Earned Federal Funds and Indirect Cost Reimbursements to the General Revenue Fund (APS 023)
Depositing Funds
State Agencies’ Responsibilities
Agencies must establish the agency fund profile (D23) where the agency will identify the appropriated fund, GAAP fund and GAAP fund type. Agencies must also establish a program cost account (PCA) on the PCA 26 profile that infers Program Code 3992, AF 0001 or 0369, Generally Accepted Accounting Principles (GAAP) Fund 0001 for Appropriations 70000 and 28310.
Agencies receiving EFF must deposit those funds into Appropriation 70000 in the current appropriation/fiscal year. If the EFF portion is known at the time, the funds should be deposited directly to Appropriation 70000 using, but not limited to, comptroller objects 3602, 3702, 3726, 3745, 3750, 3773, 3851 or 3971. Indirect cost recoveries should be deposited using comptroller object 3726 or reclassified from comptroller object 3702 upon being identified as indirect cost recoveries.
Depositing earned federal funds
The table below explains how to deposit EFF using Document Type D, Batch Type 2:
| Agency | T-code/title | Appropriation Number | COBJ | Appropriated Fund/Agency Fund/PCA |
|---|---|---|---|---|
| Affected Agency | 195/Record Deposit of Revenue in Treasury | 70000 | 3602/3702/3726/3745/ 3773/3851 | 0001/0369 Determined by Agency/Determined by Agency |
CAPPS agencies tracking Appropriation 70000 in CAPPS can create a deposit using T-code 195 in CAPPS, then send that transaction to USAS. T-code 195/195D must be setup in CAPPS before use.
Depositing funds from capital asset sales
The table below explains how to deposit EFF from capital asset sales using Document Type D, Batch Type 2:
| Agency | T-code/title | Appropriation Number | COBJ | Appropriated Fund/Agency Fund/PCA |
|---|---|---|---|---|
| Affected Agency | 191/Record Bond Proceeds – Sale of Capital Assets | 70000 | 3750 | 0001/0369 Determined by Agency/Determined by Agency |
CAPPS agencies tracking Appropriation 70000 in CAPPS should enter the transaction directly into USAS and create a GL journal in CAPPS using a MAN T-code.
Federal Pass-through funds classified as earned federal funds
The table below explains how to reclassify funds originally deposited as federal pass-through funds that should be classified as EFF using Document Type J, Batch Type 2.
| Agency | T-code/title | Appropriation Number | COBJ | Appropriated Fund/Agency Fund/PCA |
|---|---|---|---|---|
| Affected Agency | 145R | Determined by Agency | 3971 | Determined by Agency/Determined by Agency/Determined by Agency |
| Affected Agency | 145/Deposit of Pass-Thru Revenue in Treasury | 70000 | 3971 | 0001/0369 Determined by Agency/Determined by Agency |
Note: It is important not to cross D23 funds because this results in problems with the reconciliation of interagency activities.
CAPPS agencies tracking Appropriation 70000 in CAPPS can create a journal using the T-codes above in CAPPS and send that transaction to USAS. T-code 145D/145R must be setup in CAPPS before use.
Earned federal funds received as federal pass-through funds from another state-agency
The table below explains how to deposit federal pass-through funds received using the RTI process:
| Agency | T-code/title | Appropriation Number | COBJ | Appropriated Fund/Agency Fund/PCA |
|---|---|---|---|---|
| Transaction Agency – Transfer EFF | 274 | Determined by Agency | 7971 | Determined by Agency/Determined by Agency/Determined by Agency |
| RTI Agency – Receives EFF | 273 | 70000 | 3971 | 0001/0369 Determined by Agency/Determined by Agency |
CAPPS agencies tracking Appropriation 70000 should enter the transaction directly into USAS and create a GL journal in CAPPS using a MAN T-code.
Transfers to Appropriation 70000
The table below explains how to transfer earned credits/indirect cost recoveries/depository interest from a federal fund to the EFF Appropriation 70000 using Document Type J, Batch Type 2:
| Agency | T-code/title | Appropriation Number | COBJ | Appropriated Fund/Agency Fund/PCA |
|---|---|---|---|---|
| Affected Agency | Reverse Original Deposit T-code | Determined by Agency | 3602/3702/3726/3745/ 3773/3851 | Determined by Agency/Determined by Agency/Determined by Agency |
| Affected Agency | 195/Record Deposit of Revenue in Treasury | 70000 | 3602/3702/3726/3745/ 3773/3851 | 0001/0369 Determined by Agency/Determined by Agency |
Interest on federal funds previously deposited to a separate federal fund should be immediately moved from the federal fund to Appropriation 70000. However, if there is clear direction in the governing agreement to spend interest earnings on a specific federal program, agencies may transfer that portion of interest earned on federal funds for that program to the appropriation and fund where the federal funds will be expended. Any such transfers must be supported with documentation, and a copy of the agreement must be submitted to your appropriation control officer.
CAPPS agencies tracking Appropriation 70000 in CAPPS can create a deposit using T-codes 195/195D/195R in CAPPS, then send that transaction to USAS.
American Recovery and Reinvestment Act (ARRA) in Appropriation 70000
Interest earned from ARRA fund balances is currently placed in Appropriation 70000, AF 0369. These amounts may not be expended or transferred unless specific federal guidelines direct otherwise. Sufficient documentation must be submitted to your appropriation control officer before AF 0369 interest earnings can be transferred.
Earned credits and indirect cost recoveries from ARRA activity can be placed in Appropriation 70000, AF 0369. These amounts may not be expended or transferred unless specific federal guidelines direct otherwise.
ARRA interest, earned credits and indirect cost recovery balances count toward the required collections identified in GAA, Article IX, Section 13.10, 88th Legislature, Regular Session, 2023.
Federal legislation related to coronavirus relief in Appropriation 70000
Interest earned on fund balances from the federal Coronavirus Relief Fund (CRF) appropriated from the U.S. Treasury to the state of Texas under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, as well as earned credits and indirect cost recoveries from CRF activity, should be deposited to Appropriation 00000, AF 0325 and then, as soon as practicable, transferred to the office of the governor. Interest, earned credits and indirect cost recovery balances related to the federal CRF do not count toward the required collections identified in GAA, Article IX, Section 13.10, 88th Legislature, Regular Session, 2023.
Interest earned on fund balances from other federal coronavirus relief funding—including from provisions of the CARES Act unrelated to the federal CRF appropriation, the Families First Coronavirus Response Act (FFCRA), or the Coronavirus Response and Relief Supplemental Appropriations (CRRSA) Act—as well as earned credits and indirect cost recoveries from related activity, can be expended by the recipient agencies only in accordance with federal guidelines. Interest, earned credits and indirect cost recovery balances related to other federal coronavirus relief funding do not count toward the required collections identified in GAA, Article IX, Section 13.10, 88th Legislature, Regular Session, 2023.
American Rescue Plan Act of 2021 (ARPA)
Interest, earned credits, and indirect cost recoveries from ARPA must be deposited to General Revenue as follows:
- Earned credits and indirect cost recoveries from ARPA activity must be transferred to Appropriation 70000, AF 0001 in the current appropriation/fiscal year.
- Interest earned on ARPA fund balances by ARPA prime grant recipients, must be transferred to Appropriation 70000, AF 0001 in the current appropriation/fiscal year.
- Interest earned on ARPA fund balances by ARPA subrecipients must be returned to the governor’s office as part of the pass-through grant agreement for this funding. Subrecipients should contact the governor’s office for instructions on transferring the interest earned on ARPA balances.