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Glenn Hegar  ·  Texas Comptroller of Public Accounts

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

Issued: Nov. 22, 2005
Updated: Aug. 18, 2017 – View Changes

FPP A.028

Table of Contents

Overview

Applicable to

State agencies and institutions of higher education

Policy

State agencies must submit interagency payments for goods and services using the Recurring Transaction Index (RTI) process in Uniform Statewide Accounting System (USAS) when funding sources for both agencies are held in the State Treasury.

The 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 cite

Government Code, Chapter 771; General Appropriations Act (GAA), Article IX, Section 8.02, 85th Legislature, Regular Session.

Legend

CAPPS logo

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

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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-code) 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. The purchasing agency must enter a 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 will 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 document number (GXXXXXXX) generated 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).

Security

The RTI system-generated 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 transaction will be entered by the purchasing agency using the same range of T-codes that are used when paying by warrant. This includes the T-codes used for liquidating encumbrances.

The purchasing agency enters the USAS coding block and the RTI provided by the selling agency. The agency must use the expenditure object related to the corresponding good or service purchased. The purchasing agency is required to enter an invoice number and vendor number provided by the selling agency.

Selling Agency

The USAS coding block for the selling agency will be entered on the USAS Recurring Transaction Profile (55) screen. 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.

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

All transactions profiled under an RTI must be established on a percentage basis only, not for a specific dollar amount. An RTI number may be assigned more than one transaction number when a deposit must be split between accounts. To allow this, profile multiple transactions under the same RTI number as percentages, having the total equal 100 percent.

Reusing an RTI number

Any transactions with an active status profiled under an RTI number will be part of any future RTI with the same RTI number. If the same RTI 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 profile an RTI using T-code 972 (Refund of Expenditure) and provide it to the refunding agency. The expenditure object on the RTI should be the same object used on the original payment.

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Processing 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.

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Processing Bank-to-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.

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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. Then, enter a transaction of $200 using the same expenditure object code and the original Program Cost Account (PCA). Agency A must then enter an R in the REVERSE field for the credit due. The net result is a $300 payment.

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.

CAPPS logo

CAPPS Agencies can make these corrections through CAPPS or make the USAS transaction directly in USAS. If the agency makes the above entry directly in USAS, then the agency will need to create a GL journal using a manual (Man) T-code in CAPPS.

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.

CAPPS logo

CAPPS Agencies should submit interagency payments for goods and services using the CAPPS Accounts Payable module. The CAPPS purchasing agency will issue a payment to the selling agency by entering the transaction in CAPPS.

A voucher will be entered in the CAPPS Accounts Payable module with a Payment Type of T. The RTI number, which is provided by selling agency, will be entered in the RTI field.

Note: The RTI number field is only available for entry when using a Payment Type of T. An ITV Accounting Entry Template should be selected on the voucher.

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Valid Combinations for Interagency Transactions

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 Encumb.

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
(See Note)
    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

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Changes to this Document
8/18/2017 Updated through the acts of the 85th Legislature, Regular Session
8/21/2015 Updated through the acts of the 84th Legislature, Regular Session; added CAPPS information
8/30/2013 Updated through the acts of the 83rd Legislature, Regular Session
9/17/2012 Updated link to reflect that FPP E.033 is now included in Prompt Payment – Payments to Other Agencies in eXpendit (FPP I.005)
Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.texas.gov
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