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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

Pass-Through Activity

State Pass-Throughs

State grant pass-throughs between agencies occur when agencies have an appropriation with the authority to grant that money to another agency and retain administrative responsibilities for that money.

State Grant Pass-Through Funds Overview

In order to facilitate the reporting of state grant pass-throughs, the Comptroller’s office established the following policies:

  1. Agencies must coordinate state grant pass-through transactions with other agencies.
  2. Apply the following general rules:
    • The disbursing agency is responsible for determining the classification of funds:
      1. Pass-through vs. vendor
      2. Federal vs. state
      3. The portions of federal and state
    • The disbursing agency must confirm these decisions in writing to the receiving agency and the receiving agency must record the transactions as determined by the disbursing agency.
    • The receiving agency determines the amount of accruals.
  3. The RTI process is required in recording pass-through accruals between agencies (including between agencies and universities).

    Component universities do not enter USAS entries for state grant pass-throughs made between component universities within the university system. But component universities must report the state grant pass-throughs within the university system in the SPTR web application.

  4. Record cash pass-through transactions based on USAS data found in the Interagency/Interfund Activity report located in the FMQuery–SIRS USAS Research Tools in the General Ledger Reports drop-down menu or with the following reports located in FMQuery–SIRS AFR Desk Review in the SEFA/SPTR drop-down menu:
    • PT201 – State Pass-through Activity by General Ledger Account
    • PT202 – State Pass-through Activity by AGL

  5. The Comptroller’s office uses State Pass-Through Reconciliation reports to resolve variances in state pass-through transactions. State Pass-Through Reconciliation reports are available through the SPTR web application. See the Instructions for the SPTR web application.

    State Pass-Through Reconciliation reports display both sides of each pass-through relationship. Data is presented at the Grant ID level or the USAS summary level. Agencies may access State Pass-Through Reconciliation reports at any time during the State Pass-Through Schedule preparation process. Agencies are encouraged to monitor the reports for imbalances in the days leading up to SPTR certification on Sept. 28, 20CY.

    After the SPTR web application opens each year, agencies must coordinate with each other to resolve all remaining pass-through differences at the Grant ID level or the USAS summary level. All pass-through variances must be resolved in order to complete the SPTR certification on Sept. 28, 20CY. If any pass-through amounts were rejected, the grantee agency must communicate with the grantor agency in order to resolve all discrepancies. The grantor agency must be aware that small variances are most likely due to the accrual process.

Note: All Agencies must enter USAS interfund/interagency transactions by close of business (COB) on Sept. 26. If Sept. 26 falls on a weekend, all transactions must be entered by COB on the prior Friday or they will not be processed until Monday, which is past the reporting requirement deadline.

Agencies are highly encouraged to perform reconciliation of pass-through funds on a quarterly basis.