Accounting Policy Meeting
Wednesday, May 15, 2024

Yes. Each agency can enter a one-sided transfer. However, there is a requirement that the AGL is included in the transaction. This will provide the ability to balance statewide.

Yes. GL 9000 is essentially being used as a clearing account since the shared fund entry must have a net impact of zero on GL 9000. Notice that the T-codes listed in the presentation have changed; T-codes 606 and 609 will not be used. This was the initial approach that was researched. During further research, we identified existing TCs that could be used instead; T-codes 460 and 461. These will be modified and repurposed for the shared fund entry. These T-codes record the activity in transfer related GL accounts that are separate from the operating transfer GLs, which provides an additional resource for balancing.

There are no fiscal 2024 changes to Note 2 and the CANSS certification. However, the Comptroller’s financial reporting section is working on an automated process for future reporting.

A non-controlling payable is the normal accounts payable. The difference between controlling and non-controlling is the non-controlling agency doesn’t have the cash (on the books” to process the liquidation.) That is the reason a transfer and a Due From/Due To needs to be processed by the controlling agency – the transfer in of “cash” allows the payable on the books to be liquidated in the next accounting period. These transactions are crucial when the controlling agency and non-controlling agency are using GAAP Funds that are in different GAAP Fund Types.

For example: the controlling agency’s GAAP Fund is in GAAP Fund Type 01 and the non-controlling agency’s GAAP Fund is in GAAP Fund Type 05. In previous years, agencies were required to make these Due From/Due To entries by sending their journal vouchers to the Comptroller’s Financial Reporting section. Beginning this year, the process is for each agency to enter its own activity into USAS using the new TCs 460/461. The Financial Reporting section will determine whether there needs to be corresponding Due From/Due To entries.

Certification of balances:

• Each agency must complete the USAS Certification form through the ACFR Note and Reporting Certification (ANRC) web application by the applicable deadline for their agency type. See the Deadlines page on the AFR website.
• The USAS Certificationform requires each state agency to ensure and certify that its financial data correctly reflects its financial position as recorded in USAS — this encompasses shared fund balances.

Shared cash entries:

• On the Agency Fiscal Year-End USAS Adjustments and AFR Checklist, Step 4 – Interagency Activity specifies agencies must not report cash in state treasury (CIST) in their AFR for an appropriated fund for which the agency is not the controlling agency. This inclusion of shared funds as interagency activity implies a USAS entry deadline on Sept. 26. See the Interfund Activity Confirmation Form on the AFR website.
• As stated on the AFR Ad Hoc Review Reports page, controlling agencies will receive the CR_101 report as part of the daily transmission beginning on Sept. 2. The CR_101 report is used to ensure participating agencies coordinate and enter all interagency activity in USAS by Sept. 26.

To clarify, Nov. 1 means the electronic submission. Each agency is required to submit an electronic copy to the Financial Reporting Section at the Comptroller’s office (by the annual submission date as set forth in HB 4510) either its AFR or all of the following:

• Agency Transmittal Letter,
• DAFR reports (8580, 8590 or 8600, 8585, 8581 and 8605)

Financial statement notes and supplemental schedules to the Certification of the AFR web applications do not replace this requirement.

For more specifics on what is due to whom by when, see the AFR website’s Deadlines and AFR Submission Method pages. If the agency chooses to, it may create a hard-bound copy for its own use (such as a publication on its website or for management). However, the information in the hard copy must match the electronic submission made to the Comptroller’s office.

An electronic submission is due to the State Auditor’s office by close of business (COB) on Nov 1. However, the Comptroller’s office cannot speak to whether the State Auditor’s office will assess penalties for an AFR submitted after the deadline. Texas Government Code, Section 2101.0376, authorizes the Comptroller to impose an administrative penalty against any agency whose failure to meet the deadline that results in the Comptroller’s office publishing an incomplete or late ACFR. In addition, any agency that fails to comply with the reporting requirements may be included in the State Auditor’s Statewide Management Letter.

Yes, an updated Sample for Note 14 was posted on the Reporting Requirements for Annual Financial Reports website in June 2024. This included changes to Note 14 under the Agency Fiscal Year-End USAS Adjustments and AFR Checklist.