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FEB 16 1996 BOOK 70 PAGE 844 Ms. Hill reviewed the above, advising that the Housing Authority has been recast in a format similar to the other enterprise funds of the county because they are now beginning to operate the apartment complex they have developed, and we want to be able to measure their performance as you would a business operation. The property and equipment which is part of the project is shown in their financial statements, and the land sales are just about concluded. They have a liability in bonds payable, and they received a relatively Targe contribution to fund part of the project. The income statement of the Housing Authority shows the subsidy from the Board of County Commis- sioners which is a very important element of funding their administrative expenses. The other item Ms. Hill wished to point outwith respect to the Housing Authority statement is that they have .their own compliance section, and the management comments were as follows: 1. Miscellaneous Expense Account During the year, the miscellaneous expense account was over- used. An analysis of the accounts indicated that many of the items should have been classified to another more appropriate line item. The Officer Manager should strive to classify all items in an appropriate expense account and only utilize the miscellane- ous expense account in unusual circumstances. If necessary, new accounts should be established. 2. Detail Records of Fixed Assets Should be Maintained Present accounting policies do not include the maintenance of fixed asset detail records to support general ledger balances. These detail records should include the original cost of the asset and the date of acquisition. Because these records are not available when an asset is retired, the proper amount cannot be deducted from tht balance sheet. In implementing detail records for prior acquisitions, a complete physical inventory of all assets should be taken and costs assigned based on actual vendor invoices, where avail- able, or estimated. As a starting point, we would be pleased to supply you with the detail asset data from our files. These schedules would be useful in conducting your inventory, comparing results and adjusting accordingly, and establishing initial detail records. We also recommend that this detail information be used to physically identify and verify the existence of all fixed assets owned by the Authority. These assets should be tagged or otherwise identified. 26