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Sources of Revenue Required to Pay Benefit Cost (APS 001)

FPP A.021

Sources of Funding Requiring Employee Benefit Reimbursement


This section explains the circumstances when an appropriated fund must be reimbursed for benefit cost paid in relation to salaries paid from the following three types of collected revenues:

  • Federal receipts
  • Interagency payments paid from a different appropriated fund
  • Other collected receipts

Effects of Section 6.08 (a) and Section 13.06 on federal receipts

Federal receipts may be deposited to many appropriated funds (GR, GR Dedicated and Other Funds). The APS 001 policy applies only to situations where federal receipts are deposited to an appropriated fund, such as the General Revenue Fund or State Highway Fund 0006 that receives both state and federal receipts.

Generally when federal funds are received, including federal pass-through funds, they are deposited to a single PCA/appropriation. Unless the federal receipts are transferred to fund benefit appropriations, when salaries are paid from the federal receipts, the related benefit cost is paid from the respective appropriated funds’ non-federal cash balance. Therefore, the benefit appropriations must be reimbursed for the cost of benefit payments related to salaries paid from federal receipts.

Sections 6.08 (a) and 13.06 require that federal reimbursements for benefit cost related to salaries paid from federal receipts be deposited to the respective appropriated fund’s benefit appropriation. GAA, Article IX, Section 13.06, also requires an agency that is reimbursed for employee benefits originally paid from the GR appropriations of another administering agency to deposit such reimbursements to unappropriated GR.

The Uniform Statewide Accounting System (USAS) reimbursement transactions discussed later in this document are intended for situations where salaries are paid from federal receipts deposited to an appropriated fund with both federal and state receipts, and federal receipts were not originally used to fund benefit appropriations.

Interagency receipts paid from a different appropriated fund

If an agency collects interagency contract (IAC) receipts from another agency that pays from a method of finance other than GR, the recipient agency must also collect the cost of related benefits. If an agency pays salaries from interagency receipts paid from GR, then the recipient agency may draw down committed GR to cover the cost of related benefits.

Note: Agencies participating in an IAC arrangement are advised to include a clause in the agreement prescribing additional payable amounts related to funding equity for employee benefit payments (Ex: An additional percentage to be paid in addition to other billable services for agencies that intend to pay an IAC invoice from funds other than GR).

Other collected receipts

Section 6.08 requires that benefits be paid proportionally to the method of finance. Agencies that receive a portion of their funding from collected receipts deposited to GR and appropriated through agency or Article IX riders (gifts, grants, appropriated receipts, etc.) must report the actual amount of such receipts in Section I of the Benefits Proportional by Method of Finance Report Form (Excel). This ensures that the available methods of finance include the actual amounts collected, instead of the estimates published in the GAA, to determine the proportional shares of employee benefit cost.