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Reporting Requirements for Annual Financial Reports of State Agencies and Universities

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Reporting Requirements for Annual Financial Reports of State Agencies and Universities

Introduction

Highlights

This section provides a summary of highlights for this year’s requirements. The detailed information may be found in the related sections for each topic. The following are only highlights.

  1. Except where otherwise specifically stated in this website, all references to “agency” or “agencies” means any department, commission, board or office, state court or judicial agency, independent university or system, or component unit that has an “agency number.”    
  2. Any agency not in compliance with the requirements in this document may receive a letter addressed to its executive management and may be referred to the State Auditor’s office for audit consideration as authorized under Texas Government Code, Section 2101.0377.
  3. All deadlines set forth in HB 4510 (passed by the 88th Legislature) regarding the annual financial reporting dates were effective as of fiscal 2024. See Deadlines for more information.
  4. Each agency is required to post and reconcile its annual financial data to USAS and the agency’s accounting system on a GAAP basis by the required Deadlines. The reconciliation must be at the general ledger account level and/or GAAP source/object level within the USAS D23 fund. Agencies must adjust any reconciling items in USAS so the USAS balance sheet/statement of net position or USAS operating statement/statement of changes in fiduciary net position and interfund/interagency activity report accurately reflect the agency’s financial position as supported by the agency accounting system. If the agency publishes an audited AFR and enters the pension information in its internal system, there will be a reconciling outage between the internal system and USAS. The agency must note this on the USAS Certification form in the ACFR Note and Reporting Certification (ANRC) web application.
  5. Details of submission requirements for agencies identified as GR consolidated agencies (GCAs) or full reporting agencies (FRAs) are provided in the GR Consolidated Agencies Submission Requirements and Full Reporting Agencies Submission Requirements.
  6. Various web applications are used to submit certain AFR disclosures. Some of these web applications are submitted as a supplement to required note submissions — others are submitted in place of the traditional schedule submissions.

    Web applications that are supplemental to the traditional note submission:
    Web applications that constitute submission of schedule information:
  7. If an independently audited annual financial report (AFR) is available, the audited AFR and audit adjustments must be forwarded to the Financial Reporting section for review by Dec. 15.
  8. If an audited financial report or an audit adjustment is not in compliance with the reporting requirements, or there are issues or concerns with the adjustment, the agency must communicate with its financial reporting analyst prior to finalization of the report and/or adjustment.
  9. The agency must not round any of the numbers presented in its AFR. This includes numbers in notes as well as exhibits.
  10. Report inventories and prepaid items in governmental funds using the consumption method by reporting inventories and prepaid items as assets and deferring the recognition of expenditure until the period in which inventories and prepaid items are used or consumed. For more information, see Inventories and Prepaid Items.
  11. Research and Development (R&D) is a cluster on the federal schedule. Unlike other clusters, the R&D cluster is not defined by a list of assistance listing numbers (ALNs). Agencies must manually select the R&D tag when entering records in the SEFA web application. If you have questions on the R&D cluster, email sefa.texas@cpa.texas.gov.
  12. Each agency is required to reconcile its USAS cash in state treasury to its internal accounting system monthly. DAFR8660 – Fund Cash History by Agency Including Shared Funds reports USAS cash transactions to agencies that control the appropriated fund. The reconciliation starts with the DAFR8660 ending balance, adds deposits in transit and subtracts vouchers in transit to reconcile to the internal system balance.
  13. Enter T in the PDT field when T-code 225 is used to enter an RTI transaction on the Recurring Transaction Profile (55) screen.
  14. FMQuery – SIRS reports are presented on a pre-closing basis. Therefore, a separate calculation must be made when determining ending fund balance/net position balances. This separate calculation is not required for the DAFR reports, since DAFR reports are presented on a post-closing basis. For more information, see How GL Accounts Close for Specific GAAP Fund Groups.
  15. GASB 101 (effective fiscal 2025) updates the recognition and measurement guidance for compensated absences. This objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures.
  16. GASB 102 (effective fiscal 2025) provides users of government financial statements with essential information about risks related to a government’s vulnerabilities due to certain concentrations or constraints.