Interagency Payments and Receipts for Goods and Services (APS 014)

Overview

Applicable To

State agencies and institutions of higher education

Policy

State agencies must submit interagency payments for goods and services using the Interagency Transaction Voucher (ITV) process in the Uniform Statewide Accounting System (USAS) when funding sources for both agencies are held in the state treasury. ITVs require a recurring transaction index (RTI), which must be established by the receiving agency on the Recurring Transaction Profile (55) screen and used by the paying agency on the initiating payment transaction.

Interagency payments from funding sources in the state treasury for deposit into local bank accounts are submitted using the USAS purchase voucher process.

Interagency payments from funding sources outside the state treasury for deposit into the state treasury are submitted as deposits in USAS.

Legal Citation

Government Code, Chapter 771; General Appropriations Act (GAA), Article IX, Section 8.02, 88th Legislature, Regular Session.

Legend

Processing State Treasury-Only Transactions

Description

The purchasing agency enters the transaction into USAS with a document type T using the same transaction codes (T-codes) as when paying by warrant.

Agencies can use other valid payment document types and enter a Payment Distribution Type (PDT) T on the transaction. Transactions entered using Document Type T will default to PDT T.

The selling agency provides the purchasing agency with an RTI number, which the purchasing agency must enter on the transaction. The purchasing agency must enter the transaction to credit the selling agency within 30 days of receiving an invoice. If the payment or contact to resolve the payment is not made, the selling agency may contact the Comptroller’s office to request assistance in obtaining payment.

System edits ensure that the T-code used in the selling agency’s RTI and the system-generated T-code for the purchasing agency form a valid combination.

An interagency transaction payment with system-generated T-codes is created instead of a warrant. The generated document number (GTXXXXXX) substitutes for the warrant number.

Interagency transactions are not subject to prompt payment interest per Prompt Payment – Payments to Other Agencies in eXpendit (FPP I.005), except for payments to the Texas Correctional Industries (TCI).

Security

The system-generated ITV transactions are created using Batch Agency 005. Agency employees must be set up in USAS with User Class 65 to view Batch Agency 005.

Entering Codes and Coding Blocks

Purchasing Agency

The purchasing agency enters the transaction using the same range of T-codes used when paying by warrant, including T-codes used for liquidating encumbrances. The agency must include on the transaction:

• The appropriate coding block.
• The expenditure object related to the corresponding good or service purchased.
• The following elements provided by the selling agency:
  • RTI number.
  • Invoice number.
  • Vendor number.
  • Agency repeater number.

Selling Agency

The selling agency enters the coding block on the USAS Recurring Transaction Profile (55) screen (RTI profile). When coding the RTI, use the revenue object for the type of revenue being received. The specific revenue object will be used in all cases where a specific revenue object exists. Use revenue object 3765 (Other Revenue: Sales of Supplies, Equipment, Services) when a more specific revenue object is not available. An RTI must include a valid T-code used for the receipt of interagency payments.

Payments for Interagency Contracts

If an agency issues a payment to another agency from General Revenue (GR) under an interagency contract (IAC), and the payee agency intends to pay state employees from those IAC proceeds, then the payee agency may draw down committed GR to cover the cost of related benefits. If the paying agency pays from a method of finance other than GR, and the payee agency intends to use IAC proceeds to pay state employees, then the payee agency must also bill for and collect the cost of related benefits. Sources of Revenue Required to Pay Benefit Cost (APS 001) (FPP A.021) contains additional information regarding the requirement that agencies collecting certain receipts, such as interagency contract proceeds, pay a proportionate share of state employee benefit costs.

Refer to the list of Valid Combinations for Interagency Transactions for the valid T-codes for both the purchasing and selling agencies.

Using Multiple RTI Numbers

The selling agency may provide more than one RTI, but the purchasing agency is required to use multiple RTIs only when entering multiple transactions to fulfill object requirements. The purchasing agency is not required to use multiple RTIs to satisfy the accounting requirements of the selling agency.

Using Multiple Transaction Numbers

An RTI number may be assigned more than one transaction number when a payment must be split between coding blocks. To allow this, establish RTI profiles using multiple transaction numbers (TRANS NO) under the same RTI number. Enter the percent to be allocated in the % ALLOCATED field, ensuring the total equals 100 percent.

NOTE: All transaction numbers profiled under a single RTI number must be established on a percentage basis only, not for a specific dollar amount. Using the AMOUNT field on the RTI profile results in unbalanced system-generated ITV transactions.

Reusing an RTI Number

RTI profiles with an active status profiled under an RTI number, including those with multiple transaction numbers, will be part of any future ITV with the same RTI number. If the same RTI number is used in a new year, the agency must change the appropriation year (AY) on the RTI profile before its usage. The AY should only be changed at the beginning of each fiscal year. A defined separation for an appropriation year is accomplished by using the effective start date and effective end date fields.

Refunds

If revenue received via an interagency payment must be refunded, the refunding (selling) agency must process an interagency payment using T-code 222 (Refund of Revenue). The refunded (purchasing) agency must establish an RTI profile using T-code 972 (Refund of Expenditure) and provide the RTI number to the refunding agency. The expenditure object on the RTI profile should be the same object used on the original payment.

Monitoring the ITV Process

During USAS overnight cycles, any one of the following scenarios could prevent the completion of the ITV process:

• USAS is unable to create the system-generated ITV transactions due to invalid RTI profiles, causing the originating transaction to remain on the purchasing agency’s IT file in P-Y-4 status.
• The system-generated ITV transactions may be generated, but due to data element, funding, or balancing errors, they are unable to process and are posted to the batch agency 005 IT file.

The ITV process must be closely monitored to ensure the system-generated ITV transactions are successfully:

• Created.
• Processed.
• Paid.
• Written to history.

For information on monitoring the ITV process, including verifying the interagency transaction payment was successfully made, see the following pages in the Reporting Requirements for the Annual Financial Reports of State Agencies and Universities (FPP A.036):

• Review ITV Processing Exceptions.
• Verify Creation of System-Generated ITVs.
• Verify ITVs Processed Successfully.
• Verify ITVs Paid Successfully.

Processing State Treasury-to-Bank Transactions

Description

Interagency payments from funding sources in the state treasury for deposit into local bank accounts are submitted using the USAS purchase voucher process.

The purchasing agency enters a payment transaction into USAS to produce a warrant or direct deposit. See eXpendit for more information.

The selling agency receives the funds, via warrant or direct deposit, and deposits the amount into their local bank account based on internal agency procedures.

Processing Bank-to-State Treasury Transactions

Description

Interagency payments from funding sources outside the state treasury for deposit into the state treasury are submitted as deposits in USAS.

The purchasing agency produces a check or direct deposit from its local bank account based on internal agency procedures.

The selling agency receives the funds, via warrant or direct deposit, and deposits the amount into the state treasury. Normal USAS deposit processing rules apply.

Additional Procedures

Entering Credits

An agency may use the REVERSE field when processing an interagency credit for a previous payment. The REVERSE field can be used only in those cases where the net amount of the interagency payment is positive.

Example

Agency A owes Agency B $500 for supplies. Agency B owes Agency A $200 for returned supplies. Agency A must:

• Enter an interagency payment transaction for the $500 owed.
• Enter an interagency payment transaction of $200 for the credit using an R in the REVERSE field and:
  • The same expenditure object code as used for the original purchase.
  • The original Program Cost Account (PCA).

The net result is a $300 payment to Agency B.

Correcting Transactions

To correct interagency transactions that impact only one agency’s accounts, use T-codes 921 and 921R, or 931 and 931R using Document Type J. If the original transaction used T-code 970, T-code 179/179R must be used on the correction to include budget GL accounts.

Interagency Contracts

For Transactions Equal to or Over $50,000

Formal written interagency contracts are required when the total for all transactions is $50,000 or more. They must be approved by each agency’s administrator. Each agency must keep a copy of the contract and make it available to the Comptroller’s office if requested during a post-payment audit.

For Transactions Under $50,000

For transactions totaling less than $50,000, a formal written interagency contract is not required. However, agencies are still required to maintain documentation of the agreement. The documentation must be made available to the Comptroller’s office if requested during a post-payment audit.

Enter a voucher in the CAPPS Accounts Payable module with a Payment Type of T. Enter the RTI number provided by the selling agency in the RTI field.

Agencies participating in an IAC, where the payee agency intends to pay state employees from IAC proceeds, are advised to include a clause in the agreement or maintain documentation prescribing additional payable amounts related to funding equity for employee benefit payments. Ex: A percentage to be paid in addition to other billable services for agencies who intend to pay an IAC invoice from funds other than GR.

Purchase Surplus Property

A state agency may purchase surplus property at a Texas Facilities Commission storefront location using an agency procurement card, thus bypassing the ITV process in USAS.

Purchase Supplies From Texas Correctional Industries (TCI)

A state agency may purchase supplies from the Texas Correctional Industries (TCI) using an agency procurement card thus bypassing the ITV process in USAS.

Payment of Fee for an Attorney General Opinion

A state agency may pay the fee to request an attorney general opinion through the Attorney General’s Public Information Act Electronic Filing System using an agency procurement card thus bypassing the ITV process in USAS.

Note: State agencies and institutions of higher education are required to follow the requirements in Processing Third-Party Transactions in USAS for Payment/Travel Cards, Direct Bill Payments and Reimbursements (FPP A.043) (login required) for payment processing to the state credit card vendor. Do not use the agency repeater number to identify the third-party vendor number for these payments, instead the Federal Employer Identification Number (FEIN) must be used.

Valid Combinations for Interagency Transactions

Agency Purchases Goods or Services from Another Agency:

Accounting Event	T-code(s) Entered by Agency Making Payment	System-Generated Payment T-code	T-code(s) Entered by Agency Receiving Payment	General Ledger Impact
Agency Making Payment
Voucher Payable – Not Encumbered	225 (See Note)			Debit: 5501 Expenditure Control – Accrued Credit: 1009 Vouchers Payable
Voucher Payable – Encumbered	231 (See Note)			Debit: 5501 Expenditure Control – Accrued 9005 Fund Balance – Res. for Encumbrances Credit: 1009 Vouchers Payable 9001 Encumbrances
System – Generated Payment		960		Debit: 1009 Vouchers Payable 5500 Expenditure Control – Cash Credit: 0045 Cash in State Treasury 5501 Expenditure Control – Accrued
Agency Receiving Payment
Deposit – Increases Budget			970	Debit: 0045 Cash in State Treasury 9055 Budgetary Fund Balance Credit: 5000 Revenue Control – Cash 9060 Appropriation Control
Deposit – No Budget Impact			971	Debit: 0045 Cash in State Treasury Credit: 5000 Revenue Control – Cash

Note: Additional T-codes that could be used are 228 and 249.

Agency Makes Refund for Money Received for Sales of Goods or Services:

Accounting Event	T-code(s) Entered by Agency Making Payment	System-Generated Payment T-code	T-code(s) Entered by Agency Receiving Payment	General Ledger Impact
Agency Making Refund
Voucher Payable – Refund of Revenue	222			Debit: 5001 Revenue Control – Accrued Credit: 1009 Vouchers Payable
System Generated Payment		961		Debit: 1009 Vouchers Payable 5000 Revenue Control – Cash Credit: 0045 Cash in State Treasury 5001 Revenue Control – Accrued
Agency Receiving Refund
Receipt of Interagency Payment			972	Debit: 0045 Cash in State Treasury Credit: 5500 Expenditure Control – Cash