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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

Introduction

The Texas Comptroller of Public Accounts (Comptroller’s office) is responsible for providing instructions to state agencies and institutions of higher education to enable them to complete the annual financial report (AFR) required by Texas Government Code, Section 2101.011.

Texas Government Code, Section 2101.012, directs the Comptroller’s office to provide these instructions. This statute places Texas on a financial reporting course that assists editors, investors and the public in general in assessing the financial condition of our state. The statute designates the Comptroller’s office as the official to prescribe uniform accounting and reporting procedures for each state agency, including universities, to use in preparing the information requested under Texas Government Code, Section 2101.011.

The Comptroller’s office designated Fiscal Management’s Financial Reporting section to prescribe the form and content of the agencies’ AFRs.

Note: If your agency uses outside professional assistance in report preparation, the outside assistant is required to follow the Comptroller’s reporting requirements. Provide the URL to the Comptroller’s Reporting Requirements for Annual Financial Reports of State Agencies and Universities website to the outside parties responsible for the preparation of the audited financial reports to ensure agency compliance.

In addition, S.B. 1, 89th Legislature Regular Session, Article IX, Section 7.02(a) states that:

None of the funds appropriated by this Act may be expended after the applicable deadline following the close of the fiscal year unless an annual financial report has been filed by the executive head of each agency specified in this Act in accordance with Chapter 2101, Government Code.

As required by Texas Government Code, Section 403.013, the Comptroller must issue to the governor, on the last day of February of each year, a statewide financial report prepared in accordance with generally accepted accounting principles.

This reporting requirements website was developed to facilitate statewide reporting and to assist each agency in posting fiscal year-end adjusting entries for reconciling its annual financial data to the Uniform Statewide Accounting System (USAS) and to its agency’s accounting system.

Legend for Fiscal Year Dates

The following legend is provided to identify the fiscal years referred to in the text and examples.

  • “20SY” or “SY” = subsequent year
  • “20CY” or “CY” = current year of the AFR
  • “20PY” or “PY” = prior year
  • “20PPY” or “PPY” = previous prior year

Rounding

Each agency must not round any of the numbers presented in its AFR and all numbers must be presented in dollars and cents. This includes numbers in notes and exhibits. The only exceptions are:

  • Agency 012 – Texas State Affordable Housing Corporation
  • Agency 202 – State Bar of Texas

These agencies may report numbers rounded to the dollar.

When submitting notes through web applications, agencies must follow the submission instructions on rounding requirements.

Sunset Review

To verify if your agency is subject to Sunset Review:

For assistance on proper procedures to follow if your agency is abolished through the Sunset Review, contact your appropriation control officer.

Reporting Fraud

The State Auditor investigates allegations of misuse and/or illegal acts involving state resources. Anyone with information about the misuse or misappropriation of state resources can report this information by:

  • Calling the State Auditor’s fraud hotline at 800-TX-AUDIT (800-892-8348)
  • Emailing auditor@sao.texas.gov
    –OR–
  • Making an online report on the State Auditor’s Fraud Reporting page