Coronavirus Relief Federal Funding Accounting Policy for the State of Texas
Coronavirus Relief Tracking Requirements
Appropriated Fund 0325 Must Be Used
The Comptroller’s office has established Appropriated Fund 0325, the Coronavirus Relief Fund, to track the federal funds. The fund profile may be viewed in USAS on the Appropriated Fund Profile (D22). Agencies that anticipate receiving coronavirus relief funds in the state treasury must create a Fund Profile (D23) for the Appropriated Fund 0325 according to established guidelines in USAS Coding Instructions. The D23 Funds that infer Appropriated Fund 0325 must also infer GAAP Fund (D24) 0325 and GAAP Fund Type (D21) 01, or 05 depending on the normal operating fund activity of the fund in which the regular benefits were accounted. For more information, contact your financial reporting analyst.
Coronavirus relief funds held outside the state treasury or in Treasury Safekeeping Trust or external federal trust accounts are not required to report through Appropriated Fund 0325.
Expenditure processing exemption from this requirement for coronavirus relief funds in the state treasury may be addressed through the steps outlined in the Expenditure tracking in Appropriated Fund 0325 exemption request section of this document.
Note: If an agency or institution has an existing balance of federal funding that was not granted under coronavirus-related legislation but allows state agencies and institutions to use the funds for coronavirus relief, the agency must deposit the funds in the current depository account — whether an appropriated fund in the state treasury or into a local bank account — but not into Appropriated Fund 0325.
Agencies and institutions must expend such existing funds in fiscal 2020 or later. Federal funding available in prior appropriation years (AYs) must be brought forward into the current period.
Agencies must still use PCA group 20201 when recording revenues and expenditures related to COVID-19 in USAS.
CAPPS agencies will need to set up the Appropriated Fund 0325 chartfield and update any affected trees, combination edits and/or speedcharts.
Comptroller Policy Is to Record Revenue and Expenditure Activity Directly in Appropriated Fund 0325
GAA, Article IX, Section 13.04 states:
It is the intent of the legislature, that in the event 10 or more state agencies are awarded, by the United States government, a combined amount greater than or equal to $1 billion in federal stimulus funds or other one-time allocations appropriated through legislation separate from the annual federal appropriations bills, the Comptroller shall set state reporting standards and timelines, including performance benchmarks, for all affected agencies, including institutions of higher education, that align with any related federal reporting requirements.
To facilitate the accountability and transparency for expenditure and revenue activity related to disaster relief efforts, additional coding elements must be recorded in USAS.
Under the provisions noted above (and Texas Government Code 403.011), the Comptroller’s office may require agencies to track and report certain financial activity.
All revenue and expenditure activity relating to coronavirus relief funds that flow through the state treasury must process through Appropriated Fund 0325. Limited exceptions may exist only if state law or other processes prohibit the initial use of Appropriated Fund 0325. Subsequent adjustment transactions will be required to reflect the revenue and expenditure activity in Appropriated Fund 0325.
Appropriated Fund 0325 will be established in fiscal and AY 2020 and forward as coronavirus relief funds remain available.
Note: Agencies and institutions may not transfer or deposit any non-coronavirus relief funds into Appropriated Fund 0325.
The disposition of interest earned on balances held in Appropriated Fund 0325 is determined by the federal guidance applicable to the source of the funding. See Earned Federal Funds and Indirect Cost Reimbursements to the General Revenue Fund (APS 023) (FPP A.017) for more information.
Disaster-Related PCA Group Must Be Used
Each agency and institution should associate all coronavirus relief revenue and expenditure activity that flows through the state treasury with the appropriate disaster response PCA group 20201. To do this, establish PCAs that use PCA group 20201. The PCA group 20201 coding may also be used on funds other than Appropriated Fund 0325 indicating state appropriations were used and not federal coronavirus relief funds.
See Tracking Expenditures and Revenues Related to Disaster Relief Efforts (FPP K.014) for additional guidance.
CAPPS agencies will need to set up the newly established PCAs and update any affected trees, combination edits and/or speedcharts.
Expenditure Tracking in Appropriated Fund 0325 Exemption Request
For coronavirus relief funds held in the state treasury, Comptroller policy requires all revenue and expenditure activity to be recorded in Appropriated Fund 0325. In limited circumstances and only on written request from an agency or institution receiving coronavirus relief funds, an exemption from this requirement may be granted by the Comptroller’s office to exclude the recording of expenditure activity in Appropriated Fund 0325. The written exemption request should include supporting justification describing the undue hardship on the agency’s or institution’s resources.
Any exemption request submitted must include:
- Identification of the affected coronavirus relief federal program.
- Acknowledgment of the transparency and accountability requirements at the state and federal level.
- Full description of the program or technical limitation preventing the recording of expenditure activity within Appropriated Fund 0325.
- Estimate of resource time and cost required to comply with the stated policy.
- Acknowledgment that the agency or institution is prepared to provide coronavirus relief related expenditure detail on request to comply with all state and federal reporting and auditing requirements.
- A detailed sample report demonstrating how coronavirus relief expenditures are uniquely identified at the agency or institution level.
–and– - The agency or institution head’s signature on the exemption request.
Agencies and institutions must ensure all coronavirus relief related expenditures remain uniquely identified in their internal accounting system if they are not tracked separately in USAS. Exempted agencies and institutions must continue to record all coronavirus relief federal revenue and coronavirus relief related pass-through amounts received in Appropriated Fund 0325 in USAS.
If the exemption request meets the requirements set forth above and the request is approved by the Comptroller’s office, then coronavirus relief funds received within Appropriated Fund 0325 may be transferred to another fund in the state treasury to allow for coronavirus relief related expenditure activity.