General Revenue Reimbursement for Statewide Allocated Costs

Overview

Applicable to

All executive branch agencies. Judicial and legislative branch agencies are not subject to the SWCAP statutes.

Background

Certain state agencies provide accounting, computing, payroll and other statewide support services on a centralized basis. For federally supported programs within state agencies, the federal government shares the cost of these services. Developed by the governor’s office, the Statewide Cost Allocation Plan (SWCAP) identifies these costs and allocates them to the appropriate agencies.

Note: Information for the statewide cost allocation to each agency is taken from the Statewide Cost Allocation Plan reported by the governor’s office.

Each year agencies are asked to allocate their portion of statewide costs to the appropriate source of funds.

Using the SWCAP and billing procedures prescribed by the governor’s office, the Texas Comptroller of Public Accounts (Comptroller’s office) bills agencies for the portion of statewide costs allocated to them. Agencies are asked to reimburse the General Revenue Fund (GR) for the billed amounts.

This process, with links to detailed instructions, is summarized below.

Distribute Statewide Costs Among Sources of Funding

Each agency’s portion of statewide costs is recorded on the Fiscal 2023 Statewide Cost Allocation Plan Summary of Fixed Costs. Agencies are asked to indicate the basis used to allocate the agency’s statewide cost and to use that basis to distribute their statewide costs among sources of funding on the Statewide Cost Allocation Worksheet. For details, see Instructions for Completing the Statewide Cost Allocation Worksheet.

Note: For agencies not submitting the worksheet, the Comptroller’s office will distribute statewide costs based on the agency’s appropriation year (AY) 2024 method of finance.

Reimburse the General Revenue Fund for the Amount Owed

The Comptroller’s office uses the information agencies submit on their worksheets to determine the amounts reimbursed to GR. For agencies not submitting worksheets, the calculations are based on the AY24 method of finance.

Agencies may choose to:

• Pay the entire amount owed in one payment
  –OR–
• Make quarterly payments

Quarterly Payments

If the quarterly option is selected, the first quarter of the amount owed should be returned to GR by the posted due date. The remainder should be evenly distributed between the final three quarters. The balance of the amount owed may be paid at any time. For complete details, see Instructions for Reimbursing the General Revenue Fund.

Legal Citations

Billing state agencies for statewide costs: Government Code, Chapter 2106; General Appropriations Act (GAA), Article IX, Section 15.04

Legend

Step 1 — Due Date: June 3, 2024

Instructions for Completing the Statewide Cost Allocation Worksheet

Statewide Cost Allocation Worksheet

The first step in the billing process is for state agencies to distribute their portion of the statewide costs to the appropriate funds source:

• Review the Fiscal 2023 Statewide Cost Allocation Plan Summary of Fixed Costs by Agency that identifies the total statewide cost allocated to your agency.

  Note: For questions about the statewide cost allocated to your agency, contact Theresa Boland in the Governor’s office at (512) 936-0166 or theresa.boland@gov.texas.gov. This information is sourced from the Statewide Cost Allocation Plan.

• Complete the Statewide Cost Allocation WorksheetPDF to distribute your agency’s portion of statewide costs.
• Return the completed Statewide Cost Allocation Worksheet to the Comptroller’s office using the email address provided at the bottom of the worksheet by the due date.

  Note: If your agency’s completed worksheet is not received by the due date, the Comptroller’s office will use the method of finance for AY24 as the basis for distributing the statewide cost.

Basis for Distributing Statewide Costs on the Statewide Cost Allocation Worksheet

There are generally two commonly used bases for distributing statewide costs:

• Total direct costs (method of finance) basis
  –OR–
• Direct salaries and wages basis

Total Direct Costs Basis

If you use the total direct costs basis to complete the worksheet, use the method of finance (MOF) for appropriations made for AY24. Distribute the statewide cost in the same proportions and in the same fund source detail as identified in the MOF section of your agency’s bill pattern in the GAA.

Direct Salaries and Wages Basis

If the distribution is made on the direct salaries and wages basis, provide information detailing the distribution. Agencies with an approved Federal Cost Allocation Plan must use the basis in that plan to allocate costs to all non-federal sources of funds.

Note: If your agency uses a basis other than the two methods listed above that is authorized in the Office of Management and Budget (OMB) 2 CFR Part 225, please specify on the worksheet the method used.

The information you provide on the worksheet is used to prepare the plan of proposed transfers to GR. The Comptroller’s office will notify agencies of the final amount they are required to reimburse GR, along with the accounting transactions for the required reimbursement.

Step 2 — Due Date: June 28, 2024

Instructions for Completing the General Revenue Reimbursement of Statewide Allocated Costs Form

Classification of Funding for SWCAP Reimbursements

The statewide allocated cost may be charged to:

• General revenue
• General revenue-dedicated accounts
• Federal funds
• Other funds

General Revenue

No reimbursement is required for the portion of an agency’s SWCAP allocation attributable to the GR. However, agencies funded by fees deposited to GR are required to deposit sufficient revenue to GR to pay for their agency operations, including the SWCAP allocation.

For regulatory and certain other agencies:

• The GAA specifies an amount for “other direct and indirect costs appropriated elsewhere in this act.”
• The amount of revenue deposited by these agencies must be equal to, or greater than, the cost of appropriations in the GAA plus the amount specified for other direct and indirect costs.
• Statewide allocated support costs are already included in the “other direct and indirect costs” figure. Fulfilling the GAA provision (Article VIII, Special Provisions Relating to All Regulatory Agencies, Section 2) will meet the agency’s obligation to reimburse GR for statewide allocated costs.

Note: Judicial and legislative branch agencies are not subject to the SWCAP statutes.

General Revenue-Dedicated Accounts

Agencies using general revenue-dedicated account(s) will need to transfer the amount necessary from the dedicated account(s) to GR to cover the allocated portion of statewide costs.

If an agency’s deposits to the dedicated account(s) exceed its appropriations from these accounts, the agency may use the excess deposits to fund the allocated portion of statewide costs.

Federal Funds

The reimbursement procedure imposes no new requirements for agencies receiving federal funds. The previous law already required state agencies to recover statewide allocated support costs to the extent allowable under their federal program guidelines. The amounts recovered are treated as earned federal funds (EFF).

Other Funds

Agencies that have allocated their SWCAP to one or more special funds will need to transfer the appropriate amount from the special fund(s) to GR to cover the allocated portion of statewide costs. If an agency’s deposits to one or more special funds exceed its appropriations from Other Funds, the agency may use the excess deposits to fund the allocated portion of statewide costs.

Reimbursement rates for interagency contracts should be established to recover the appropriate proportion of statewide allocated costs.

Revenues established by statute on a fee or service-provided basis should also be increased to recover the appropriate proportion of statewide allocated costs.

Non-recoverable Statewide Allocated Costs

GR must be reimbursed for any amounts billed to your agency that are allocated to General Revenue-Dedicated, Federal and Other funds, including amounts not recoverable through one of the aforementioned methods. Your agency may pay the balance of non-recoverable SWCAP from any appropriation or funding source available to the agency, including the agency’s GR appropriations.

Completing the General Revenue Reimbursement for Statewide Allocated Costs Form and Federal Fund Reimbursement Calculation Form

The General Revenue Reimbursement for Statewide Allocated Costs PDF form must be completed by all agencies listed on the Fiscal 2023 Agency Statewide Cost Allocation Plan by Method of Finance.

To complete this form, agencies with federal funds must first complete the Federal Funds Reimbursement Calculation PDF form.

These forms must be completed to identify:

• SWCAP that will be recovered and returned to the GR
• Amounts that may be re-appropriated
• Amounts that cannot be recovered but must be paid from other available sources

Completed forms must be submitted by the due date: June 28, 2024.

Follow the steps in the below table to:

• Complete the General Revenue Reimbursement for Statewide Allocated Costs form and, if needed, the Federal Funds Reimbursement Calculation form.
• Submit the appropriate forms to the Comptroller’s office.

Step	Action
1	If your agency has federal funds, you must complete the Federal Funds Reimbursement Calculation form to correctly complete the General Revenue Reimbursement for Statewide Allocated Costs form. If your agency needs to complete the Federal Funds Reimbursement Calculation form, go to step 2 –OR– If your agency does not have federal funds, go to step 4
2	Follow the instructions on the Federal Funds Reimbursement Calculation form to complete the form. Be sure you have identified the specific citation for the EFF appropriation amount you entered on line 4.
3	If your agency’s federal program does not provide for the recovery of indirect costs, submit supporting documentation from the federal oversight agency to the Comptroller’s office along with the Federal Funds Reimbursement Calculation form.
4	Follow the instructions on the General Revenue Reimbursement for Statewide Allocated Costs form to complete this form.
5	Email completed forms to ACO.reports@cpa.texas.gov. Completed forms must be submitted by the due date.

Reimbursement Procedure

1. The Appropriation Control section of the Comptroller’s Fiscal Management Division will establish Appropriation Number 92071 as the SWCAP Reimbursement Account.
2. Agencies making reimbursement must establish a program cost account (PCA) that infers Appropriation Number 92071, Program Code 3993, and the appropriated fund from which payment will be made.
3. Agencies must establish a budget for the SWCAP Reimbursement Account. The budget will be established as either:
   
   • Collected, if cash will be transferred to fund the reimbursing payment or
   • Committed, if no cash transfer is required for the payment.
   

   CAPPS agencies tracking the below appropriation numbers in CAPPS will first need to make the budget entry directly into USAS, then create an internal (CAPPS-only) budget journal in CAPPS.

   
   

   Agy No	T-code	Appn No	COBJ	PCA	Fund
   XXX	006	92071	7000	XXXXX	XXXX
   XXX	009	92071	3000	XXXXX	XXXX
   Enter budget transaction as Batch Type 1, Document Type A. Use T-code 006 to establish committed budget. Use T-codes 006 and 009 to establish collected budget.

4. If a collected budget is established, transfer cash to the SWCAP Reimbursement Account.
   
   

   CAPPS agencies tracking the below appropriation numbers can send transactions through CAPPS or make the USAS transaction directly into USAS, making sure to indicate this is a J document in the USAS document field. If the agency makes the below entry directly into USAS, the agency will need to create a GL journal using a manual (MAN) T-code in CAPPS.

   
   

   Agy No	T-code	Appn No	COBJ	PCA	Fund
   XXX	406	XXXXX	3970	XXXXX	XXXX
   XXX	405	92071	3970	XXXXX	XXXX
   Enter cash transfer as Batch Type 5, Document Type J.

5. For recovered SWCAP, process payment via recurring transaction index (RTI) for reimbursement to GR.
   

   Agy No	T-code	Appn No	COBJ	PCA	Fund	AY	RTI
   XXX	225	92071	7953	XXXXX	XXXX	24	003953
   Enter payment transaction as Batch Type 4, Document Type T. Use Comptroller Vendor ID Number 39029029020 000.

6. For non-recovered SWCAP, process payment from any available appropriation.
   
   

   CAPPS agencies create the payment by entering a voucher in CAPPS. Select Payment Type T, enter RTI 003953 and use the accounting entry template for T-code 225.

   
   

   Agy No	T-code	Appn No	COBJ	PCA	Fund	AY	RTI
   XXX	225	XXXXX	7953	XXXXX	XXXX	24	003953
   Enter payment transaction as Batch Type 4, Document Type T. Use Comptroller Vendor ID Number 39029029020 000.

Frequency of Payment

The SWCAP amounts are identified in the Fiscal 2023 Agency Statewide Cost Allocation Plan by Method of Finance. Each quarter of the fiscal year, one-fourth of the amount shown should be returned to GR. Enter quarterly payments into the Uniform Statewide Accounting System (USAS) with the following transaction dates:

• FY24 first and second quarter – July 26
• FY24 third and fourth quarter – Aug. 30

For More Information

For questions on the reimbursement procedure, please contact your appropriation control officer.