Skip to content

Benefits Proportional by Method of Finance (APS 011)

FPP A.010

Policy Overview


The GAA requires that payment for benefits from appropriated funds be proportional to a state agency’s or institution of higher education’s method of finance unless another legal provision prohibits proportionality.

The instructions in this document should be used to determine proportionality by method of finance for each fund appropriated to the agency or institution, and to calculate the proper amount of benefit payments to be paid from each appropriated fund for the prior appropriation year.

Agencies and institutions that process reimbursement payrolls for salary must also ensure proper reimbursement for all related benefit costs to ensure accurate amounts are used in the proportionality calculations.

All funding types included

All appropriated funds under the four methods of finance available to an agency or institution are included in the assessment of the benefits proportional requirement regardless if the funds are:

  • General Revenue (GR)
  • General Revenue – Dedicated (GD)
  • Federal Funds (FF)
  • Other Funds (OF)

If the Comptroller’s office determines that achieving benefits proportionality by method of finance is impractical or inefficient at the time benefit payments are made, agencies and institutions are required to reimburse GR for any such payments at a later date.

There may be restrictions on the level of salaries and benefits that can be paid from a particular method of finance (ex. federal funds and trust funds). These restrictions must be reported when completing the Benefits Proportional by Method of Finance Report Form.

Exemption from completing this report

Agencies and institutions funded with a single method of finance are not required to complete the proportionate benefits calculation. Such agencies and institutions are required to submit a letter confirming this status to the Comptroller’s office and the State Auditor’s Office (SAO) by Nov. 19 each year. Institutions must also send a letter to the Legislative Budget Board (LBB).

Agencies and institutions that must comply

Agencies and institutions with multiple methods of finance must complete the Benefits Proportional by Method of Finance Report Form and submit it to the Comptroller’s office and the SAO. Institutions must also submit the report to the LBB. This report must be submitted annually by Nov. 19. Any required benefit payment adjustments between methods of finance must also be completed annually by Nov. 19.

Related documents

This accounting policy statement (APS) concerns ensuring proper proportionality of benefit payments between methods of finance. A related APS, Sources of Revenue Required to Pay Benefit Cost (APS 001) (FPP A.021), concerns the requirement in the current GAA that any federal funds, interagency contracts or other collected receipts that pay wages and salaries also pay for the corresponding benefit costs.

Another related policy is Earned Federal Funds and Indirect Cost Reimbursements to the General Revenue Fund (APS 023).