Reporting Requirements for Annual Financial Reports of State Agencies and Universities

Interfund Activity

Balance Sheet for Interfund Activity
Due From/Due To Other University Components

Agencies are required to use an RTI for transfers of funds between agencies when both funds are within the state treasury and for transfers between agencies with funds held outside the state treasury (local funds). RTI tables 1 through 13 present the RTI T-codes available in USAS for various interfund/interagency activities. Most RTI T-codes record interfund/interagency activity to GLs 0284 and 1050 for the disbursing and the receiving agency.

At year-end, the university system eliminates transactions in GLs 0282 and 1052 on its consolidated AFR between component universities within the same university system so that, as a whole, the university system does not overstate interfund/interagency activity. Therefore, intercomponent university transactions must reclassify GLs 0284 and 1050 to GLs 0282 and 1052, respectively. Due from/to other university components or university systems must balance and net to zero at the university system level.

Use the FMQuery–SIRS report DR107 – Review Due To/Due From Components located in the AFR Desk Review menu to verify GLs 0282 and 1052 balances are eliminated. Use T-codes 660 and 661 to reverse the intercomponent activity in GLs 0284 and 1050 for the disbursing and the receiving component university. These T-codes have the following distinguishing characteristics:

• Are balancing T-codes
• Allow the use of the “R” reversal code
• Allow the use of GL 0284 and GL 1050 for intercomponent activity
• Require the AGL used in the ITV
• Do not contain system-generating reversing T-codes (additional entries are required the following fiscal year to eliminate remaining balances in GLs 0284 and 1050)

Use T-codes 666 and 667 to record the intercomponent activity in GLs 0282 and 1052 for the disbursing and the receiving component university that are eliminated by the university system. These T-codes have the following distinguishing characteristics:

• Are not balancing T-codes:
  • The component university, university system or intercomponent universities can enter its side USAS reclassification entry on separate documents independently of each other.
  • Coordination and balancing of these entries between universities is required.
• Do not allow the use of the “R” reversal code to enter a reversal transaction, use T-codes 664 and 665.
• Are restricted for use with GLs 0282 and 1052
• Require the AGL used in the ITV
• Contain system-generated T-codes 665 and 664 that reverse the effect of the transaction using the current system management date. If entries to T-codes 666 and 667 are backdated into a previous period (month or FY), the liquidating 665 and 664 T-codes generate in the current period. An entry backdated into 20CY with an effective date of 08/31/CY generates an entry in the following fiscal year. Entries are required the following fiscal year to eliminate the system clearing balance.

Reverse Due From/To Other Agency

The following USAS entries reverse the activity in GLs 0284 and 1050 for the disbursing and the receiving component university:

Accounting effect of above entry:

WARNING: System clearing must not have a balance after all entries post.

Record Due From/To Other University Components/System

The following USAS entries record the intercomponent activity in GLs 0282 and 1052 for the disbursing and the receiving component university that are eliminated by the university system:

Accounting effect of above entry:

WARNING: System clearing must not have a balance after all entries post.

Eliminate Remaining Reclassification Balances

The original RTI that debited GL 0284 and credited GL 1050 generates a reversal in the next accounting period. However, T-codes 660 and 661 do not contain system-generating reversing T-codes. A manual entry is necessary to reverse the generated reversal of the RTI by entering the following USAS entries in the next accounting period to eliminate the remaining balances in GLs 0284, 1050 (created from the original ITV) and system clearing (created from T-codes 665 and 664). These USAS entries alleviate due from/to other agency reconciliation issues the following fiscal year.

Accounting effect of above entry:

WARNING: System clearing must not have a balance after all entries post.