Reporting Requirements for Annual Financial Reports of State Agencies and Universities
Basis of Accounting
In a GAAP agency fund, assets must equal liabilities. There are no revenues, expenses or fund balances because the assets do not belong to the reporting agency. GAAP agency funds are reported under GAAP fund type 09. Revenue and expenses must be zero at the GAAP source/object level in order to facilitate upload into fiscal year-end processes. For more information, see Eliminating Revenues and Expenses in GAAP Fund Type 09.
The basis of accounting is the full accrual basis on the fund financial statements — therefore, receivables and liabilities must be recognized.
Attention: A GAAP agency fund is reported or profiled as fund type 09 – agency funds. This is not to be confused with the USAS D23 fund, sometimes referred to as “agency fund,” which can be profiled to any fund type.
Agencies other than universities are required to submit the combined statement of fiduciary net position – fiduciary funds (see Exhibit VI in the AFR Exhibit Templates) and the combining statement of changes in assets and liabilities – agency funds (see Exhibit J-1 in the AFR Exhibit Templates).
If there are other fiduciary funds (such as pension and other employee benefit trust, private-purpose trust or external investment trust), include them on the combined statement of fiduciary net position – fiduciary funds and the combined statement of changes in fiduciary net position — fiduciary funds (see Exhibit VI and Exhibit VII in the AFR Exhibit Templates). In all cases, identify each GAAP fund presented by GAAP fund name and fund number.
Categories of Common Statewide Agency Funds
Use the following categories to determine the proper reporting of agency funds:
Category I – The first category is included in an agency’s AFR because cash 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.
If the only assets are accounts receivable and the only liabilities are funds held for others, and the two amounts offset each other, eliminate the accounts in USAS and do not report the funds in the AFR. For more information, see Eliminating Accounts Receivable and Funds Held for Others in an Agency Fund. Report CIST (GL 0045) and all other GL accounts for these funds.
If fund 0900 (the departmental suspense fund) is used as a clearing account to distribute financial resources to other funds of the agency, the portion of the balance that belongs in other funds is not reported in fund 0900. If there are material cash balances, reclassify the amounts out of fund 0900 and record in the appropriate fund type. See Reclassifying Material Cash Balances That Remain in Suspense Fund FT09 at Fiscal Year-End. Funds being held in fund 0900 for an outside entity (such as a city or county government or a private individual) or for another agency will remain in the agency fund.
Generally, fund 0807 only has CIST and funds held for others and is not eliminated. Funds 0942 and 0980 only have accounts receivable and funds held for others, which offset each other and are eliminated.
Category I includes:
|Appropriated Fund Number||GAAP Fund||Fund Name|
|0807||0807||Child Support Employ Deduct – Offset Account|
|0942||0942||TexaSaver Hold – Transmit 401k|
|0980||0980||Direct Deposit Correction Account|
Category II – 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 material accrued balances for these funds as accounts receivable or accounts payable and revenue or expense.
Category II includes:
|Appropriated Fund Number||GAAP Fund||Controlling Agency|
For appropriated fund 0001, receipts collected on behalf of the state (agency 902), it is important that the D23 fund where the receipts reside infers GAAP fund 1000, appropriated fund 0001, FT09. 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 will not be 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.
For appropriated fund 0882, it is important that the GAAP fund be 0882, FT09, appropriation number 99907. Collections in this coding block are also electronically swept to agency 902.
Sweep schedule for the following appropriations:
- 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 will not be 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 – The third category is controlled and reported exclusively by the Comptroller’s Treasury Operation 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||GAAP Fund||Fund Name|
|0899||0899||Direct Deposit Bills – Hold Acct|
|0979||0979||Direct Deposit Hold – Transmit Acct – Payrolls|
|9010||9010||Direct Deposit Hold – Supplemental Payrolls|
|9011||9011||Direct Deposit Hold – Non-IRS Deductions|
|9012||9012||Direct Deposit Hold – IRS Deductions|
All Other Agency Funds
All other funds under agency control and not specifically mentioned above are also identified by GAAP fund name and number in a separate column.
The state’s 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.