I am trying to find other cities who have a Revolving Loan Fund established with CDBG funds. I would specifically like to know how you record the receipt of program income when you receive principal and interest payments on Loans made from the Revolving Loan Fund. I would also like to know when you recognize the revenue from the principal & interest payments. The City of Palmdale is in a situation where we have one loan that was established in a revolving loan fund and we are receiving loan payments that are program income to us but we have no expenditures in the revolving loan fund to dispose of this program income. I've been carrying the program income in a deposit liability account and an offsetting Contra Revenue account and I don't know if we are handling this properly. If you have been faced with a similar situation, I would appreciate your input. Allison Kriss City of Palmdale
