Correcting Bookkeeping and Cost Allocation Entries (APS 021)

Overview

Applicable to

State agencies and institutions of higher education depositing, transferring or expending funds in or with the state treasury.

Policy

State agencies should correct cost allocation entries in the Uniform Statewide Accounting System (USAS) within 30 days after the first three fiscal quarters and within 60 days following fiscal year end. Clerical or bookkeeping errors should be corrected as soon as the agency is aware of them. Special attention should be paid to correcting entries made in the final quarter of the fiscal year to make sure they post in the correct fiscal period.

Legal citation

Government Code, Section 403.011; General Appropriations Act (GAA), Article IX, Sections 6.14, 6.15, 6.19, 88th Legislature, Regular Session.

Legend

Background

Introduction

Agencies are allowed to make bookkeeping adjustments and corrections to their accounting records.

Agencies are also allowed to temporarily charge salary and operating costs to an interim appropriation. Once information is available to specifically identify the correct appropriation to charge, the agencies must allocate the costs to the correct appropriation.

GAA

General Appropriations Act (GAA), Article IX, Sections 6.14, 6.15, 6.19, 88th Legislature, Regular Session

Example 1

Supplies are sometimes purchased in advance of their distribution to various divisions or departments within an agency.

Example 2

Payrolls must be submitted to the Comptroller’s office several days before the end of the month. An agency charging an employee’s time to the various programs where the employee actually works has not processed the timekeeping reports at the time the payroll is submitted to the Comptroller’s office. Thus, an estimated amount is charged against each appropriation and adjustments are made later.

Comptroller

The Fiscal Management Division of the Comptroller’s office may audit expenditure transfer transactions.

The Fiscal Management Division responsibilities include reviewing agency cost allocation transactions. The review includes:

• Proper accounting detail (descriptive legal text, comptroller objects).
• Timeliness of allocation (within 30 days following the end of a fiscal quarter, and 60 days following the end of the fiscal year).

Timely and Accurate Reporting

Timely and accurate coding of correcting and cost allocation entries is important. Agencies, the Legislature, and others rely on USAS transaction details for Automated Budget and Evaluation System for Texas (ABEST) reporting, annual financial reports, the State of Texas Annual Comprehensive Financial Report, and the State of Texas Annual Cash Report. USAS data is also used for Historically Underutilized Business reporting. Each agency is responsible for ensuring that USAS transaction detail, including vendor numbers, object codes and other details are current and accurate. Special attention should be paid to correcting entries made in the final quarter of the fiscal year to make sure they post in the correct fiscal period.

Agency Requirements for Processing Expenditure Transfer Transactions

About These Transactions

Agencies enter expenditure transfer transactions in USAS if previously posted expenditures were charged against wrong program cost accounts (PCAs), appropriated or agency funds, appropriation years or object codes. The reason for the correction of the original charge must be stated in the Legal/Descriptive Text (19) screen of the correcting document.

The vendor number whose payment is being corrected should be used when practical. To create an audit trail and to maintain accurate vendor activity records, corrections should reflect the vendor number used in the original transaction.

Note: If the original payment was marked as confidential or as containing some confidential information, any expenditure transfer voucher (ETV) transaction moving the expense must be similarly marked to maintain the confidential designation. To process an ETV, the Pre-Enc/Enc/Expend Transaction Entry (505) screen or the USAS detail transaction input record via electronic batch input file may be used with the appropriately marked confidential indicator. The Balanced JV Transaction Entry (509) screen is not available for this activity. See USAS and CAPPS Financials Confidentiality Indicator (FPP E.045).

T-codes

Correct current period adjustments with T-codes 407 and 408 and a current effective date. Correct prior period adjustments with T-codes 467 and 468, which allow the backdating of the transaction effective date. Prior period adjustments are corrected with T-codes 467 and 468, which allow the user to backdate the transaction effective date. Prior period adjustment T-codes are available based on the allowable Transaction Effective Dates for USAS Entries in the reporting requirements for the annual financial reports.

Document Type

Transactions must be entered using Document Type K.

Batch Type

Batch Type 4 or 8 can be used.

Agency Requirements for Cost Allocation Transactions

About These Transactions

Agencies should complete cost allocation transactions within 30 days after the first, second and third fiscal year quarters, and within 60 days following the fiscal year end.

Note: These requirements are consistent with the time limits in Cost Allocation from Temporary Administrative and Support Appropriations (APS 025).

T-codes

Correct current period expenditures previously charged to temporary agency accounts using transfer T-codes 303 and 304 and a current effective date. Correct prior period transactions with T-codes 366 and 367, which allow backdating of the transaction effective date. Prior period adjustment T-codes are available based on the allowable Transaction Effective Dates for USAS Entries in the reporting requirements for the annual financial reports.

Document Type

Transactions must be entered using Document Type J.

Batch Type

Batch Types 4, 5 or 8 can be used.

Note to CAPPS Agencies: CAPPS agencies are considered a reporting agency and cost allocations are reflected in CAPPS.