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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Reporting Requirements for Annual Financial Reports of State Agencies and Universities

General Accounting

Modified to Full Accrual Adjustments

Capital Asset Adjustment Fund (Fund Type 11), Long-Term Liabilities Adjustment Fund (Fund Type 12) and Other Adjustments Fund (Fund Type 21)

Because governmental funds are required to be presented on two different bases of accounting, basis conversion entries are required to adjust from the modified accrual to the full accrual basis.

These three fund types are used to convert governmental fund types on the fund financial statements from modified accrual to full accrual for the government-wide financial statements.

The difference between accounting on a modified accrual basis and a full accrual basis for a particular fund is usually a matter of a small number of journal entries.

Full Reporting Agencies are required to enter adjustments (basis conversion entries) related to the conversion of modified accrual to full accrual in USAS. Agencies are required to enter the information on capital assets (fund type 11), long-term liabilities (fund type 12) and revenue recognition (fund type 21). This information must be accurately reflected on the agency’s AFR.

Simplified reporting agencies are required to enter adjustments (basis conversion entries) in USAS or contact the agency’s financial reporting analyst to enter the adjustments in USAS on behalf of the agency. For more information, including the deadline for requesting the financial reporting analyst to process the basis conversion entries in USAS on behalf of the agency, see Simplified Reporting Agencies.

For information on the journal entries used to convert the modified accrual basis to the full accrual basis, see Basis Conversion Adjustments.

Glenn Hegar
Texas Comptroller of Public Accounts
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