines.
Instead, the components of cost and a methodology for estimating Costs of an
automated P-BA system are identified. Estimating should be done upon completion of
specifIcatIons.
PHAs can consider several sources of funds for a P-BA system:
• Comprehensive Improvements Assistance Program (ClAP) - The ClAP

program permits lImited funding of management Improvements that are in
support of physical improvements. A project-based accounting system
dIrectly supports project-level management and can be justified as a
management Improvement.
Page 81
• Operating funds and reserves - The justification for use of operating funds
and reserves is based on expected operating efficiencies and improvement
in the quality of management.
• Third parties - Some PHAs have been successful in raising funds through
third party sources, such as CDBG funds, foundations, and even private
industry contributions. PHAs should be careful not to allow gifts of
hardware and software to dictate or limit the design of the system. A limited
system may not be able to meet the needs of the agency. Operating
inefficiencies may overwhelm any cost savings of the donation.
Developing an RFP
If P-BA system hardware, software, and techmcal assistance are to be

purchased, the PHA (regardless of size) should develop a formal Request for
Proposals (RFP). The Request for Proposals should specify the purposes of the
system, the performance characteristics of the software and hardware, the equipment
needed and the evaluation methodology.
The RFP should be developed through the same process by which systems
parameters were specified -- namely, a user group (see Appendix II for a sample
P-BA soliCitation package). Given the critical role of the RFP, a PHA may want to
utilize a Technical Assistance Provider to assist the user group in delineating the
plans and techmcal speCifications of the system reqUired by the agency. By collating
the reporting needs of the system, a description of data needed and processing
functions reqUired can be developed. This, in turn, dnves the software specifications
and ultimately the hardware reqUirements. It is not appropriate to choose hardware
first.
The key elements of an RFP are:
• chOOSing who Will gUide its development;
• outlining the overall purpose of the automation;
• delineating the contents of the proposal required;
Page 82
• specifying the system requirements:
-output (reports)
-input (data)
--processing (production)
--equipment (including central processing and storage hardware,
workstations, printers, and remote site hardware)
--internal controls
--training and documentation;
• the schedule for implementation; and
• the selection process and critena.
If the source of funding is ClAP or another HUD-regulated source, the RFP

should be prepared and submitted to HUD for review and approval before it is
advertised and distributed.
Step 6: Select the System
A PHA which utilizes a fully specified RFP and selection process will find the
selection is made easier by the specifications of the RFP. If the a~ency has clearly
articulated the requirements for the system, then it should be possible to develop a
checklist for assessing each vendor's responsiveness to the specifications.
Unfortunately, many vendors try to provide a standard presentation of their

package which mayor may not be responsive to all the articulated needs of the
agency. Some vendor systems are oriented to the financial accounting and reporting
needs of HUD only and have limited capabilities to Incorporate the internal
management reporting needs of PHAs, particularly at the project level. Therefore, it IS
extremely important that PHAs require the vendor to provide an acceptable
demonstration of the system's capacity to provide the management (and not just the
financial) reports speCified in the RFP.
In addition to system responsiveness to specifications and demonstration of

capabilities, another key cnterion IS the vendor's experience in installing and
Page 83
supporting systems In other PHAs. It is recommended that the PHA send staff (or the
consultant) to the installed sites for demonstration runs and for interviews with users of
the installed system. It is not advisable for a PHA to choose a vendor without
demonstrable PHA experience, unless no other vendors are responsive to the RFP
and there is other demonstrable experience of the capability of the vendor.
Negotiating the Contract
After the selection of a vendor, the PHA enters into negotiations for a contract.
f"-
Most vendors will offer to use their own contracts, which they may have used with
other PHAs. While such contracts may be acceptable, the PHA is cautioned to
approach that contract assuming that it will tend to favor the vendor rather than the
agency. Careful legal review of the contract, as well as review of certain sections
with the users group is recommended. If the contract has been used with other PHAs,
check with those PHAs.
The contract should address the following questions and issues:
• Definition of Terms -- Definitions must to be spelled out so that there is a

common understanding of what is meant. For example, what constitutes that
the system IS "delivered"? Its actual delivery to the site? Its delivery plus
installation? Its installation and testing? If so, what kind of testing and by
whom?
..' • What's Included in Costing -- Does the cost include everything? For
example, it n:ight or might not include cabling of the premises. It might or
might not include freight charges. It might or might not include supplies to
run the operation for a specified length of time (say a month). How long is
the pnce good for? (Approvals by funding agencies can sometimes take
longer than the price tlmeframe specified - if It IS specified). If pnces drop in
the meantime does the agency get the benefit of that?
• Licensing -- Does the software include a license? Is the source code in an

Escrow Account so that if the vendor goes out of business or refuses to
support the software any longer, the agency can hire someone else familiar
with the 'language' It is written in?
Page 84
• Timeframe -- Is the timeframe spelled out so that the agency is specifically
aware of when each part of the system, includmg all modules, is to be
aelivered .arJQ operational? Are the training sessions scheduled?
• Acceptance -- What constitutes acceptance? Are the performance criteria

spelled out? Is the payment schedule tied to the passing of performance
tests? If later modules can't be delivered or are delivered but don't work
with the system as expected, what are the remedies available to the PHA?
" • Data Conversion -- Who will convert the data? How much will it cost?
• Documentation -- Is the documentation to be provided delineated and/or

samples attached? What IS the tlmeframe for ItS delivery, especially with
reference to the software and hardware It relates to?
• Training - What IS the training to be provided? How many sessions? Who

provides it? Who pays for it (most especially travel and per diems - do these
have limits on them such as 'coach class' travel etc.)? When does it
happen?
• Technical Support -- How is support provided? How much is provided

under warranty? How IS It provided after warranty expiration? What will it
cost?
Step 7: Install the System
Upon execution of a contract for installation of an automated P-BA system, a

PHA should appoint a coordinator or manager of the installation. This coordinator will
be the POint of contact between the vendor and the agency. Assisting and advising
the coordinator should be the user group, which may have to undergo some changes
in membership to fully represent all areas of the PHA that will be Impacted by
installation.
This coordinator should also be responsible for developing an implementation

plan m consultation With senior staff and the user group. Critical elements of the plan
include the schedule for testing, training, and implementation of various modules of
Page 85
the system. It should also specify the time periods for transfer of data and operation of
parallel systems until the new system is fully tested, debugged, and operational. The
plan should identify staff needed for each step, and should incorporate any support
committed by the vendor in the contract.
PHA senior staff should provide regular and careful supervision of the
coordinator and monitor the progress of Implementation against the plan. When
implementation begins to vary from the schedule, senIor staff must intervene to
determine if additional resources are needed to keep the project on schedule. The ".
credibIlity of the system among the users can be negatively Impacied by disruptions
caused by implementation. The general steps of implementation are outlined in
Exhibit 4-2.
Testing
One of the most Important steps during installation is the testing and
acceptance of the system. A PHA should incorporate specific testing and
acceptance procedures m the RFP. Cntical questions about the testmg procedures
include the following:
• Dry Run -- Do you do a dry run? Do you demonstrate all of the elements or
just some? If Just some, are they chosen randomly by the end user or by the
vendor or supplier? How many times and under how maflY different
conditions will the testis be run? '
• Success - What will constitute success? For example, if you install 50

workstations to manage 5,000 units of housing, is the speed or response of
the network to be judged only when all the data of the 5,000 units is 'on-line'
and all 50 workstations are accessing and manIpulatmg that data at the
same time? Or will one workstatIOn running some sample data from the
vendor be acceptable? Or 50 workstations running some sample data from
the vendor?
Page 86
EXHIBIT 4-2
P·BA IMPLEMENTATION FLOW CHART
Execute
Contract/Start
Date
. ,r - ~-
Appomt P-BA -"

Installation
Coordmator
• ~
•..
Develop Testmg Develop
& Acceptance Implementation
Process Plan with User
, Group
,Ir ,r
•r
Develop a
Installation And Procedures
Testmg Manual
n
~r
Revise Job
-
Descriptions as
Data Conversion Needed
.Ir •r
Develop/
Parallel
Processmg
..
- Implement
Trammg
•r
Full Operation
Page 87
• Conditional Acceptance -- Can conditional acceptance be an appropnate
choice? (test some stations with some data, but a full test will be conducted
when all 50 are running and all 5,000 units of data are in the system).
• Testing -- Who will do the testing? The PHA? (Then who in the agency?)
The Vendor? The Technical ASSistance Provider? All the parties?
• System Problems -- How much time should be allowed the

vendor/supplier to correct problems? What will constitute final failure and
rejection of the system with return of all monies and cancellation of all
contracts?
Staffing Requirements and Impacts
Installing a P-BA Will probably result In small changes in the job responsibilities
of most people, larger changes for a few staff members, and some possible new staff
members for some agencies.
There are several short-term staffing needs during installation. Any agency,
regardless of Size, Will need a coordinator as specified above to oversee installation.
It should also designate staff who are assigned to test the vanous modules of the
system. Its user group must be available for review and second testing.
Once the conversion to P-BA is completed, the tendency may be to return to

the staffing norms whIch existed prior to P-BA, with some reassignments of central
office staff and functions into the field. PHAs with regional management may find it
necessary to authonze a small increase In regional staff to gather and verify cost
center data. ThiS may be done through reassignment; for example, a Budget Analyst
can be reassigned to the region.
Each of the functional areas below may expenence some changes in staffing
and/or procedures.
• Accounting - P-BA cost centers provide greatly enhanced cost tracking.

Staff will be required to learn the modified chart of accounts adopted as part
of P-BA. The new cost centers and chart of subaccounts will require more
extensive initial coding of expense Items. The purpose of thiS IS to make
Page 88
certain that Items are properly allocated to each cost center based on the
nature of the expense. As noted above, budget analysts may be
reassigned to be closer to cost centers.
• Budget - As the P-BA system is implemented, accurate cost histories for

each cost center will begin to develop, which should enhance budget
planning. For instance, a new high-rise elderly development can have an
initial budget developed, based on comparable structures with comparable
systems, within the PHA's hOUSing portfolio.
..
• Purchasing - The PHA's ability to implement a materials planning program
will be enhanced. Given project-specific data on materials usage, stock
reordering and maintenance can be improved. This will reduce productivity
lost through unplanned trips to obtain inventory.
• Property Management - P-BA and bUdgeting at the project level permits

Property Management to identify and track costs. That information IS used
to detect causes of excess costs. This tends to encourage proactive
adjustments and changes in planned actiVities to accommodate changed
budget constraints. As noted above, additional responsibility is assumed at
the regional, and sometimes development, level in reviewing and verifying
P-BA information.
• Maintenance - After utility costs, maintenance is typically the largest

expenditure category of a PHA's operation. P-BA enhances the ability to
track these costs and to formulate performance goals. In additIOn, the
maintenance costs associated with a specific development can assist in
decision-making related to modernization planning and maintenance
staffing patterns. P-BA creates the opportunity for greater interaction
between Property Management and Maintenance staff.
• Administrative Departments - Direct benefits to admmistrative

departments such as Tenant Selection, Leased Housing and Social
Services Coordination are less significant here than to the functional areas
listed above. However, there are indirect benefits. For example,
improvement in daily operations at the site can improve the ability to predict
vacant unit turnaround time, which aids Tenant Selection.
Page 89
Procedures Manual
One of the most important tools of implementation is the use of procedures

manuals. These support the various data input, analysis, and reporting functions of
the system. It is probable that a P-BA system will require changes in the way many
data items are collected, entered into computer, analyzed, reported, and used. These
changes should be covered in a manual for use by PHA staff who participate in the
P-BA system. The procedures will have been developed or outlined ,to some extent
through the planning and RFP process. Procedures should be assembled in a loose
leaf notebook to permit updating.
Training
Training is another critical component of implementation. Training must occur

on several levels:
• General Staff -- All staff should be briefed about the pending changes.
This will allow them to anticipate some disruptions to normal operations as
the new system IS implemented, and to understand that the objective is to
enhance project-level management. They should also be aware that the
system will support closer monitoring of performance. In smaller agencies,
this can be accomplished in a meeting of all staff. In larger agencies, a
series of meetings (by region, for example) can be used to brief project level
staff and other directly affected organizational umts. The agency newsletter
can provide information to staff less affected.
• Input and Analysis Staff _. There will be a need to train newly hired staff
and re-train existmg staff in accountmg, MIS, and Property Management
who are directly Involved in the flow of data and reports. This training is
based on the Procedures Manual, and involves direct experience with the
new system. If this is the agency's first experience with automation, then the
training should be expanded to include the use of computers. Usually this
category of traming IS Incorporated into the vendor's work statement and
should only be momtored and supplemented by the PHA.
• User Training -- Users of the reports should also receive training in how to
read the reports, review the reports for accuracy, provide comments, and
Page 90
apply the Information to improve the performance of their cost center.
Generally this training will be for middle level managers at the cost center
level.
Parallel Processing
If a new system is to be installed, the PHA should plan to operate parallel old
and new systems for a period of three to six months while the new system is
debugged. Dunng this time period, additional or temporary staff may be needed to
support dual entry and processing of accounting data.
Exhibit 4-3 provides a checklist which can be used in the implementation of a

P-BA system. What follows is a discussion pertaining to the operation of a
P-BA system after implementation.
EXHIBIT 4-3
P-BA IMPLEMENTATION CHECKLIST
Has the PHA executive staff read the guidebook YES NO

Has the Executive Staff deCided on Implementing YES NO
P-BA
Has an authorily-wide goals and objectives committee been YES NO

formed to set objectives
Has the committee issued a set of goals and YES NO

objectives to Department heads
Have the Department heads distnbuted the report to staff, YES NO

have comments been received
. Have the goals and objectives been finalIZed YES NO
Has a User Group been formed YES NO
""-
Has a form of financing been determined YES NO
Has the Group met to diSCUSS miSSion, goals and objectives YES NO
Page 91
Has the User Group decided whether to call in a technical YES NO

assistance provider to develop the RFP
Has a technical assistance provider been solicrted YES NO

Has the RFP been prepared by the tecmcal assistance YES NO
provider/staff
",'
Has the RFP been reviewed by the User Group YES NO
Has the RFP been sent out with a timeframe for responses YES NO
<1
Has the vendor and/or P-BA technical assistance provider been selected YES NO
Has the contract been reviewed by the User Group, executed YES NO
Has an Installation Coordinator been YES NO
selected
Has a timetable for installing the P-BA system been developed YES NO
in conjunction with the vendor
Has a discussion begun on personnel YES NO

changes
Has a new personnel manual and Job descnp!lons been YES NO

prepared
Has the User Group discussed new policies and procedures YES NO
Have new members been added to the User Group to address YES NO
these issues
Has a P-BA procedures manual been YES NO

prepared
Has the system been Installed YES NO

Has the system -been tested a=rdmg to contract specifications YES NO
Have training sessIOns on the system been scheduled YES NO
Have training sessions begun YES NO
Has the User Group developed sequence and activity tables YES NO
Has the User Group begun developing a monitoring plan YES NO
Has a momtoring plan been developed with tlmeframes and YES NO
responsibilities
Has the monitoring begun YES NO

Have long range training sessions been scheduled YES NO
Page 92
OPERATION OF A PROJECT-BASED ACCOUNTING SYSTEM
Public housing agencies are dynamic organizations, constantly modifying and

improving operations in response to changing needs and conditions. Changes can
be imposed by external elements -- programs and regulations, funding sources,
housing needs, and community and neighborhood conditions. Changes can also
emerge from needs within the organization as organizational structure, management
prionties, staffing, and identified needs evolve.
Project-based accounting systems must mirror the organizations they are

created to serve. Like the PHA, P-BA must be a dynamic system that can respond to
the changing program environment and needs of management.
This Guidebook has Introduced project-based accounting as a system. The

dynamic element of a system is the feedback loop -- management's use of the
Information and its decisions regarding system maintenance and modificatIOn. This
chapter addresses how the organization uses the Information and adapts the system
to meet changing needs.
For a P-BA system to be of ongoing value to the PHA, the system must possess
three important characteristics:
• Usability - The system must produce information that can be used by PHA
management and staff to make financial and operating decISions at the
project cost center level.
,
• Sustainability - The system must be designed to be maintainable with a
reasonable level of staff and cost commitment that can be sustained by the
organization over the long run.
• Adaptability - The system must be able to respond to the changing needs

of the organization.
All three characteristics must exist for the system to survive and to continue to be of
value to the PHA.
Page 93
If a P-BA system cannot be responsive to development or cost center level
needs for reporting, it will collapse into just another accounting method, not
substantially different than
., accounting and reporting on a consolidated basis. Many
automated consolidated systems, for example, have the capacity to identify data
which is auditable and provides a basis for generating reports on a public housing
development or project cost center level. But this capacity is often used on an ad-hoc
baSIS only after problems with financial performance or condition have arisen. This
type of reactive system is not conSidered an operating project-based accounting
system, and the PHA may be falling to utilize the system to its fullest capabilities.
SYSTEM EVALUATION AND MAINTENANCE
P-BA systems require ongoing attention to the maintenance of the system to

ensure that it produces timely and useful data to meet the changmg needs of the PHA.
The primary activities of ongoing maintenance mclude:
• Regular quality control review of data mput practices and procedures. To

ensure that data IS properly entered and verified;
• Maintenance of hardware and software to ensure that software errors are

corrected, that software updates are installed, and that documentation is
distributed on a timely basis;
• Ongomg review of the usefulness of reports by the user group(s) and

update of reportmg formats as needed to improve information and meet
changing needs; and
• Ongoing training (and updates of system documentation and procedures

manual) for new staff and staff newly assigned to positions, in addition to
supplemental trammg for eXisting staff to enhance their use of the data.
P-BA reports proVide fmancial and operating mformatlon which helps the
agency to identify organizational performance that strays from commonly defined
standards. Regular P-BA reportmg procedures can be used for purposes of internal
control to monitor both system accuracy and agency performance. Improper
Page 94
allocation or distribution of charges to a cost center can be identified by cost center
managers if they receive regular reports. Procedures should reqUire cost center
managers to review and verify information on a timely basIs.
The agency can also introduce quality control procedures by whIch

accounting, MIS, or internal audit and control staff regularly examine a small
percentage of randomly selected transactions to determine whether they have been
properly handled. Internal audit and control staff may also be requested to conduct
special studies If it IS suspected that problems eXist in certain areas of the system.
THE ONGOING ROLE OF USER GROUPS
User groups are one of the best methods to guarantee the sustainabihty of the
P-BA system. These groups ensure that users have a shared interest In the success
of the system. After the user group has completed its role in designing and
implementing the system, there is a role the group can continue to play. The user
group should meet on a regular basis throughout the entire process of design and
implementation, and periodically (perhaps quarterly) after the system is installed, to
perform the following functions:
• Report Modification .- review reporting formats to enhance and correct

formats which are either providing more or less information than the users
need;
• System Maintenance -- consider issues related to system maintenance,

inclUding Improvements to procedures for inputting, editing, and compiling
data in order to improve the timeliness, accuracy, and quahty of the reports;
• Training -- plan and implement ongoing training programs for users of P-BA
information; and
• System Changes-- constantly assess changes In P-BA inputs and

reporting that will be responsive to the changing needs and objectives of
the agency over time, including changes in cost centers, accounts and
subaccounts, allocation decisions, and reporting formats.
Page 95
ONGOING TRAINING
Ongoing training in the review and use of P-BA data IS important for the
usability and sustainability of P-BA systems. For PHAs with decentralized or partially
decentralized operations where the group of P-BA users is large and extends beyond
senior staff, training is especially critical. Not only must new and newly reassigned
staff be introduced to new concepts as part of their orientation, but existing staff needs
to be informed of any new procedures and reports as the P-BA system evolves to
meet the changing needs of the agency and programs. Existing staff also needs to
,.'
regularly expand their understanding and use of P-BA information, -and become more
informed users of the data.
Each PHA needs to hold regular and ongoing trainings, which can be
conducted as one-on-one sessions for new or newly assigned staff, group workshops
to enhance use of P-BA reports, and meetings to distribute updated procedures
manuals and workbooks to staff.
Training sessions for existing staff can explore tOPiCS such as the relationship
between P-BA and the operating budget, how to read and use P-BA reports, and
P-BA system capabilities for special reports. Sessions can be timed to coincide with
the annual budget process in order to remind staff of the P-BA link with budgeting. For
new employees, a procedures manual as well as some one-on-one traming with
experienced staff may be sufficient.
Initial training is likely to be prOVided as part of the contract with the system
vendor or the technical assistance prOVider. For ongoing trainings, the PHA Will
need to determine if it can meet all of its ongoing needs with in-house staff or if it will
need to contract with a professional firm that speCializes in this type of training. It is
probably useful to have the capacity in-house for ongoing training. As part of the
initial implementation costs, a PHA can specify that the vendor or TA Provider
develop a training workbook or methodology, which can be revised and updated by
the agency as needed.
Updating procedures and training workbooks or methodologies should be done

by those with functional responsibilities for budget and MIS, With appropriate support
and review by the user group. This ensures that the updated instructions relate
Page 96
sUfficiently to the perspective of the end users. Those responsible for the MIS
function (as the producer of the reports and clearing-house for any changes to the
P-BA system) can accurately document changes in capacity or purpose.
SUMMARY
This chapter has examined the process of selectmg and Implementing a

project-based accounting system. The process was divided into four phases: Setting
up the Process, Specifying the System, Procurement, and Implementation. The
chapter has emphasized the importance of the planmng process and the Involvement
of participants through User Groups.
The discussion of the process assumed that the P-BA system to be

implemented would be an automated system. This is desirable and strongly
recommended m order to maximize the abihty of the system to provide timely and
flexible reportmg, but it IS not mandatory. PHAs have implemented manual P-BA
systems. For those who choose a manual system, most but not all of the process
issues examined herem still apply.
Like the pubhc housing agencies they serve, project-based accountmg

systems are dynamic systems which must be capable of responding to the changing
needs and priontles of the agency. It IS imperative that a P-BA system be designed to
be usable by staff at the project cost center level, sustainable by the organization
over the long run, and adaptable to the changing structure and needs of the
organization. These are the standards by which the success of the P-BA system will
be jUdged.
System mamtenance activities focus on preserving and enhancing those

qualities of the P-BA system. User groups are important to maintaining these
standards. They give the users direct input into the design, maintenance, and
revision of the system, and vest the users In the success of P-BA. Also, ongoing
training will ensure that new and newly reassigned staff learn how to use the system
and that existing staff continue to expand their use of P-BA information.
Chapter Five examines cost Issues as they pertain to the procurement,

installation, and operation of a project-based accounting system.
Page 97
CHAPTER FIVE
DETERMINING THE COST OF CONVERTING TO A P-BA

SYSTEM
INTRODUCTION
This chapter examInes the components of project-based accounting systems

and how they relate to determIning the overall cost of designing, procuring, installing,
and operating the system. It serves as a guide to determining the components of cost
a PHA must consider in estimating expenses associated with the system.
There are no estimated dollar amounts attached to the components because

costs will vary substantially based on a PHA's Size, orgamzational structure, current
accountIng system, level of information to be collected and disseminated by the
system, and other variables. A form illustrating the cost components is included as
Exhibit 5-1.
The time frame for undertaking P-BA is critical to the cost estimate. As
delineated in Chapter Four, a step-by-step procedure for Implementing the P-BA
system should be undertaken by the PHA in order to ensure that the design of a
system responds to all the needs of the agency. In prepanng a cost estimate, the PHA
should consider staff time in addition to all third party costs. By considering the
elements of a budget for P-BA in terms of time frame, staff commitment, and external
funding requirements along with organizational and system requirements, the PHA
should be able to minimize any unforeseen events as it proceeds with its
implementation of P-BA.
As with the prevIous chapters, this chapter discusses the cost components of
system conyersion as if the PHA intends to automate or replace or substantially
modify its computer system to adopt project-based accounting. Accordingly, for those
,PHAs which already have a computerized system that can accommodate P-BA, the
costs of conversion to P-BA may be reduced considerably. The Items discussed
below may not be relevant for all PHAs. For example, PHAs who adopt P-BA without
automation, have no need for a discussion of hardware and software costs.
Page 99
EXHIBIT 5-1
COST ESTIMATE FOR A PROJECT BASED ACCOUNTING SYSTEM
NUMBER UNIT COST TOTAL

OF UNITS ITEM/STAFF
CAPITAL COSTS
CPU
TERMINALS ~
,.'
PRINTERS
SOFTWARE
WIRINGIINSTALLATION
MODIFICATION TO OFFICE SPACE
ADDITIONAL FURNITURE
SUPPLIES
SUBTOTAL
DESIGN AND PROCUREMENT COSTS
TECHNICAL ASSISTANCE PROVIDER
STAFF TIME
RFP PRODUCTION/ADVERTISING COST
PROPOSAL EVALUATION COSTS
SUBTOTAL
CONVERSION OF DATA
CONVERSION DATA ENTRY
PARALLEL PROCESSING
SUBTOTAL
OPERATIONAL AND STAFFING
CHANGES
NEW PERSONNEL PROCEDURES
HANDBOOKS CHANGES
CHANGES IN JOB DESCRIPTIONS
P-BA SYSTEM HANDBOOKS
SUBTOTAL
TRAINING
COMPUTER TRAINING (ALL LEVELS)
P-BA SYSTEM/REPORTING TRAINING
CONTINUING TRAINING
SUBTOTAL
OPERATING COSTS
MAINTENANCE - HARDWARE
MAINTENANCE - SOFTWARE
STAFF COSTS - OPERATING THE SYSTEM
QUALITY CONTROL
SUBTOTAL
GRAND TOTAL I
Page 100
THE COMPONENTS OF COST
Given the varying sizes of PHAs, and their diffenng organIzation, histories, and
mixes of responsibilities, it is difficult to provide precise cost gUidelines. Instead, it is
more appropnate to examine all th'e components of cost. A PHA can refer to these
cost components to organize Its analysis of cost for designing, installing and
operating a P-BA system customized to its needs and capabilities.
ThiS diSCUSSion IS organized Into three main categones of expenses:
1. For an automated system, the mitlal capital costs of deslgmng an,d

purchasing the system, including hardware, software, and staff costs;
2. The initial start-up or implementation costs, Including staff training and start
up time, data converSion, and management; and
3 Ongomg operating costs, including maintenance of equipment and

software, and ongoing trainmg.
Capital Costs
Implementing P-BA Without automated data processing restricts the timeliness

and variety of reports. It should be noted that the capital cost of the automation of data
processing has been decreasing over the years, for expanded services. Thus there
. .
is an inherent assumption, in thiS diSCUSSion, that the costing analySIS should be
based on automation.
Over the last 10 years, a number of automation vendors have emerged who
proVide accounting systems for hOUSing managers, Including PHAs. These vertical
market proViders have responded to HUD and vanous State Government
requirements, and also have Interacted With PHAs in the development and reVISion of
their software. As a result, some packaged software systems are available that meet
most PHA needs, and may be modified by the vendor to address specifiC PHA needs.
Several vendors now proVide PHA software modules at a very modest cost per
module (e.g., Payroll, Accounts Payable, Tenant Accounts Receivable, General
Ledger, Maintenance, PurchaSing/Inventory, ModernIzation/ Development).
Page 101
The most notable shift In software for PHAs, in the last decade, has been the
emergence of database technology and the gradual decline or transformation of hard
-co<;led systems. The next major shift for PHA software may be the use of relational
databases, whereby all the data can be accessed even though they are in separate
files. This greatly expands the capacity of the PHA to compile and analyze the data in
many different ways.
Most vendors have developed a modular structure for their software offerings.
The modules which are generally included, and can be purchased separately, are
payroll, accounts payable, accounts receivable, general ledger, Work orders &
maintenance, purchasing & inventory, assets, and development & modernization.
While some vendors may have entered the market with a preference for a
certain type of hardware, or platform, many have shifted to a software-driven mode in
which hardware deCisions are becoming secondary to software concerns. By making
the software platform-independent (which means that the software is able to run on a
variety of hardware) PHAs have more choices and opportunities for lowering the cost.
Technological advances have radically changed the computer Industry,

improved performance, and driven down prices. Where expensive minicomputers
were specified for PHAs in the late 70s and early 80s, now certain PHAs may be
served by cost effective networks of PCs. Now, the pnmary factor of hardware costs
is usually the number of terminals, printers, and remote sites.
In addition to software and hardware costs, there is the cost of installation. This
often involves substantial winng and modification of office space, as well as work
stations to accommodate the distnbuted network of equipment. Sometimes the
vendor's bid Will include installing the system hardware components, but other times
thiS can be an extra cost which must be contracted to a local installer.
DESIGN AND PROCUREMENT COSTS
The second major cost component is the development of objectives and

specifications for the P-BA system. As discussed in Chapter Four, this task can be
done in-house, by qualified staff, or through the use of techmcal assistance (TA)
providers. The costs associated with this phase should be estimated, along with the
Page 102
costs of developing, producing, advertising, and distributing the RFP. Staff and TA
provider time should be devoted to a review of the proposals and to visiting eXisting
installations of the top-rated systems for comparison purposes.
DATA CONVERSION COSTS
The costs of converting manual or automated data to the new system should not be
overlooked. It should not be assumed that these costs can be avoided even if the system
,t is installed to begin operation with the start of a new fiscal year. There are costs
associated with establishing the baseline information on cost centers, accounts,'ohouslng
development by project number, buildings, sites, staff, residents, and inventory. There
may also be costs related to establishing or modifying the Chart of Accounts, the Job
Costing (Payroll allocation) System and the PurChasing/Inventory Coding or
Identification (Tracking) System. There is also a time period (usually 90 to 180 days)
during which the PHA should continue to run parallel accounting systems -- both the new
and the old -- until the new system has been fully tested, debugged, and proven to be
fully operational.
Many automation vendors do not Include the cost of data conversion in their base
price, although some now offer to convert the existing manual and/or automated data for
an additional fee If a PHA chooses to convert the data With its own staff, it should
consider the long time frame and costs of the diverted staff time associated with such a
conversion process.
OPERATIONAL AND STAFFING CHANGES
A number of operational changes may be needed to support the P-BA system. New
procedures may be reqUIred for maintaining records and information on vanous
transactions, for reportmg the mformation to the P-BA system, and for reviewing and
verifying information generated by the system. For instance, new inventory withdrawal
procedures, or a new work order system or format may be needed. Scheduled activities
which were not previously recorded, such as regular administrative housekeeping
responsibilities, may now require recordkeeping In order to allocate staff costs to cost
centers. All of these operational changes must be idemtlfied, and the procedure
handbooks updated.
Page 103
In addition, It may be necessary to hire new staff, reassign eXisting staff, or
redefine job descriptions and responsibilities to reflect the changing data collection,
prccessing, and reporting requirements of a P-BA system. For example, certain on
srte staff may have to assume responsibility for reporting information into the system,
or previously centralized accounting staff may have to be reassigned to site offices.
TRAINING
Whenever procedural changes are introduced, training will be-needed for

employees who are affected by the changes. As discussed in Chapter Four, these
training sessions consist of: P-BA overview briefings to all staff; instruction in detailed
procedures involving the flow of data and reports; and, user training for all staff at the
cost center level (who will now be reporting and receiving financial and operating
information).
Automation vendors provide appropriate training and technical assistance in

the use of the hardware and software. The training program and the follow-up
technical assistance should be fully specified in the purchase contract and should
also be coordinated with other procedural and operating changes in the agency. For
training In new procedures and Internal use of reports, a PHA can provide most of the
trainings, if internal capacity IS sufficient. If not, it can contract with the technical
assistance provider for traming services.
OPERATING COSTS
There are two aspects to operational costs which should be Included. One is
the cost of providing project-based accounting services, mcluding actual data
collection and reporting operations, supplies, and maintenance of hardware and
software. The other is the cost of monitoring (which ensures that staff provld~ timely
and accurate information).
"p
PHAs which are already automated can expect limited additional costs
associated with operating a P-BA system. However, P-BA systems tend to draw more
people into the process of entering, processing and extracting data. Terminals and
printers tend to multiply. Control over the system to maintain its integrity and
Page 104
performance becomes more difficult and demanding. Training becomes more
extensive. All of the components of the design, development, and implementation of a
P-BA system add costs.
There are staff costs associated with the actual collection, entry, editing, and
processing of the data required for a P-BA system. Although most data collection and
processing may be accomplished by eXisting staff, some additional data entry clerks
may be needed. For example, time sheets, inventory entries and withdrawals, and
contract costs may need to be entered in the P-BA system. Additional staff costs can
be minimized by careful planmng of forms and data collection systems and by taking
full advantage of automated system features. Further, a PHA must evaluate ~hether
collection of certain information costs more than the benefit it provides.
Operation of a P-BA system enhances the ability of the PHA to monitor

performance at project cost center levels. This may lead to an expansion of Internal
control, internal audit, and quality control activities which focus on the project level.
Additional staff cost to momtor the quality of the data and reporting should be
included.
SOURCES OF FINANCING
PHAs have several sources of financing for automation:
• ClAP - The ClAP program permits limited funding of management

improvements that are In support of physical improvements. ProJect
based accounting systems directly support project-level management
and can be a justifiable management Improvement.
• Operatmg funds and reseNes - Justification for the use of operating

funds and reserves is based on expected operating effiCiencies and
Improvement in the quality of management.
• Third parties - Some PHAs have been successful In raisIng funds

through third party sources, such as COBG funds, foundations, and
even pnvate industry contributions. PHAs should be careful not to allow
gifts of hardware and software to dictate or limit the deSign of the system.
Page 105
A limited system may not be able to meet the needs of the agency. The
operating inefficiencies may overwhelm any cost savings attributed to
the donation.
• Local Sources - CDBG funds are one potential local source. The PHA
may also negotiate lower Payments in Lieu of Taxes (PILOT), contingent
upon the use of the monies for automation equipment.
SUMMARY
This chapter has presented a framework for determining the cost components of
implementing a P-BA system. The discussion has assumed automation as the means
for installing P-BA, but the components of cost are similar for designing and
maintaining a manual system. A form and checklist are provided to assist the PHA in
assembling the cost components Into a full cost estimate.
Page 106
APPENDICES
Appendix I
APPENDIX I
SAMPLE P-BA REPORTS
,.. This appendix displays copIes of actual reports generated by pubhc housing
agencies who have Implemented P-BA systems. As has been discussed throughout
the guidebook, each agency that will be Implementing P-BA should be prepared to
determine their .own needs and orgamzatlonal requirements. These requirements Will
be reflected in the range of reports they choose to run and distribute throughout the
agency. A PHA should be able to provide at the mimmum, reporting Information
based on Modified HUD Form 52599 - Minimum Accounts for a P-BA System, as
discussed in Chapter Two, Minimum RequIrements for a Standard Project-Based
Accounting System. Chapter Three, Enhancements to a P-BA System Which
Supports Internal Management Needs, provides examples and gUidance for
expanding the P-BA reporting system to generate information targeted to a PHA's
individual requirements.
The folloWing eight sample reports provide an overview of the different formats
and information targeted by selected PHAs who have P-BA In place. The first two
samples detail income and expenses for the month for two different PHAs. The reports
dIsplay actual monies expended for particular line items for that 11]0nth, and compare
the actual expenditures to the monthly budgeted amounts. The third sample is a
targeted report, focusing on maintenance costs for the month. This type of report can
isolate any category of cost the PHA chooses in order to track targeted costs. The
fourth sample displays all of the developments of a specifiC PHA and the
corresponding expenditures for each line item for the month. The fifth report IS a
sample of department-based budgeting, based on one PHA department's monthly
., expenditures for a particular category of expense. The sixth sample is a monthly
report on receipts and expenditures for one cost center for all non-utility hne Items.
The seventh report IS generated from the same PHA as the previous sample. It
summarizes the PHA major accounts expenditures for the month. The last sample is a
description of monthly expenses for a specific department in the PHA, utilizing
subaccounts under the category of administrative expenses.
Page 1
AppendIx J
sample A
This report is a Monthly Statement of Costs for an individual development. In

addition to the descnptlon of the category and account number, the report has five
columns. This PHA makes use of subaccounts, as can be seen under Sundry
Account # 4190, Gas - Account #4330, and Maintenance Labor and Materials
Accounts # 4410,4420. The first column IJsts the expenditures for the month, the
second column is year to date expenditures, the third column is the annual budget, 'N,'
the fourth column IS the vanance, and the fifth column is the percent of the annual
budget used to date. The vanance is the amount of money remaining in the budget for
the stated penod.
Sample B
This report is entitled a Comparative Statement Sub-Group Report. The report is

issued monthly for each housing development in each subgroup (the agency IS
divided into groups/cost centers). The report indicates what fund the money is
allocated from, the group and the sUbgroup (a subgroup is a housing development).
The report has nine columns, more than the other PHA reports reviewed. The first
column is the actual expenditure for the current month, and the second column IS the
actual amount bUdgeted for the current month. The third and fourth columns are the
variance m dollar and percentages of the amount spent and the amount budgeted for
the month. The fifth column IS the actual spent y.ear to date and the sixth column is the
amount budgeted year to date. The seventh and eighth columns are the variance In
dollar and percentages of the amount spent and the amount budgeted for the year to
date. Finally, the ninth column is the annual budget for the year.
•
sample C
ThiS IS a sample targeted report. The report is a Summary of Maintenance

Costs for the month. Smce it IS a summary of one item, it is used as an across the
board companson for all the developments. The developments are listed in column
one. The report has eleven columns, column one identifies the project, columns two
through nme are the mamtenance items, and the last column is the total maintenance
Page 2
Appendix I
costs for each development. This report enables the staff to view the cost of eight
discrete maintenance categories by development.
Sample 0
•
ThIs sample IS a Summary of Expenses for a particular month. All of the
developments for the PHA are listed in numerical order, (only two a~e referenced
here) with a breakdown by account line Items. In addition to the description of '
category and account number, the report has six columns. The first three columns are
the current month, quarter to date, and year to date expenditures. The actual budget
figure for the particular development line Item IS shown In column four, followed by the
budget variance both in actual dollars and by percent. The management staff receive
a complete pnntout of all of the developments. The last page totals the expense
figures for the entire PHA.
Sample E
This sample IS a monthly report for one department of the PHA, for a particular
category of expense. The report details the amount the Executive Department spends
.
monthly on administrative expenses. In addition to the account number and expense
~
category descriptIon, the report has eight columns. The first two columns compare the
amount actually spent the previous year and the amount allocated for the present
budget year. The next three columns detail the monthly expenditures for budgeted
expense, actual expenditures, and the dollar variance. The last three columns state
the year to date figures for budgeted amount, actual amount, and the dollar variance.
Sample F
ThiS is a sample report for ReceIpts and Expenditures for one cost center. The
expenditures are for the given month, and only reflect non-utility line items. The report
displays the major account and the subaccounts with their titles. This report differs
from previous reports In that it traces where costs from other cost centers that are
allocated to this particular cost center emanate (see the proj column). The next group
Page 3
Appendix I
of categories are the financial data: annual budget, prorata budget, actual cumulative
year to date figures, actual figures for the current month, and year to date balance.
The prorata bUdget colum'~ is the monies that are to be expended by that period
assuming equal expenditures over a 12 month period.
'.
Sample G
This report accompanies Sample F, and is a monthly Major Account Summary

report. The report lists all of the major accounts (line items) and the monthly
expenditures for each account for the entire PHA. There are seven columns: major
account number, account title, annual budget, prorata budget, actual cumulative year
to date figures, actual figures for the current month, and year to date balance.
Sample H
This report details the expenditures for a specific department within the PHA.
There are nine columns; three are descriptive and SIX are concerned with
expenditures. The first three categories are the account number as detailed in the
general ledger, the second is the subaccount, which IS the indicator of the expense,
and the third is the subaccount title (or line descnption). The next-six categories are:
annual budget, present month budget (In this case January), year to date expense,
present month expense, year to date percentage used, and the balance.
.
,
. '
Page 4
------------------------
SIATEMENT OF COSTS
_M .:
- - - - - - - - - - - - - - _ . _ - - - -PERIOO
_. ENDING OECEMIlER 31. 19119
--------
ACTUAl ACTUAL
OESCRIPTION CURRENT HONni YOR TO OA TE ANNUAL IlUOGET VARIANCE
I NCOHE .. - "-- _._- ---_._--- -

OWELLING RENTAL 3\10000 1211111.561 ( 152.115.611 16,024,553.001 15,ell,111.33) 131
EXCESS UTILITIES 3120 000 241.01 (6,627.66' 250.000.00 243,312.341 (3)
-1NT-ERE5r-iNC-aME'----- 361{1-000----- ( M,21e.3el - 12e1,104.911 ·-1 5e9,'14'1.-o0 1- - .--( 30 e, 23 e. 091 1 4e 1
INT.ON GEN FUNO INVSHT - INS. 3615 000 ( l,e41.091 0,e41.09) .00 1,847.09 0
SERVICE CHARGE TENANT
LATE CHARGES
3620 010
3630 000
°1119.101
450.001
15,342. e5
11,110.00
1 190,000.001
152,000.00
le4,651.151
(50,230.00'
(61
131
-UUNORY-! NEOHE-..,-..,-..,-..,-- -- --3650-000
OTHER NON RENTAL INCOHE 3690 000
- .00
.00
- - ----.00
1696.611
·11,000.001-
110,000.00'
11,000.001
19,303.331
0
111
TOTAL INCOHE
-------------
195,053.141
-------------
1450,164.051
-------------
(1.016,896.001
-----------
(6.566,131.151 16'
------------- ------------- ------- ... ---- ------------
EXPENDITURES
AlLOCAHa COSTS ~IOO 104 9,981 .. 81 66,398.59 1.IR2tS713.00 1,116,114.41 6

- CONTINGENCY
--~.- ----
TOTAL ALLOCATIONS
4100 205 .00
--- .. ---------
9,981.81
.00
--- ----------
66,396.59
(4,890.001
-------------
1 tl77,683.00
14,690.00.
-----------
1,111,284.41 •
0
b
--AOH-S Al:AR !i:S-NON -T ECU -- 4\10-120-- 3.069.56 19.0e6.~7 46,931.00 l7,844.43 4[

LEGAL FEES 4130 141 102.36 303.11 11,000.00 10,696.89 3 (f)
PUBLICA T!ONS 4160 401 .00 6.64 .00 (6.64J 0
AUDIT FEE
• of I SCAL- AGENT-FEE S-
"SUNDRY AOHINISTRATIVE EXPENSE
4110 000
4190 040
4190 100
.00
.00
'.. 99
.00
~ .00
161.95
21,015.00
., 224.00
12,985.00
21,015.00
2Z4.00
12,823.05
0
0
I
~
"'D
."COURT COSTS 4190 110 1106.001 (558.00) 181. 00 1)9.00 OQBW'
HISC REPAIRS/ALT;::E~RA~T~I~ONS
--SPONSOREO-EVENTS~
OFFICE SUPPLIES
4190 201
4190-230
4190 252
- ~ .00
.00·- ---- .00
294.23
.00 -
2.T60.00 2,160.00
--1,000.00· ·-----1,000.00
0
O· - --
10
-- - In
PRINTINGSREPROOUCTION
__ ~ V_E_R ~ I S;:.IN~G,--- _ _
4190 2ee
4190 303
31.41
.00
.00
19.64
146.39
-------_ ....... _--
3,000.00
3,500.00
2,000.00
2,105.11
3,420.36
1,653.61
2
7
»
TOTAL ADHINISTRATIVE
-------------
3,048.32
--
19,520.53
-----------,--
104,596.00
-------------
05.015.~1 19
-SAI:ARIES------- - - 421tl 000------ ·836.48 - - --- --';'045.26 - -- ~,888.ob-~--- - 4,642.14 - -51

RECREATION PUBLIC SERVICES 4220 000 302.e4 951.45 2,01.4.00 1,056.55 4B
NORFOLK TENANT ORGANIIATION 42~0 000 .00 351.15 491.00 133.25 73
TOTAI:-TENANT-SERVICES --------- -------------
----~ -1,139.32 _ _-------------
~ 6T360.46- w.
-----------
~2t393.00 ------=--::.-;;~O:;'i:~4---~[---
,------------ -- ._----_. -_.- ., - - - .--- _. ------

•
Ul/U"J/'It.J
~IAI~M~NI OF COSTS
PERroo £NOING DECEMBER 31. 1989
------ .. -<-
ACTUAL ACTUAL
OESCRIPTION CURRENT MONTH YEAR TO DATE ANNUAL BUDGET VARIANce ~
. ,----
wATER 4310 000 .00 3,846.09 49,212.00 45.4Z5.ll 6
_ELECTRICAl----_ 4320 000 4,284.00 29,151.46 ___ 66,698.00 . .:n ,146. 5" 44
HEATING GAS 4330 010 '.. 316.55 11.851.22 10.00a.oo 66,156.18 15
COOKING GAS 4330 OZO .00 3,760.04 14,095.00 10.314.96 Z7
FUEL 4340 000 .00 .00 2.631.00
___ eOO_ 2,831.00 0
-I.A80RC----- 4350_000 __ 303.41 1.I.t40.99_ __ 11,440.991 0
SEWAGE 4310 000 .00 3,068.23 25.510.00 __ ~~,4~~~!! lZ
TOTAL UTILI TIES -------------
0,903.96 -------------
53.138.83 -----------
236.622.00 183,4B3.11 2Z
- --- -- ------- ----- - - - - -- -- - ---- -- -
PARK MAINTENANCE lABOR 4410 020 2.038.81 130 135 .45 34,680.00 2"54~.55 38
fCHO WORK OROER LABOR 4410 030 4,431.21 21,624.83 44,620.00 16,'19 .11 6U(-.
CHO-NON~WORK-OROER LABOR 4410 035 3,418.15 39,285.29 61,663.00 Z2,371.71 64~
-CENT'L HAINT AOH SUPPORT LA80R4410 040 2.543.1~ 1 ~.874.1~ 22,183.00 6,308.22 12 >.
PLUM81NG 44Z0 001 4.73 20.2 541.00 5Z0.13 4
'ELECTRICAL 4420 002 21.14 358.66 491.00 132.34 13-
IHEATlNG______ __ 44Z0 003 68.03 1,390.18 1.910.00 519.22 .11'"
GROUNOS 4420 004 68.53 644.98 4.532.00 3,081.02 14
STRUCTURAL REPA IRS 4420 005 335.81 954.06 2,121.00 lt166.94 45
'PAINTING 4420 006 223.90 1,433.07 2,029.00 595.93 lIX
-lUMOER-G-I1ILL_SUPPLlES _ 4420 001 .00 131.53 . . . • 00 1 HI.531 0
GENERAL MAINTENANCE 4420 008 566.44 5,561.54 1,684.00 2,322.46 71'
CI10 Eeu [PMENT RENTAL 4420 OlD 1,167.01 7,415.39 19,096.00 11,662.61 39
EXTERMINATING 4420 011 40.43 72.78 257.00 184.22 28
.cONTllAC.T_I1UNTENANCE 4420 012 __ 11.05 302.94. __ 4,842.00 ____ 4,539.06 __ _6 _
ELEVATORS 4420 101 .00 40.36 .00 140.361 0
MiSCELLANEOUS MAINTENANCE 44Z0 105 .00 .31 .00 (.311 0
JANITOR SUPPLIES 4420 101 64.86 213.99 468.00 214.01 44
UNIFORH .cLEANING _
-VACANCY MAINTENANCE
__4420 _108
4420 110
5.64
160.35
-_ 38.38
938.08
--- _31.00
1,527.00
_(1.381 124 >,
'S 68.92 61 "
PLANNED MA I NTENANCE 4420 III 11.26 57.69 1,255.00 1,191.31 5
TOOL ROOM 4420 liZ 49.25 321.33 __ 466.00 144.67 6q>
APPL./ANCIi--SHOP- ~420 -11~---- 28.62 - ___ 543.19 __ 598.00 54.81 - 91 ?:
SAFETY SUPPLIES 4420 115 34.64 163.20 393.od 229.80 4Z
ROOFING G SHEET HETAL 4420 116 88.13 480.68 403.00 (71.681 1190<
CATHODIC PROTECTION 4420 111 9.00 16.99 268.00 251.01 6
.fILE--I1ATERIAL-- - - - - - ----'>420-11,8 1.40 ---9.99 418.0Q 408.01 2
TOTAL ORDINARY MAl NT. -------------
115,445.40 -------------
117,030.54 ------------
21Z,156.00
-----------
95,127.46 55
::-:-:c=c------------------ ----
INSURANCE 4510 000 11 .. 02 69 .. 71 33,600.00 33,530.29 o
INSURANCE-SELF INSURANCE 4511 000 .00 1,831.74 .00 11,8310741 o
PILOT 4520 000 .00 .00 9.114_8 0 9,114.00 o
FRING6-BEN6f'.1.r.s -- --4540- 000---- 8.124.92- .- ---38.691.91-' - 86.413. 0- - _. - - 41,,115.03·· - 45 --
•
•
RCPOR r NUMOEH J0021 PAGE

01/09/'10
STATEMENT OF COSTS
PEHIOO ENDING OECEHBER 31. 1909
---.. _-- - - - -_.
ACTUAL ACTUAL
OESCR IP Tl ON CURRENT HON TIl VEAR TO DAre ANNUAL BUDGE T VARIANCE 'l:
COllECTION lOSSES 4570 000 . 1,333.29 (934.40) I, lZ~.OO 2,6~9.48 154'

INTEREST-EXP._SECURITV OEPOSIT4595 000
-------------
37.35 - 106.26
------------- ------------
l06.00
------------
_ 97.74 53
TOTAL GENERAl 10,101.18 39,773.20 131.058.00 '91,20 .... 80 30
- --- . .----- - -- .-
TOTAL EXTRAORDINARY HAINT
------------- .00
------------- .00
-~-
-------------
.00
-----------
.00 0
TOTAL C~SUAlTY lOSSES

-------------
.00
-------------
.00
-----------
.00
----------
.00 0
" --. - ---
PROTECT IVE SERVICES CONTRACT 4BOO 000 .00 .00 1,140.00 It 140.00 0
PROTECTIVE SERVICES-LABOR 4810 000 .00 .00 30,000,00 30.000.00 0
TOTAL-PROTECTIVE SERVICES - --
-------------
.00
-------------
.00
-----------
31.,140.. 00
--------_ ... -
31,,140,00 0
TOTAL EXPENDITURES 46.625.99 302,222.15 1,,906,250.00 10604.027.65 16

------------ ------------- ---------- ----------
NET INCOHE & EXPENDITURES (46,427.7)) (147.,942.70 I CSt 110,646.00) (4.962.703.301 131
::;::;::;::;====::==::;::; ~ ::;==::.===:::::==== ===;;;=====::;::;:;: . :::==:;:;::;<;;::;::;::;:::::===
----------_._-_. --------._-----_.- - .. __. - -

-----------_.. _ --------"'----.-._- --------_.-
I' , l •
PAGE 117
COMPARATIVE STATEMENT SUB-GROUP REPORT 09/2S/B9 o UNI TS

o BUDGETED UNIT,MONTH$
JAN, 0\, 1989 AUG, 31. 1989 o ACTUAL UNIT MONTHS
• 'CURRENT MONTH'" " •• yEAR TO DAlE ••••
•• VARIANCE" t, VARIANCE .t ANNUAL

ACTUAL BUDGET DOLLAR PERCENT ACTUAL BUDGET OOLLAR PERCENT BUDGET
INCOME
3110 DWELLING RENTAL ·29.54 I 50,978 2 1 • <1 J 7 -42 250,748 dl07 824 ·149.076 -36 611,134
3120 ExCESS UT/LITIES SOD SOD SOD 100 SOD ',000 -4.000 ·100 .',00'
3190 NONDWELLING RENTAL 32S 136 SI89 138 ::l.600 1.086 S 1,512 138 1,630
TOTAL RENTAL INCOME 29,866 • 5 1.61.1 • 2 1.748 42 261,348 . 4 12.912 - 151,564 -36 -619,368
NON RENTAL INCOME
3690 OTHER INCOME S03 152 ·755 -100 :2 245 G,O\6 - 3,77 I -62 'J,Ol8
TOTAL NON RENTAL INCOME S03 -752 -75S -100 '2,245 '6,016 -3,771 -62 -9,018
TOTAL INCOME -29,863 -52,366 '22,S03 -42 -263,592 ·418.928 -155,336 -37 -628,386
ADMINISTRATIvE EXPENSE
41S0 TRAVEL S7 I $71 100 SOO $56B $56B \00 '$848
4190 SUNDRY S338 -1,022 -302 S2,6SB S2,704 $46 1 S4. 04 B
TOTAL ADMIN, EXPENSE S 1,360 'S409 -951 -232 S2,658 $3,272 $614 IB 104 896
TENANT SERVICES EXPENSE

4220 TENANT SERVICES OTHER \00 S93 $93 100 SOD $744 100 11, " I
TOTAL TENANT SERv. EXP. SOO S93 $93 100 $00 '$744 $744 100 10',111
UTILITY EXPENSE
43'0 WATER & SEWER S16.689 '$16,971 $268 I $146,956 $125.375 ·21,581 -17 $196,265
4320 ELECTRICITY \14,S78 $ 12,315 -2.263 - 18 $124,100 $94,763 -29,337 -30 $134.740
4330 GAS \17,S67 $16,801 -766 -4 $215,743 $420,256 S204,513 48 \565,695
4390 OTHER UTILITY EXPENSE SOO '$660 I S660 100 SOD $5.280 $5.280 100 S7.903
TOTAL UTILITY EXPENSE '$48,834 '$46 753 ':2 08 I -4 '$486,799 1158,875 24 1901,603
ORDINARY MAINTENACE
.~tO ORDINARY MAINT. LABOR SOD iOO '$456 SOD -456 SOO
4420 ORDINARY MAINT, MATERIALS \00 '$4, 1 13 '$4.113 100 $700 S32,904 $32.204 97 ~'9.373
4430 OROINARY MAINT, CONTRACTS $42,9S0 $35,087 ~7.863 -22 $232,384 S280.696 ~48,3'2 17 $421.035
TOTAL ORO MAINT EXP $42,950 \39.200 -3,750 -9 $233,540 S313,600 $80,060 25 $4'10 408
•
PAG, ,,6
COMPARAt lv[ ~r.\I(MENr sue-GROUP REPORT 09/25/69 a UNI IS
a eUOGEYEO UNIT MONTHS
..J~N 01 1<)89 AUG 3' . 1989 a ACTuAL uNIT MONTHS
. U 0 o ( , M 0 NTH , Y ( A 0 a D A T ( ....
ACTUAL
C
eulJe.(
"
I
.. VARIANCE
DOLLAR PERCENT
.. Ar lllM BUDGEI
.. VARIANCE
DOLLAR PERCENT
.. AlmUAl
BUDGET
GENERAL E",PH4$E
4570 COLLECTION LOSSES I " 79' 12 17. 9.620 443 \34 6 13 \17 368 17.245 ·99 126.056
4570 COLLEtTION lOSSES RECOvER 202 iOO 1202 ~,22" 100 12 22' \00
TOT AL GENERAL EXPENSE 11 I 569 \' I7 I 9 418 -433 132.389 '17,368 15 021 '86 $:!G 056
TOT Al ROUTINE "PENS, '104,733 18e 626 .6 107 .8 \755 386 \980.658 $225.27:2 22 '$ I .407 074
NON ROuTINE ~AINTENANC£

16'0 [~TRAOUOJNAny MAINTENANCE \00 100 IOv 100 \00
TOTAL NON ROUTINE MAINT \00 100 \00 \00 \00
CAPITALIZED EXPENDITURES
7540 PROP 8ETTERMENTS & AOO~NS \00 100 100 \00 \00
,
\00 100 \00 \00 \00
VANDALiSM E'PENOITURES
7610 VANOALISM ,'P(NDITURES 120.003 100 '20.003 1163.828 100 "63.828 100
7690 VANDALISM [XP CONTRA '20.003 100 \20.003 . 163.828 100 1163.828 \00
\00 100 \00 100 100

PRIOR PERIOD ADJUSTMENTS
6010 PRIOR yR AOJ AFF. RESID \00 \00 \00 100 \00
\00 \00 100 100 \00
TOTAL ExPENDITURES ~104 733 \88 626 16, 107 . '8 ,755,JOG '9BO 659 10225 272 22 '1,407,074
NET OEFICIT OR RESIOUAl CR '$74,970 136 260 38.610 . 106 '$491,794 156'.730 \69 936 ,2 \778.688
SAMPLE C
OOUSIIlG AUl1IORI1Y .....
SUll1lARY Of 1IAIHTEllAHC£ OlSTS - G9/U/87 TO 10127187
RWrIll: I'Al111ElWlC<:•• EImAWl•. IIo\IHI£llAHC£. llOO FORtE ~ Al'PlllOC:E NllllK•••• COlITRAeJ TOTti. Fq
1U LABlR•••• llATtRlti.•• ~ .... 110\TtRIIll•. lltSlIR•••• lIATERlftlS TAAllSfERS S1ffl.IES. l1t8llR•••• AU. COSTS
600 318.28 ~85.60 5.53 0.00 0.00 0.00 0.00 0.00 0.00 809.~
601 2,035.58 m.20 5lJ.03 359.55 0.00 12.97 0.00 0.00 301.00 ~,129.32
... '
602 1,807.01 m.£1 1,9£5.75 111.2£ 0.00 0.00 0.00 0.00 410.00 ~,97d
603 560.97 494.1£ 0.00 v.oo 0.00 0.00 233.58 '0.00 1.00 1,289. T '"
604 3,071.3~ 2,353.11 "92.9~ 88.71 0.00 0.00 m.o~ 0.00 ~02.00 7,00£.82
£05 332.98 196.22 0.00 0.00 0.00 0.00 0.00 0.0<1 0.00 529. 1
606 759.39 701.88 0.00 0.00 0.00 0.00 2H.55 0.00 0.00 1,675.81
108 m.69 m.35 0.00 0.00 0.00 0.00 0.00 0.00 92.00 972.
,09 1,067.69 505.89 0.00 0.00 0.00 0.00 13.26- 0.00 71.00 1, 631 -f"
10 7U6 34.~ 0.00 0.00 0.00 0.00 H3.25 0.00 0.00 252.75
11 3.795.81 2.173.55 2.095.5£ 5,237.£6 0.00 0.00 92.39 0.00 295.00 13,689•
12 ~95.29 m.52 0.00 0.00 0.00 0.00 0.00 0.00 150.00 1,096.81
13 255.49 193.10 0.00 0.00 0.00 0.00 0.00 0.00 0.00 ~-18. 1
11 368.48 374.97 0.00 0.00 0.00 0.00 0.00 0.00 0.00 7~3 "
l 15,378.90 9,963.70 _ 4,672.80 5,827.18 0.00 12.97 1,£69.55 0.00 1,722.00 39,246.20
'"
•• END OF REPORI Iff
..
'"
• f
1J/\It. ll-V'-~/ tllJU:::'l NlJ AUI HUh I I Y PAGE 2

':::UlrlMARV 1.11 l:XI:ENSES ror, MIJNTIl 1)1- NuVEMCEr< I 1 ~'"I6';"
cur\R[NT \"I!JAF.H R YL R
~-
792t
~ - _...
LO~
------
INCOME HOUSING
MONTH
---TO------
DATE H.I DAlE: EllDGET VAmANCE
45403 EMPLOYEE BEN. H. INS .00 630.09 6:::'0.09 8,670.00 7,939.91 7.36
4'5404 EMPLOYeE BEN UNENPt flCi • I)(~ ;-00 • -tITi)-.1\i"t -_._- l5-ji"l ~ j'IlY •• -~if:1,"),,,oc----
4lHuO rOLl.ECIION Lll~,LI.S llli 4lj.1I1.1- 111.1.11.1- ( ,Ul.-Ill.(It! ',(14(1.1.11.1 O.e7-
45-=>(10 OTHIiR GE.NEIi.AL ( }(PCNS 00 • (I\.I "0 1500.I<.I\,,1 51)\.1. "n II. on
46100 ENTRAORDINARY MAINT. • (II) 3,Oe'.0.00-- 3, (0.00-
11 .00 J,O~o 00 N/A - - - - -
60100 PRIOR VR ADJ RECEIF'l .11(1 16.91- 16.91- 160.0\,) lo:!;6.ot:Il hl.61-
TOTAL 5,6(18.<;:>';:' 16,2:13.32 15,2.13.32 266.664.l2l0 251145~.68 06.71
14004 CAP I TAL E}(PENSES • uO • ('\.1 • \.1(1 1 , 0B5. (1(' 1 1 ('86.00 (1. ('0
4111111 ADMIN. SALAf\IES 2.,037.M 6,171.54 6,171.64 47,1\.1I,.).\.1\.1 41192.8.4(.~ 1(1.9a
~--- - 41"300~tEGAL--t::XF'ENSES-
· - - - - - -........ --- -----~ - ~ - .00 '-------160;z6 ll$~.26 2,000";"00 1 ,8~97T4 8.01
~1400 STAFF TRAINING .O~ 477.63 477.63 400.00 77.63- 119.41
41'300 TRAVEL E}(PENSES .00 242.62 ':42.(2 1,800.(10 1 ,067 .~8 IS.66
41900 SUNDRY ADMIN. E)'FeNS ,(111 22E'.?7 - :~2.'? 'n ?14QQ.QQ 1'),(171.():~ ::.'30
4211)0 SALAfilES (.~74.I'=, l,v(.~4.Z(' 1, ...... 4.:::.11 :::'-;'0'7(1.1..1(1 2;:::',025.011 7.(1:::
422:00 REC.PUI:'.OnIEf\ SE"RVIC 1)0 25.00 2'3.(11) 1,170.1)\.' 1,145.110 2.14
- 42'300 CONTRACT COSTS,ETC. .1-"\0 00 -.013 2eO.OO 2(.0:00 0.00- -----
431~(\ WATER .\.111 74626 7·16.26 '::0."00.l)0 19,,263.76 3.73
4321-"\0 ~LECTRICITY .00 237.78- 237.76- lQ1000.00 16,237.78 1.49-
---4?900- SEWER .00 ~ 6"6.63"-- - - ' 3 9 t ....~3 1 ( ,500.00 1<51"'7037'37 2.41
4410u LABOR WAGES 3,16Q.~1 7,9Ql 40 71901.40 82.290.00 74,3Z8.60 9.Q7
------- -~:;~~~:~~~E~~~~~~~s-
44302 PEST CONTROL
" . - ~ -- ~~~
.00
~-- i:~i~::~~~::~~
2~2.67 292.67
2~:~:~:~g
6,436.00
;~:~~~:~~
6,143.48
~::i~
4.56
44303 OFFICE & SERVo CONTR .~Q 287.76 287.76 340.00 62.24 84.64
-~- ---- -- -. ---~---zM30~-OTHER -CONTRACTS- --~-- ----. ~C) - - - '5C"l ;130- - - ~er.'!3o------rrrmi:4-;'('ll'r Ii), 463. t:m O. 48
46100 INSURANCE E}(PENSES 00 19'3. ?7- 195.27- ~~,Q~10.")(1 ~~"), 195 27 0.67-
45200 FYr.IN LIEU OF TAl<es .00 .ll(l .00 :l7,OOO.(l() 27,u00.0(1 O.{10
·----.4640TI:MPtoYEEI3~ICA 4'ZV;52~- 1,011.84 1,1)(1.84 11,(10.(-10 10,<53B7r;S--9:"'!O--
45402 EMPLOYEE BEN.RETIREM 845.35 2,116.65 2,116.56 23,170.00 21,{154.45 9.13
45403 EMPLOYEE BEN. H. INS .0a 1,068.91 1,~68.91 14,640.00 IS,471.09 7.36
4540-4 EMPLOYEE BEN. UNEMPL .et~ - .00-- • "j"i --~{'i---- ~'~,,'5:O-0---~~--
45700 COLLECTION'LOSSES uO :?67.~7- ~(7.67- 6,000.00 ~,2~7.67 6.12-
45900 OTHER GENERAL E}(PENS Jill .00 .00 800.00 0.00
S00.lll)
. - -~ -.- --~-- ---(5,0100 PRIOR YR-ADJ RECEIPT .(l0 26.99::-- - - - 26."9~· -Z50';"'00---- 286-99-- f0-:-38---
-~
TOTAL 71153.4~ 26,083.24 26,083.24 398,210.00 372,126.76 06.65
104 14A04 cAPITAL E}(PENSES .0(1 .00 "';~ - ~4;C;S6.-eO - 4,(;85.00 0.013-
411u0 ADMIN. SALARIES 1,162.62 8,002.61 3,Ou2.el Z8,3~O.00 25,Z97.89 10.61
41-;00 LEGAL E>(FENSES .ml 84.35 84.')'5 950.('\1) 2"'3.<'::5 : .12'8
41400 STAFF TRAINING
41600 TRAVEL ExpeNSES I
.00
.(11)
261.40
127.<:-')
~- 2:51 -40
127.69
·700.0l'l
80ta.00
48.<:'0
~7Z.::-1
~- e:? .-eo
16.9<.::
c
4190(1 SUNDRY ADMIN. El:PEN8 .no 244.08 244.l'l8 4,350.0(1 411Cl5.)2 5.61
42100SALAfiIES ':.5E.Jl 689.10 2:8.:'1.10- T~-,-=170:00 11,512'1) • .:"J1,) 7.13
4221)111 REC .PUB.OTHER SEfiVIC .rill 26.QO 26.(ln ~C1Q.00 676.(1(1 2.78
42201' CONTRACT C(lSTS, ETC. .011 2.04.00 204.01» 3,1 '::5. 00 Z, 931.00 (,.51
43T00-'NATER --- ---.tlO~----- -Z4(;~07----t"r.07 81800.00 a'552:;~~oj-- 2.&1
43200 ELECTRICITY .00 222.76- 222.76- 12,700.00 121922.76 1.75
42900 SEWER .1.. ') 363.99 363.99 13,000.00 121<'::-36.01 2.80
-- '4~100-LA[,OR WAGES - - -- - ~ 779.44 --, ,'9'17,'3---r; )';'j:7:7;3---?2UO';',7/>leU07.;;.jU,,---I1Btg3"Z:'Z7 . ~-.~r-
442;Oll MAINT. MATERIALS .110 1,322.16 1,'::~2.18 10,E':'1!5.00 9.':572:.12'2 1<:.14
--------
ADHINISTRATIVE EXPENSES EXECUTIVE DEPARTKENT . 501
Month: 6
FY 89 FY 90 HONTHLY YEAR TO DATE

Expense Actual Budget Budget Actual Variance Budget Actual Variance
.- ............ --.- .. ----.------------- -_....oo_---------------.. ---- ._-------------------------
501415000 Travel 12 5,000 417 0 (417) 2,500 12,500)
501419010 Telephone 1864-0578)/Ten Sen 1,325 1,500 125 200 75 750 613 (137)
501419020 Postage 1270 Green Street) 9,464 8,500 708 197 (SIll 4,250 5,197 947
501419040 Office equipment rental 329 500 42 0 (42) 250 282 32
501419042 Office equipaent/a'lnt 562 250 21 0 12J) 125 278 153
501419080 Publications 1,166 600 50 389 339 300 1,293 993
501419081 Helbership Dues/Fees 395 9,000 750 0 (750) 4,500 105 14,395)
501419090 Office Supplles/Sundry 1,541 400 33 59 25 200 797 597
501419093 Delivery 1,111 1,500 125 41 1841 750 539 (211)
501419094 Reproduction 250 21 0 (2!l 125 2 (123)

501442000 Haterlals/Supplles 6 50 4
0
0
0
(4)
0
25
0 0
(25)
0
~
Capital Equiplent i:
"tI
r-
m
. TOTAL 15,910 27,550 2,296 886 0,410) 13,775 9,106 (4,669) m
.f
•
(
,J «
Report GLR331 Run 832 28 NOV 1989 Page
ReceIpts and ExpendItures NON-UTILITY DEVELUPMENT SUMMARY REPURr - EAST for the PerIod 10/89 to 10/89
Cost Center 109
_M.aJot: _.Suh-.C~d:_ . .._ __ _ _. _ • _Annu.aJ. .P-:Cl1Il..a.ta...._._ •__ -Ac..tual_ _ -A<:.tllJU_~ll=Da..tL_. _

Pod Acct Acet Ctr Prj Account Title DUdget nudget Cum VTO Cur~ Period Balance
f--:-c-:~::-::-="",,,~~- .- - -- .-.' "-'-- -- .--. .

010411001 oooaoo 109 109 ADMIN SALARIES 113.29600 66,089 31 66,7~6 9~ 6,961 53 46,~69 0'
010411001000102 109 103 OVERTIME ADMIN SALAR 000 0 00 63
1,~~4 03679 -1,02463
.01nAUOOL 00Q.102. .102 lOS. OVERTIME ADM1N SALAR. .0_00___._ . O. 00. . --20IL7Jl .-lL'OO -::201L7i>.D . _
, 010 411001 000102 109 109 OVERTIf1E ADMIN SALAR 0 00 0 00 2.194 61 178 93 -2.194 61
I] 010411001 000102 109 123 OVERTIME ADMIN SALAR 000 000 468 19 000 -468 19
, {'\t n ... 11 nQ.J._QOOlD2.-l0S':--12.4-0l"lERT.Il:1E.... ADMltLSALA...
R___ 0_00.. ._1Loo 67 79 0 00 -67 19
, 04~ 411001 00010~ 109 501 OVERTIME ADMIN SALAR 0 00 0 00 67 eo 0 00 -67 eo
040 411001 00010~ 109 508 OVERTIME ADMIN SALAR 000 000 29 82 000 -2982
J..lL4UOOl ~....... 109 •••• ADMINIBTRATl VE SA~AR llJ, 296. 00. _ .66. 069,.;11.__ ._ 7l,.2Ba...~4. __Z. 677 -'l~ __ ."-'1. Q.Q.7,_46_. ._.
010 415001 000000 109 109 TRAVFl Q 00 0 00 247 44 o 00 -247 44
010 415Q01-QQQlQ~Q~02-LOCAL_rRAVEL _ _ _ --5QQ~0~0:!__--_=2=9~'-'6:':9:__---~6793~4~7~--~
1.62-68 -193 47
.... 415001 .***** 109 ***"TRAVEL 500 00 291 69 940 91 162 69 -440 91
'--OLO~j2001 000101 109 109. XEROX. RENTAL &.aUp.PL ___L.BOL. 00 0 00

.J..,M!,~0~6-_-::-:~0~0,!0-_--,-::-JJ'-':'''--_~
'.t..fW7 00
J 010 419001 000102 109 109 TELEPHONE 3,81900 2.22775 5,32454 603 60 -1,50554
, 010 419001 000103 t09 109 OFFICE SUPPLIES 871 00 50S 06 311 30 0 00 559 70
n, n -, !lll!1L.OOo..t06-1O!LL02..P.QSIAGE__ . • _ _ _--""'50""OO__ ~ _ _ 8L1i'uO __,,.2'"5WJOuO----..J.WJ"'-----li'"
0 00 '25-00
010 419001 000120 109 109 OTHER 100 00 56 31 1'6 11 27 00 -56 11
*** 419001 ***.** 109 ****SUNDRY 6,741 00 3.93~.6S a,81695 630 60 930 O~
------- ~ --~--- - -. ~ . --
010 422001 000000 '09 109 RECREATION,PUDLIC,QT 2~O 00 14~ 81 4~1 ~4 0 00 -201 ~4
••• 422001 ****** 109 ****RECREATION,PUBLIC,OT 250 00 145 81 451 64 0 00 -201 54
010 43~001 000101 109 109 REGU~AR ~ABO~ 48.8S600 26.516,81 27.417 60 3,699 20 21.46e 40
-- -•••--- ---
43~001 ****** 109 ****UTILITY LABOR 4S.8S6 00 2B. ~H6. St 27,41760 3,699 20 21.468 40
010 441001 000101 109 DID REGULAR LADOR 0 00 0 00 494 62 19 71 -494 62

010 4410~1 000101 109 109 REGULAR LAnOR 177. '66 00 103, ::J80 19 91,947 72 11.46636 85.61828
nln AA1nnJ OOQJQLIQ.li• ..1B2~BEG1J! AR I ABOR- _ _ ~ ~O~Q.O-- 000 591 22 __--232..5'<l...----=lI9..L2.2._. ._ _
040 441001 000101 109 040 REGU~AR ~ABOR 0 00 0 00 368 72 14 69 -368 72
040 441001 000101 109 510 REGULAR LADOR 0 00 0 00 398 14 0,00 -39914
. .Q!L.Hl001 000101..109 041 REGULAR LABOR ...0. 00. _' . __ • D...olL-_. .3lL211... , 43 -33....25 . ~ _
041 441001 00010' 109 601 REGULAR LADOR 0 00 0 00 62 71 o 00 -62 71
1: ***441001 ****** 109 ***tl-OROINARY MAINT LADOR 177.566 00 101,580 19 93,899 De 11,73509 83,66692
I:: 010 44200' 000000 109 109 MATERIALS -. -·---·-----,6:::2::."'2::9::S"""'0:::0- 30.507 19 97~74 997 3~
01.322 26
COlO 442001 000102 109 109 PAINT 0 00 0 00 4.624 67 10 203 04 -4.624 67
I" ._ 0J.ll....M:z00LOOOI03-109 102 E~ECTR ICA~ _ 0.00. 0 . .00. 7.206-25-__.L..9M..QL.. _-=L.2M-21L _
" Oto 442001 000104 109 109 pLUMBING 0 00 a 00 3.556 46 71 99 -3. 5~6 46
010 442001 000105 109 109 AUTO PARTS 0 00 0 00 168 6S 10 46 -168 68
010 4420Q.LO00106 1 O.~.LJ.Q2....GLAZIER_.5UPPUE8 _.0-.0.0._ . 0.. 00_ _ 1,844 79 O.....1lll.---=-1..LflA.4-..Z.~9'-- _ _. ..
010 442001 000107 109 109 APPLIANCE PARTS 0 00 0 00 783 ~2 0 00 -783 ~2
010 442001 000106 109 109 HEATING PARTS 0 00 0 00 6~1 67 0 00 -6~1 67
.. OULH2DOL 000.10'L.109 109 JlINl TDIlIA~ ._._D, OO __O.J1(L.. 0 •.239• ..68._ 1. 368 DO -0.239 bB
010442001 000110 109 109 HARDWARE a 00 000 4.50027 t.22718 -4.50027
010442001 000111 109 109 BUILDING SUPPLIES 0 00 000 11,11866 1,97681 -11,11866
JNC/EXP-REPORTS-YTDBAL CCSGLI 2 0 D~stroy after 28 JUN 2017 By 131 CCSGL for 1 BUDGET - X-427 on ~3 30 03 29 NOV 199
.- .. - . - ---_ . -- -_.. _- -- - --- ------- ,
Report GLR331 Run 832 28 NOV 1989 Page 2
~ ReceIpts and Expendl tum NON-UTILI fV DEVELOPMENT SUI1MARV REPORT - EAST for the Period 10/89 to 10/89
I --- --- ------lao
. _. - . - . - - . ---- _... _--- .- ------ -- _.- ------- ----
CO!Jt C.nter r
I:t _.__ .
Fnd
MOIJOl" ____ 8ub.Cst.
Acct
-
Acct ctr Prj Account Title
- - - - PrOI:ata
Annual
BUdget Budget
. Ac.tual --
Cum VTO Curl" Period
Yg.;r,r=-Ta=Data.
Balance
Actu~L 'N ••
- ------:,
I:1:~1a-4A20nL-QOO~2-10~100-CARPENTRY
--- ------ ------ --- -- -------------------- --- -_. ------- --. ------ ---- _.. _---------- --- ---------
223._9Z _______..B:L8B-
------------- ,
SUPPLIES -- 0 00 - - a0 00 .- :223 9 7 ----
I: 010 ~42001 000113 100 100 FLOOR COVERINGS a 00 00 ~~ 00 0 00 -~~ 00 ,
,
I: 010 ~42001 00011~ 100 10. GROUN08KEEPINQ 8UPPL 00 a a 00 1.02B 42 20 00 -1.028
_...188•..50________0. 00 _ _ _ _=188_
42
50 __ .
r_..D1O...AA20OLOOOil6...109_ 109 HAND TOOLS __ -- 00 a - .- - a. 00. -- -----------·-l::
.... 010 442001 000117 10. 10. MISCELLANEOUS 00 a 0 00 628 36 208 36 -628 36
010 442001 000140 10. 109 MISCELLANEOUS 0 00 0 00 303 23 28 5. -3.3 23 [...,
" n, ; ~ ...."o..L.-Q.Q.Q.1A;J 109 109 oEE.LCE.-SUp.eUEB n on .0--00 - ..
CI *** 4~2001 ****** 109 ****HATERIALS 52.298 00 30.007 1. 44. 163 81 9.200 86 e.134 I .
::1 n, n 7"~nllL.1lO11JllljL.1Cl2
..10LllEP.LilCEMEIlILDf_EG1UE...___ .J.2•. 0"Z 00 __7A.OltlJ.tL-_ _ .-llaEL6Q __..Z1a_6'L___ 11,.18a. gO___
- .. - ......
"
::I" 010 702001 000101 10. 10. RANGES REPLACED a 00 0 00 5,371 7~ 1,738 ~O -:5, 371 7~
"
"
,
...
010 752001 000102 10. 10. REfRIGERATORS REPLA
••• 7.~nn. I nc:3 .,l. .... Jl.J!:BEPt ACEMENT OF EOllIp
10. ****FRANKLIN HILL
****** *'l***'"
. - -- - - -------- -----
0 00
';;1,027 00
411.S70 00
0 00
Z 015 75
240.082 43
13,267
19,678 2 7
263,656 70
.2 1,3:20 00
1,832 19
36,992 87
-13,'267 .2
_z 65
' 30
147•• 13
27
"
"
"
."".
, ",.
"
- ----- ----------- ---- - "
"
, "
"
, ,,- - - - - --- --- ._- _._-- -- -- ---- . --- - --------- ::
"
"
"
-- ------ --------::
" .".
" ------_. _. - -- -- ------- -- - -. -- _. - -- - - --. ------,\"
"
" "
"
--------------_.. - - - - -- --- "
"
" ,".
. ----- ----- ----------. - - - -------- -- -- ---- -_. -- "..
"
, , , ""
"
" "
" ---- ----" _.- -- - ----- ------- ._- -- - -- - .- - .. _-- --- ---- ----- ---- -- , --- - ..
"
" "
" "
" - - ------_ .. ------ . . .."
" "
," "
--- --- --- ...-- --- -- - -- - - - ." -- -- " ------ - - ----- --- -- _. "
"
," "
. ---- - --- ---------- ----
"
•
" "
" "
., Uft_
-VTf\RAL.-CCSGLL..2..fi..-D.e..s. t l'O 'J a f :t..a1'-2B•....JUbl...201.7. .- nlJ _.13.1 -CCSGL.--f-On-1-BUOQE:J:,..= ---JC.-4~~, 03 :la-NOlJ.-.t.9
,"
•
Report GLR341 Run 710 30 JUN 1999 Page
Receipts and Expenditures AREA MAJOR, ACCT SUMMARY REPORf - EAST For the Period 04/89 to 04/~9
HaJor Bub Cst Annu.l "'f'Dr.t~ Actu,d A. tu .. 1 Vo,u- fo-O.t_

Fnd A, ct Acct Ctl' PrJ Account Titl. BUdget BUdget Cum VTO Curr Pariod n.t.nee
------ ------ ---
4\1001
-----------------
--- _ADMINISTRATIVE --
SAI.AR
-------------
I. 16~.0~~99
-------------
49
-------- ----
97.0B~ 40
-------------
97.~0~ 40
---- -------
97,5Q~ 1.067.~~0 ~9
415001 -TRAVEL 4, 599 99 383 33 B71 76 8/1 7/-J 3.nB ~3
4\9001 -BUNDRY 5~.395 00 4.616 ~1 ~.9~B 47 2,9.?8 41 5~.466 53
4~2001 _RECREATION. PUBLIC. OT 1,75000 115 BI I~ 95 t:2 9'; 1,737 05
4~300t _CONTRACTS. TRNG. TEN o 00 o 00 2,35234 2,3HiZ 31 -~.35~ 31
415001 _UTlL ITY LABOR 366.31B 91 30.526 51 27. BI3 71 27.B1371 33B.505 17
411001 -ORDINARY MAINT LABOR 2,690,2~B 01 ~~4.190 65 2U.BBI 43 ~15.B'11 4J 01.474.406 ~B
4101001 _MATERIALB ~07.3~0! 00 12.279 33 :Z6. 9~0 70 016. 9.~0 70 4BO.431 30
413001 _CONTRACTB 1~.SaO! 99 ..... ~13 '1) 4,719 IS 4,7t9 13 3S, 164 81
7 ,01001 -REPLACEMENT OF EQUIP 7U'12-.'f 1 o 00 o 00 9'1, '169 00
q'f, '169 00
*** Grand T~t~la 'flo, 67J '11 319.004 91 379.004 94 If, !i 'It 076 '15"
--- '1,92'$/013/, '8'1
INC/EXP-REPORTS-VTOBAL R.I •••• CCSGLI 2 0 00 'NOT DESTROY BV BI CCSGL For I BUDGE! - X-4~7 on 0~,4~ 10 30 JUN 19B9
,mU51/1G AUTHOR lTY 16 FEB 1990 PAGE 2
CEPARTi1ENT NAME ADMJ' H STC)'"'_:..·....::O:.:N • ,F~ISmCOiAiLr-,Mri0'tNrT-v.H,-uNgUMirB;;:E::R'-,I;;0i-n"' _
--nEPART~E~NOMD~or------ IARwEI liD ~ uSED ~J 00
ANNUAL JANUARY YTO
JUDGE I aOOGE. EXPENSE
411001 :'00000 AOMIo.J SALAlnES
------------
*,'3~"
III
-------------
<2i27,2:}Q
----- .. _------
1;197.064 ,*,2~.824 060 130,041
,., I _'li1'f.'
", 41 ~OOI 000101 LOCAL TRAVEL .1,004 IB4 *1,979 1 97
1:1 41~001 :OO10~ U, 450

I
43)1 $;),386 0 16 r! . 1. 062
., I 41 :5001 )DO 103 CQNCERENCE AND aEMINARS 10 '0 .0 0 00 -3.322
1",
....... "
, '0, 'I. '~~~J , ..,,, ~,
"
419001 000101 XEROX RENTAL ~ SUPPLIES 10 10 _70 0 00 ' "'0 h'~,?~.,
" "
419001 '00 10~ bl 50i t:1dS $416 i152 0 2) I, 085
, 419001 -:"00103 $ 1. SOt t125
419001 000109 .2, :500 ,.;208
'~Ot 000110 11. 000 tej

4tQOOt ,)OOt11 PIJ3UCATIONS :$3.462 '*289 .0
"
r" 419001..000117
~ (."q"V.,.
PHQTOQRN>HY BUPPLIES -'.1, ::101 1-11I0
"
,
.>I~1 00012~
, OTlll!ft '4::), 301 "3, "3 "21. ;;0
,-,.," 419001 000121 MEMBERSHIPS 137 050 '$3,088 s,24,718 O-BI7 066
J
419001 000124 HeETINQS 10 '0 tt,:roo
aeOtes ELceTRfeAL 'so
,
·H2601
442001 "'00109 JAN I TOR r AI.

*"
10
'0
.0 '103 to 0 00 -103
't;:lIOOt'
: .I. 000143
. "'::~'h.'
OFFICE SUPPLIES
I:" _0 10
d 2001 000000 fIlO. 663 .eB'1
~ 7S4001 000000 1-28.232 t2.3S3 , so 0.00 21.982

7~4001 000103 NON£XPEND - BTRHT ~ AOON '0 _0 SllI,Obl
_AQUCe
" ==0 "Aauau .. ==_.. c _u u .... aa.likL)IL
"465,t1!1~ '*'38.773 "266.669
, '
:~:!- --'~'_""_:_' '_' -",_,<\Ii,::'o,','_:
.,
r!"";, ~ 'C,'F'f'C'~-"""
Ib FEB 19'10 " ' 'r;tr
~"
•
Appendix II
APPENDIX"
P-BA SOLICITATION PACKAGE
.. INTRODUCTION
Appendix II contains two requests for proposals (RFP) for PHAs to refer to in
.., implementing a P-BA system. The first RFP is for automating the operations at the
PHA. The second RFP is to provide technical assistance to the PHA in order for them
to develop a sustainable P-BA system. All PHAs which pursue the development of a
P-BA system will benefit from the technical assistance RFP. As automation is not a
reqUirement for P-BA, although as discussed throughout the guidebook it is
beneficial, the two RFPs are intended to function as stand alone entities. However, if
a PHA IS automatmg, It is important to remember that the two processes, technical
asssistalice and automation, are to work togther to bring about the development of the
P-BA system. The two' RFPs are to be tied together to meet the needs of the PHA in a
comprehensive manner. It may be useful to insert language Into the RFPs upfront
concemmg the integrated nature of the two contractors and their abiltiy to work
closely together. The RFPs are prepared for Anytown Public Housmg Agency
(APHA).
The RFPs are gUides as to formats and Issues PHAs should consider In drafting
their own RFPs. The PHA should consider their indiVidual operational needs in
developmg their RFPs PHAs have different bidding requirements, local procurement
regulations, and internal selection criteria. All of these Items must be taken into
account by the PHA in preparing their RFP.
The two RFPs are drawn up differently due to the audience they are soliciting.
The Automation RFP is requesting equipment, materials and a service from a
designated computer vendor. Specific deliverables are itemized, and a concrete
system is purchased by the PHA. The requirements are specific in nature and
correspond to accepted automation standards. The Technical Assistance RFP deals
With a service, assistance provided to the APHA in developing and Implementing a
functiOning P-BA system. SpecifiC Items are delivered, such as Procedure Manuals,
but the baSIC deliverable is Imparting technical assistance to the APHA staff. The
goal of the information Imparted by the Technical Assistance ProVider is to ensure that
Page1
· Appendix II
the P-BA system developed by the contractor, in conjunction with the staff, can be
sustained after the contractor's engagement is ended.
The Automation RFP IS set up in a chapter format consisting of an Introduction,

instructIons to bidders, proposal format, applicatIons software functional
requirements, proposal evaluatIOn criteria, and hardware quantity reqUirements.
These chapters are intended as guidelines for PHAs to follow In preparing their
custom RFPs. The Automation RFP is more precise than the Techni(:al Assistance ro,
RFP, in that It is dealIng with specified automation requirements and performance
indicators. The Technical Assistance RFP is presented in a looser format, modeled
after a basic technical assistance RFP. The sectIons are: introduction, scope of work
(whIch Includes objectives and tasks), requirements, and evaluation criteria.
In reviewing the follOWing RFPs it must be stressed again that PHAs

operate differently. The PHA must understand what products and information it
is soliciting before requesting proposals. The RFPs are intended only as
samples to be used as guides for preparing customized RFPs.
f,
Page2
Appendix II A
APPENDIX IIA
REQUEST FOR PROPOSALS TO PROVIDE AUTOMATION

SERVICES TO THE APHA
CHAPTER 1: INTRODUCTION
THE HOUSING AUTHORITY OF THE CITY OF ANYTOWN
The Housing Authority of the City of Anytown (APHA) IS an agency of the City of
Anytown, Anystate responsible for the administration of federally assisted housing
programs for low income families and individuals. APHA receives ItS funding from the
United States Department of Housing and Urban Development (HUD). APHA qualifies
under applicable federal law as a Public Housing Agency (PHA) and IS entitled to
apply for participatIOn in and funding under all federal housing programs for which
PHAs qualify.
Housmg programs administered by APHA include:
Number of
Units
Program Current Next 3 Next 5
Years Years
Federal ConventIOnal
Section 8 EXIStlno
Section 8 Moderate Rehab.
Section 8 New/Sub Rehab
Federal Vouchers
.. PROGRAM DESCRIPTIONS
[This section should outline the function and purpose of the housing programs
administered by APHA. Terms used In the programs that have a particular meaning
Page 3
Appendix II A
which is important for vendors to comprehend should be defmed or used in an

informative context.
Programs covered should Include:
• Federal Low Rent Public Housing

• Section 8 EXisting Housing
• Section 8 Moderate RehabilItation
• HOUSing Vouchers]
APHA DATA PROCESSING BACKGROUND AND OBJECTIVES
APHA Objectives
APHA desires to acqUire both computer hardware and applIcations software which
will permit APHA to Improve the quality of housing services provided to its tenants by
delivering effective, timely, and flexible computing services to management and staff.
The APHA will be implementing a Project-Based Accounting System. The automated
system will be required to track income and expenses at the project level.
Specifically, APHA seeks a system which will proVide sufficient processing power,
disk storage, operational procedures (e.g. backUp and recovery), and task specific
applications software to enable APHA management to provide these services in a
cost effective, easily administered manner. T~e system developed to implement
P-BA must satisfy the mnimum requirements (as contained in Cjhapter Two) of
The Project-Based Accounting Guidebook.
All proposed systems must be capable of participating in an array of industry standard

LAN (Local Area Network) topologies.
Existing Data Processing Environment

,"
[The existing environment should be explained Includmg Internal data processing
capabilIty and services used outside the agency; payrOll, accounts payable, tenants
accounts receivable, Section 8 and other programs.]
Page 4
Appendix II A
Data Processing Services Reyiew and Conclusjons
[A Review should be conducted prior to the writing of this RFP In order to review the
data processing requirements of APHA. The review should be led by the Deputy
Director and conducted with broad based participation encompasslOg user groups.
...
The findings of the review should be included in the RFP where appropriate, and
used for future evaluation.]
,"
PROJECT SCHEDULE
APHA IOtends to proceed with its data processing acquisition In specific steps. These
are:
STEPS APPROXIMATE DATE
FROM RFP ISSUANCE
(in months)
1. Receipt and opening of bids
2. Evaluation of bids
3. Selection of a "short list" of the most

qualified bidders
4. '"
Evaluation of reference sites and systems
5. Selection of the preferred bidder
6. Negotiation of a contract
," 7 System delivery and implementation
~ The final step, system delivery and implementation, Will be broken down into specific
tasks (e.g. system delivery, cabling/hook-up, system testlOg, delivery and
implementation of applications software modUles).
[The timetable proposed should be roughly 6 to 7 months In duration.]
Page 5
Appendix II A
CHAPTER 2: INSTRUCTIONS TO BIDDERS
PURPOSE
•
The purpose of this request for proposals is to provide prospective bidders with
sufficient information to prepare and submit a proposal for the prOVIsion of computer
hardware, systems software, applications software, support, and trainrng services to
.'
APHA to sustain project-based accounting. Proposals submitted in response to this
RFP will be utilized by APHA to select a "short list" of preferred vendors for final
consideration. Data SUbmitted in bidders' proposals will be utilized by APHA In
calculating system life-cycle costs. For the purposes of this RFP the system Iife-cycle
is presumed to be 5 years but may, in practice, be longer.
HARDWARE/SYSTEM SOFTWARE PROPOSALS
Bidders are free to propose any hardware configuration that, in bidders' estimation,
will provide the functionality desired by APHA as described in this document.
SCOPE OF WORK
The scope of work required to satisfy APHA's requirements must first address the
applications software system and will be dependent on the degree of customizatlon
required, if any, to implement a project-based accounting system. Bidders must then
address the hardware configuration required to support the anticipated workloads.
The proposal for applications software may consist of a presentation of specifications
and documentation for existing packaged software, the design and programming of
custom software, or by a combination of both.
,I'
PREFERRED CONTRACTING METHOD
APHA prefers to enter into a contract with a single source vendor, that is, one entity
which will assume responsibility for all aspects of the project. JOint bids by a
maximum of two entities will be regarded as responsive to this RFP. Bidders should
note that, all other criteria being equally satisfied, the single source bidder will enJoy
Page 6
Appendix II A
an advantage in that APHA wants to look to the vendor for Hardware and Software
Delivery, Warranty and Maintenance. APHA reserves the right to approve
participation by all subcontractors.
PROPOSALS
In order to be regarded as responsive to this RFP bidders must submit a complete

proposal, covering all areas addressed in this RFP and any other material that
bidders' may feel relevant to the selection process, no later than the date specified In
the Introduction. [APHA should also state the number of copies deSired and the
location to which the proposals should be sent.]
All proposals submitted In response to this RFP, plus any other sustaining materials
submitted by bidders, will become the property of APHA and will not be returned to
bidders.
Other Issues that should be addressed include:
• Incurring Costs
• Performance Bond
• Conciseness of Proposals
• Source Code Ownership
• Taxes
• AssJgnment or Transfer of Interest
• Requests for Information
• Bidders Proprietary Information
• System Demonstration
• Rejection of Proposals
• Modification or Withdrawal of Offers
• Addenda to this RFP
• Authority to do bUSiness In Anystate
• Payments
• Minonty Business EnterpriselWomen's BUSiness Enterpnse Participation
Page 7
Appendix II A
CHAPTER 3: PROPOSAL FORMAT
OVERVIEW
It is the goal of APHA to solicIt proposals which effectively communicate the basic,
#'
underlying processing assumptIons of the applications software and the processing
capabilities of the hardware proposed to meet the needs of the PHA for a functioning
P-BA System. To this end bidders should utilize conCIse, non-technical English prose ' ..
in descrIbing applications software functionality and proposed hardware functIon and
capacity. Technical presentatIons must accompany all hardware descrIptions and
should be presented in a concise, direct fashion. Advertising material or promotional
literature will not be acceptable In place of accurate technical presentation.
[This chapter will descrIbe the required format of responses to both the
hardware/systems software and applications software sections of thiS RFP.J Bidders
should follow the section of this RFP on applications software functional requirements
in preparing their applications software bids, Bidders must address each point in all
sections in the order presented In thIS RFP.
All bids must contain the following information and must be organized according to the
following outline:
Package 'One
Part A: Proposal Overview
1. Letter of Transmittal
2 Company Overview
3. Proposal Overview
Part B: Software Proposal
1. Statement of Conceptual Approach and Other Information
Page 8
Appendix II A
2. Description of Each Module
3. Description 0'[ how modules are integrated
::lart C: Hardware Proposal
1. Description of Each Element
f
2. Descnption of Upgrading/Maintenance Approach
Part D: Cost Proposal
1. Consultant's Evaluation Disk
2. Spreadsheet for Initial Costs and Maintenance/Upgrade costs
Part E: Corporate Information
1. Company Overview
2. Financial Statement
3. Financial AnalysIs .
4. References
:lart F: Proposed Implementation Schedule
)art G: Bidder Additions
'ackaae Two - Samples and Examples
Page 9
Appendix II A
.
CHAPTER 4: APPLICATIONS SOFTWARE FUNCTIONAL REQUIREMENTS
OVERVIEW
This chapter describes the specific functions which the applications software must
perform for each applications module. The proposed applications software system
must be modular; that IS, APHA must be able to purchase only thos~ applications \
'''....
modules that meet ItS needs.
The Bidder shall diSCUSS the Implementation of the P-BA System requirements. The
software functional requirements for each module are especially important In terms of
the ability to merge operating information with fmancial information. The P-BA System
is to prOVide a complete picture for the PHA.
Bidders with existing products designed for the PHA customer may enjoy a distinct
advantage. Bidders who wish to propose custom programming must be prepared to
estimate costs and time consequences for development of detailed functional
specifications and software development.
The format of this chapter will consist of the following:
• A prose deSCription of each applications subsystem

• Transaction volumes for each applications subsystem
• A set of functional requirements for each applications subsystem.
GENERAL APPLICATIONS REQUIREMENTS
The follOWing are the applications reqUired by APHA in this RFP:
Data Redundancy
Applications software must utilize a Database Management System (DBMS)

architecture. Data redundancy must be mimmized.
Page 10
Appendix II A
Report Formats
The P-BA System must be able, at the mimmum, to generate the Form 52599. Please
refer to the Project-Based AccountlOg Guidebook Chapter Three for the reporting
formats reqUIred by APHA.
pata Storage ReqUirements
It is the desire of APHA to maintain two years of data records for each module.
Bidders' estimates for hardware requirements and process run times must
accommodate these storage requirements.
Modules
A full testing of the available modules is listed below. All of the modules may not
apply to P-BA, but they are Included to demonstrate the full capacity of the automated
system that APHA is requesting.
pala Entry/Updale Enylron ments
All data entry must be full menu dnven. Data entry techniques which utilize,
command line prompts will not be regarded as responsive to this RFP.
Applications Software Security .
Proposed software systems must provide for password-based security protection for
each menu selector.
Proposal Format
Bidders' proposals should follow this section of the RFP 10 presenting their
applications software products. Bidders should demonstrate their systems'
responsiveness to thiS RFP for each applications module as follows:
• Required Inputs Section.
• ProcesslOg Functions Section
• ReqUIred Outputs Section.
Page 11
Appendix II A
.TENANT ACCOUNTS RECEIVABLE
General Description
The Tenant Accounts Receivable module manages all of the APHA i=ederal and State n
'11
program rental receipts. The system must be capable of posting monthly accrual
amounts, posting cash receipts, aglOg past due receivables, differentiating among
types of receivable (rent, maintenance charges, legal charg'es, etc.), producing
monthly rent statements, producing dellOquency reports, delinquency notices and
notices to vacate), tracking arrearage agreements and payments agamst them,
flagglOg payment violations under such agreements, producing recertification notices
and worksheets, tracklOg third party payments, management of security deposits, and
production of a broad vanety of financial and management reports. Also attached to
this section will be a list of the Inputs, Outputs and ProcesslOg Functions required for
each application.
TENANT APPLICATION/WAITING LIST
General Description
The Tenant Application WaitlOg List (TAWL) provides a unified repository for data on
individuals and families that have applied for participation in APHA-programs. This
module IS the entry point to the system for future tenant records. The system malOtalOs
demographic and income data on all applicants, ranks applicants according to user
speCified cntena, tracks assignments to APHA projects/programs, interfaces with the
Tenant Accounting and Section 8 HAP systems, schedules pre-assignment
interviews, and produces reqUired HUD forms. It is the desire of APHA to utilize a
slOgle applicant system and flle(s) for all APHA. programs in order to avoid
duplication.
GENERAL LEDGER
•
General Description
The General Ledger manages the financial transactions and central financial
reportmg requirements of the.APHA. It must interface to Accounts Payable,
Page 12
Appendix I1 A
Payroll/Personnel, Tenant Accounts Receivable, Inventory Control/Fixed Assets,

and Section 8 HAP systems.
ACCOUNTS PAYABLE
Genera! Descdptjoo
The Accounts Payable system maintains data on vendors, vendor invoices, recurring
payables, APHA cash disbursements, and vendor payments histories. It interfaces
with the General Ledger, the Purchase Order, and the Inventory Control systems.
APHA staff must be able to enter invoices on receipt and control check generation.
PURCHASE ORDERS/CONTRACTS
General Description
The Purchase Order system manages the requisition, order, and receiving portions of
APHA matenals acquisition as well as executed con!racts (whIch are given a PO
number). The system stores data on matenals requisitions from both APHA central
inventory and dIrect orders/shipments to fIeld maintenance staff. It generates
purchase orders, acknowledges receIpts against them, and interfaces with the
Accounts Payable, Inventory Control, and General Ledger system"s.
INVENTORY CONTROL
General Description
This module IS reqUired to manage the APHA inventory and distnbutlon of materials
and supplies. The goal of the system is maintenance of current data on matenals
stocking and usage while proVIding APHA with sufficient data to minimize carrying
costs. The system willlOterface with the General Ledger, Purchasing, Fixed Assets,
• Accounts Payable, and Work Order systems. The system will accept matenals into
inventory, track issues, track back orders, maintarn historical data on stock usage,
and manage the reorder process. The goal of the Inventory component of the system
Page 13
------------------------ -- --
Appendix II A
is the maintenance of data on non-expendable Items owned by APHA, their location,

issue date and value and the use, cost and status of expendable items.
FIXED ASSETS
General DescriptiQn
The goal Qf the Fixed Assets component Qf the system is the maintenance Qf data Qn
non-expendable Items Qwned by APHA, their 10catiQn, issue date, and value. The
Fixed Assets subsystem will interface with the General Ledger, Purchasing, Accounts
Payable, and Work Order systems.
The system will enable the establishment of an asset record at time of purchase via
the Purchasing system. It will allow logging of receipt via the Inventory system and
installation via the Work Order system. Increments and decrements to the asset
accounts maintained in the General Ledger will be created via automatically
generated transactions based on receipts and disposition, receipts at the Inventory
System, disposition activity to be logged from the Fixed Assets system.
WORK REQUESTS/MAINTENANCE
General Description
The purpose of the Work Request system is to provide scheduling, tracking, and
analytical information on APHA maintenance actiVities. The information generated by
the system will be utilized to Improve the overall delivery of maintenance services to
APHA tenants while assuring that services are rendered using the most cost effective
manner. The system will track maintenance activities by establishment of a Work
Request record on service request. The system must have the capacity to produce all
work items either as Work Orders or as Schedules. •
Page 14
Appendix II A
CAPITAL PLANNING DEVELOPMENT AND MODERNIZATION
Genera! Descrjptjon
Capital planning, development and modermzatlon are those functions of the agency
~ which acquire or develop new housing projects or which manage the estimation,
funding and contractmg for major replacement or repair of systems. Normally these
latter projects, commonly known as modernization, are handled out.side of regular
maintenance and fundmg cycles However, there are some rtems handled by regular
mamtenance which require and use capital planning skills.
ModernizatIOn fundmg for HUD projects is handled through a process known as ClAP
(Comprehensive Improvements Assistance Program) utilizing a five year rolling
planning tool known as the CPM (Comprehensive Program for ModermzatlOn).
PAYROLL AND PERSONNEL
General DescrjptlOn
The Payroll/Personnel system will be utilized to manage the hiring, payment (weekly
payroll), and benefit management functions associated with APHA staffing
reqUirements. The system will maintain demographic, pay level, work history, and
benefits calculation/payment data for each APHA employee. It must automatically
generate paychecks and all audit documents, produce labor distribution (GL)
transactions, calculate and track all benefits, maintain employment history data, and
Interface with the Work Order system. The system will be the source of all regulatory
agency reportmg reqUirements mcluding Equal EmploYiTIent Opportunity Commission
reports and health benefits required data.
HOUSING ASSISTANCE PAYMENTS
General Description
The purpose of this system IS to manage and control the federal and states programs
which fall under the Housmg Assistance Payments (HAP) umbrella; the Section 8
Page 15
Appendix II A
!;xisting Housing Program, the Section 8 Moderate Rehabilitation program, the

Anystate Rental Assistance Program (RAP), and the Housing Vouchers program. All
HAP programs involve placing APHA clients in privately owned housing with monthly
payments from APHA bridging the gap between 30% of a client's net income and the
contract rent level (except for the HUD voucher program).
ADDITiONAL OFFiCE AUTOMATION
[Additional Automation should be determined and stated in this section. Such

additional applications might Include:
• Word-Processing
• Spreadsheet
• Database/Filers
• E-MailI.Rolodex./CALENDARS
• Multi-Part Forms]
CHAPTER 5: PROPOSAL EVALUATION AND SYSTEM PERFORMANCE

CRITERIA'
This chapter outlines the minimum system performance criteria and the methodol~gy
by which APHA will select a preferred vendor. APHA reserves the right to employ
technical assistants to aid APHA in the system selection, testing and evaluation
process.
PERFORMANCE CRITERIA
APHA intends to express its desired performance criteria in functional, operational

terms. APHA Intends to set specific goals for the proposed system's operational
characteristics. Given this approach, it will not be possible to test and judge the
performance of hardware/system software configurations separate from the proposed •
applications software. All performance criteria will be expressed in production system
timings.
Page 16
Appendix II A
Screen Response Times
APHA requires that screen response times must not exceed 5 seconds response time
for both record fetches and writes. Response time will be defined as the number of
seconds which elapse from depression of the ENTER key to screen refresh after the
" operation is fmlshed. The average will be determined under varying load conditions.
Disk UtilizatlOn
APHA requires bids which form the system With sufficient disk capacity so as to
enable APHA to store historical data in the quantities stated In this document and
operate the system 10 full production mode while maintaming a mmimum of 25% of the
system disk capacity 10 a free and contiguous condition. The system must be
supplied With disk space recapture utilities that are Simple to operate and require a
minimum of operational down time to recapture disk space "lost" to system activity.
Print Job Management
The proposed system must provide a simple, largely automatiC, stable method for
management of print Jobs. The print job management subsystem must impose no
limitations on APHA system utilization and must Interface 10 a transparent fashion With
the apphcatlons software.
'!
BackupfArchival Subsystem
The proposed system must include a rehable, fast backup/archival subsystem. The
system must be able to write and read media with a minimum of 99% accuracy. ThiS
minimum applies to entire media (disks, tapes) and to the data stored on them.
Hardcopy Output Devices
Vendors should propose a combination of hardcopy output devices suffiCient to

enable APHA to manage its pnntlng requirements given the peak load scenario
outhned above.
Page 17
Appendix II A
Batch Subsystem
All proposed systems must provide a facility for running productIon routmes (e.g. rent
accrual, financial statement production, paycheck print image productIon, all check
trial runs) in unattended, phantom mode.
EVALUATION CRITERIA
APHA will evaluate proposals for development of the "short list" according to the
following general critena: ( For a complete evaluation checklist refer to Appendix III of
the ProJect-Based Accounting Guidebook)
Content and Form of the Proposal
The bidder is to follow the outline presented earlier in this RFP. [Did the
proposal meet the requirements specified? Have the main components of
implementing an automated P-BA system been addressed?]
Applications Software
The stated modules and theIr outputs are to be reviewed as listed in the
proposal. This criteria also includes traming, technical assistance, reports,
and upgrades.
HardwarefSystems proposal
[This has to do with the number of terminals, printers, storage capacity, backup
capacity, updates, and state of the art abIlity of the components.]
Experience of the Bidder/provision of ReferenceS
Has the bidder installed a system with P-BA capabilities? Other considerations
•
are length of time in business, and ability to provide documented references.
Page 18
Appendix II A
Cost of System
This includes the cost of the hardware and software, delivery and installation
charge, training and technical assistance. This also includes the methods of
payment, guarantees, and terms and conditions of payment.
After compilation of the "short list", references will be checked, site visits arranged,
and a final, preferred vendor chosen.
,
Other areas for evaluation indude security of system, ownership and warranties. In
addition, the system should reflect the integral relationship of the .organizational
information and financial information that IS key to utiliZing a P-BA system.
CHAPTER 6: HARDWARE QUANTITY REQUIREMENTS
[ThiS chapter outlines the proposed quantities of hardware required initially. Bidders
should note that there IS a likely expansion of users in the future. It should state the
geographical location of all sites that will affect thiS RFP (Maintenance, Main Office,
Site Offices) as well as the number of work stations and pnnters.]
Page 19
Appendix II B
APPENDIX liB
REQUEST FOR PROPOSALS TO PROVIDE TECHNICAL ASSISTANCE

TO APHA IN DEVELOPING A P-BA SYSTEM
INTRODUCTION
The APHA is solIciting proposals for technical assistance providers to assist

the PHA in Implementing a Project-Based Accounting (P-BA) System. Project-Based
Accounting is the term used to describe accounting systems which track income and
expenses at the project level. This assistance does not Include providing automation
services to the APHA It IS strictly limited to requesting implementation guidance in
developing a sustainable accounting and budgeting system. The firm selected for this
engagement will be responsible for interfacing with the automation vendor if so
required.
The implementation assistance necessitates the contractor to understand the

organizational workings of the APHA. It is the responsibility of the contractor to
provide guidelines and information to the APHA on tasks, responsibilities, job
descriptions, a'1Jd organizational changes. These guidelmes will enable the system to
function after the contractor and (If used) the automation vendor leave the APHA.
The contractor will work closely with the User Group established for this project.
The contractor will report directly to the Chairperson of the User Group, and all
progress reports will be distributed to said group. In addition to the User Group, a
member will be designated as the Installation Coordinator by the APHA.
SCOPE OF WORK
•
Objectives
The contractor will provide assistance and guidance to the APHA to enable a
smooth and informed transition from consolidated accounting to Project-Based
Page 20
Appendix II B
Accounting. The contractor will provide written procedures and policies to enable the
PHA to manage their P-BA system. The contractor is responsible for designing,
developing, and implementing the P-BA system for the PHA. The P-BA system, as
designed, will enable the PHA to track income and expenses at the development
level.
The system must be designed to meet the minimum P-BA requirements as

referenced in the Project-Based Accounting Guidebook. The requirements include:
- The system is to delineate Information at the project level.
- The minimum set of accounts is defined as the HUD Chart of Accounts

included on the HUD Form 52599, Statement of Operating
Receipts and Expenditures (line 060 - line 620).
- Items which fall into the categories of non-project specifiC or central

office income and expenses must be distributed or prorated by
bedroom count.
- The system must be capable of ger)erating a modified Statement of

Operating Receipts and Expenditures and HUD required consolidated
reports.
The contractor Will be knowledgeable on the processes needed to sustain the

system. The contractor will analyze the PHA's organizational operations to determine
the customized components and Issues of the PHA that Will form the basis for
developing the system. the contractor is to prepare all matenals necessary for the
APHA staff to run the system, as well as formally conduct traming sessions for APHA
staff. These trainings should mclude budgetmg, cost center development and
applicatIon, personnel reorganization, and other topics germane to the operatIon of
the P-BA system.
•
Tasks
The following are a list of tasks that must be undertaken by the contractor to
meet the requirements and objectives of the contract. The contractor IS not
Page 21
Appendix II B
necessarily limited to the following tasks. The contractor is responsible for providing
monthly updates on the progress of the P-BA system schedule.
Task 1 - Conduct a Review of Present Operations/Accounting Systems
The contractor is to take steps to develop familiarity with the operations of the APHA.
Staff will provide the contractor with organization charts, procedure manuals, and
personnel policies. Staff WIll be interviewed if necessary.
Task 2 - Prepare User Specifications for the System and/or System Modifications
The contractor will assist the User Group in identifying user specifications to be
included in the RFP for automation. The contractor will assist the User Group in
selecting a vendor if reqUired by the APHA.
Task 3 - Prepare a Comprehensive Organizational Assessment
The contractor will assess all of the organizational factors necessary to serve as input
into the P-BA system. This assessment will enable the contractor to delineate the
capacity of the organization to implement specific requirements of the system, such as
the number of cost centers, budgeting, and reporting. This assessment will determine
the presence and number of accounts and subaccounts.
Task 4 - Develop an Implementation Schedule for the APHA
The contractor will prepare an implementation schedule and accompanying narrative

to enable the PHA to track progress and gauge milestones for major changes. The
schedule will be prepared In conjunction with the automation vendor and the User
Group. An Installation Coordinator will be selected from the User Group, to serve as a
liaison with the contractor.
Task 5 - Development of Cost Centers

•
The contractor will assist the APHA in developing the cost centers to be used as the
basis for the APHA system. The assessment conducted in Task 3 will yield the basis
for the cost center configuration of the PHA. This will include identifying costs that
Page 22
Appendix II B
can be direct charged and those which are to be allocated. These methodologies will
guide the use of the system by APHA staff.
Task 6 - Development of P-BA System Procedure Manuals and Handbooks
The contractor will develop comprehensive handbooks to be used by the APHA staff.
These handbooks will detail the operation of the system. The contractor will work in
conjunction with the vendor if the system is automated. The handbooks will detail all
of the procedures necessary to operate the P-BA system. They are to be suitable to
be used for training tools.
Task 7 - Staff Training
The contractor will conduct staff trainmgs based on the activities to be carried out by
each department/staff member. Trainings will include implementation assistance,
budget training, schedUling, inputtmg, reporting, and tracking. The P-BA system
manual prepared in Task 6 will be used as reference. The training will also be used to
enable selected staff to train future employees. 1
Task 8 - Personnel Reorganization
The contractor Will revise the organizational structure if needed to Implement the
system. New job descnptlons and qualifications will be prepared m conjunction with
the development of a new personnel poliCies manual by the contractor.
REQUIREMENTS
Based on the above scope of work and APHA gUidelines the proposal must include
the followmg:
• 1. List of refe re nces.
2. Cost breakdown for the proJect, including direct and mdlrect costs.
1ThiS training IS in addrtlon to any computer training prOVided by the vendor Please see
AppendiX IIA of the PrOJect-Based Accounting GUidebook for the RFP for Automation
Services
Page 23
Appendix II B
3. Schedule of tasks and staff to be assigned to said tasks. Timeframe of contract and
milestones for Identified deliverables.
4. HUD Form 2530, PrevIous Participation (marked Modernization)
5. Minority Business Enterpnze (MBE) or Womens Business Enterprize (WBE)

...
'
Certification (if applicable).
EVALUATION CRITERIA
Proposals will be evaluated on the strength of the narrative scope of work and
understanding of the goal of implementing a sustainable P-SA at the APHA.
The firm's knowledge of P-SA and federal housing programs is important. The
experience of the firm with developing implementation plans and policies and
staff qualifications will be assessed. All of the above stated requirements must
be included in the proposal to warrant consideration and serious evaluation.
Demonstrated ability to perform the stated work. This includes an

understanding of the deliverables needed and methodology to implement P-SA.
Background on firm and staff that will be involved In the proJect, inclUding any
independent subcontractors. Profile of the respondents' facilities. History
detailing experience in performing similar services.
Descnption of scope of work and deliverables
Previous experience with similar work, success, and demonstrated ability to

complete work
Qualifications and experience of team members
Consul,ants References
Quality and content of proposal
MSE or WSE participatIOn
Page 24
Appendix 11/
APPENDIX III
SAMPLE CHECKLIST FOR PHAs TO FOLLOW IN EVALUATING

P·BA SYSTEMS
The checklist that follows is general in nature, and can be applied to all PHAs
l' that will be automating and/or upgrading for a P-BA system. The checklist is to be
used in evaluatmg the capabilities of a particular system and vendor to provide the
services required by the agency. Please refer to Appendix II for an example of a
solicitation package and a discussion of technical assistance services. In order to
focus on the attnbutes of a system as related to the capacity to implement P-BA, the
items on the checklist are geared to P-BA, although they can be used as general
criteria for automation. Be aware of additional software, hardware, and pricing issues
that are basic to any automation conversion.
As mentioned in Chapter 5, the PHA may benefit from a having a consultant

assisting the PHA in preparing the RFP. This same consultant would assist the PHA in
evaluatmg the system. The idea is for the consultant and PHA staff to work together in
evaluatmg the system. Key PHA staff Involved in the.evaluation should be the
Executive Director (or designee), Director of Finance and/or Budget, and Director of
MIS or similar position. If another staff member IS to be the designated "keeper of the
system" (such as a programmer), they are also to be included. The evaluation team
should not be too large as to hinder the process. The User Group should also
participate m the evaluation.
General ReQuirements
CorporateNendor Capabilities
• Has your firm installed a system with P-BA capabihtes?

Are references proVIded?
How long m business?

What percentage of revenues is dedicated to R&D?
Page 1
Appendix JI/
Main Features of the Proposal
Is it manual or automated?
Can software be leased with the option to buy?
Does it provide all the basic requirements of the RFP?
P-8A Requirements
Detail on Personnel, Matenals, Contracts and Equipment to the Project Level?

Central Cost Allocation System
Reporting at:
Project levels?
Area or Cost center levels?
HUD minimum requirement levels?
Agency wide levels?
Operating or Software Requirements
Accounts Payable
General Ledger
Leasing/Occupancy
Payroll/Personnel
ModernizatIOn and Development
Purchasing/Inventory/Fixed Assets
Tenant Accounting
Work Orders/Maintenance
Office Applications
Word Processing
Spreadsheets
Database
Desktop Publishing
Page 2
Appendix /1/
Equipment or Hardware Requirements
Number of terminals
Number of printers
Amount of on-line storage
Amount of back-up (off-line) storage
All communications equipment (modems, multiplexers etc.)
For 80th Manual and Automated Systems
Does it provide audit trails?

Are there mternal controls?
Is there a procedure manual?
Does the system have specialized reporting capability?
Is there user training;
Have you trained using a P-BA system?
Who converts existing data to the PBA system?
Cost?
For Automated Systems
General features
Testing and acceptance
Will the software and hardwa,re be tested, measured and verifIed?
Who Will define the tests?
When do they occur in the payment cycle?
Is the software compatible with the hardware line?
Is the system 'State of the Art'?
Does the operating software comply with Industry standards?
Does the documentation comply with industry standards?
Is this hardware configuration compatible with the other product line equipment?
Is this the latest version of the hardware?
Is there a new product hne slated to supercede this within the next year?
Is there any other hardware which can be substituted?
CPU?
Archival Equipment?
Page 3
Appendix 11/
Terminals?
Printers?
Modems/Multiplexers?
Is print spooling available?
Are industry standard communications protocols used?
Security
1
Does the system contain recovery and restart programs?

Does it include system backup?
Are there utilities for mOnitoring disk space?
Is there password security?
Is there terminal security?
Can all applications be accessed from all terminals?
Is function access restricted by password?
Is there fIle security?
Is there data security within each file?
Is there a security mechanism to prevent damage through unauthorized operation of
the system?
Ownership
Who owns the software?

Are there buying nghts (IS the code in an escrow account) if the vendor terminates
business?
What are the rights to software upgrades?
Can software be customized by the agency without vOiding the vendor's warranties?
Warranties
What warranty IS available; what is its length?

What IS covered under the warranty; after the warranty expires?
•
.,
Who is responsible for the software?
Page 4
Appendix 11/
Maintenancs and Upgrades
Is there a maintenance'contract?
Does the hardware contract pass through the software vendor or is it from the
manufacturer only?
Can it be renewed?
What is the guaranteed response time for service calls?
Can the software be upgraded; who provides them?
Does the user have any nghts to modified software?
Application Software
Training and Technical Assistance

~
Is there project management support; software support?

Are there also speclahsts available?
How many hours of assistance are provided free?
Data Integrity
r-
Is the data in the system integratea across all modules?
Can it edit and validate data?
Does the system batch update or in 'real-time' processing?
How is data deleted?
How many data files can be maintained on-line at the same time?
At what level is there record locking for 'multi-user' systems?
Reports
Does it come with a report generator?

Are the reports easily definable by the user?
Can online mqUiries be made?
Are standard reports available as part of the software package?
What IS the software language used for reports?
Page 5
Appendix 11/
Upgrades
Is the upgrade guaranteed to be compatible with the application software?

Are future enhancements offered?
At what cost?
Are these upgrades mandatory or optional?
How are they provided?
Hardware
Operating Environment Factors
Is there a power surge protector?

Are there any non-office environmental operating requirements?
Delivery and Installation
FOB or delivery included?

Who wires the premises?
Is the unloading, unpacking, moving, and installation part of the package?
Are there hardware reliability figures?
Is the hardware guaranteed to operate reliably?
Load Issues
How many users can access the system slmulatenously without noticeable slow down
of response times?
Does archiving or back-up have to be done when users are 'off-line' «
Application Software:
Rent/Lease/Purchase Price
Maintenance Charges
Page 6
Appendix //I
Sy.stems Software:
Rent/Lease/Purchase Price
Maintenance Charges
<
t~
Hardware:
'~I Rent/Lease/Purchase Price

Maintenance Charges
Delivery/lnst~lIation Charges
Wiring and other Environmental Charges

Delivery Charges
Installation Charges
Training and Technical Assistance
Training Costs
Base Training
Per DiemslTravel
"
Technical Assistance
Base Costs
Additional Costs (rate/travel/per diem)
pricing Poljcy
'lJ
Pricing Guarantees
~
How long IS the pnce good for?
Is this long enough to permit all approvals for purchase being obtained?
If prices go up or down dunng the purchase period does the agency get the benefits
or protections?
Page 7
Appendix III
Payment Schedules
What are they?

Do they fit into the approval system of the agency?
Are they tied to testing?
Are there cancellation penalties?
Terms and Conditions/Performance Guarantees
Are there credits for lack of performance?

Is there a guarantee on delivery?
Bondmg requirements?
What are the available purchase options?
Are credits given for upgrades to hardware or software?
Page 8
Appendix IV
APPENDIX IV
CASE STU DY #1
I. BACKGROUND INFORMATION
J,
The agency is located in the southeast, in an urban area with a population of
't, approximately 280,000. The agency functions as a redevelopment .authority as well
as a public housing agency. The portfolio consists of 4,084 federal conventional
units throughout 16 designated developments, of which one IS scattered site; Four of
the developments are exclusively for elderly, totaling 373 Units. In addition to the
conventional developments, the PHA has two homeownership, and one new Section
8. The PHA manages one development that is locally owned, consisting of 492 family
units.
The PHA is divided into three divisions (encompassing 14 departments):

Administration and Financial Operations; Development; and Housing Operations.
Administration and Finance handles all the finance, accounting, budgeting and
computer activities for the PHA and consequently for the P-BA system. The three
departments most involved In P-BA are, Financial Accounting, MIS, and Financial
Control, and Budgeting.
The Housing Operations DIvision has four departments, three of which are
pertlnentJo the public housing operation: Housing Management; ClAP-Physical
Improvements; and Central Maintenance. Managers are site based, and some
managers have responsibility for more than one site. All sites have at least one
administrative specialist, With most having two or three, to handle the rent collection,
recertifications, and administrative actiVities. The sites have computers which are in
~ the process of being fully hooked up to their mainframe. There are maintenance staff
that are site based and staff which have specialized trades that serve the entire
'!II agency. Each site (or combination of sites) IS assigned approximately three
maintenance staff; one IS a supervisor (working foreman) and two are assistants.
Housing management for the federal conventional Units is diVided into two sections,
each overseen by a Housing Operations Manager. The Housing Managers are
responsible for rent collection, safety and security, public relations, social services
Page 1
Appendix IV
(to some extent), civic duties, and they generally oversee the maintenance activities
at their Sites, although they would like more say in contracting versus staff activities.
II. PHA GENERAL CONDITION
The agency is considered extremely well run both by HUO Management staff I~
and the Independent Public Accountant who performs the agency-wide audit. As
noted above, the agency encompasses other functions in addition to- its public
housing activity. These Include real estate development, rehabilitation, community
development, design and engineering, and marketing and public relations. Oue to the
wide range of activities, and varied cost centers such as community development,
housing modernization, and local development, the agency has to be extremely
budget and financial management oriented to keep itself on track.
The agency has high occupancy, approximately 99%, With limited turnover.
The agency is not on the list of HUO's Financially Troubled PHAs. As of the 1989
operating budget, the agency maintained close to 75% of the maximum operating
reserve level.
The housing stock is undergoing modermzatlon at certain developments. All of

the conventional family developments were built between 1942-1957, with the
majority built in the mid 1950's. As IS the case With most low rent housing in the
southeast, the design is low rise, each site indistinguishable from the others. This
factor, in and of itself, facilitates easier monitoring of maintenance costs due to the
Similar building structures.
III. HISTORY OF P-BA AND AUTOMATION AT THE PHA
.,'
\1'.
The agency started out with P-BA from its inception. They added the ability to
produce consolidated reports in the 1970's to correspond to HUO's requirements. The
agency uses the cost center approach to track all their different funding sources and
allocations. Because It is an all encompassing agency, it receives funding from
numerous entities. Tracking costs to the development level is but one component of
P-BA. There is department-based accounting, whereby the funds are allocated
acr9ss departments and cost centers.
Page 2
Appendix IV
The agency was fully automated by 1981. The system was funded through the
agency Data Processing fund. The onginal hardware was an IBM System 38, with the
software developed for their needs by a vanety of companies, as well as in-house
programming. The agency IS in the process of upgrading their system to an IBM AS
400 this spring. The upgrades of the system in the last nine years have been funded
J, to a large part through ClAP funds. The agency was part of the Public Housing Urban
Initiative Project-Based Budgeting Program in the early 1980's to enhance their
capability for budgeting at the cost center level Although they had-used budgeting at
the cost center level and P-BA previously, they became more proficient and
sophisticated in internal reporting and participatory budgeting. For example, the
agency has the capacity to program all their information m-house, therefore any
requests for reprogramming can be undertaken by agency staff.
Although the agency has always had some form of P-BA, until the mid 1980's, the
developments themselves were not part of the system in an integral manner. The
concept of project-based accounting and budgeting was more applicable to the
departments and cost centers. Smce approximately 1985, Housing Managers have
been receivmg development based information to be used for informational and
budgeting purposes.
The agency recognizes the need for training at all levels. Budget staff meet
WIth Housing Management staff for budget training. All staff that use-the computers
undergo training by In-house Data Processing Staff. There is also a staff computer
analyst whose main responsibility is to trouble shoot at the developments, out in the
field patrolling the sites.
IV. PROJECT·BASED INFORMATION
The use of the project-based information is wide spread, with the agency
generating a multitude of reports. All of the staff in the Finance, Budget, and Data
Processing Departments use P-BA to some degree. Housing Management staff
receive monthly reports. The interviews and document collection did not reveal any
additional informational requests In fact, it appears that there may be an information
overload, With not enough targetmg to a particular audience.
Some of the reports that are available.
Page 3
Appendix IV
• Statement of Costs: monthly reports for income and expenditures, for all
account classifications. The mformatlon is given by current actual month, actual
year to date, annual budget, variance (by dollar and percent.)
• Tenant Ledger
• Delinquency Report ,i.
• Aged Accounts Receivables
• Statement of Expenses by Department
• Work Order 11
• Tenant Profile (social characteristics)
• Specialized reports, such as Evictions and Drug Use.
• Performance Indicators: units occupied, tenant a~ounts receivable, write-offs,
vacancy
The mformatlon is broken down into much more detail than the HUD chart of
accounts. One example is maintenance labor which is broken down into park
maintenance labor, work order and non-work order labor, and central maintenance
administrative labor. (Developments are referred to as parks).
The Housmg Management and Operations staff all reported that P-BA has
made them better managers. They are able to track costs and gather needed data on
their developments and the residents. Information IS available on a timely basis, and
they can generate more mput as a manager. The manager and staWhas the capacity
to question operations and results of specific actions.
The information IS used in budget preparation for both departments and

developments. The HOUSing Managers do playa part in budget preparation but due
to the large number of items out of their control they feel peripherally involved. The
bUdget department distributes to all managers a Housing Management Worksheet
which indicates the items they have direct control over. Priorities are set after the
worksheets are sent in, and the amount of money available is determined. Managers
do not priontize, nor is there any actual mcentive or disincentive for managers to stay
within their budgets.
Page 4
Appendix IV
V. CONCLUSION
Since P-BA in some form has been with the agency since its inception, it is
difficult to determine its histoncal overall impact. P-BA and budgeting at the
development level has Increased staff participation and awareness. Direct costs can
be monitored and accountability is now at the development level. The system does
enable an agency with many accounts and functions to operate in a smooth and
systematic manner. The PHA has a detailed and comprehensive process for
developing their budgets. The capacrty of the agency and the system to track
specific costs is impressive as well as their overall budgeting system. A general
comment from different sources reflected the need for more analysis of the data and a
focused approached for distribution of the reports.
Page 5
Appendix IV
CASE STUDY #2
I. PHA BACKGROUND INFORMATION
J
The PHA IS located in a very densely-populated urban community, known for
high rental rates and purchase prices, which is part of a large metropolitan area in the
northeast. It has 1,854 units of federally-subsidized conventional public housing units
located in six elderly developments and twelve family developments. The PHA also
operates almost 900 units of state-subsidized conventional public housing units
located in five elderly developments and eight ~amily developments.
The delivery of management and maintenance services to the publJc housing

units is supervised by a Director of Management. Reporting to him are an Assistant
Director for Maintenance, a Deputy Director for Elderly Housing, and two Senior
Managers for Family Housing Each development has a management and
maintenance team, compnsed of a Project Manager, usually a Clerk, and unskilled
and semi-skilled maintenance staff.
The Project Manager IS typically assigned to more than one development

(usually two to four developments). However, Project Managers either manage all
elderly developments or all family developments, rather than a mix offamily and
" Managers are responsible for all admimstratlve and management
elderly. The Project
duties, such as rent collection and lease enforcement, as well as assignment and
supervision of the unskilled and semi-skilled maintenance staff. The Project Manager
is also responsible for preparation of an annual development cost center operating
bUdget, and for usmg P-BA reports to monitor the budget. The Project Managers of
elderly developments are supervised by the Deputy Director for Elderly Housing.
Each of the two Senior Managers for Family Housing supervises Project Managers in
a speCific geographiC area.
All skilled and licensed maintenance staff are grouped into three teams; each
supervised by an Area Maintenance Supervisor, who in turn is supervised by the
Assistant Director for Maintenance. Each skilled mamtenance team serves a specific
geographic area.
Page 6
Appendix IV
In its most recent Maintenance Review, HUD rated the PHA "Above Average",
with only one finding for the conventional public housing program. The finding was
related to writing work orders for each work item found in the preventive maintenance
inspection process. The PHA had no significant findings In its most recent HUD
Management Audit.
The PHA has a 95% occupancy rate, with vacanCies concentrated in three
developments that are undergoing, or scheduled for, comprehensive modernization
work. The Comprehensive Occupancy Plan focuses on these three developments.
The PHA faces rent collection problems in a few specific developments, including the
high vacancy developments that are now undergoing comprehensive modernization.
The PHA has delinquent Tenant Accounts Receivables of slightly less than 10%.
The most recent IPA Audit Report contained no significant findings. In

response to audit findings in the previous IPA Report, the PHA implemented all
recommendations made by the IPA Auditor.
In the face of rent collection and maintenance problems In the mid 1970's, the
agency decided to decentralize its operations, placing more responsibility and
accountability on development level staff. In order to facilitate the shift to
decentraltzed management, the PHA began development cost center bUdgeting in
1977, funded under the HUD Urban Initiatives Program. Initially, accounting at the
development level was designed to serve the bUdget mOnitoring process. At the time,
the Agency had a mainframe computer which serviced its consolidated accounting
system, but development-based income and expense reporting was done manually.
• When the PHA began the process of upgrading Its computer capabilttles in the
late 1980's, ItS requirements Included system capacity for project-based accounting
and reporting. In order to select new computer hardware and software the agency
establtshed a committee of representatives from each department to define the needs
to the agency. The PHA hired a large well known accounting and management firm
as a consultant to develop a Request for Proposals, and to review vendor proposals
Page 7
Appendix IV
submitted in response to the RFP. The committee called and visited numerous other
PHAs to find out how the proposed systems actually worked for public housing
agencies. The committee's final decision was "software driven." They selected
software packages that best met their needs, and then looked at the various brands of
hardware on which the software could be run. Two basic criteria were used in the IJ
final analysis of software/hardware packages:
1). How well does the system meet PHA needs? t

.
2). How responsive is the vendor to PHA questions and problems?
The committee ultimately chose a software package that was not as powerful as other
proposed packages. Rather, the final decision was based on representative customer
service experience of other PHAs. They selected a software package with which
other PHAs had experienced supportive customer service relatIOns.
P-BA has evolved since it first began in the late 1970's. While P-BA reports
were initially prepared manually, the Fiscal Department began preparing them on a
personal computer in order to improve the timeliness with which reports could be
delivered to operations staff. Department cost center accounting (for administrative
units), bUdgeting, and reporting was implemented around 1985.
IV. PROJECT-BASED INFORMATION
The PHA's automated system generates two reports each month for department
cost centers and for project cost centers. One report covers activity during the most
recent month, and one includes year-to-date activity. Department cost center reports
are distributed to department heads, while development level reports are transmitted
to the Director of Management, who distributes and reviews them with Project £'1
Jl'"
Managers.
It should be noted that none of the reports include information on staff costs.
The development cost center reports do include income and expense data on the
following accounts:
Page 8
Appendix IV
• Dwelling Rental
• Non-salary Administrative Expense broken down into 11 subaccounts
including travel, telephone, postage, etc.
• Tenant Service Recreation, Publication, Other
• Tenant Service Contract Costs, Training, Other
• Water
• Electricity
• Gas
• Maintenance Materials
• Maintenance Contract Costs
• Extraordinary Mamtenance
• Replacement of Equipment
• Betterments and Additions
The department cost center reports include only the non-salary administrative
expense accounts.
The report on activity dunng the most recent month Includes four columns,
under which Information is provided for the accounts listed above. These columns,
which facilitate budget monitoring, provide the following information:
• Amount expended (or amount of income) dunng the month

• Amount budgeted for the month; equal to 1/12th of the annual approved cost
center bUdget
• Amount of variance (the dollar amount that the cost center has over-spent
or under-spent the expense budget, or the dollar amount that the development
has over-collected or under-collected bUdgeted dwelling rental)
• Percent of variance (the percent of over- or under-spending or over- or under
rent collection)
The report on year-!o-date activity includes four similar columns, that facilitate
companson of Income and expenses to the year-to-date budget. (The PHA's fiscal
year ends on March 31 S1. Therefore, in the year-to-date report for June 30th, when
25% of the fiscal year has passed, the Y-T-D budget amount shown equals 25% of the
approved annual budget).
Page 9
Appendix IV
The use of department cost center P-BA reports vanes widely within the PHA.
The majority of department heads apparently do not take the budgeting process or
P-BA reporting components seriously. However, according to one department head,
"It would be very difficult to function without knowing department-based cost
information." J
Unlike department cost center Information, reports on development level
informatIOn are used consistently throughout the agency. J
I
The Director of Management uses P-BA reports to compare Project Managers'

performance, illustrate points to tenant councils, and evaluate whether or not Project
Managers are accomplishing what they established in their project cost center
bUdgets. He analyzes each development's report and reviews the reports with every
Project Manager at monthly meetings. The Director of Management would like a
report that Includes maintenance labor actual vs. budget, broken down by labor
category (painter, laborer, plumber etc.) and by regular time vs. overtime.
Project Managers tend to use the P-BA reports to keep track of maintenance
materials and supplies, and extraordinary maintenance. They believe that project cost
center budgeting and reporting gives them more control. Because they prepare and
get an approved budget with specific amounts and specific non-routine items at the
beginning of the fiscal year, they feel like they have more autonomy. Budgeting
makes Project Managers develop goals for their development. The P-BA reports help
them to determine "If they are gOing under or over budget; whether they need to slow
down or speed up. The budget is the most important thing that the Manager does. If
you don't get it right, you miss it for the year". Project Managers would like more
detailed reporting, including a breakdown of maintenance contract costs by category
(plumbing, electncal, etc.), as well as a breakdown of extraordinary maintenance
expenditures into specific work items.
The Fiscal Director reviews actuals vs. budget each month for every r
department and development in order to locate any gross variances. Having·
information broken down to the cost center level is very useful in analyzing and
researching significant over-or under-runs.
Page 10
•
Appendix IV
v. CONCLUSION
According to HUD maintenance reviews and management audits, financial

statements, IPA audits, and staff comments, the PHA appears to be more operationally
and financially sound than it was before it decentralized operations and implemented
P-BA and project cost center budgeting. Department cost center budgeting and
accounting seems to have had little effect on 0p.erations, but project level budgeting
and accounting has changed the management character and climate of the PHA. In
part, it has had a profound effect on the PHA's efforts to decentralize the organization
and responsibilities for the delivery of essential on-site operating services to public
housing developments.
The Fiscal Director believes that P-BA and cost center budgeting have
resulted in changes in management style. "It is a mind set Issue. Project Managers
now think about where in their budgets a requisition will come from. It has resulted in
much more communication between the fiscal department and housing management.
The budgeting and reporting processes are communication processes."
According to the Executive Director, "P-BA forces considerations about

staffing that take specific developments into account. Because of P-BA we can think
of distributing resources based on development charactenstics - not just number of
units. It enablfls me to fix accountability and responsibility on the-PrOject Manager."
Page 11
Appendix IV
CASE STUDY #3
J
The PHA is located in an urban community located in the southeastern region.
It is located in an area of the State which l:Jas not seen as extensive growth as other
portIons of the State, but still remams vital. The surrounding communities are rural and
semi-rural in composition, and much of the employment in the area has a seasonal
aspect to its existence with a mix of manufactunng and agricUlture. Land values
appear to be steady but adequate open space remains even in the area of the central
business district near which a large portion of the agency's housing is located.
The entire housmg stock of the agency was funded and built with federal funds.
The oldest developments, which are for families, are almost fifty years old and
represent 312 of the 1,320 total units under management. There are 654 other family
housmg units at five other developments, two elderly highrise with 256 units, and 98
scattered site units. All family units are low-nses, located on large sites built on slab
with low unit densities. It is no surprise that 60% of the units are either two or three
bedroom units.
The delivery of management and mamtenance services to the public housing

units is divided between a Director of Management and a Director of Maintenance.
The Director of Management also takes the lead role for all MIS activities. This is an
atypical arrangement and appears to relate to the importance that is placed on
effective MIS to assist m the review and decision-making process for field operations
as well as the specific skills of the individual serving in the position. In support of the
Director of Management there is an Assistant Director and SIX Housmg Manager
,"J}
·r
positions to cover the eleven major sites plus the scattered sites. Maintenance
operations are run out of a central facility and the agency maintains an extensive fleet
of regular and specialized vehIcles to accomplish its mission. All fiscal matters are
handled through the Comptroller's office including accounting and bUdget
preparation. Although Housing Managers are site based, they have no
responsibilities for maintenance at the site. Their pnmary role is rent collection and
lease enforcement With no participation in the develo~ment of site-based budgets.
Page 12
----------------- -
Appendix IV
The Director of Leased Housing has only tangential Involvement in agency

operations beyond the leased housing program.
While there are Housing Managers at the sites which is a typical aspect of
decentralized operations, the fact that maintenance is centralized and the bUdget is
developed by senior administration with minimal Input from line staff seems to point to
a highly centralized decision-making and program performance review process. The
Executive Director, the Director of Maintenance, the Director of Management (With
MIS oversight), and the Comptroller review all reports and make all adjustments to .'
operations based on the performance data provided in the reports.
The PHA has averaged a 95% occupancy rate over the last three years,
exclusive of modernization. If on schedule modernization is taken into account, then
the PHA can be considered a high occupancy agency. The Authority has been
pursuing an aggressive rent collection program, resulting in the doubling of evictions
in the last three years (from 53 to 121). The PHA has a Tenant Accounts Receivable
balance for residents in possession of slightly more than 6.5% on a monthly average.
Operating statistics generated by the PHA Indicate that the average time span a unit
is vacant is twenty days. The average work-order is completed in four (4) days, and
of the 347 Units which were vacated in 1989, 279 were filled from a waiting list that
had 816 new applicants.
The PHA development of P-BA is linked to the availability of funding in the late
1970s through HUD's Urban Initiatives Program. The PHA saw the funds which were
available as a valuable resource to accomplish the automation of the agency. The
fact that the funds were targeted for the design and installation of what was known as
proJect-based budgeting (P-BB) had no impact on the decision to pursue funds. P-BB
was seen as a requirement of the grant. While the features which were required had
obVIOUS benefit for Increased detail on agency operations, there was no special
internal nor program support for the use of such a system. Even now the use of the
system, which can track detail down to the unit level, IS often used retrospectively.
The detail which is available is not often used except to analyze Issues identified at a
Page 13
Appendix IV
more general level of reporting. The Authority budget which is broken down and
tracked at the development level is often only used to investigate indications of
problems shown on an aggregated level.
The hardware system which was selected was a Data General mini-computer. \vl
A decision was made for the PHA to have its software custom-written for its needs.
This addresses to the fact that ten years ago there was little if any software designed
for the unique needs of PHA operations. The major benefit of the c~stom-deslgned Ii
software was that the PHA had complete control of the source code and did not suffer
from the fear the software company they might have purchased the software from
would go out of business. The PHA has been able to refine the software for its needs
without complex coordination with an outside vendor.
The PHA is currently changing and upgrading its system to take advantage of
the increased performance and value of new hardware available on the market. This
move entails shifting from a mini computer and tape drive to a micro-computer with
•
increased internal storage capacity and a tape back-up system. Once again the
software is being developed in-house. The Director of Management, who also is
responsible for all MIS activities, is custom-writing all software and screen displays.
The major benefit of the user being the designer is that the system has been made
extremely responsive to management needs without the extensive back and forth that
often occurs between software designers and end-users. Besides this benefit, lower
mai(1tenance costs were cited as important reasons for the change. Only the
hardware requires a maintenance contract, and this is anticipated to be at 1/10 the
cost required to maintain the Data General system.
The PHA's automated system generates a variety of reports, the majority of

which can be considered operations orientated rather than financial. Because the
group of report readers is small, many reports can and are requested as needed.
Monthly summaries of bUdget information (income and expenses) are generated on a
budget versus actual baSIS. Some reports are generated on a current year versus
prior year basis as certain financial data is considered better evaluated against the
same period prior year. This is especially true of utility expense data. The report
readership consists of only the most senior staff with the Executive Director, the
Page 14
Appendix IV
Director of Manpgement and the Director of Maintenance being the pnmary readers of
these reports.
The development cost center reports do include income and expense data on
the entire chart of accounts. There are no reports on a department by department
budgetary expense basis that are generated on a routine basis. However, the PHA
has developed an extensive set of reports on operations. Some of these reports cover
tenant selection and leased hOUSing operations but only in so far as they impact
occupancy and program participation. These reports descnbe maintenance activities
at a very high level of detail and show average costs for each type of- maintenance
task Authority-wide and development specific. Materials usage is reported on an
aggregated basis and by development. Utilities are reported by development and
vanations between month to month and prior year are used to identify problems and
capital improvement needs. For Instance a determination to replace a water line was
made based on Increased water usage that could not be explained. The PHA uses
these reports to help to evaluate the Information carned in the monthly income and
expense summaries by development.
The Executive Director IS the pnmary reader and uses P-BA reports to compare
project performance. In conjunction With the Comptroller, and the Director of
Management and Maintenance, development activities are analyzed and necessary
changes to resource allocation are made. Housing Managers do-not see any reports
for their developments except for Tenant Accounts Receivable. However, penodic
staff meetings are held In which information in the reports is discussed with line staff.
V. CONCLUSION
The PHA has developed tremendous internal capacity in the area of

automation. Because of the strong control over its data processing needs, the PHA
has developed a very sophisticated system of reports. ThiS appears to be necessary
because the deCISion-making process is highly centralized. In order to make informed
deCisions, semor staff rely on a high level of detail on operations, especially In the
maintenance and purchasing areas.
Some individuals at the senior level of the PHA expressed an opinion that while
the benefits of the system were significant, the organizational commitment to the
Page 15
Appendix IV
system needed to be very high in order for the system to work effectively. Because
the software was designed in-house, the ability to change the system in response to
changing organizational needs is strong. The PHA contends that it is able to run and
maintain its system at lower than average costs because of the in-house control In
design and maintenance. In addition, the cost saving realized by the use of operating
and cost standards defined through the system's use has enabled the PHA to J
increase reserves and to plan effectively for needed Improvements in a manner that
appears to have Improved its financial condition.
Page 16
Appendix IV
CASE STUDY #4
The agency is located in an urban area with a population of approximately

68,000. The agency was established in 1934 and completed its first and still standing
development In 1938. Its first ClAP expenditures occurred In 1983 (for this same
development). This was also the year that the agency began developing project
based accounting.
The agency has seven developments with 1,032 units. in addition it has 1,500
Section 8Noucher certificates In 8 different programs.
The agency is organized centrally into four divisions. The Assistant Executive
Director supervises all occupancy, leasing programs, community services and
special projects. The Finance Supervisor attends to purchasing, budgeting, data
processing and all accounting for public housing and leasing programs. The ClAP
COOrdinator handles all modernization projects. The Maintenance Foreman
administers all maintenance activities. P-BA and budgeting are handled by the
Finance Supervisor Department.
There are no site-based managers although staff in maintenance and

occupancy Will be given site responsibilities where appropriate. These may be
'rotated' over a two year period most often because of the changing nature of the
demands from a particular site and the need to match personnel skills accordingly.
Our observations and the HUD Field Office evaluations would lead to the
conclusion that thiS agency has very few problems. The agency has a high
occupancy rate. Of the 60 vacancies (5.8% of total Units), 55 are due to ClAP
renovations leaving only 5 or .5% due to turnover. It has a low turnover rate and turns
around vacancies In less than 30 days. In terms of operating reserves the past year
they were at 80% of maximum and were anticipating this year to be at 53%.
Page 17
Appendix IV
As noted above ClAP began in 1983 and most developments have been or are
scheduled to be modernized. In general the developments are in good physical
shape and require routine maintenance. The agency in fact is not budgeting for any
extraordinary maintenance or betterments and additions.

J
<
The PHA began with P-BA in 1983, when the agency was trying to track
project costs more closely. To that date there had been no way to charge costs to a
particular project. From 1983 through 1987 the agency struggled to create an
effective system without much success because of the Inability to track inventory to
projects and the difficulty of managing accounting Information manually. At that point
it was decided to automate with a standard packaged PHA system. This provided an
inventory module which enabled the agency to establish a "perpetual inventory"
system.
The agency hired a consultant in 1987 to develop an RFP for automation which
was Issued in August 1988. Proposals were received shortly thereafter. The agency
proceeded to Visit PHAs which had these systems installed and focused most
particularly on the ability of the system to provide project level reports. In November
of 1988 the agency had narrowed the choice to four vendors and the Board voted In
favor of the most expensive system due to its high ratings on 28 variables. The system
3'
was paid for with ClAP management improvement program funds.
Installation commenced in January 1989 and will not be complete until the end
of the first quarter of 1990. Consequently, the P-BA elements which are operating at
the time of thiS report were Tenants' Information (demographics, accounts receivable,
waiting list), General Ledger, Accounts Payable, Payroll, Inventory and Purchasing.
Still to come was Work Orders. The system included Desktop Publishing which has
been used extenSively through all departments of the agency.
The only regular prOject-based Information being prepared at this time were
analyses of the income, collection and vacancy losses at each project. However, it
Page 18
Appendix IV
had also been used to track utility expenditures and identify some specific causes of
unusual increases in contract expenditures. At the time of the site visit, they were
moving to incorporate job costing by means of time sheets. They also expected to
begin providing information on project maintenance by project and by maintenance
specialties and teams as soon as the work order system was functioning.
They have no intention at this time of moving to site or project-based personnel

and management. However, they Intend to use unit, building and project information
to monitor the service needs and the agency's delivery performance more specifically
than heretofore.
At the moment the agency does not have a complete list of the reports which it
intends to produce. However, the original Request for Proposals to produce the MIS
applications and the Proposal accepted ,have a lengthy list of reports which are
standard. The most significant development so far has been the intensive use of the
"Plain English Report Writer". Several staff use it more than the "Standard Reports· to
provide information requested and most particularly to answer questions from the
Executive Director and the Board.
V. CONCLUSION
The staff of this centrally managed agency are enormously enthusiastic about
automation and the PBA functionality of the system. This can be attributed in part to
the fact that they have had some real questions answered by the Report Wnter
capacity of the system, because of the agency's use of the standard financial
applications and because of the improvement m efficiency m accounting. In the case
of these items, staff have received immediate and tangible benefits.
*U.S GOVER~l1ENT PRINTING OFFICE' 1991--523-925/40355
Page 19
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J',

u.s. Department of Housing and Urban Development

OKM Associates, Inc.

This ProJect-Based Accounting GUidebook is the final product of a research

The following is a list of the GUidebook chapters. Each chapter buiids on

Chapter One - Introduction to Project-Based Accounting

Chapter Two - Mimmum ReqUirements for a Standard ProJect-Based

Chapter Three - Enhancements to the P-BA System Which Supports Internal

Chapter Four - The Process for Deslgmng, Implementing and Maintaining a

Chapter Five - Determining the Cost to Convert to a P-BA System

Supplementing the Information contained In the five chapters are four

CHAPTER ONE: INTRODUCTION TO PROJECT-BASED ACCOUNTING 1

CHAPTER TWO: MINIMUM REQUIREMENTS FOR A STANDARD

CHAPTER THREE: ENHANCEMENTS TO A P-BA"SYSTEM WHICH

• CHAPTER FOUR: THE PROCESS FOR DESIGNING, IMPLEMENTING AND

CHAPTER FIVE: DETERMINING THE COST OF CONVERTING

1-1 PROJECT BASED ACCOUNTING SYSTEM 5

2-1 MODIFIED HUD FORM 52599 - MINIMUM ACCOUNTS FOR

3-2 ANYTOWN PHA PROJECT-BASED ACCOUNTING SYSTEM:

3-3 FLOW CHART OF TYPICAL ALLOCATION PROCESS 51

3-4 ANYTOWN PHA PROJECT-BASED ACCOUNTING SYSTEM:

3-5 ANYTOWN PHA PROJECT-BASED ACCOUNTING SYSTEM:

3-6 ANYTOWN PHA PROJECT-BASED ACCOUNTING SYSTEM:

4-1 DESIGNING AND IMPLEMENTING A P-BA SYSTEM 68

4-2 P-BA IMPLEMENTATION FLOW CHART 87

4-3 P-BA IMPLEMENTATION CHECKLIST 91

5-1 COST ESTIMATES FOR A PROJECT-BASED

APPENDIX I: SAMPLE P-BA REPORT FORMATS

APPENDiX II: P-BA SOLICITATION PACKAGE

APPENDIX IIA: REQUESTS FOR PROPOSALS TO

APPENDIX liB: REQUESTS FOR PROPOSALS TO

APPENDIX III: SAMPLE CHECKLIST FOR PHAS TO FOLLOW

APPENDIX IV: PHA CASE STUDIES

Most PHAs maintain a consolidated budgeting and accounting system. The

WHAT IS PROJECT-BASED ACCOUNTING?

Project-based accounting ~s the term used to describe accounting systems

To be considered a functional P-BA system, the system must incorporate at

• it must incorporate an acceptable methodology for allocating income

• it must report timely, accurate, and useful financial and operational

Although the minimum requirements of a P-BA system are defined In Chapter

ProJect-Based Accounting systems are management systems as well as systems

Following is a depIction of the dynamic elements of a P-BA system: its Inputs,

If used to ItS full capability, P-BA can provide important management

P-BA operating charactenstlcs can provIde useful informatIon on the

PROJECT-BASED ACCOUNTING SYSTEM

INPUTS ACCOUTING SYSTEM OUTPUTS

Internal Audit/Internal Control

Prolect-level DecIsIon Makmq

On-site Performance Monitoring/Accountability

For many PHAs, project-based budgeting is an Important component of project­

Project-based budgeting can be used to place financial accountability on field

Internal Audit and Internal Control

P-BA is a valuable method of promoting and supporting internal audit and

Project Level Management Decisions

P-BA information can provide a complete picture of PHA operations and

P-BA expense mformatlon can be used by management to compare operating

WHAT TYPES OF PHAs WILL BENEFIT MOST FROM P-BA? •

• A PHA's management operation does not have to be decentralized to

• A PHA does not have to automate its management and accounting

For many PHAs, project-based budgeting is an Important component of project

MODIFIED HUD FORM 52599