Reporting Requirements for Annual Financial Reports of State Agencies and Universities
Basis of Accounting
The implementation of GASB 84 in fiscal 2020 addresses the need to separate fiduciary funds that are custodial in nature from suspense funds. The fund type name change addresses the confusion with the agency-level (D23) funds. All suspense fund activity must be reported in a governmental or business-type fund at fiscal year-end. Revenues and expenditures must be accrued, as applicable.
Funds that are in suspense:
- Report only in governmental or business-type fund types
- Use same transaction codes
- Clear suspense funds on a timely basis
- Adjust general ledger (GL) account funds held for others (GL 1149) at fiscal year-end by reclassifying activity to an applicable GL account, such as:
- GL 1046 — unearned revenue
- GL 1018 — payroll deduction liability
- GL 1153 — returned expenditure liability
- Do not report deposits to or payments from suspense accounts
- Reclassify to the appropriate type of revenue or expenditure
Due to the complexity and ongoing changes related to GASB 84 implementation, please see the Frequently Asked Questions, Implementation of GASB Statement No. 84, Fiduciary Activities section for the most recent information.
Categories of Common Statewide Suspense Funds
Use the following categories to determine the proper reporting of suspense funds:
Category I is included in the agency’s AFR for cash that is controlled at the D23 fund level. Cash balances can be obtained on the General Ledger Summary Inquiry (56) screen and the Agency/Fund Summary Inquiry (58) screen.
Fund 0900 (the departmental suspense fund) serves as a clearing account to distribute financial resources to other funds of the agency. Reclassify the amounts out of fund 0900 and record in the appropriate fund type. See Reclassify Balance Sheet Activity in Suspense Funds.
Generally, fund 0807 only has CIST and funds held for others. Reclassify the amounts from fund 0807 and record in the appropriate fund type. See Reclassify Balance Sheet Activity in Suspense Funds.
Funds 0942 and 0980 accounts are eliminated with a debit to funds held for others and a credit to accounts receivable.
Category I includes:
|Appropriated Fund Number||Fund Name|
|0807||Child Support Employ Deduct – Offset Account|
|0942||TexaSaver Hold – Transmit 401k|
|0980||Direct Deposit Correction Account|
Agency 902, as the controlling agency, reports the CIST (GL 0045) for funds in the second category. Therefore, any CIST balances on the non-controlling agency’s books are eliminated at fiscal year-end along with the corresponding balances in funds held for others.
If the agency has any additional accrual entries, the agency needs to coordinate this activity with agency 902. Agencies do not report any activity for these funds. Agency 902 reports accrued balances for these funds as accounts receivable or accounts payable and revenue or expense.
Category II includes:
|Appropriated Fund Number||Controlling Agency|
Appropriated Fund 0001
The appropriation number must be 99906. Collections in this coding block are electronically swept from the collecting agency to agency 902. Agency 902 recognizes revenue in its AFR.
When the money is swept, the balances are eliminated for the non-controlling agency in USAS and allows agency 902 (the controlling agency for appropriated fund 0001) to report the cash and revenue. If the cash is not posted to appropriation 99906, the cash is not swept and the agency must coordinate with agency 902 and process appropriate USAS entries to properly report the cash and revenue balances. For more information, see Eliminating USAS Activity in GAAP Fund 1000 for the Non-Controlling Agency — Reported by Agency 902.
Appropriated Fund 0882
Collections in this coding block are also electronically swept to agency 902.
- 99906 – Unappropriated Receipts – General Revenue
Quarterly sweeps (with the balances from June through July swept in the first week of August) with a final sweep occurring Aug. 31.
- 99907 – Local Sales Tax
- 70000 – Earned Federal Funds
September through July balances swept in the first week of August with a final sweep occurring Aug. 31.
When the money is swept, the balances are eliminated for the non-controlling agency in USAS and allows agency 902 (the controlling agency for appropriated fund 0882) to report the cash and revenue. If the cash is not posted to appropriation 99907, the cash is not swept and the agency must coordinate with agency 902 and process appropriate USAS entries to properly report the cash and revenue balances. For more information, see Eliminating USAS Activity in GAAP Fund 0882 for the Non-Controlling Agency — Reported by Agency 902.
Category III is controlled and reported exclusively by the Comptroller’s Treasury Operations Division. No activity for these funds is reported by the individual agencies at fiscal year-end. Eliminate all balances, including CIST and payables/receivables.
Category III includes:
|Appropriated Fund Number||Fund Name|
|0899||Direct Deposit Bills – Hold Acct|
|0979||Direct Deposit Hold – Transmit Acct – Payrolls|
|9010||Direct Deposit Hold – Supplemental Payrolls|
|9011||Direct Deposit Hold – Non-IRS Deductions|
|9012||Direct Deposit Hold – IRS Deductions|
All Other Suspense Funds
The state treasury provides banking or trust services for many agencies. However, in most cases the agency reports the assets held. Exercise of control and administration decisions on these assets are the primary considerations for delegating reporting responsibility. Reporting of these assets by the state must be assured and reported in a governmental or business-type fund at fiscal year-end.