Transcription of CHAPTER 4: FINANCIAL MANAGEMENT - Rural Development
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CHAPTER 4: FINANCIAL MANAGEMENT - Rural Development
HB-2-3560 _____ 4-1 (02-24-05) SPECIAL PN Revised (11-08-19) PN 530 INTRODUCTION Successful projects require sound FINANCIAL MANAGEMENT procedures to track funds, prepare realistic budgets, manage project funds effectively, and report FINANCIAL progress. This CHAPTER covers the borrower s FINANCIAL MANAGEMENT responsibilities and provides guidance to Loan Servicers on monitoring a borrower s FINANCIAL MANAGEMENT performance. The CHAPTER is divided into five sections: Section 1: Project Accounting System describes program requirements and Agency monitoring responsibilities for the project accounting system. Section 2: Project Accounts discusses the contribution, use, and monitoring of project accounts. Section 3: Reserve Accounts outlines the requirements for and monitoring of reserve accounts.
Section 5: Reporting and Financial Examination describes project actual reporting and financial examinations and Agency review of these reports. SECTION 1: PROJECT ACCOUNTING SYSTEM . 4.2 OVERVIEW OF ACCOUNTING SYSTEM REQUIREMENTS [7 CFR 3560.302] Borrowers must establish accounting systems that support safe and sound project financial …
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