Salary Supplements Paid From Sources Other Than Appropriated Funds

Overview

Applicable to

State agencies and institutions of higher education.

Policy

Appropriated funds may not be used to pay the salary of an employee whose classified or exempt position is supplemented from non-appropriated sources until a Salary Supplementation Report is submitted to the Texas Comptroller of Public Accounts, the State Auditor and the Secretary of State.

In September of each fiscal year, state agencies and institutions of higher education must report to the Comptroller’s office, the State Auditor and the Secretary of State all salary supplements for classified and exempt positions paid from sources other than appropriated funds. See Instructions in this fiscal policy and procedure (FPP) for details on submitting the electronic Salary Supplementation Report form.

Agencies and institutions must submit reports no later than Sept. 15 to allow for the processing of September payrolls.

Note: If salary supplementation does not apply to your agency or institution, do not submit a report.

Legal Citations

• Salary supplementation: Texas Government Code, Section 659.020.
• Special provisions relating only to components of Texas State Technical College chancellor salary: General Appropriations Act, Article III, Rider 9 (2023).
• Special provisions relating only to state agencies of higher education, president salaries and chancellor salaries: General Appropriations Act, Article III, Riders 2-3 (2023).
• Requirement to report to the Comptroller’s office and the Secretary of State: General Appropriations Act, Article IX, Section 3.02 (2023).

Instructions

1. Complete the Salary Supplementation Report for each individual whose salary is being supplemented and electronically submit the form to the Comptroller’s office. After submitting the form, you will be able to print a copy that includes the Secretary of State’s address. The Comptroller’s office will generate an electronic copy and send it to the State Auditor.
2. By Sept. 15, mail the hard copy to the Secretary of State’s office at the address on the printed form.

   The following information must be provided for each individual whose salary is being supplemented:

   • Name
   • Title
   • Base salary (institutions of higher education should add the amount of benefit replacement pay to the base salary)
   • Supplemental amount
   • Supplemental source(s)

Changes During the Fiscal Year

After reports are submitted, any change to the information must be reported (using the electronic report form) before the 15th of the month in which the change becomes effective.