(a) In order to provide a record of commitments made by a local agency with respect to contracts included in the scope of this Subpart the following journal entry shall be made for the gross amount of each contract upon award thereof, and as change orders (see § 1646-5.3, below) are authorized:

(b) Prior written approval of the division is required for the award of contracts in excess of an amount which will be fixed in the loan contract for each project, individually. Prior written approval will not be required for smaller amounts, but all such contracts and expenditures in connection therewith will be subject to division approval, audit, and validation. The journal voucher recording the award of a contract requiring prior division approval shall be supported by reference to the division's letter approving the award.

(c) All contracts included in the scope of this Subpart shall, upon award, be individually recorded in a contractors ledger, as described in section 1642-3.12. See also Exhibit 19 of Appendix S-8. The sum of the balances of the contractors ledger shall at all times equal the general ledger balances of account 1500, Incompleted Contracts, and account 2400, Contract Awards, the latter being at all times equal to each other.