Refunding Deposits (APS 013)

How to Refund Deposits

Refunding Deposits

Authorized refunds are made by refund transactions. The refund transaction code (T-code) reverses the increase to the original comptroller revenue object. 

Refunds must be issued within four years of the receipt or due date and must come from the fund and the appropriation where the money was originally deposited. If the refunded revenue comes from an “unappropriated activity account,” use the current appropriation year, unless otherwise restricted.

An agency refunding revenue must include in the Legal/Descriptive Text an explanation of the accounting transaction and reference Government Code, Section 403.077, which gives authority to all agencies and institutions of higher education to issue a non-tax refund.

Determining Appropriation Year

The table below explains how to determine the correct appropriation year (AY) to enter on the refund transaction:

Refunding Erroneous Deposits

Refunds must contain the same coding block elements as the original transaction, subject to the AY determination above.

Process the refund in USAS with Document Type 9, Batch Type 4, using the coding block in the table below.

Create the payment for erroneous deposits by entering a voucher in CAPPS. Select the accounting entry template for T-code 222 or T-code 229. Refunds must contain the same coding block elements as the original transaction, subject to the AY determination above.

* If the original deposit T-code was 179, the agency must also reverse the budgetary impact by entering a Document Type J, Batch Type 2, using T-codes 195/179R.

** If the original deposit T-code was 195, and the agency increased its budget with T-codes 006/009, the agency must reduce that budget by entering a Document Type A, Batch Type 1, using T-codes 009R/006R.

Refunds From Abolished Funds

A refund from an abolished fund, where balances exceeding the amount of the refund were transferred to General Revenue (GR), may be issued from GR.

Refund requests from abolished funds where balances were not transferred to GR or where insufficient balances were transferred to GR must be submitted to the Legislature for specific appropriation in order to process the refund.

Refunds Between Agencies

For USAS entries, the Recurring Transaction Indicator (RTI) process can also be used. Enter a Document Type T, Batch Type 4, and reference an RTI established by the agency seeking the refund.

Create the payment for refunds between agencies by entering a voucher in CAPPS. Select Payment Type T and use the accounting entry template for T-code 222.

Note: See Interagency Payments and Receipts for Goods and Services (APS 014) for valid combinations for interagency transactions.

After Four-Year Period

As required by Encumbrance Reporting and Lapsing of Appropriations (APS 018), reported revenue deposited by an agency in GR and subject to a refund, but not refunded within the time limits established by Article IX, Section 8.04 of the GAA, must be transferred to GR under Agency 902, using RTI 003973, vendor number #39029029020000 and the following coding block:

Sales Tax Refunds

It is not necessary for revenues to be transferred to the Trust and Suspense Fund (0900) before a refund is issued, unless the refund involves sales tax deposited under Agency 902. See Deposit of Sales Taxes Collected by State Agencies (APS 008) for instructions on refunding sales tax.

Budgets

A budget is not established, since neither the transfer nor the refund of the revenue requires one.

Any budget previously established and/or increased by the original deposit of the refunded revenue must be reduced in the same manner as it was originally increased.