Reporting Requirements for Annual Financial Reports of State Agencies and Universities
Pass-through activity is categorized as federal or state interagency pass-through revenues, expenditures or expenses. Federal and state grants received from other agencies are recognized as either federal or state interagency pass-through revenue. Funds passed through to other agencies are recognized as either federal or state interagency pass-through expenditures.
Pass-through grants are recognized as revenue and expenditures or expenses in a governmental, proprietary or fiduciary fund.
Federal Grant Pass-Throughs
Federal awards are federal financial assistance and federal cost-reimbursement contracts that non-federal entities receive directly from federal awarding agencies or indirectly from pass-through entities. As per the Uniform Guidance (2 CFR 200.38 [a]), federal financial assistance is any assistance that non-federal entities receive or administer in the form of:
- Loan guarantees
- Property (including donated surplus property)
- Cooperative agreements
- Interest subsidies
- Food commodities
- Direct appropriations
- Other assistance
As per the Uniform Guidance (2 CFR 200.40 [c]), federal financial assistance does not include amounts received as reimbursement for services rendered to individuals.
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 SEFA to the Comptroller’s office is optional.
Agencies must maintain sufficient detailed documentation (such as reports) to support the amounts submitted in SEFA. All agencies must have reporting systems in place to capture 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.
State grant pass-throughs must be reconciled between the granting agency, the receiving agency and USAS for all agencies. 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.