Tracking Expenditures and Revenues Related to Natural Disaster Relief Efforts

Issued: Dec. 11, 2017
Updated: Jan. 8, 2018 View Changes

FPP K.014

Table of Contents

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Overview

Applicable to

State agencies and institutions of higher education with funds in the State Treasury related to significant natural disaster relief efforts.

Policy

The Texas Comptroller of Public Accounts, under the authority of Texas Government Code 403.011 and the General Appropriations Act (GAA), requires state agencies and institutions of higher education to use additional Uniform Statewide Accounting System (USAS) coding requirements to ensure proper tracking of expenditures and revenues directly related to significant natural disaster relief efforts.

Legal cite

Texas Government Code, Section 403.011; General Appropriations Act (GAA), Article IX, Section 13.04, 85th Legislature, Regular Session.

Legend

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This icon indicates information applicable to the Centralized Accounting and Payroll/Personnel System (CAPPS).

Calendar

Effective Jan. 1, 2018

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Policy Overview

Introduction

The Comptroller’s office, as the sole accounting officer of the state per Texas Government Code 403.011, oversees and manages the state’s fiscal concerns as required by law.

In addition, the GAA, Article IX, Section 13.04 states:

It is the intent of the legislature, that in the event 10 or more state agencies are awarded, by the United States government, a combined amount greater than or equal to $1 billion in federal stimulus funds or other one-time allocations appropriated through legislation separate from the annual federal appropriations bills, the Comptroller shall set state reporting standards and timelines, including performance benchmarks, for all affected agencies, including institutions of higher education, that align with any related federal reporting requirements.

To facilitate the accountability and transparency for expenditure and revenue activity related to natural disaster relief efforts, an additional coding element must be recorded in USAS for this activity.

Under the provisions noted above, the Comptroller’s office may initiate a requirement to track and report certain financial activity.

Refer to Accounting for Natural Disaster Relief Efforts (FPP K.011) for additional information on managing disaster related activity.

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Definitions

Introduction

This section includes definitions for this Fiscal Policy and Procedure.

Definitions

Disaster Relief Funds

Disaster relief funds are any monies received or expended by an agency or institution related to natural disaster relief efforts. Disaster relief funds are not limited to reimbursements received from the federal government. The method of finance for these funds may be general revenue, general revenue dedicated accounts, federal funds, or other funds.

Direct Expenses

The expenditures to be tracked include direct costs associated with your agency or institution’s disaster response. Direct expenses may include the purchase of additional goods or services required to respond to the disaster and monies distributed to individuals or local governments whether from state appropriations or in partnership with the federal government. Direct expenses do not include regular agency or institution operating costs or regular salary costs.

However, certain salary, benefit and overtime salary costs directly associated with your agency or institution’s disaster response, if eligible for federal reimbursement (see note below), are considered a direct expense and subject to tracking. Salaries, wages and other personnel costs tracked in USAS must be consistent with any additional external reporting an agency or institution is providing, Ex: the Legislative Budget Board’s Hurricane Harvey Cost Survey.

Note: The Stafford Act constitutes the statutory authority for most federal disaster response activities especially those pertaining to the Federal Emergency Management Agency (FEMA) and FEMA programs. Pay and benefit reimbursement information are detailed in the Act.

Direct Revenues

The revenues to be tracked include direct receipts associated with your agency or institution’s disaster response. Direct revenue may include federal revenue, insurance policies associated with the natural disaster relief efforts or state grant pass-through revenues your agency or institution received from another state agency or institution (Ex: disaster grants received from the Governor’s Office). Direct revenue does not include regular agency receipts that were impacted (Ex: expedited or delayed due to the disaster).

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Agency Requirements

Introduction

To track the direct costs associated with your agency or institution’s disaster response, agencies and institutions must use the USAS PCA Group field on the USAS 26 Program Cost Account Profile. If your agency or institution already segregates your disaster response financial activity at the PCA level, then no revenue or expenditure transfers will be required. However, your agency or institution must add a PCA Group to your existing Program Cost Account Profile(s). If your agency or institution has multiple PCAs that are uniquely tracking your disaster activity due to multiple appropriations, methods of finance or other agency-defined requirements, the PCA Group must be added to all of these identified PCAs.

If your agency or institution does not segregate your disaster response financial activity at the PCA level in USAS, then revenue and expenditure transfers will require a new PCA(s) unique to disaster response tracking that contains a PCA Group to identify the appropriate costs and receipts.

Establish and Update Required USAS Profiles

Agencies tracking disaster response financial activity must establish a USAS D19 PCA Group Profile. The coding scheme used to track significant natural disaster relief efforts will be the four-digit fiscal year of the event plus the sequential occurrence of the event. For example, Hurricane Harvey’s initial impact on the state began in late August of fiscal 2017 and was the first disaster event of the fiscal year. Therefore, the PCA Group for Hurricane Harvey will be 20171. In the 50 character length Title field, after an agency-determined description, add the name of the disaster event, Ex: “Disaster Response – Hurricane Harvey”.

Note: Consult with your Appropriation Control Officer prior to establishing a PCA Group for disaster tracking. As a result of the Comptroller-defined USAS D19 PCA Group schema to track an agency or institution’s disaster response, agencies and institutions must refrain from establishing D19 profiles where the first four digits are a fiscal year.

Existing Disaster Response PCAs

Agencies and institutions must associate the newly defined D19 PCA Group code on existing USAS 26 Program Cost Account Profiles that were previously established to track unique disaster response financial activity. To associate the new PCA Group code to USAS 26 Program Cost Account Profiles:

No additional actions are required from your agency or institution. Agencies or institutions should continue processing expenditure and revenue activity under your existing policies and processes using the previously established PCA(s), which now infer a PCA Group.

New Disaster Response PCAs

If your agency or institution is establishing a new USAS 26 Program Cost Account Profile(s) to track unique disaster response financial activity, ensure the newly defined D19 PCA Group code is added to the new record(s). All other USAS 26 Program Cost Account Profile elements must be added using USAS Coding Instruction guidelines.

Record Current Expenditure and Revenue Activity Directly In Unique Disaster Response PCA(s)

All disaster response financial activity that flows through the State Treasury must process in USAS with a PCA that has an associated PCA Group.

Direct revenues your agency or institution received as state grant pass-through revenue from another state agency or institution must be recorded in the same appropriated fund as the appropriated fund from which the grants were made.

Note: The effective date to begin recording disaster response financial activity is determined by the Comptroller’s office.

For Hurricane Harvey tracking, agencies may start following this new policy as soon as administratively possible to record new disaster response financial activity or to begin performing prior period activity adjustments. All prior period adjustments must be completed by Jan. 31, 2018.

Prior Period Expenditure Activity Adjustments

If your agency or institution processed direct expenses and did not segregate your disaster response financial activity at the PCA level, then expenditure transfers will require one or more new PCAs unique to disaster response tracking.

The Comptroller’s office will allow the expenditure transfer process to be summarized at the unique vendor number and comptroller object code level. Maintaining the vendor number in the expenditure transfer process is important to ensure the integrity of the data that may be subsequently reported to interested parties. Expenditure transfers must be done as soon as administratively possible once a disaster response financial activity reporting effective date has been determined to enable complete reporting of disaster response financial activity. Refer to the transfer steps below for the processing sequence.

Transfer out from Original Expenditure PCA*

Doc Type Batch Type T-Code/Title Appropriation Comptroller Object PCA Appd Fund Fund
K 4, 8 407/Expenditure
Transfer-Out
Original Appropriation Original Comptroller Object Original PCA Original Fund Original Fund

Transfer into Disaster Tracking PCA*

Doc Type Batch Type T-Code/Title Appropriation Comptroller Object PCA Appd Fund Fund

* Expenditure transfers must be at the unique vendor number and comptroller object code level.
** The PCA Group must be inferred by the PCA.

K 4, 8 408/Expenditure
Transfer-In
Same Same Determined by Agency** Same Same

Note: If the original payment was marked as confidential or as containing some confidential information, any expenditure transfer voucher (ETV) transaction moving the expense must be similarly marked to maintain the confidential designation. To process an ETV, the Pre-Enc/Enc/Expend Transaction Entry (505) screen or the USAS detail transaction input record via electronic batch input file may be used with the appropriate confidential indicator marked. The Balanced JV Transaction Entry (509) screen is not available for this activity. See USAS and CAPPS Financials Confidentiality Indicator (FPP E.045).

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CAPPS agencies create the expenditure transfer by entering a voucher in CAPPS. The vendor ID from the original transaction is used on the expenditure transfer voucher. The accounting entry template for T-code 408 is used and a descriptive legal text entered to document the reason for the correction. For questions, contact your agency’s Level 1 Help Desk support staff. Authorized Level 1 users may contact the CAPPS Help Desk for additional support.

Prior Period Revenue Activity Adjustments

If your agency or institution received direct revenues and did not segregate your disaster response financial activity at the PCA level, then revenue transfers will require one or more new PCAs unique to disaster tracking. Refer to the transfer steps below for the processing sequence.

Transfer out from Original Deposit PCA

Doc Type Batch Type T-Code/Title Appropriation Comptroller Object PCA Appd Fund Fund
J 2, 8 195R/Record Deposit of Revenue in Treasury Original Appropriation Original Comptroller Object Original PCA Original Fund Original Fund

Transfer into Disaster Response Tracking PCA

Doc Type Batch Type T-Code/Title Appropriation Comptroller Object PCA Appd Fund Fund
* The PCA Group must be inferred by the PCA.
J 2, 8 195/Record Deposit of Revenue in Treasury Same Same Determined by Agency* Same Same

Note: The example above shows T-code 195/195R, but if another T-code was used to make the original deposit, reverse the original T-code and use the same T-code to transfer to the disaster tracking PCA. Consult with your appropriation control officer if operating transfers are used to finance a collected appropriation.

CAPPS logo

CAPPS agencies can send transactions through CAPPS or make the USAS transaction directly in USAS. CAPPS agencies making the above entry directly in USAS will need to create a GL journal using a manual T-code in CAPPS. For questions, contact your agency’s Level 1 Help Desk support staff. Authorized Level 1 users may contact the CAPPS Help Desk for additional support.

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Frequently Asked Questions (FAQs)

Expand All [+]

Responding to Emergencies and Disasters as Part of Normal Operations

Our agency receives state appropriations for emergency and disaster remediation/response; therefore, assisting with Hurricane Harvey is business as usual for us. Do we still have to report expenditures as outlined in this fiscal policy and procedure (FPP K.014)? [+]

Yes, but only for special expenditures directly related to Hurricane Harvey.

Ex: If a state agency or institution of higher education spends $100 of its state appropriations as follows: (a) $50 on current staff salary, (b) $10 on current staff overtime related to Hurricane Harvey, (c) $40 on materials for Harvey cleanup. Then, $50 ($10 in overtime + $40 in materials) is reportable under FPP K.014. The remaining $50 in current staff salary is excluded because it is a normal operating expense.

Note: An agency or institution must track any disaster-related salary, benefit and overtime salary costs that are eligible for federal reimbursement as specified under the Stafford Act.

Payroll Transactions

Hundreds of our agency’s FTEs worked overtime to assist with the state’s response to Hurricane Harvey. We will have to enter thousands of lines to comply with the requirement that we report expenditures at the unique vendor number and comptroller object code (object code) level. Can we just enter summary level expenditure transfers for state employee payroll and payroll-related costs? [+]

All expenditures directly related to Hurricane Harvey should be reported, including costs related to hiring additional FTEs, overtime for current FTEs, travel and supplies. However, if your agency or institution is transferring expenditures related to state employee payroll, travel or benefits, you may do so at summary level by object code using T-codes 408/407 and a summary object code that applies to the aggregate expenditure (salary, overtime pay, travel, etc.). The vendor number for authorized summary-level expenditure transfers is 38880025705, Summary Cost Allocation Transfers.

Expenditures for contractor labor or services not performed by state employees must be reported at the vendor number and object code level.

Are agencies and institutions required to capture benefit-related costs associated with new FTEs hired to assist with Hurricane Harvey-related damages? [+]

Yes. To track benefit expenditures associated with salaries paid to employees hired to respond to the disaster, agencies and institutions should establish PCAs that refer to Hurricane Harvey PCA Group 20171 and the salary benefit appropriations. This requirement should only apply to new FTEs hired to respond to Hurricane Harvey, or in circumstances where an agency’s current staff costs are reportable to the federal government for federal aid.

Tracking within Other Accounting Systems

We are already tracking Hurricane Harvey expenditures using a special code embedded in another accounting system. If an agency can provide whatever information you require, do we have to setup a new PCA group in USAS? [+]

Yes, the Comptroller’s office is tasked with providing “real time” revenue and expenditure data from USAS, the Texas state government’s accounting system of record.

Reporting Disaster-Related Encumbrances

This FPP directs agencies and institutions to track expenditures directly related to Hurricane Harvey recovery and relief efforts. Should we also record encumbrances related to the disaster under the disaster PCA and accompanying Hurricane Harvey PCA group? [+]

Yes. All agencies and institutions should encumber funds for Hurricane Harvey-related expenditures using the PCA group outlined in FPP K.014.

Our agency uses a procurement system that interfaces purchase orders with encumbrance transactions in USAS. Do we need to map all open purchase orders in our procurement system to a new PCA for Hurricane Harvey? [+]

Yes. With respect to the Jan. 31 deadline, prioritize any expenditure transaction vouchers (ETVs) or Hurricane Harvey-related revenue corrections. We advise amending encumbrances after your revenue corrections and/or ETVs are entered. If your agency or institution has not done so already, you should also begin recording new encumbrances using the tracking PCA outlined in this fiscal policy and procedure (FPP K.014).

Disaster Costs Not Related to Disaster Response

Should my agency or institution capture all expenditures related to Harvey? For instance, what if our property was damaged by the storm but we did not necessarily participate in disaster response programs? [+]

Agencies directly impacted by Hurricane Harvey — including repair of damaged agency facilities — should report these expenditures using the coding instructions in this fiscal policy and procedure (FPP K.014). Likewise, insurance proceeds and other revenues attributable to Hurricane Harvey damages should be recorded using Hurricane Harvey PCA Group 20171.

Changes to this Document
01/08/2018 Add FAQs to address reporting questions
12/11/2017 Added procedure to track expenditures and revenues related to significant natural disaster relief efforts