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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Reporting Requirements for Annual Financial Reports of State Agencies and Universities

Notes & Samples

NOTE 12 – Interfund Activity and Transactions

Agencies explain their interfund activity and transactions in Note 1. USAS balances take precedence over the amounts reported on the AFR. These line items are extracted directly from USAS to produce the CAFR.

For due from/due to balances, identify the source of the activity (for example, state or federal pass-throughs, transfers, etc.) as shown in Note 12 Sample. Because the AGL field for interfund receivables/payables is not a “required” field for entry in USAS, agencies must present these transactions in Note 12. Note 12 presentation for other interfund/interagency activity is optional because the AGL field is generally entered or populated in USAS (for example, legislative transfers, due from/due to and transfers). If the AGL field is left blank on any of these transactions, a “no post” (NP) item will occur.

Note: NP items are allowable for interfund payables and interfund receivables.

The DAFR8910 is no longer required to be submitted with agency AFRs; however, each agency must ensure there are no NP items on their reports for all transfers and for due from/due to transactions. For instructions on how to run the report, see Interfund/Interagency Activity (DAFR 8910). The FM-Query SIRS Interfund/Interagency Activity report may also be used to determine if there are any NP items. The FM-Query SIRS Interfund/Interagency Activity report is located under USAS Research Tools under the General Ledger Reports category.

At year-end, agencies report interfund activity and transactions (including accruals) as:

  • Interfund payable or interfund receivable (required Note 12 presentation)
  • Legislative transfers-in or legislative transfers-out (optional Note 12 presentation)
  • Due from other funds or due to other funds (optional Note 12 presentation)
  • Due from other agencies or due to other agencies (optional Note 12 presentation)
  • Transfers-in or transfers-out (optional Note 12 presentation)

Present each category in a separate section.

Note: Report accrual of sales and purchases of goods and services between agencies and funds as revenues in seller funds, and expenditures or expenses in purchaser funds. Do not report these as part of interfund receivables/payables or due from/due to and receivables/payables balances. For more information on interfund sales and purchases, interfund receivables/payables and due from/due to balances, see Reporting Interfund Activity and Balance Sheet for Interfund Activity.

If the line item is required for Note 12, display the data in a columnar format. Present individual interfund balances for each individual fund under the appropriate GAAP fund type and D23 fund. Identify the agency number and D23 fund from which amounts are to be received or to which amounts are to be paid. The source of the due from/due to is required in a separate column. For the recommended format, see Note 12 Sample.

Per GASB 38, paragraph 14, disclose the following details about interfund transfers reported in the fund financial statements:

  • General description of the principal purposes of the interfund transfers.
  • Intended purpose and the amount of significant transfers that meet either or both of the following criteria:
    • Do not occur on a routine basis — for example, a transfer to a wastewater enterprise fund for the local match of a federal pollution control grant, and/or
    • Are inconsistent with the activities of the fund making the transfer — for example, a transfer from a capital projects fund to the general fund.

Provide a description of the purpose for interfund balances and disclose the amount of those balances not expected to be repaid within one year from the date of the financial statement.

For more information, see Interfund Activity and Transactions.

Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.texas.gov
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