Accounting Policy Meeting
Tuesday, June 30, 2020

August 2020: Effective for 9/1/20 (Fiscal 2021)

A new D23 fund (9005 – Departmental Suspense fund) will be set up for each agency in either FT01 or FT05 for fiscals 2020 and 2021, depending on which contains the majority of operational activity. This D23 fund will infer appropriated fund (D22) 0900/GAAP fund (D24) 0900. The PCA for this activity should infer D23 fund 9005.

T-code 188 will be modified to post to Unearned Revenues (GL 1046) rather than Funds Held for Others (GL 1149) and will post activity to the new D23 9005 – Departmental Suspense fund. Using COBJ 3790 remains valid for FT01 and FT05. A new T-code will be created to post activity to FT22 Custodial Funds and will also include COBJ 3790.

Effective 9/1/21 (Fiscal 2022)

The Comptroller’s office will update the D23 fund profiles for the payroll-related funds that are currently reported in FT09. The D23 fund type will be updated to either FT01 or FT05. As required by GASB 84, these funds are considered to be operational rather than fiduciary, as classified under GASB 34.

FT09 will be removed from all T-codes on 8/31/21. Effective 9/1/21, any profiles and/or coding blocks that infer FT09 will result in an error in USAS.

If a higher education agency is holding funds in a custodial capacity, the activity must be reported in GAAP fund (D24) 3400— Education – Custodial Funds (FT22).

The Comptroller’s office is analyzing the appropriate fund type to use and will work with the agencies in July and August 2020.

The checks will still be deposited to appropriated fund (D22) 0900 and must be recorded in D23 Fund 9005, inferring FT01 or FT05, until the proper owner is determined and the correct accounting entries can be made by the agency.

The agency may label the D23 fund as suspense fund or the most appropriate title. There is no wrong or right title. For more information see the Suspense Funds (FT09) page on the AFR Reporting Requirements website and the Profile Review for Fund Profile (D23) (FPP A.031) and Deposit of Funds Held in Suspense (FPP D.005).

The agency must use appropriated fund (D22) 0900 for deposits where final disposition has not yet been determined as outlined by Deposit of Funds Held in Suspense (FPP D.005) — however, the fund must point to FT01 or FT05. If any balances are in FT09 during fiscal 2021, correcting entries must be made to classify activity in FT01 or FT05 and all funds (D23s) inferring FT09 must be made inactive. Furthermore, revenues and/or liabilities must be appropriately recognized as of the fiscal year-end. Accruals with applicable future period reversals may be used based on historical trends when final disposition has not yet been determined. For more information, see the Suspense Funds (FT09) page on the AFR Reporting Requirements website and the Deposit of Funds Held in Suspense (FPP D.005).

Funds held for others is inappropriate for governmental fund types — therefore there is no offset in cash in state treasury. Instead, the agency must recognize the revenue or liability in the same manner they would estimate other year-end accruals. Reversing entries are recommended for this type of situation. T-code 188 will be updated to replace Funds Held for Others (GL 1149) with Unearned Revenues (GL 1046) on 9/1/2020.

To be determined. Guidance will be provided through updates to the AFR Reporting Requirements website and during the August’s APS meeting.

To be determined. Guidance will be provided through updates to the AFR Reporting Requirements website and during the August’s APS meeting.

No. The fund type cannot be changed for D23 funds with activity recorded in USAS, even if that activity was in a prior fiscal year. A new D23 fund must be established inferring the correct fund type. See the examples below. For more information see Suspense Funds (FT09) page on the AFR Reporting Requirements website and the Profile Review for Fund Profile (D23) (FPP A.031) and Deposit of Funds Held in Suspense (FPP D.005).

Example — Current D23 Fund 0900

TEXAS  SD23           UNIFORM STATEWIDE ACCOUNTING SYSTEM        08/11/20 02:56 PM
LINK TO:                         FUND PROFILE                                 PROD
                                                                                 	
ACTION: R  (A=ADD, C=CHANGE, D=DELETE, N=NEXT, R=RECALL)                         	
                AGENCY: 902    FISCAL YEAR: 20	    FUND: 0900                  	
                 TITLE: AGENCY TRUST AND SUSPENSE                                	
     APPROPRIATED FUND: 0900   (MUST BE IN D22 APPROP FUND PROFILE.              	
             GAAP FUND: 0900    GAAP FUND TYPE: 09

                

Example — New D23 Fund 9005

TEXAS  SD23           UNIFORM STATEWIDE ACCOUNTING SYSTEM        08/11/20 02:56 PM 
LINK TO:                        FUND PROFILE                                  PROD

ACTION: A  (A=ADD, C=CHANGE, D=DELETE, N=NEXT, R=RECALL)                         	
               AGENCY: 902    FISCAL YEAR: 20	FUND: 9005                      	
                TITLE: AGENCY TRUST AND SUSPENSE                                 	
    APPROPRIATED FUND: 0900   (MUST BE IN D22 APPROP FUND PROFILE                	
            GAAP FUND: 0900    GAAP FUND TYPE: 01 

            

The fund must infer to FT01 or FT05. If any balances are in FT09 during fiscal 2021, correcting entries must be made to classify activity in FT01 or FT05 and all funds (D23s) inferring FT09 must be made inactive. The agency needs to establish new D23 funds with a different number, if not already setup in FT01 or FT05. The fund type will not be changed on the D23 screen if any activity (whether current or prior year) has been recorded to the D23 fund.

New PCAs must be established pointing to the new D23 funds in FT01 or FT05 and all PCAs that point to FT09 must be inactivated.

The Comptroller’s office has determined that it will implement GASB 90 in fiscal 2020 despite GASB 95 allowing for a later implementation date.

Since the implementation has been postponed to fiscal 2022, both web applications should be updated by early summer of fiscal 2022.

The Comptroller’s office will be implementing GASB 87 in fiscal 2022.

We expect to finalize the GASB 87 capitalization threshold no later than the end of August 2020.

This calculator tool will be available in the summer of fiscal 2021 and located in the right-hand Tools box in the AFR Reporting Requirements website. The user will input specific facts pertaining to a lease. The tool will then calculate the net present value (NPV) of the lease. If the NPV exceeds the capitalization threshold, the tool then provides the amounts to initially set-up the asset and associated liability. Additionally, the tool provides the monthly amortization of the asset and the allocation of the lease payment between reduction of the lease liability and interest expense.

A unit is a single asset within the lease. For example, a 36-month lease of 50 notebook computers, with a monthly payment of $5,000. A “unit” would be one notebook computer with a monthly payment of $100 ($5,000/50).

The system clearing GL 9999 should be eliminated on the D23 fund level at the university system level only.

Agencies are not required to submit a post-period subsequent events note if there are no items to disclose. However, they are required to use the provided check box in the post-period subsequent events link to indicate that they don’t have anything to disclose. The post-period subsequent events link can be accessed using the Other Notes and Disclosures (ONDSS) web application. The link is positioned in the center of the ONDSS application landing page and in its related banner. The same link can be used to upload the post-period subsequent events note.

If a user already has access to the ONDSS web application, no additional access is required.

This can be done by viewing the USAS Titles Profile (D53) screen.

On the D53 screen:

1. Enter R in the ACTION field.
2. Enter DRNS in the TABLE ID field.
3. Enter your User ID and agency number in the KEY field.
   If you enter your User ID without the agency number, USAS automatically appends it to the end of your User ID.
4. Press Enter.
   Your name appears in the TITLE field if your security access was properly established.

Once security access is granted, USAS requires one overnight cycle to run before you can access ONDSS.

TEXAS  SD53    UNIFORM STATEWIDE ACCOUNTING SYSTEM                   08:49 AM
LINK TO:                        TITLES PROFILE                           PROD

ACTION: R    (A=ADD, C=CHANGE, D=DELETE, N=NEXT, R=RECALL)                     
                                                                                
               TABLE ID: DRNS                                                   
                                                                                
                    KEY: JSMI413111                                             
                                                                                
                  TITLE: SMITH,JOE                                              
   
                                                         STATUS CODE: A         
  EFF START DATE: 07202000   EFF END DATE:      LAST PROC DATE: 07202000        
 Z06 RECORD SUCCESSFULLY RECALLED                                               
 PLEASE ENTER FUNCTION                                                          
 F1-HELP   F3-END   F4-INTERRUPT   F6-PROCESS

Note: In the sample screen above, the KEY field shows an enabled User ID of ‘JSMI413’ with access to agency ‘111’.

If you do not have access, then contact your agency’s security coordinator to request access for each web application you are reporting.

Agencies with enterprise funds (FT05) and internal service funds (FT06) must prepare and submit a copy of their Annual Financial Report’s statement of cash flows.

The statement of cash flows applies to funds categorized as enterprise funds (FT05) or internal service funds (FT06).

The statement of cash flows template is uploaded to USAS by the agency. Different D23 funds can be included in the same upload.

The statement of cash flows entry applies to the system of institutions of higher education agencies.

USAS interfaces with the SOCF web application, so there is no need to enter the amounts in both places. If an amount needs to be changed in the SOCF web application, an adjustment is required in USAS before certifying the SOCF web application.

Higher education agencies use D23 fund 7999 and NACUBO 1100.

Specific and final guidance may not be available until later this summer or early fall after the Federal Office of Management and Budget (OMB) releases the second part of the 2020 Compliance Supplement.

The OMB issues a Compliance Supplement each summer that provides additional guidance about Single Audit and federal reporting requirements for certain awards. This year, the Compliance Supplement will be issued in two parts; the first part is scheduled to be issued in late July or early August and will focus on guidance for programs other than the CARES Act. The second part is scheduled to be issued in late summer or early fall and will include a more in-depth focus on the CARES Act.

The Compliance Supplement will likely include an appendix for the CARES Act and COVID-19 funding. Agencies need to identify (in SEFA) expenditures related to COVID-19 funds. The same CFDA may include expenditures related and not related to COVID-19. These expenditures need to be reported separately in SEFA. Fiscal Management is working to integrate this selection into the SEFA web application. The Financial Reporting section will provide additional guidance for how to report COVID-19 expenditures in SEFA after the final federal guidance is published and the SEFA web application is updated.

In the meantime, contact your financial reporting analyst with any questions.

The lost revenue needs to be reported in SEFA and the Comptroller’s office will provide more guidance once it is available. Most likely, this will be reported as deferred revenue and will create a reconciling item. This may change depending on the outcome of federal reporting guidance stated in the second part of the 2020 Compliance Supplement, which is scheduled to be released late summer or early fall.

Yes, unspent funds received from the Coronavirus Relief Fund, CFDA 21.019, must be returned to the US Department of Treasury. From the Treasury lDepartment’s June 24, 2020 Coronavirus Relief Fund Frequently Asked Questions: ”If a government has not used funds it has received to cover costs that were incurred by December 30, 2020, as required by the statute, those funds must be returned to the Department of the Treasury.”

Agencies that received CARES Act funding under CFDAs other than 21.019 need to consult the grant agreements from federal awarding agencies to determine the administrative requirements related to unspent funds. In most cases unspent funds must be returned to the federal government.

A webinar is not scheduled at this time. The Comptroller’s office is waiting for additional guidance from the Office of Management and Budget (OMB). The Comptroller’s office will publish additional guidance about financial reporting requirements once more details are confirmed. In the meantime, contact your financial reporting analyst with any questions.

The Financial Reporting section will continue to offer these webinars to cover certain topics, but these broad-topic webinars do not replace the specific training offered in person in prior fiscal years. We are looking into the possibility of offering webinars in the future that will replace those in-person trainings, but those courses are not offered at this time. We are currently developing web-based tutorials for completing the SEFA, SPTR, General Revenue and AFR Core topics. These tutorials should be available by Nov 1. In the meantime, agencies may review the guidance listed in the AFR Reporting Requirements website and contact their financial reporting analysts with any questions.

The Comptroller’s office is working on offering continuing professional education credit for future webinars.

The Financial Reporting section records entries for GR Consolidated Agencies (formerly known as Simplified Reporting Agencies). For more information, see the GR Consolidated Agencies Submission Requirements in the AFR Reporting Requirements website and more details will be provided in the upcoming July’s webinar.

The AFR Reporting Requirements website is now updated on a continual basis, instead of an annual release for each reporting period. The 2020 Updates Table located on the AFR Reporting Requirements Home page displays all content changes to the website made since April 1, 2020.

Updates to the AFR exhibit templates have been made. See Templates and Sample Exhibits. Please keep in mind updates are made as needed on a continual basis. Sample exhibits are in the process of being updated to correspond with AFR exhibit templates.

All web applications will be available by September 1. For more information on web applications open for current fiscal year entry see Annual Financial Report Web Applications in the AFR Reporting Requirements website.

Now is the time to ensure proper security access exists for any AFR web application. Contact your agency’s security coordinator to request access to each applicable web application for each agency number you are reporting. This can be verified by viewing the USAS Titles Profile (D53) screen.

On the D53 screen:

1. Enter R in the ACTION field.
2. Enter the web application USAS Security Code (D53 Profile) in the  TABLE ID field.
3. Enter your User ID and agency number in the KEY field.
   If you enter your User ID without the agency number, USAS automatically appends it to the end of your User ID.
4. Press Enter.
   Your name appears in the TITLE field if your security access was properly established.

Once security access is granted, USAS requires one overnight cycle to run before you can access the web application. See the example in the response to the How do I check if I have security access to the ONDSS web application question in the Note 16: Subsequent Events section. If you do not have access, contact your agency’s security coordinator to request access for each web application you are reporting.

See the USAS security code (D53 Profiles) in the Annual Financial Report Web Applications.

The AFR Reporting Requirements website is now updated on a continual basis, instead of an annual release for each reporting period. The 2020 Updates Table located on the AFR Reporting Requirements Home page displays all content changes to the AFR Reporting Requirements website made after April 1, 2020. For more information on web applications, see the Annual Financial Report Web Applications page in the AFR Reporting Requirements website.

Notifications about Fiscal Management’s Accounting Policy Meetings are included in the weekly e-newsletter, FMXtra. You can sign up to receive our weekly e-newsletter by completing the FMXtra Subscription Form. Additionally, if you would like to receive other e-newsletters that detail when important reports are published (such as Post-payment audit reports, Project ONE, Spotlight, State of Texas Annual Cash Report and Annual Comprehensive Financial Report) subscribe to those here on the Fiscal Management Email Subscriptions page.

Once register to the meeting, there are two reminders sent by Cisco WebEx. The first reminder is sent three days prior to the day of the meeting and the second reminder is sent two hours prior to the start of the meeting. Additionally, we are working on adding more reminders in the weekly FMXtra e-newsletter.