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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Reporting Requirements for Annual Financial Reports of State Agencies and Universities

CIST/Shared Funds

Shared Funds

Introduction

Shared funds are state funds appropriated for use by more than one agency. To ensure Cash in State Treasury (CIST) is not double-counted and all shared fund activity is reported by the appropriate agency, the non-controlling agency’s shared fund general ledger account 0045 (CIST) and 0047 (shared cash) must net to zero.

Note: Appropriated fund 0001 is a shared fund. However, non-controlling agencies (agencies other than 902) offset general ledger account GL 0045 (CIST) to 0048 (legislative cash), not 0047 (shared cash). Do not use GL 0047 for appropriated fund 0001.

Definitions

Controlling Agency

The controlling agency is the agency required to reconcile the entire cash activity for the shared fund and report the CIST balance on the AFR. The amount reported is also reconciled to the State of Texas Annual Cash Report.

To determine the controlling agency for a shared fund, refer to the Texas Comptroller Manual of Accounts or the REPORT ROUTE AGENCY field on the USAS Appropriated Fund Profile (D22) screen.

Non-Controlling Agency

A non-controlling agency is any other state agency authorized to spend money from a shared fund but is not the controlling agency. The non-controlling agency does not report the shared CIST balance on the AFR. The net balance between CIST and shared cash must be zero for the non-controlling agency and may be offset by due from/due to the controlling agency for any accrued liabilities.

Note: Agencies with an existing CIST balance in appropriated fund 0369 (Federal American Recovery and Reinvestment Act fund) have an exception to the above and are therefore responsible for reporting their own CIST balance. Do not offset the CIST balance in appropriated fund 0369 with shared cash (GL 0047).

Agency Coordination

The recording of transfers and due from/due to requires coordination between the controlling agency and each of the non-controlling agencies and are subject to the interfund activities entered in USAS deadline so transfers in are equal to transfers out and due from/due to accounts are equal. This includes the accrual for expenditures. The coordination for recording purposes can be done on a regular basis as determined by the controlling agency but must be coordinated at least annually during the preparation of the AFR.

Controlling Agency Requirements

Statement of Revenues and Expenditures

The controlling agency must account for the non-controlling agencies’ activities by reporting them as transfers out to non-controlling agencies. This amount equals the CIST activity plus any fiscal year-end accruals of the non-controlling agency. However, some agencies report the non-controlling agencies’ activities as state pass-throughs or other operating revenue.

Balance Sheet

The controlling agency is the agency responsible for reporting the entire Aug. 31 (USAS) CIST balance. The total presented in the controlling agency’s AFR is the Aug. 31 USAS balance on the USAS Cash Control Summary Inquiry (57) screen. For more information, see AFR Cash in State Treasury. Other balance sheet accounts only reflect the accounts of the controlling agency. Do not attempt to account for any balance sheet accounts of non-controlling agencies.

The controlling agency accounts for the fiscal year-end accruals recorded by the non-controlling agency by reporting them as a due to.

Non-Controlling Agency Requirements

Statement of Revenues and Expenditures

The non-controlling agencies must report activities out of shared funds as actual revenues and expenditures. The actual revenues and expenditures include fiscal year-end accruals and deferrals (such as receivables, unearned revenues and payables).

Transfers in are reported in the amount of cash and accrued transactions incurred by the agency. The transfer in equals the amount reported as a transfer out by the controlling agency. However, depending on the COBJ used, the amount can be a transfer, a state pass-through or other operating revenue.

Balance Sheet

Cash balances are not reported by the non-controlling agencies since the controlling agency reports the entire cash balance for the shared fund. Any cash balance is reclassified with a shared cash adjustment (see example below). The non-controlling agency accounts for the fiscal year-end accruals reported as payables by offsetting them with a due from.

In the balance sheet, there are no fund cash balances after the shared cash and transfer out adjustment. A due from accrual must offset any remaining accounts payable. The due from must match the due to amount reported by the controlling agency.

Example: Shared Cash Adjustment

During the year, the non-controlling agency received a cash transfer in of $45,000, had cash expenditures of $40,000 and, at fiscal year-end, accrued expenditures of $10,000.

  Before AJE AJE for Cash
Activity¹
AJE for
Accruals²
AFR Balances
Balance Sheet        
Cash in State Treasury 5,000     5,000
Shared Cash 0 (5,000)   (5,000)
Total Cash 5,000 (5,000)   0
Due From 0   10,000 10,000
Total Assets 5,000 (5,000) 10,000 10,000
Accounts Payable 10,000     10,000
Fund Balance (5,000) (5,000) 10,000 0
Total Liab. & FB 5,000 (5,000) 10,000 10,000
Statement of Rev/Exp.        
Revenues 0     0
Expenditures (50,000)     (50,000)
Revenues over Expenditures (50,000)     (50,000)
Transfers In 45,000   10,000 55,000
Transfers Out 0 (5,000)   (5,000)
Fund Balance (5,000) (5,000) 10,000 0
  1. The non-controlling agency has a positive cash balance of $5,000 after expenditures at fiscal year-end. The non-controlling agency records a transfer out of $5,000 to the controlling agency and offsets the transfer out with shared cash. The controlling agency records a transfer in of $5,000 and offsets the transfer in with shared cash.
  2. The non-controlling agency recorded accruals for expenditures of $10,000 at fiscal year-end. The non-controlling agency records a transfer in and a due from of $10,000. The controlling agency records a transfer out and a due to of $10,000.

If the non-controlling agency did not receive cash transfers greater than actual cash expenditures, the CIST balance before adjustment is negative. With a negative balance, the adjustment for cash activity is to record a transfer in and an increase to shared cash to eliminate the negative balance.

Determining the Appropriated Cash Balance of a Shared Fund

Use shared cash adjustments to ensure that the controlling agency accurately reports the total appropriated fund CIST. The controlling agency reports the entire balance in the appropriated fund and the non-controlling agency reports a zero balance.

CIST (GL 0045) cannot be adjusted after Aug. 31, 20CY for fiscal 20CY. Therefore, use shared cash (GL 0047) for adjustments to CIST. Netting the balances in shared cash and CIST achieves the desired results. Shared cash can be either a positive or negative amount.

The CIST balance in the appropriated fund can be found by inquiring on the Cash Control Summary Inquiry (57) screen. The FUND CASH BAL is the amount reported by the controlling agency. To obtain the balance:

  • Leave the AGENCY field blank
  • Enter the appropriated fund number
  • Leave the AY field blank to recall the balance for all AYs
  • Enter the last two digits of the current year in the INQ YEAR field

The AVAIL CASH BAL has been reduced by cash reserved for payroll, but these funds are still in the state’s Treasury and therefore are still included in the fund cash balance. The inquiry month represents the calendar month; therefore an inquiry month of 08 equals August. The DAFR8660 Fund Cash History by Agency Including Shared Funds report can be requested to provide complete detail of the activity in a fund for the controlling agency. For more information on cleaning up Cash in State Treasury, see the USAS Profile Review and Cleanup Procedures — Cash in the State Treasury in USAS (FPP Q.007).

       TEXAS S057           UNIFORM STATEWIDE ACCOUNTING SYSTEM    MM/DD/YY 03:19 PM
       LINK TO:                CASH CONTROL SUMMARY INQUIRY                     PROD

         AGENCY:    APPR FUND: 0200   FUND:      AY:
       INQ TYPE: CB    (MA, PA, YA, CB, PY, PP)
       INQ YEAR: CY    INQ MONTH: 08    AVAIL CASH BAL: 4,112,061.50
                                         FUND CASH BAL: 4,140,192.22

       BT    TITLE               AMOUNT             BT      TITLE             AMOUNT
       12    CASH REVENUES       26,878,860.94                                      
       15    CASH EXPEND         22,737,906.79                                      
       16    CASH RSRVD – PAYR       28,130.72
       21    CASH TRNSFR OUT            761.93                                      

The General Ledger Summary Inquiry (56) screen represents the amount for CIST associated with a particular agency’s APPR FUND. This amount can also be obtained from the DAFR8920 General Ledger Fund Detail Trial Balance report. Identify CIST and shared cash balances to determine fiscal year-end shared cash adjustments in USAS.

The following screen samples are for the same appropriated fund. The first is for the controlling agency and the second is for agency 902. Note that the FUND fields are blank and therefore reflect the balance for all D23 funds in the appropriated fund.

TEXAS  S056           UNIFORM STATEWIDE ACCOUNTING SYSTEM    MM/DD/YY 03:31 PM 
LINK TO:                 GENERAL LEDGER SUMMARY INQUIRY                   PROD 
                                                                               
  AGY: 700 FY: CY APPD FUND: 0200 FUND:        COMP/AGY GL: 0045              
  GL TITLE: CASH IN STATE TREASURY                                              
  COMP/AGY OBJ:           AY:    APPN:         NAC SUBFUND:                     
                DEBIT                   CREDIT                  ENDING BALANCE   
PY BAL                                                           7,069,426.93 
SEP         2,778,523.10              3,282,160.74-              6,565,789.29 
OCT            16,399.65                 75,883.98-              6,506,304.96 
NOV           495,502.80                469,055.23-              6,532,752.53 
DEC           872,456.88                      0.00               7,405,209.41 
JAN           793,439.32                      0.00               8,198,648.73 
FEB           132,618.70                      0.00               8,331,267.43 
MAR           267,070.51              3,469,195.72-              5,129,142.22 
APR           207,708.36                      0.00               5,336,850.58 
MAY           226,329.65-             1,087,468.57-              4,478,711.66-
JUN            88,033.23                      0.00               4,566,744.89 
JUL            24,367.31                      0.00               4,591,112.20 
AUG         3,013,953.89              2,973,514.71-              4,631,551.38-
ADJ                 0.00-                     0.00               4,631,551.38 

TEXAS  S056           UNIFORM STATEWIDE ACCOUNTING SYSTEM    MM/DD/YY 03:33 PM 
LINK TO:                 GENERAL LEDGER SUMMARY INQUIRY                   PROD 
                                                                               
  AGY: 902 FY: CY APPD FUND: 0200 FUND:        COMP/AGY GL: 0045              
  GL TITLE: CASH IN STATE TREASURY                                              
  COMP/AGY OBJ:           AY:    APPN:         NAC SUBFUND:                     
                DEBIT                   CREDIT                 ENDING BALANCE   
PY BAL                                                            367,159.16-
SEP                 0.00                      0.00                367,159.16-
OCT                 0.00                124,200.00-               491,359.16-
NOV                 0.00                      0.00                491,359.16-
DEC               134.68                      0.00                491,224.48-
JAN            18,499.63                      0.00                472,724.85-
FEB               763.71                      0.00                471,961.14-
MAR                00.00                      0.00                471,961.14-
APR             8,908.34                      0.00                463,052.80-
MAY                 0.00                      0.00                463,052.80-
JUN                 0.00                 28,306.36-               491,359.16-
JUL                 0.00                      0.00                491,359.16-
AUG                 0.00                      0.00                491,359.16-
ADJ                 0.00                      0.00                491,359.16-

The 56 screen for the controlling agency 700, appropriated fund 0200 equals $4,631,551.38. The 56 screen for the non-controlling agency 902 shows a balance of ($491,359.16) in this fund. This reconciles to the preceding Cash Control Summary Inquiry (57) screen amount as follows:

Agency Amounts Screen Relation
agency 700  4,631,551.38  
agency 902 (Comptroller)    (491,359.16)  
    net activity for all agencies

 4,140,192.22

   agrees to 57 screen

The DAFR8660 is available to agencies and reflects the same activity on a monthly basis at the document level.

USAS Tip

The General Ledger Summary Inquiry (56) screen is only updated during the batch overnight cycle — not when a transaction is entered in USAS using edit mode 2.

Determining Shared Cash Entries

Agencies vary in the reporting of shared cash on the AFR and in USAS. The reason for the various methods is due to legislative requirements, daily operations and internal policy at a particular agency. This section is not designed to address all shared cash scenarios — it is designed to give agencies an idea of the most common shared cash entries.

There are scenarios in which an agency cannot enter a shared cash transaction to USAS because the entry uses a balancing T-code and is between two agencies. These entries are written up and submitted to the agency’s financial reporting analyst before the interfund activities entered in USAS deadline. Submit the entries to the Comptroller’s office allowing time for the financial reporting analyst to enter the transaction and for the agency to rerun reports to ensure the entry had the desired effect. If your agency has questions about the reporting of its fund, contact your agency’s financial reporting analyst.

The following scenarios are typical for shared cash:

  1. The non-controlling agency spends money out of a shared fund and reports expenditures, transfers and any collected revenue. If the net of the balances in GL 0045 and GL 0047 is negative, the non-controlling agency uses T-code 655 to debit GL 0047 (input GL) and credit transfers in. The controlling agency uses T-code 654 to debit transfers out and credit GL 0047 (input GL).
  2. Same scenario as described above, except the net of the balances in GL 0045 and GL 0047 is positive. The non-controlling agency uses T-code 654 to debit transfers out and credit GL 0047 (input GL). The controlling agency uses T-code 655 to debit GL 0047 (input GL) and credit transfers in.
  3. The non-controlling agency incurs expenditures after cash is balanced for both agencies. The non-controlling agency needs to accrue the expenditures as a payable. The non-controlling agency records a transfer in offset with a due from, and the controlling agency records a transfer out offset with a due to. This can be accomplished with one of the following:
    • Cash liquidation using RTI T-codes:
      • T-codes 475 and 476. For more information, see RTI Table 5.
    • No cash liquidation using RTI T-codes:
      • T-codes 478 and 479. For more information, see RTI Table 6.
    • Cash liquidation using non-RTI T-codes:
      • T-codes 450 and 451 to process the accrual transactions.
      • T-codes 403 and 404 in the following year to reverse the accrual transactions and post to CIST.
    • No cash liquidation using non-RTI T-codes:
      • T-codes 450 and 451
  4. Agency 327, the Employees Retirement System of Texas (ERS), processes payments on behalf of the controlling agency for payroll-related costs using a fund controlled by another agency (not appropriated fund 0001). At fiscal year-end, agency 327 enters a generic entry in USAS to zero out the cash balance and negate the amount posted to COBJ 7041. The controlling agency needs to process an entry to record the expenditures originally paid by agency 327 offset by GL 0047. This entry allows for the expenditures and related cash impact to be reported by the controlling agency. The amount can be obtained by inquiring on the General Ledger Summary Inquiry (56) screen for agency 327, fiscal year 20CY, appropriated fund XXXX, GL account 0045 and COBJ 7041.

    Calculate the payroll-related cost for the year by deducting the prior year’s beginning balance from the final adjusted ending balance. Process the shared cash entry using T-code 632 with an input GL of 0047 and COBJ 7041.

    ERS provides payroll-related cost reports for your agency’s financial reporting purposes. For more information, see the ERS Payroll Related Cost Reports.

Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.texas.gov
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