Reporting Requirements for Annual Financial Reports of State Agencies and Universities

Interfund Activity

Transfers
USAS Issues for Transfers

Agencies must review for accuracy the amount processed throughout the year as transfers occur. USAS data overrides the amounts reported on the agency’s AFR. Review both COBJs and GL accounts and enter necessary corrections into USAS.

USAS Tip

Both the COBJ and the GL account must show the correct accounting event. Although rare, it is possible to have a revenue COBJ recorded on a transfer GL account because USAS has two separate structures that define these elements. This type of inconsistency must be corrected for an agency’s AFR to be considered reconciled. Contact your financial reporting analyst if you need assistance correcting this situation.

Do not use T-codes 403 and 404 (cash transfer in/out) for cash cleanup as the GLs will erroneously overstate transfers. Instead, use T-codes 405/406 for cash cleanup of revenue and T-codes 407/408 for cash cleanup of expenditures/expenses before fiscal year-end.

Verify Transfers are Accurate in USAS

1. Order the operating statement and determine if the correct amount is reported for other sources and uses. Order the Interfund/Interagency Activity Report (DAFR8910) or access FMQuery–SIRS Interagency/Interfund Activity report (located in the USAS Research Tools menu) and determine if the agency general ledger (AGL) field is correct. The number in the AGL field reflects the opposite agency’s agency number, the D23 fund number followed by a 0 (zero).
2. Correct the cash discrepancies found in Step 1 (above) as soon as possible. If the corrections are made before fiscal year-end, reverse the original T-code with the incorrect information and enter the correcting entry. Since transfers normally involve cash, complete the corrections before the hard cash close on Aug. 31, 20CY. If corrections are made after fiscal year-end, use generic T-codes. Once the cash basis reconciliation is performed, coordinate the fiscal year-end accruals.
3. Coordinate transfers involving other agencies. Since the cash entries were already corrected in Step 2 (above), the accruals are the last amount left to be coordinated. The T-codes used for the fiscal year-end accruals involve the RTI process and T-codes 478/479 with no cash impact and 475/476 with a cash impact.

Correcting Transfers Within An Agency

These T-codes are balancing and are only entered for transfers within an agency. These T-codes allow COBJs that roll up to transfers.

The following entries are necessary for correcting transfers and fiscal year-end accruals of transfers.

Accounting effect of above entries:

WARNING: System clearing must not have a balance after all transactions are entered.

Correcting the AGL for Transfers Within an Agency

Verify and correct the AGL information to reflect the accurate accounting event. The AGL information reflects from where or to where the funds moved. Thus, on a transfer in, the AGL information includes the transfer out’s agency number and D23 fund. If the corrections are processed during the fiscal year, the original T-code can be used.

There are two lines of entry: the first entry reverses the original entry using the original coding block with an R; the second entry records the corrected AGL information.

If the corrections are processed after fiscal year-end, use generic transfer T-codes (654/655). These are balancing T-codes that allow COBJs that roll up to transfers.

Accounting effect of above entries:

WARNING: System clearing must not have a balance after all transactions are entered.

Correcting a Negative Transfer In Within an Agency

Agencies cannot report a negative transfer in (debit) balance on their AFR at the D23 fund level. A negative transfer in must be converted to a corresponding transfer out using generic transfer balancing T-codes 654 and 655. These T-codes do not affect BT 20 – Cash Transfers In on the Appropriation Record Inquiry (62) screen.

Agencies can use the DAFR8910 Interfund/Interagency Activity report or FMQuery–SIRS Interagency/Interfund Activity report (located in the USAS Research Tools menu) to locate negative transfer in (debit) balances.

Example:

The allowable COBJs for T-code 654 can be found on the 28B screen. Use the same COBJ for all T-code 654 entries. For more information on AGL accounts, see AGL on Interfund Activity.

Accounting effect of above entries:

WARNING: System clearing must not have a balance after all transactions are entered.

Correcting a Negative Transfer Out Within an Agency

Agencies cannot report a negative transfer out (credit) balance on their AFR at the D23 fund level. A negative transfer out must be converted to a corresponding transfer in using generic transfer balancing T-codes 654 and 655. These T-codes do not affect BT 21 – Cash Transfers Out on the Appropriation Record Inquiry (62) screen.

Agencies can use the DAFR8910 Interfund/Interagency Activity report or FMQuery–SIRS Interagency/Interfund Activity report (located in the USAS Research Tools menu) to locate negative transfer out (credit) balances.

Example:

The allowable COBJs for T-code 655 can be found on the 28B screen. For more information on AGL accounts, see AGL on Interfund Activity.

Accounting effect of above entries:

WARNING: System clearing must not have a balance after all transactions are entered.