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Requirements for Local Operating Funds and Associated Local Funds

Issued: Sept. 14, 2012
Updated: Nov. 10, 2022 – View Changes

FPP S.009


Applicable to

  • State agencies and self-directed semi-independent (SDSI) agencies with funds held outside the state treasury (local funds). Institutions of higher education are excluded from these requirements.
  • All authorized and/or existing local funds, regardless of activity or balance.


Agencies are required to consistently use and report local funds as detailed in this fiscal policy and procedure (FPP). These requirements allow the Texas Comptroller of Public Accounts to ensure proper tracking of local funds.

Legal citations

Texas Government Code, Section 403.011; Texas Finance Code, Title 2, Chapter 16; General Appropriations Act (GAA), Article IX, Section 17.08, 87th Legislature, Regular Session.

Changes to This Document
Date Updates
11/10/2022 Updated for the fiscal 2022-23 biennium
11/13/2020 Updated the Additional reporting requirements per the GAA (Art. IX, Sec. 17.09) and deleted USAS Local Operating Funds List section.
09/28/2018 Added new revenue reporting requirements; info on new electronic reporting form; new entries to USAS Local Operating Funds list
06/21/2016 Updated the USAS Local Operating Funds List and reworded to present tense to reflect current policy