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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Reporting Requirements for Annual Financial Reports of State Agencies and Universities

Pass-Through Activity

Special Conditions
Reporting of LEAP/SLEAP Program

The LEAP/SLEAP programs are administered through THECB. The State Auditor’s Office advised the Financial Reporting section that THECB is the only agency allowed to report federal revenue related to these programs. This is because all of the federal grant award management, reporting, cash management and final eligibility determinations are made by THECB.

Note: The LEAP/SLEAP program, CFDA 84.069, is no longer a valid program effective 2012. Contact your financial reporting analyst for assistance.

Participating universities do not have direct financial involvement with the LEAP/SLEAP programs. That function is handled by THECB. However, the LEAP/SLEAP programs do require participating universities to perform basic administrative functions. These administrative functions prevent participating universities from being considered cash conduits under the definition in GASB 24. Since the participating universities are not cash conduits, they cannot account for the LEAP/SLEAP program moneys in agency funds. Refer to GASB 24 for information pertaining to pass-through grants.

THECB records direct federal revenue and federal expense for the total of all LEAP/SLEAP program funding in its SEFA. This amount is not meant to be allocated to the various universities that participate in the program. THECB records the expenditure in USAS as “Grants to College Vocational Students” using COBJ 7679.

Reporting by THECB

USAS Entry Summary:

Debit Credit
5500 Expenditure Control – Cash $XX.XX  
Other Grants & Contracts Expense (COBJ 7679)    
5000 Revenue Control – Cash   $XX.XX
Federal Revenue (COBJ 3500)    

SEFA Impact:

Records direct federal revenue. Does not record pass-through expenditures.

Reporting by State Universities

USAS Entry Summary:

Debit Credit
5500 Expenditure Control – Cash $XX.XX  
Expense (for example, scholarships) (COBJ 7583)    
5000 Revenue Control – Cash   $XX.XX
Other Grants & Contracts Revenues (COBJ 3738)    

SEFA Impact:

There is no entry for LEAP/SLEAP transactions in SEFA for universities because these transactions are not considered direct federal revenue or federal pass-through revenue.

Moneys received by the participating universities through the LEAP/SLEAP programs on behalf of needy students are reported as other grants and contracts rather than as federal pass-throughs. The LEAP/SLEAP programs are not reported in the university’s SEFA.

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