FMX Home
Glenn Hegar  ·  Texas Comptroller of Public Accounts

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 Ø (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.

Seq No Batch Type Doc Type Eff Date Fin Agy TC AY PCA COBJ Amount R AGL Fund Input GL*
* The allowable GL accounts for this T-code can be found on the 28B screen.
To Record an Increase in Transfer Out
(1) 5 U 0832CY XXX 654 XX 99999 XXXX $ XX.XX   XXXXXXX0 XXXX XXXX
To Record a Decrease in Transfer Out
(2) 5 U 0832CY XXX 654 XX 99999 XXXX $ XX.XX R XXXXXXX0 XXXX XXXX
To Record an Increase in Transfer In
(3) 5 U 0832CY XXX 655 XX 99999 XXXX $ XX.XX   XXXXXXX0 XXXX XXXX
To Record a Decrease in Transfer In
(4) 5 U 0832CY XXX 655 XX 99999 XXXX $ XX.XX R XXXXXXX0 XXXX XXXX

Accounting effect of above entries:

Debit Credit
(1) To Record an Increase in Transfer Out    
  6051 Transfer Out – No Post To Tables $ XX.XX  
  XXXX Input GL   $ XX.XX
(2) To Record a Decrease in Transfer Out    
  XXXX Input GL $ XX.XX  
  6051 Transfer Out – No Post To Tables   $ XX.XX
(3) To Record an Increase in Transfer In    
  XXXX Input GL $ XX.XX  
  6011 Transfer In – No Post To Tables   $ XX.XX
(4) To Record a Decrease in Transfer In    
  6011 Transfer In – No Post To Tables $ XX.XX  
  XXXX Input GL   $ XX.XX

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.

Seq No Batch Type Doc Type Eff Date Fin Agy TC AY PCA COBJ Amount R AGL Fund Input GL*
* The allowable GL accounts for this T-code can be found on the 28B screen.
To Reverse the Incorrect AGL for a Transfer Out
(1) 5 U 0832CY XXX 654 XX 99999 XXXX $ XX.XX R Incorrect AGL XXXX 9999
To Record the Correct AGL for a Transfer Out
(2) 5 U 0832CY XXX 654 XX 99999 XXXX $ XX.XX   Correct AGL XXXX 9999
To Reverse the Incorrect AGL for a Transfer In
(3) 5 U 0832CY XXX 655 XX 99999 XXXX $ XX.XX R Incorrect AGL XXXX 9999
To Record the Correct AGL for a Transfer In
(4) 5 U 0832CY XXX 655 XX 99999 XXXX $ XX.XX   Correct AGL XXXX 9999

Accounting effect of above entries:

Debit Credit
(1) To Reverse the Incorrect AGL for a Transfer Out    
  9999 System Clearing $ XX.XX  
  6051 Transfer Out – No Post To Tables   $ XX.XX
(2) To Record the Correct AGL for a Transfer Out    
  6051 Transfer Out – No Post To Tables $ XX.XX  
  9999 System Clearing   $ XX.XX
(3) To Reverse the Incorrect AGL for a Transfer In    
  6011 Transfer In – No Post To Tables $ XX.XX  
  9999 System Clearing   $ XX.XX
(4) To Record the Correct AGL for a Transfer In    
  9999 System Clearing $ XX.XX  
  6011 Transfer In – No Post To Tables   $ XX.XX

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:

COBJ Amount AGL Fund GL Transfer Balance
3XXX  $ XX.XX AGYAAAA0 BBBB 6010 – Transfers In Debit balance, negative transfer in
3XXX ($ XX.XX) AGYBBBB0 AAAA 6010 – Transfers In Credit balance, positive transfer in
Seq No Batch Type Doc Type Eff Date Fin Agy TC AY PCA COBJ Amount R AGL Fund Input GL*
* The allowable GL accounts for this T-code can be found on the 28B screen.
**Use the COBJ input on the original 403R transaction.
To Record Transfer In to Eliminate the Negative Transfer In (Debit) Balance
(1) 5 U 0832CY AGY 655 XX 99999 3XXX** $ XX.XX   AGYAAAA0 BBBB 9999
To Record the Transfer Balancing T-code for Seq No (1) to process
(2) 5 U 0832CY AGY 654 XX 99999 7XXX $ XX.XX   AGYBBBB0 AAAA 9999
To Record Transfer Out
(3) 5 U 0832CY AGY 654 XX 99999 7XXX $ XX.XX   AGYAAAA0 BBBB 9999
To Record the Transfer Balancing T-code for Seq No (3) to process
(4) 5 U 0832CY AGY 654 XX 99999 7XXX $ XX.XX R AGYBBBB0 AAAA 9999

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:

Debit Credit
(1) To Record Transfer In to Eliminate the Negative Transfer In (Debit) Balance    
  9999 System Clearing $ XX.XX  
  6011 Transfer In – No Post To Tables   $ XX.XX
(2) To Record the Transfer Balancing T-code for Seq No (1) to process    
  6051 Transfer Out – No Post To Tables $ XX.XX  
  9999 System Clearing   $ XX.XX
(3) To Record a Transfer Out    
  6051 Transfer Out – No Post To Tables $ XX.XX  
  9999 System Clearing   $ XX.XX
(4) To Record the Transfer Balancing T-code for Seq No (3) to process    
  9999 System Clearing $ XX.XX  
  6051 Transfer Out – No Post To Tables   $ XX.XX

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:

COBJ Amount AGL Fund GL Transfer Balance
7XXX  $ XX.XX AGYBBBB0 AAAA 6050 – Transfers Out Debit balance, positive transfer out
7XXX ($ XX.XX) AGYAAAA0 BBBB 6050 – Transfers Out Credit balance, negative transfer out
Seq No Batch Type Doc Type Eff Date Fin Agy TC AY PCA COBJ Amount R AGL Fund Input GL*
* The allowable GL accounts for this T-code can be found on the 28B screen.
** Use the COBJ input on the original 404R transaction.
To Record a Transfer Out to Eliminate the Negative Transfer Out (Credit) Balance
(1) 5 U 0832CY AGY 654 XX 99999 7XXX** $ XX.XX   AGYAAAA0 BBBB 9999
To Record the Transfer Balancing T-code for Seq (1) to process
(2) 5 U 0832CY AGY 655 XX 99999 3XXX $ XX.XX   AGYBBBB0 AAAA 9999
To Record a Transfer In
(3) 5 U 0832CY AGY 655 XX 99999 3XXX $ XX.XX   AGYAAAA0 BBBB 9999
To Record the Transfer Balancing T-code for Seq (3) to process
(4) 5 U 0832CY AGY 655 XX 99999 3XXX $ XX.XX R AGYBBBB0 AAAA 9999

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:

Debit Credit
(1) To Record a Transfer Out to Eliminate the Negative Transfer Out (Credit) Balance    
  6051 Transfer Out – No Post To Tables $ XX.XX  
  9999 System Clearing   $ XX.XX
(2) To Record the Transfer Balancing T-code for Seq No (1) to process    
  9999 System Clearing $ XX.XX  
  6011 Transfer In – No Post To Tables   $ XX.XX
(3) To Record a Transfer In    
  9999 System Clearing $ XX.XX  
  6011 Transfer In – No Post To Tables   $ XX.XX
(4) To Record the Transfer Balancing T-code for Seq No (3) to process    
  6011 Transfer In – No Post To Tables $ XX.XX  
  9999 System Clearing   $ XX.XX

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

Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.texas.gov
Comptroller.Texas.Gov | FMX
FMX Sitemap | Contact FM
Accessibility Policy | Privacy and Security Policy