Reporting Requirements for Annual Financial Reports of State Agencies and Universities

Pass-Through Activity

State Pass-Throughs
Recording State Grant Pass-Through Revenue

State grant pass-through revenue can be recorded in USAS in various ways:

• Agencies recording the activity within the state treasury use the RTI process with T-code 273 and state grant pass-through revenue COBJ 3725 non-operating or 3842 operating. For more information, see RTI Table 1.
• Agencies recording the activity from the state treasury to an agency for funds held outside the state treasury, use the RTI process with T-code 268 and state grant pass-through revenue COBJ 3725 non-operating or 3842 operating. For more information, see RTI Table 11.
• Agencies not recording local funds to the state treasury must use generic T-code 643 when reconciling their AFR to USAS.

To assist with recording pass-through grant revenue, agencies can run the following FMQuery–SIRS reports (located under the USAS Research Tools in the General Ledger Reports drop-down menu and the AFR Desk Review in the SEFA/SPTR drop-down menu):

• Interagency/Interfund Activity
• PT201 — State Pass-through Activity by General Ledger Account
• PT202 — State Pass-through Activity by AGL

Correction of State Grant Pass-Through Revenue

Whether the RTI process is used or a warrant is received, the correct AGL information must be recorded on the revenue GL account. The following sections list the correcting entries regarding any data entry errors that may have occurred due to an incorrect COBJ and/or a blank or incorrect AGL.

Correcting Blank or Incorrect AGL on Pass-Through Revenues

If a USAS transaction has a blank or incorrect AGL that posted to CIST (GL 0045) or revenue control-cash (GL 5000), correct the transaction using the revenue transfer process outlined below:

If the entries are recorded BEFORE Aug. 31, 20CY:

Accounting effect of entries recorded BEFORE Aug. 31, 20CY:

If a USAS transaction has a blank AGL that posted to CIST (GL 0045) or revenue control – cash (GL 5000) and fiscal year-end has already passed, corrections can no longer be made by reversing the original T-codes because cash transactions cannot be backdated. Therefore, correct the transaction using the revenue transfer process below:

If the entries are recorded AFTER Aug. 31, 20CY:

Accounting effect of entries recorded AFTER Aug. 31, 20CY within the same GAAP fund/agency:

Generated Entries Note: T-code 465 posts as of the effective date of the transaction and generates a cash entry (T-code 469) that posts on the system management date. If this entry is backdated, the generated entry posts in the next period.

Correcting COBJ on Pass-Through Revenues

Be especially cautious when correcting COBJs to ensure that the COBJ for Agency A still matches with the corresponding COBJ for Agency B.

For example, if Agency A already confirmed with Agency B that a state pass-through COBJ was used and now decides to change the object to a federal grant pass-through COBJ or a non-pass-through COBJ, Agency B must be notified of the change before the interagency deadlines to allow the correction to be made on both sides of the pass-through. The AGL only needs to be entered on the side of the transaction with the pass-through COBJ.

If the entries are recorded BEFORE Aug. 31, 20CY:

Accounting effect of entries recorded BEFORE Aug. 31, 20CY:

If the entries are recorded AFTER Aug. 31, 20CY:

Accounting effect of entries recorded AFTER Aug. 31, 20CY

Generated Entries Note: T-code 465 posts as of the effective date of the transaction and generates a cash entry (T-code 469) that posts on the system management date. If this entry is backdated, the generated entry posts in the next period.

Correcting D23 and GAAP Fund on Pass-Through Revenues

If at fiscal year-end you realize the D23 fund(s) and/or GAAP fund(s) are incorrect for a pass-through transaction that was already coordinated and is in balance with the other agency, the Comptroller’s office recommends the following method to correct the error. This discrepancy may occur due to an occasional immaterial coding or data entry error. If the incorrect D23 fund and the correct D23 fund are both within the same GAAP fund, no entry is required by the Comptroller’s office — although the agency may choose to do the entry if needed for internal purposes. If the GAAP fund is incorrect, the Comptroller’s requires the agency to make the correction.

In both situations, the Comptroller’s office recommends the agency make the correction within its own agency to avoid having to repeat the coordination with the other agency. If the D23/GAAP fund is the only error, the agency may leave the pass-through due from/due to as is and run the GAAP fund adjustment through other revenues (for governmental funds)/other operating revenues (for proprietary funds) using COBJ 3970 as shown in the following:

If the entries are recorded AFTER Aug. 31, 20CY between different GAAP funds:

Generated Entries Note: T-code 465 posts as of the effective date of the transaction and generates a cash entry (T-code 469) that posts on the system management date. If this entry is backdated, the generated entry posts in the next period.

Accounting effect of entries recorded AFTER Aug. 31, 20CY between different GAAP funds