Coronavirus Relief Federal Funding Accounting Policy for the State of Texas

In response to the pandemic, multiple funding streams were authorized in several pieces of federal legislation listed in the Manual of Accounts, including the Coronavirus Aid, Relief, and Economic Security (CARES) Act and the Families First Coronavirus Response Act (FFCRA). The state created Appropriated Fund 0325 to separately track these federal funds in an effort to maximize transparency and to facilitate reporting, particularly since reporting guidelines continue to evolve alongside the federal response.

Yes, all federal funds received for or authorized by the federal legislation enacted to respond to the coronavirus pandemic should be deposited or transferred to Appropriated Fund 0325. In several instances, Congress appropriated additional funds for state grantees to draw down under an existing letter of credit or award, such as FEMA Coronavirus Relief funds from the Federal Disaster Relief Fund (DRF). To the extent an agency is reimbursed by the federal government for the expenditure of state funds on the pandemic, that reimbursement must be deposited to Appropriated Fund 0325 and the associated expenditure must be transferred from the source of the original state expenditure to Appropriated Fund 0325

No. If an agency was previously awarded federal funding for a purpose unrelated to the pandemic, and the existing grant was not provided additional funding under the federal legislation enacted to respond to the coronavirus, then the balance should remain in the current depository account. However, all activity related to the pandemic must be recorded under a PCA that infers PCA Group 20201.

Agencies may expend state funds in response to the coronavirus that are ineligible for federal reimbursements, or such reimbursements may be delayed. The unique PCA group 20201 allows the state to track these expenses even though the activity is outside of Appropriated Fund 0325. Appropriated Fund 0325 allows the state to track the federal revenue received for the coronavirus response and the associated expenses at both the PCA group 20201 level and the Appropriated Fund 0325 level.

No, an agency must first receive deposits from a federal agency or a transfer of Appropriated Fund 0325 from the Governor’s Office or Texas Department of Emergency Management before expenditures can be made from Appropriated Fund 0325.

No, only federal receipts are to be deposited to Appropriated Fund 0325.