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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

Pass-Through Activity


Reminder: Except where otherwise specifically stated on this website, all references to “agency” or “agencies” refer to any state agency, university or component unit that has an “agency number.”

Pass-through activity refers to awards passed through another agency. A prime recipient (agency) receives a grant directly from the awarding federal or state agency. Some awards allow those funds to be passed-through the prime recipient to a subrecipient.

Interagency pass-through is the pass-through activity that occurs between agencies. Interagency pass-through funds are categorized as federal or state, depending on whether a federal agency or a state agency provided the prime award funding. Interagency pass-through activity includes federal or state revenues or expenditures.

Interagency pass-through revenue is the federal or state funding an agency (subrecipient) receives that is passed-from another agency (prime recipient).

Interagency pass-through expenditures are the federal or state funds that an agency (prime recipient) passed-to another agency (subrecipient).

Pass-through grants are recognized as revenue and expenditures in a governmental, proprietary or fiduciary fund.

Federal Grant Pass-Throughs

According to the Code of Federal Regulations (2 CFR 200.38), federal awards are the federal financial assistance and federal cost-reimbursement contracts that non-federal agencies receive directly from awarding federal agencies or indirectly from pass-through agencies. Federal financial assistance (as defined in 2 CFR 200.40) is any assistance that non-federal agencies receive or administer in the form of:

  • Grants
  • Cooperative agreements
  • Non-cash contributions
  • Property donations
  • Direct appropriations
  • Food commodities
  • Loans
  • Loan guarantees
  • Interest subsidies
  • Insurance
  • Direct appropriations
  • Other financial assistance

Federal financial assistance does not include amounts received as reimbursement for services rendered to individuals (2 CFR 200.40 [c]).

Each agency that expends federal awards is required to submit the Schedule of Expenditures of Federal Awards (SEFA) and notes to SEFA in the SEFA web application. Do not include non-federal awards in SEFA. Submitting a copy of the agency’s SEFA to the Comptroller’s office is optional.

Agencies must maintain detailed documentation (such as reports) that supports the dollar amounts and note disclosures submitted in the SEFA web application. All agencies must have reporting systems in place to capture fiscal year-end financial information.

For more information, see Instructions for the SEFA Web Application.

State Grant 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.

Each agency that passes state grant money between agencies is required to submit the State Grant Pass-Through Schedule using the State Pass-Through Reporting web application.

For all agencies, state grant pass-throughs must be reconciled between the granting agency, the receiving agency and USAS. Agencies are required to submit the reconciling information each fiscal year and provide detailed supporting documentation upon request. Submitting a copy of the State Grant Pass-Through Schedule to the Comptroller’s office is optional.

For more information, see the Instructions for the SPTR Web Application.