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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Encumbrance Report and Lapsing of Appropriations (APS 018)

FPP A.019

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Instructions for All Agencies

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USAS Entries

CAPPS Entries

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Instructions for All Agencies

UB, Lapsing and Appropriation Collected Cash Disposition

Introduction

Once balances on the USAS 62 screen are correct, the transaction to UB forward or lapse unobligated appropriation balances should be processed. The disposition of collected cash balances in appropriations must also be identified at this time.

UB T-codes or entries

Unobligated appropriation balances that agencies have authorization to transfer forward should always comply with the authorization language to transfer forward one year at a time (i.e., AY 2018 to AY 2019).

Use the following T-codes, with a Document Type B, Batch Type 1 to transfer forward UBs:

To transfer a committed budget… Use T-code…
From the old appropriation 040
To the new appropriation 042

For a collected budget, first transfer the budget, then make the cash transfer. (See cash transfer instructions.)

To transfer a collected budget… Use T-code…
From the old appropriation 041 and 040
To the new appropriation 042 and 043

Collected cash

Many ACA balances include both committed and collected cash funding or are completely funded with collected cash.

Collected cash UB

Unobligated ACA collected cash balances should be moved forward if authorized in the GAA or another statute. Unobligated cash transfers forward should move only one year at a time (i.e., AY 2017 to AY 2018). Transfers forward of UB collected cash should be processed using the following cash disposition T-codes:

If cash was received… Use T-code… COBJ
As revenue (Balance Type 12) 405 and 406 3974/3975*
As an operating cash transfer (Balance Type 20) 403 and 404 3986*/7986

Note: * The comptroller object for the collected budget portion of the transactions above should be based on the type of funds transferred. Comptroller object 3974 is for federal funds and 3975 is for regular revenues. Comptroller object 3986 is for unexpended balance forward-operating transfers in and 7986 is for unexpended balance forward-operating transfers out.

Non-UB collected cash

If no UB authority exists and the cash was deposited to:

  • Fund 0001 – See Prior fiscal year collected cash below.
  • General revenue dedicated account or special fund – Transfer to unobligated appropriation number 00000 using the following cash disposition T-codes:
Agency T-code/Title Appropriation Number COBJ Appropriated Fund/Agency Fund/PCA
Affected Agency 406/Revenue Transfer-Out Determined by Agency 3970 Determined by Agency
Affected Agency 405/Revenue Transfer-In 00000 3970 Determined by Agency

Prior fiscal year collected cash

There are often appropriation collected cash balances remaining in prior fiscal years. If the cash is in Fund 0001, use RTI 003973, vendor number 39029029020000, and the following coding block to transfer to Agency 902:

Agency T-code/Title COBJ Appropriated Fund/Agency Fund/PCA
Affected Agency 475/Accrued Transfers Out w/Liquid 7973 Determined by Agency

If the collected cash is in a GR-Dedicated account or Special Fund, follow instructions in Non-UB collected cash.

Lapsing appropriations

Note: These lapsing instructions presume that all UB transfers forward have been processed.

By Oct. 30 of each year, all agencies must lapse appropriation balances that exceed the level necessary to satisfy any outstanding binding encumbrances and/or payables. (The recommended due date for simplified reporting agencies is Sept. 30.) The lapse transaction must reduce the remaining cash basis budget and the appropriation cash available to an amount equal to the amount needed to pay outstanding binding encumbrances/payables. Enter with Document Type B, Batch Type 1:

To lapse a… Use T-code…
Committed budget 036
Collected budget 039

Once all binding encumbrances and payables are entered into USAS, the committed lapse amount should equal the current remaining encumbrance basis budget less any previously obligated amounts still available for expenditure as of Oct. 30 (or Sept. 30 for simplified reporting agencies).

Reinstating lapsed balances

The chief fiscal officer (CFO) or higher official must submit a lapse reversal request that includes a justification for the reversal to the agency’s ACO for approval.

The justification must support that the funds released by the requested lapse reversal are needed to pay a valid expenditure incurred prior to the end of the appropriation year for which the reversal is requested. For example, a request for a lapse reversal for an AY 2018 appropriation must be for a valid expenditure incurred on or before Aug. 31, 2018.

The existence and timing of an expenditure must be substantiated by a copy of or reference to a purchase order or contract that existed on the date the expense or obligation was incurred.

If the request is granted, the ACO will provide online Comptroller’s office approval with a 600 approval code.

After approval, agencies may make a partial or total reinstatement of a lapse for an outstanding obligation with a budget transaction with:

  • Document Type B
  • T-code 036 (lapse committed revenue appropriation) or 039 (lapse collected revenue appropriation)
  • R in the REVERSAL field
  • The proper legal descriptive text (LDT)

See also Appropriation Lapses and Related T-Codes.

Submitting the required certifications

The chief fiscal officer or higher official for each agency must approve and submit:

  • Quarterly Certification that the binding encumbrance and payable entries have processed in USAS for each of the first three quarters of the fiscal year by Dec. 30 (1st Quarter), March 30 (2nd Quarter) and June 30 (3rd Quarter)

    –AND–

  • Annual Certification that the binding encumbrances, payable entries, budget revisions and expenditure transfers have processed in USAS and all unobligated balances have been lapsed or brought forward for previous year appropriations (includes the fourth quarter of the previous appropriation year) — Due by Oct. 30
    (The recommended due date for simplified reporting agencies is Sept. 30.)

Note: Submitting the online form sends the certification to the Comptroller’s office, the SAO and the LBB. You will receive a confirmation page that can be saved as a PDF or copied and pasted into a document for your records.

Contacts

If you have USAS or certification form questions, please contact your agency’s ACO.

For CAPPS questions, please contact your agency’s CAPPS support staff.

Authorized agency support staff may contact the CAPPS Help Desk at (512) 463-CAPP (2277) for additional assistance.

Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.texas.gov
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