FMX Home
Glenn Hegar  ·  Texas Comptroller of Public Accounts

Reporting Requirements for Annual Financial Reports of State Agencies and Universities

Pass-Through Activity

Special Conditions
Pass-through reporting related to the Texas A&M Research Foundation (Agency 014)

Each year, Agency 014 issues a separately audited SEFA that is not included in the state’s SEFA. However, since Agency 014 is part of the state’s financial reporting entity, special reconciling items are needed to get the correct accounting effect of pass-throughs to and from Agency 014 and other state agencies.

The A&M System office makes eliminating entries for components within its own system. Part of those entries takes into account the elimination for internal pass-throughs to and from Agency 014 in order to avoid the double counting of federal revenue and federal expenditures on the operating statement. See the following for further explanations of each scenario.

Reporting for Agency 014

Report pass-throughs from other agencies as federal revenue on the operating statement and under the direct federal revenue column in SEFA.

Report pass-throughs to other agencies as expenditures on the operating statement and under the expenditure column in SEFA.

Reporting for Agencies other than Texas A&M components

Report a pass-through to Agency 014 as a federal pass-through expenditure on the operating statement. Do not include this as a pass-through in SEFA. Record the amount as a deduction reconciling item in Note 2 of SEFA.

Report a pass-through from Agency 014 as a federal pass-through revenue on the operating statement. Do not include this as a pass-through in SEFA. Record the amount as a deduction reconciling item in Note 2 of SEFA.

Reporting for components of Texas A&M System

Report a pass-through to Agency 014 as an expenditure on the operating statement. Do not include the amount as a pass-through in SEFA. Record the amount as a deduction reconciling item in Note 2 of SEFA.

Report a pass-through from Agency 014 as a direct federal revenue on the operating statement. Do not include this as a pass-through in SEFA. Record the amount as a deduction reconciling item in Note 2 of SEFA.

Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.texas.gov
Comptroller.Texas.Gov | FMX
FMX Sitemap | Contact FM
Accessibility Policy | Privacy and Security Policy