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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

Instructions for the SEFA Web Application
Step 8. Entering Notes to SEFA on the Web

After completing the SEFA data entry, begin entering the notes to SEFA.

The notes to SEFA are submitted using the SEFA web application. For more information on the requirements for each note, see Notes to SEFA and the instructions for each note contained within that section.

Or click on the headings below to open a topic individually.

Getting Started [+]

In the SEFA web application, follow these steps to access the notes to SEFA pages:

  1. Log into the SEFA web application.
  2. Click the Notes button on the Main Menu.
  3. Select the note you wish to enter.
    Refer to the sections that follow for specific information relating to each note.
  4. Enter all appropriate fields — noting the special instructions for certain sections and fields listed.
  5. Click Save.

    You may also click Save at any time during the entry process — this ensures the information entered in each section is saved as you progress through the entry process.

Attention: Enter SEFA Note 3a before entering SEFA Note 2 — because the New Loans Processed number in SEFA Note 2 is populated from SEFA Note 3a.

Entering Note 1: Non-Monetary Assistance [+]

  1. Enter the text of SEFA Note 1 in the COMMENTS field.
  2. Click Save.

Entering Note 2: Reconciliation [+]

  1. Enter amounts of federal revenue in the NOTE 2 AMOUNT column appropriate to the fund types and type of federal revenue (for instance, operating or non-operating for the proprietary funds). The amounts entered in this section must match federal revenue amounts on the DAFR reports from USAS, as populated in the USAS AMOUNT column.

    Important: The TOTAL FEDERAL REVENUE in the NOTE 2 AMOUNT column must tie to the “Amount per Schedule” (displayed under the TOTAL FEDERAL REVENUE field name), with the exception of the DISCREPANCY amount that displays the TOTAL RECONCILING ITEMS amount. The “Amount per Schedule” displays the total of the following amounts from the SEFA web application:

    • The NON-STATE ENTITY AMOUNT column
    • The DIRECT PROGRAM AMOUNT column
  2. Enter the amounts of federal pass-through revenue in the NOTE 2 AMOUNT column appropriate to the fund types and types of federal pass-through revenue (for instance, operating or non-operating for the proprietary funds). The amounts entered in this section must match the amounts of federal pass-through revenue on the DAFR reports in USAS, as populated in the USAS AMOUNT column.

    Important: The TOTAL FEDERAL PASS-THROUGH REVENUE in the NOTE 2 AMOUNT column must tie to the “Amount per Schedule” (displayed under the TOTAL FEDERAL PASS-THROUGH REVENUE field name). The “Amount per Schedule” is the difference between the totals of the following amounts from the SEFA web application:

    • The AGY/UNIV AMOUNT column in the “From” section of the Schedule 1A report (this is the total pass-through from all agencies)
    • The total non-monetary pass-through from other agencies
  3. Enter all reconciling items as follows.

    Reconciliation items are either:

    • Not reported as federal revenue or federal pass-through revenue on the operating statement but are included in SEFA
      –OR–
    • Reported as federal revenue or federal pass-through revenue on the operating statement but are not included in SEFA

Non-monetary Items are not reported as federal revenue on the operating statement but are included in SEFA. Non-monetary items are populated with data from the SEFA web application. Verify the dollar amount for accuracy.

New Loans Processed are not reported as federal revenue on the operating statement but are included in SEFA. The new loans processed data is populated from the new loans processed column entered in Note 3. Verify the dollar amounts for accuracy.

Other Reconciling Items can be added or deducted from the reconciliation. Items that are not reported as federal revenue or federal pass-through revenue on the operating statement but are reported in SEFA are added to the revenues in the reconciliation. Items that are reported as federal revenue or federal pass-through revenue on the operating statement but are not reported in SEFA are deducted from the revenues in the reconciliation.

Adding Other Reconciliation Items

Contact your financial reporting analyst if you have other reconciling items to add.

Deducting Other Reconciling Items

  1. Enter the federal revenue received on the fixed-fee-basis contract and provide an explanation in the NOTE field.
  2. Enter the amount of the federal revenue received under a vendor relationship between the agency and the federal government and provide an explanation in the NOTE field.
  3. Enter the amount of the federal grants received from or sent to the Texas A&M Research Foundation.
  4. Enter the amount of the federal revenue received under the Retiree Drug Subsidy provisions of Medicare Part D (For use by ERS, TRS, UT and A&M systems only).
  5. Contact your financial reporting analyst if you have other reconciling items to deduct.

Difference

This number is the difference of the Note 2 reconciliation total and the total pass-through and expenditures from SEFA. The difference is automatically calculated by the SEFA and must equal zero.

Note: Be sure to click Save after you have entered all SEFA Note 2 information.

Entering Note 3a: Student Loans Processed and Administrative Cost Recovered [+]

Enter all appropriate fields noting the special instructions for certain sections and fields listed below:

  1. Enter CFDA numbers in the CFDA column for the student loans if they are not populated.
  2. Verify the populated fields for each outstanding loan in the BEGINNING BALANCE OF OUTSTANDING LOANS, AS OF 8/31/XX column.
  3. Enter the amount in each field for new loans made from federal funds in the NEW LOANS PROCESSED DOES NOT INCLUDE ADMIN COST RECOVERED column. The amounts entered here automatically populate the TOTAL NEW LOANS PROCESSED row in SEFA Note 2 (this is a reconciling item because federal revenue is not recognized on the operating statement, but the new student loans processed are reported in SEFA). These amounts do not include the administrative costs recovered from the federal government that are included in the CY ADMIN COST RECOVERED, INCLUDES PYs ONLY IF APPLICABLE column.
  4. Review the amounts in the CY ADMIN COST RECOVERED, INCLUDES PYs ONLY IF APPLICABLE column that are automatically calculated in SEFA by subtracting NEW LOANS PROCESSED column from the TOTAL LOANS PROCESSED AND ADMINISTRATIVE COST RECOVERED column.
  5. Review the amount in the TOTAL LOANS PROCESSED AND ADMIN COST RECOVERED (FROM SCHEDULE) column populated by SEFA.
  6. Review the amounts populated in the REPAYMENT/ADJUSTMENT ACTIVITY (PY + CY) column that is automatically calculated in SEFA by adding the BEGINNING BALANCE column to the TOTAL LOANS PROCESSED column.
  7. Enter the balance in each field for all outstanding loans (including prior fiscal years) in the OUTSTANDING BALANCE OF LOANS AS OF 8/31/CY, INCLUDES ALL FYs column.
  8. Enter the CFDA numbers, BEGINNING BALANCE, NEW LOANS PROCESSED and OUTSTANDING BALANCE fields for student loans processed that are not automatically populated by SEFA.
  9. If a university has outsourced the Perkins Loan Program (CFDA 84.038), enter the name of the outsource company in the FEDERAL PERKINS LOANS PROGRAM field.

Note: Be sure to click Save after you have entered all SEFA Note 3a information.

Entering Note 3b: Federally Funded Loans Processed and Administrative Cost Recovered [+]

Enter all appropriate fields, noting the special instructions for certain sections and fields listed below:

  1. Enter CFDA numbers in the CFDA column for the federally funded loans that are not populated.
  2. Verify the populated fields for each outstanding loan in the BEGINNING BALANCE OF OUTSTANDING LOANS column.
  3. Enter each amount of cash received in the CASH column.
  4. Enter new loans made from federal funds in the NEW LOANS PROCESSED column. This amount does not include the administrative costs recovered from the federal government. These costs are included in the ADMIN COST RECOVERED column. This is not a reconciling item — these new federally funded loans processed are recognized as federal revenue on the operating statement and are reported in SEFA.
  5. Review the amounts in the ADMIN COST RECOVERED column that are automatically calculated by the in SEFA by subtracting NEW LOANS PROCESSED column from the TOTAL LOANS PROCESSED AND ADMINISTRATIVE COST RECOVERED column.
  6. Review the amounts in the TOTAL LOANS PROCESSED AND ADMIN COST RECOVERED column that are automatically populated by SEFA.
  7. Enter the ending balance in each field for all loans (including prior fiscal years) in the ENDING BALANCES OF PY LOANS FROM PRIOR FYs column.
  8. Enter the CFDA numbers, BEGINNING BALANCE, CASH, NEW LOANS PROCESSED and ENDING BALANCE fields for federally funded loans processed that are not automatically populated by SEFA.

Note: Be sure to click Save after you have entered all SEFA Note 3b information.

Entering Note 4: Depository Libraries for Governmental Publications [+]

Agencies are no longer required to submit this note.

Entering Note 5: Unemployment Insurance Funds [+]

  1. Enter the text of the SEFA Note 5 in the COMMENTS field.
  2. Click Save.

Entering Note 6: Rebates for the Special Supplemental Food Program for Women, Infants and Children (WIC) [+]

  1. Enter the text of the SEFA Note 6 in the COMMENTS field.
  2. Click Save.

Entering Note 7: Federal Deferred Revenue [+]

There are two types of federal deferred revenue:

  • Prepaid federal grants that have not been earned and/or expended
  • Governmental funds only — federal expenditures incurred but federal funds are not available within 60 days of fiscal year-end

Enter the following fields as appropriate:

  1. Enter the CFDA number of the related program in the CFDA NUMBER column.
  2. Enter the fiscal year beginning balance of the federal deferred revenue in the FEDERAL DEFERRED REVENUE SEPTEMBER 1, 20CY column.
  3. Enter the increase or decrease of the federal deferred revenue in the INCREASE/(DECREASE) column.
  4. Enter an explanation why the current federal deferred revenue is recognized in the area provided.

Note: Be sure to click Save after you have entered all SEFA Note 7 information.

Note: Per GASB 65, the term “deferred” is only used when referring to “deferred inflows of resources” or “deferred outflows of resources.” As a result, “deferred revenue” is now “unearned revenue” and “deferred costs” is now “prepaid costs.” The term “deferred” was not changed in SEFA in order to be in compliance with Uniform Guidance (formerly Office of Management and Budget (OMB) Circular A-133).

Entering Note 8: Disaster Grants – Public Assistance (Presidentially Declared Disasters) (CFDA 97.036) [+]

  1. Record expenditures in SEFA when both:
    1. FEMA has approved the agency’s project worksheet.
    2. The agency has incurred the eligible expenditures. Federal awards expended in years subsequent to the fiscal year in which the project worksheet is approved are recorded in SEFA for those subsequent years.

    For example:

    1. If FEMA approves the agency’s project worksheet in fiscal 2016 and the agency incurred eligible expenditures in fiscal 2017, the agency records the eligible expenditures in its fiscal 2017 SEFA.
    2. If the agency incurs eligible expenditures in fiscal 2016 and FEMA approves the agency’s project worksheet in fiscal 2017, the agency records the eligible expenditures in its fiscal 2017 SEFA Note 8 by disclosing the amount (included in SEFA for fiscal 2017) that it had incurred in fiscal 2016.
  2. Enter the text for SEFA Note 8 in the COMMENTS field
  3. Click Save.

Entering Note 9: Economic Adjustment Assistance [+]

SEFA Note 9 disclosure is only applicable to funding related to Revolving Loan Funds (RLF loans) received under this program.

If SEFA Note 9 is applicable to the agency:

  1. Enter text in the available fields.
  2. Click Save.

If SEFA Note 9 is not applicable to the agency:

  1. Select Not Applicable.
  2. Click Save.

Entering Note 10: 10% de Minimis Indirect Cost Rate [+]

Disclose whether or not the agency elected to use the 10% de minimis indirect cost rate:

  1. Select either Yes or No.
  2. Enter the text for SEFA Note 10 in the COMMENTS field.
  3. Click Save.
Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.texas.gov
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