Skip to content
Breadcrumbs

Reporting Requirements for Annual Financial Reports of State Agencies and Universities

Note: To navigate this guide on a mobile device you must use the Table of Contents.

Reporting Requirements for Annual Financial Reports of State Agencies and Universities

Resources

Definitions

A

AAL – Actuarial Accrued Liability
The present actuarial value of future pension and OPEB benefits previously earned by employees, as determined by a required biannual actuarial report.
ABEST – Automated Budget Evaluation System for Texas
Reporting system used by state agencies and institutions of higher education to submit budget information, performance measures, and financial data to the Legislative Budget Board (LBB).
Accounts Payable
Amounts owed for goods or services delivered or provided to the agency by Aug. 31, and for which the agency has not yet made payment.
Accounts Receivable
Amounts owed to the state from private persons or organizations for goods and services furnished.
Accretion
The increase in the value of a bond bought at a discount to the par value of the bond during bond maturity.
Accrue
To record/recognize a liability and expenditure when the underlying event occurs, regardless of payment timing or resource availability.
Accumulated Depreciation
The amount of depreciation expense recorded/recognized for an asset (or class of assets) to date.
ACFR – Annual Comprehensive Financial Report
A consolidated statewide financial statement report that encompasses all funds and component units of the state of Texas. This report is prepared in conformance with Generally Accepted Accounting Principles (GAAP) and Governmental Accounting Standards (GASB) requirements. Each year, the ACFR is required to be prepared/published and submitted to the Texas Governor by the last business day of February (in accordance with Texas Government Code Section 403.013).
ACID – Access Identification
A seven-character alphanumeric ID assigned to authorized users for access the Comptroller’s systems.
ACO – Appropriation Control Officer
The designated official within the Comptroller’s Appropriation Control section responsible for authorizing, reviewing and managing appropriation-related transactions, budget submissions and compliance activities in the Uniform Statewide Accounting System (USAS).
Acquisition Value
The price that would be paid to acquire an asset with equivalent service potential in an orderly market transaction at the acquisition date, or the amount at which a liability could be liquidated with the counterparty at the acquisition date. See GASB 72, paragraph 79.
Actuarial Valuation Date
The period for which an actuarial valuation is performed.
ADA – Americans with Disabilities Act

The Americans with Disabilities Act (ADA) of 1990 was enacted by the U.S. Congress and signed into law by President George H. W. Bush on July 26, 1990, and later amended with changes effective Jan. 1, 2009. The ADA is a wide-ranging civil rights law that prohibits discrimination against people with disabilities in everyday activities. The ADA guarantees that people with disabilities have the same opportunities as everyone else to enjoy employment opportunities, purchase goods/services and participate in state and local government programs.

Disability is defined by the ADA as “…a physical or mental impairment that substantially limits a major life activity.”

ADR – American Depository Receipts
Securities in non-U.S. companies held by a U.S. depositary bank that allow trading on US markets and Exchange.
AFR – Annual Financial Report
The financial report of the agency’s financial condition that is legislatively required to be submitted on an annual basis to the Texas Comptroller of Public Accounts.
Agency
Any Texas agency, university, government corporation or component unit that is assigned an agency number.
Aggregate
Formed or calculated by the combination of many separate units or items; total.
AGL – Agency General Ledger
An eight-digit account number that identifies the agency and the D23 fund of interfund transactions transferred in or transferred out.
AICPA – American Institute of Certified Public Accountants
The national professional organization for certified public accountants.
Allowance for Doubtful Accounts
Reflects the portion of a receivable account not expected to be collected. Report the calculation of the allowance for doubtful accounts on a reasonable, realistic and supported basis. The remaining balance is reflected as a reserve or net realizable value of the related receivable.
ALN – Assistance Listing Number
A number assigned in the awarding document to most grants and cooperative agreements funded by the federal government.
Amortization
Allocating in a systematic manner the cost of an intangible asset over its useful life.
ANRC – ACFR Note Reporting & Certification
The web application used to electronically verify submission and certification of all applicable note disclosures and correctness of USAS financial data to the Comptroller’s office during the AFR process.
APA – Availability Payment Arrangements
Arrangement in which an agency compensates an operator for services that may include designing, constructing, financing, maintaining or operating an underlying nonfinancial asset for a period of time in an exchange or exchange-like transaction.
Appropriated Funds
Legal funds created in the state treasury that need appropriation authority for payment of expenditures. The authority to create such a legal fund is by order of the Legislature or by Comptroller policy based on legislative authority.
APS – Accounting Policy Statement
A formal written policy that outlines agency’s specific accounting principles, methods and procedures used in preparing its financial statements in accordance with GAAP as established by GASB.
ARC – Annual Required Contribution
The amount actuarially determined in accordance with the parameters of GASB 45. The ARC represents a level of funding that (if paid on an ongoing basis) is projected to cover normal costs each fiscal year and amortize any unfunded actuarial liabilities over a period of years, not to exceed 30 years.
ARO – Asset Retirement Obligation
Asset Retirement obligation, defined by GASB 83 as a legally enforceable liability associated with the retirement of a tangible capital asset. The retirement of a tangible capital asset occurs when the asset is permanently removed from service, through its sale, abandonment, recycling, or disposal in some matter, but does not include a temporary idling event.
ARRA – American Recovery and Reinvestment Act
The American Recovery and Reinvestment Act of 2009 (ARRA) was enacted by the 111th United States Congress and signed into law by President Obama on Feb. 17, 2009. The Comptroller’s office established appropriated fund 0369, the Federal American Recovery and Reinvestment Fund, to track the federal stimulus.
ASF – Available School Fund
A legally restricted governmental fund used to account for revenues dedicated to the support and maintenance of public schools, including distributions from the Permanent School Fund and other state-authorized education funding.
Assets
Probable future economic benefits obtained or controlled by a particular agency as a result of past transactions or events.
Assets Held for Sale

A capital asset is classified as held for sale under GASB 104 when both of the following conditions are met:

  1. Intent to Sell
    The agency has formally decided to pursue the sale of the capital asset.
  2. Likelihood of Sale Within One Year
    It is probable that the sale will be completed within one year of the financial statement date.
Assets Held in Trust
Capital assets held by an agency on behalf of a non-state entity (such as art collections owned by families, estates and others) and that are under the temporary control of the agency.
AY – Appropriation Year
The legislative year tied to the legal authorization (as stated in the General Appropriations Act). It's the reference year used for budgeting and financial reporting in USAS.

B

BABs – Build America Bonds
Taxable municipal bonds that carry special tax credits and federal subsidies for either the bond issuer or the bond holder. The purpose of the program was to reduce the cost of borrowing for state and local government issuers and governmental agencies. The program expired on Dec. 31, 2010.
Basic Financial Statements
Term used in GASB 34 to describe required government-wide financial statements, fund financial statements and notes to the financial statements.
Basis of Accounting
The standard (or standards) used to determine the point in time when assets, liabilities, revenues and expenses (expenditures) are measured and recorded as such in the accounts of an agency.
BC – Basis Conversion

Conversion of modified accrual to full accrual. Basis conversion entries are required to adjust from the modified accrual to the full accrual basis because governmental funds are required to be presented on two different bases of accounting.

Basis conversion entries for capital assets (fund type 11), long-term liabilities (fund type 12) and revenue recognition (fund type 21) must be entered in USAS and reflected on the AFR.

Blended Component Unit
The method of reporting the financial data of a component unit in a manner similar to the presentation of the primary government.
BRP – Benefit Replacement Pay
Replaced a state benefit that paid 5.85 percent of the first $16,500 of the employee’s portion of social security wages plus an amount equal to the retirement contribution associated with the benefit.
BRS – Bond Reporting System
The web application used to electronically submit bonds-payable information to the Comptroller’s office during the AFR process. Each agency’s information in BRS is used to prepare bond tables and schedules in the ACFR.
BT – Balance Type
They categorize each accounting event—budgeting, revenues, expenditures, transfers, encumbrances, accruals, etc. and are core to financial tracking in USAS.
BTA – Business-Type Activity
Commercial-type activities of an agency that are financed in whole or in part by fees charged to external parties for goods or services. Business-type activities are usually reported in enterprise funds. It is part of the primary government.

C

CAAB – Capital Asset/Asset Balance
Reports generated by the State Property Accounting (SPA) system and used by the agencies and the Comptroller’s office to track capital assets and accumulated depreciation.
CANSS – Capital Assets Note Submission System
The web application used to electronically submit certain capital asset note disclosures information to the Comptroller’s office during the AFR process. CANSS ensures uniformity of these disclosures for the ACFR and automatically extracts USAS general ledger (GL) account balances for capital assets.
Capital Asset Held for Sale
A capital asset that meets both criteria:
  • The agency has decided to pursue the sale.
  • It is probable the sale will be finalized within one year of the financial statement date.
Capital Assets
Assets of a long-term character intended to continue to be held or used by the agency (such as land, improvements to land, easements, buildings, building improvements, vehicles, machinery, equipment, works of art and historical treasures, infrastructure and all other tangible or intangible assets used in operations), that have initial useful lives extending beyond a single reporting period and meet Comptroller’s capitalization thresholds. This also includes right-to-use assets such as leases and Subscription-Based IT Arrangements.
Capital Outlay
The purchase or construction of a capital asset that represents an exchange of an asset that can be spent (cash) for an asset that cannot be spent, thus resulting in a net decrease in current financial resources. This decrease is reported on the governmental fund operating statement.
Capital Projects Fund
A fund used to account for and report financial resources that are restricted, committed or assigned to expenditure for capital outlays (including the acquisition or construction of capital facilities and other capital assets). Capital projects funds exclude those types of capital-related outflows financed by proprietary funds or for assets that will be held in trust for individuals, private organizations or other governments.
Capitalization
Recognition of expenses is delayed by recording the expense as a long-term asset and then depreciated or amortized systematically over its useful life.
CARES Act
The Coronavirus Aid Relief Economic Security (CARES) Act is an economic stimulus bill enacted by the 116th United States Congress and signed by President Donald Trump on March 27, 2020, to provide emergency assistance and health care response to individuals, families and businesses affected by the 2020 coronavirus pandemic. The Comptroller’s office established appropriated fund 0325 (the Coronavirus Relief Fund) to track federal economic stimulus funds.
Carrying Amount
Book value of the asset. Historical cost less accumulated depreciation.
Cash Basis
Basis of accounting that recognizes transactions or events when related cash amounts are received or disbursed.
Cash Equivalents
Short-term, highly liquid investments that are both readily convertible into known amounts of cash and so near their maturity that they present insignificant risk of changes in value due to changes in interest rates.
Cash Report
State of Texas Annual Cash Report (Cash Report) — a cash basis report for the state of Texas as required by statute. It is based on the activity of cash (GL 0045) in the state treasury. The Cash Report is prepared on a fiscal year basis with a hard cash close on Aug. 31 of each fiscal year.
CFDA – Catalog of Federal Domestic Assistance
Now called Assistance Listing Number (ALN) on SAM.gov.
Change in Accounting Principles

Application of an accounting principle to transactions or other events of similar type that is different from the accounting principle previously applied to those transactions or other events.

This could be the agency’s choice or the implementation of a new GASB standard.

Change in Accounting Estimate

Is not an error correction. These changes applied prospectively, they affect current and future period only.

Occurs when inputs change resulting from:

  • A change in circumstance
  • New information
  • More experience
Change in Net Position
The difference between assets plus deferred outflows of resources and liabilities plus deferred inflows of resources on the government-wide, proprietary and fiduciary fund statements.
CIG – Comprehensive Implementation Guide
A compilation of all questions and answers and glossary definitions from GASB Implementation Guides. It is an officially sanctioned, Category B source under GASB’s GAAP framework that consolidates Q&As and glossary terms to clarify and support consistent application of GASB standards.
CIP – Construction in Progress
The cost of all projects for construction of buildings, other improvements, equipment and intangible assets that are in progress (under way) at a particular point in time.
CIST – Cash in State Treasury
Funds held with the Comptroller’s Treasury Operations Division that does not include general revenue funds or reimbursements due on an agency’s books.
CMIA – Cash Management Improvement Act
Establishes general rules and procedures for the efficient transfer of funds for federal financial assistance programs between the federal government and states.
CNP – Change in Net Position
The difference between assets plus deferred outflows of resources and liabilities plus deferred inflows of resources on the government-wide, proprietary and fiduciary fund statements.
COBJ – Comptroller Object Code
A four-digit code that classifies the specific type of revenue, expenditure, transfer or budgetary activity in USAS.
Collected Budget
Spending authority appropriated to the agency (via the General Appropriations Act or special legislation) requiring collections to fund the budgets (such as appropriated receipts or federal funds). Term used in contrast with committed budget.
Combined Financial Statement
A financial statement displaying in separate adjacent columns the combined financial data for various fund types and, if applicable, discretely presented component units.
Combining Financial Statement
A financial statement displaying, in separate adjacent columns, the financial data for each fund of a given fund type. The totals reported for the fund type must agree with those reported in the column for that fund type on the combined financial statements.
Committed Budget
Spending authority given to the agency (via the General Appropriations Act or special legislation) not required to be collected (such as general revenue). Term used in contrast with collected budget.
Compensated Absences

Leave for which employees may receive:

  • Cash payments (upon use or termination)
    –OR–
  • Noncash settlements (for example, conversion to postemployment benefits)
Component Unit
A legally separate organization for which the agency’s elected officials are financially accountable or an organization for which the nature and significance of its relationship with the state is such that exclusion would cause the agency’s reporting on its financial statements to be misleading.
Concentration
A lack of diversity related to an aspect of a significant inflow of resources or outflow of resources.
Conduit Debt Obligation
A debt instrument issued by a debt holder, in the name of a state agency (the issuer) to a specific third party (the third-party obligor), outside of the issuer’s financial reporting state agency, for the purpose of providing capital financing. The third party is primarily liable for the repayment of the debt instrument. Guidance is issued in GASB 91.
Constraint
A limitation imposed on an agency by an external party or by formal action of the agency’s or state’s highest level of decision-making authority.
Consumption Method
The method of recording inventory as it is purchased as an asset and deferring the recognition of an expenditure until the fiscal year in which inventories are consumed.
Contract Combinations
Contracts that are entered into at or near the same time and with the same counterparty are considered part of the same contract if:
  • The contracts are negotiated as a package with a single objective.
    –OR–
  • The amount of consideration to be paid in one contract depends on the price or performance of another contract.
Contracts that Transfer Ownership
A contract that transfers ownership of the underlying asset to the lessee by the end of the contract and does not contain termination options.
Controlled Assets
Assets of the state identified by the Comptroller’s office that, due to the nature of the items, must be secured and tracked on the State Property Accounting (SPA) system.
Controlling Agency
The agency required to reconcile the entire cash activity for a fund and report the cash in state treasury balance on its annual financial report. The controlling agency can be determined by referring to the Comptroller Manual of Accounts or the report route agency listed on the USAS Appropriated Fund Profile (D22) screen. Term used in contrast with non-controlling agency.
CPE – Continuing Professional Education
Recognition of professional continuing education to update knowledge and skills. Often required to maintain professional certifications.
CURO – Component Unit & Related Organizations
The web application used to electronically submit component units and related organizations note disclosures to the Comptroller’s office during the AFR process.
Current Assets
Assets that are available or can be made readily converted to cash to meet the cost of operations or to pay current liabilities within one year. Some examples are cash, temporary investments and taxes receivable that will be collected within one year.
Current Liabilities
Liabilities payable within a relatively short period of time, usually no longer than one year.
Custodial Fund
Report fiduciary activities not held in a trust or equivalent arrangement that meets GASB’s specific criteria (unlike pension or private-purpose trusts).
CY – Current Year
The year currently in progress.

D

DAFR – Detailed Accounting Financial Report
A USAS report providing detailed financial transactions and account data for monitoring and reconciliation.
DCU – Discretely Presented Component Unit
A legally separate entity reported separately from the agency and distinguished in MD&A.
De Minimis Indirect Cost Rate (15%)
A rate that may be used by a non-federal agency that does not have a current federal negotiated indirect cost rate. The 15% de minimis indirect cost rate allows non-federal entities to recover allowable indirect costs, see Code of Federal Regulation, section 200.414(f).
Debt
According to GASB 88, for the purposes of disclosure in the notes to financial statements, debt is a liability that arises from a contractual obligation to pay cash (or other assets that may be used in lieu of cash) in one or more payments to settle an amount that is fixed at the date of the established contractual obligation.
Debt Service Fund
A fund used to account for and report financial resources that are restricted, committed or assigned to expenditure for principal and interest. Debt service funds are used to report resources if they are legally mandated. Financial resources that are accumulated for principal and interest maturing in future years are also reported in debt service funds.
Defeased Bonds
Bonds or loans removed from the borrower’s statement of net position (balance sheet) prior to stated maturity. The borrower sets aside cash and/or securities in an escrow account sufficient to service the defeased debt as it becomes due and payable.
Deferred Inflows of Resources
The acquisition of net assets by the agency that is applicable to a future fiscal year.
Deferred Outflows of Resources
The consumption of net assets by the agency that is applicable to a future fiscal year.
Depreciation
Allocating in a systematic manner the cost of a tangible capital asset over its useful life.
Derivative
Contracts whose value depends on, or derives from, the value of an underlying asset, reference rate or index.
DINSS – Deposit and Investment Note Submission System
The web application used to electronically submit certain GASB disclosures to the Comptroller’s office during the AFR process and to ensure uniformity of these disclosures for the ACFR. DINSS automatically extracts USAS general ledger (GL) account balances for deposits and investments.
Direct Costs
Costs specifically identified with a particular final cost objective (for example, a project/activity with a relatively high degree of accuracy).
Direct Strategy
A program implemented to help an agency achieve its goals and objectives. It is also the means of transforming inputs into outputs, and ultimately outcomes, with the best use of resources. Funding is appropriated at this level.
Discount Rate
A single blended rate that combines the long-term investment rate of return and municipal bond rate. For example, the discount rate is used to calculate an employer’s total pension liability.
DSP – Disproportionate Share Program
A Medicaid policy requiring states to consider the special needs of hospitals that serve disproportionate numbers of Medicaid or indigent patients when setting Medicaid payment rates.
Due From/To Other Agencies

Accruals of reimbursements, transfers, federal/state grant pass-throughs and shared funds that are owed to or from other state agencies.

Note: Do not net activity on one line.

DUNS – Data Universal Numbering System
Now called Unique Entity Identifier (UEI).

E

Earned Federal Funds
Moneys that are received in connection with a federal program and are not required to be spent in the federal program by the governing agreement. They become state funds and lose their federal identity. The authority for expenditure of earned federal funds is subject to state legislation rather than the federal government.
Economic Resources Measurement Focus
The measurement focus of accounting used by proprietary and fiduciary funds, as well as for government-wide financial reporting, that considers all the assets available for the purpose of providing goods and services. The economic resources measurement focus reports all inflows, outflows, and balances affecting or reflecting an agency’s net position. All assets and liabilities are accounted for, as well as all inflows and outflows of resources.
EIN – Employer Identification Number
A unique nine-digit number that identifies a government agency, business and/or organization — even if the government agency, business and/or organization has no employees.
Eligible Infrastructure Assets
Infrastructure assets that are part of a network or subsystem of a network.
Embedded Derivative Instrument
A derivative instrument that is an element of a hybrid instrument. A hybrid instrument consists of a companion instrument and an embedded derivative instrument. When separated, an embedded derivative instrument (such as an interest rate swap) is measured at fair value.
Employees’ Compensable Leave
Liabilities for the vacation and compensatory leave accrued by employees. The balance is reported on both the current and non-current liability section of the balance sheet or statement of net position.
Encumbrances
An account used to record the commitments for goods or services made before the end of the fiscal year where these goods or services were not received by the end of the fiscal year. Encumbrances must also be established for actual contracts awarded. Anticipated contracts or contracts under negotiation are not legal commitments and are not reported as encumbrances.
Enterprise Fund
Proprietary fund type (FT05) used to report an activity for which a fee is charged for goods or services, primarily to customers outside the reporting agency (such as citizens).
Error Correction
The process of rectifying mistakes in previously issued financial statements (possibly from mathematical errors, misapplications of accounting principles or overlooking facts) that is handled through retrospective restatement(s).
ERRP – Early Retiree Reinsurance Program
A program that provides reimbursement to participating employment-based plans for a portion of the costs of health benefits for early retirees and early retirees’ spouses, surviving spouses and dependents.
Exchange Transactions
Transactions in which each party receives direct tangible benefits commensurate with the resources provided (for example, sales between a buyer and a seller).
Exchange-Like Transactions
A transaction in which the values exchanged, though related, may not be quite equal or in which the direct benefits may not be exclusively for the parties to the transactions — unlike a pure exchange transaction.
Exchange or Exchange-Like Financial Guarantee
A grantor that issues a guarantee of an obligation to other governments, a legally separate agency, a blended or discretely-presented component unit, non-governmental entities or individuals — that guarantee requires the grantor to indemnify a third-party obligation holder (under specified conditions) in an exchange or exchange-like transaction.
Expenditures
Decreases in net financial resources under the current financial resources measurement focus not properly classified as other financing uses.
Expenses
Charges incurred, whether paid or unpaid, for operation, maintenance, interest and other charges presumed to benefit the current fiscal period.
External Investment Trust Fund
Fiduciary fund type (FT18) used to report governmental external investment pools in separately issued reports and the external portion of these same pools when reported by the sponsoring government.

F

FAC – Federal Audit Clearinghouse
Operates on behalf of the Office of Management and Budget (OMB) to establish, maintain and distribute single audit results on related federal award information to federal agencies.
Fair Value
The price at the measurement date that is either:
  • Received to sell an asset
  • Paid to transfer a liability

Fair value is a market-based measurement — not an entity-specific measurement. The objective of a fair value measurement is to determine the price at which an orderly transaction can occur to sell the asset or to transfer the liability under current market conditions. Fair value is an exit price at the measurement date from the perspective of a market participant that controls the asset or is obligated for the liability.

FASB – Financial Accounting Standards Board
Authoritative accounting and financial reporting standard-setting body for business enterprises and nonprofit organizations.
FDIC – Federal Deposit Insurance Corporation
Federal corporation that insures up to $250,000 per deposit.
FDTA – Financial Data Transparency Act of 2022 (Public Law 117-263)
The U.S. Congress act that establishes data standards by requiring certain financial regulatory agencies (members) of the U.S. Financial Stability Oversight to adopt and apply uniform reporting categories. FDTA provides more transparency in government financial reporting.
Federal Receivables
Funds expended or services performed for which federal contract and/or grant funds have not yet been collected during the current fiscal year. Funds expended and/or services performed for which non-federal contract and grant funds have not yet been collected are reported as accounts receivable. Grant awards not yet funded and for which the agency has not yet performed services are not considered assets to be accounted for on the financial statements.
FFATA – Federal Funding Accountability and Transparency Act of 2006 (Public Law 109-282)
The U.S. Congress act that requires the Office of Management and Budget (OMB) to maintain a single searchable accessible website (USAspending.gov) that discloses all entities and organizations receiving new federal contracts or grants. FFATA was amended in 2008 (Public Law 110-252), requiring recipients to self-report certain information as of Oct. 1, 2010.
FFELP – Federal Family Education Loan Program
Federally funded student loan program reported in SEFA. The program is no longer active and was terminated on June 30, 2010.
FFS – Fund Financial Statements
Basic financial statements presented on a funds basis that report more detailed information about the primary government. Term used in contrast with Government-wide Financial Statements.
Fiduciary Activities
Activities in which the agency acts in a fiduciary capacity, either as an agent or trustee, for parties outside the agency (for example, the collection of taxes or amounts bequeathed from private citizens, and assets held for employee pension plans).
Fiduciary Funds
Any fund held by a state agency in a fiduciary capacity for an external party, ordinarily as agent or trustee.
Financial Resources Measurement Focus
Measurement focus used by governmental funds that accounts for the near-term (current) inflows, outflows and balances of expendable (spendable) financial resources. The governmental funds focus on the short run and generally do not include assets lasting more than one year (such as infrastructure) or liabilities that are not due and payable (such as bonds). This measurement focus is based on the concept of accountability. It includes measuring interperiod equity — whether current fiscal year revenues were sufficient to pay for current fiscal year services. It also considers the performance goals and measures of governmental-type activities, the intent and effect of budgets and other financial controls, and the use of fund accounting to achieve and demonstrate legal compliance and to enhance financial administration.
FLSA – Fair Labor Standards Act
Establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in federal, state and local governments.
Forfeiture of leave
Loss of leave when it expires unused, or conditions for payment are not met.
FPP – Fiscal Policies and Procedures
FPP are GASB-aligned fiscal rules and procedures that ensure accurate, consistent and responsible financial reporting across agencies.
FRA – Full Reporting Agency
Full reporting agencies produce AFRs with larger amounts, more complex fund structures (including proprietary funds requiring a cash flow statement), may report substantial federal funding, and include discretely presented component units, though those units are not required to submit a cash flow statement.
FRS – Financial Reporting Section
The Texas Comptroller unit that oversees statewide financial reporting and prepares the ACFR.
FSEOG – Federal Supplemental Educational Opportunity Grants
Student Financial Aid (SFA) Title IV funds include programs such as Pell and Federal Supplemental Educational Opportunity Grants (FSEOG).
FT – Fund Type
A classification of funds that are similar in purpose and character.
Full Accrual Basis of Accounting
Method of accounting that recognizes the financial effect of transactions, events and interfund activities when they occur, regardless of the timing of related cash flows. Full accrual-basis accounting recognizes expenses, not expenditures. Expenses and revenues resulting from exchange and exchange-like transactions are recognized when the exchange takes place. Expenses and revenues resulting from non-exchange type transactions are recognized in accordance with requirements of GASB 33.
Fund Balance
The difference between:
  • Governmental fund assets and deferred outflows of resources
    –AND–
  • Liabilities and deferred inflows of resources
Funds Held for Others
Funds held in a custodial nature but not belonging to the state.
Funds Held Locally
Funds held in a local bank account that can be either appropriated funds (funds that require appropriation authority to expend) or local funds (funds that do not need appropriation authority to expend).
FY – Fiscal Year
A GASB fiscal year is a 12-month reporting period. Texas fiscal year is September 1– August 31.

G

GAA – General Appropriations Act
State budget legislation passed biannually. The GAA authorizes agencies to spend funds and sets limits on what they can spend, how much, and when.
GAAP – Generally Accepted Accounting Principles
Standards that govern the fair and consistent presentation of financial statements, ensuring transparency, comparability, and reliability in financial reporting. Set forth by GASB for state and local governments.
GASB – Governmental Accounting Standards Board
The authoritative accounting and financial reporting standard-setting body for state and local governments.
GCA – General Revenue Consolidated Agency
GR consolidated agencies produce AFRs with smaller amounts and simpler fund structures and may report limited federal funding.
General Fund
A fund used to account for all transactions of a state agency that are not accounted for in another fund.
General Ledger Account
General ledger accounts record all financial transactions throughout the period.
GIP – Group Insurance Program
Group insurance managed by the Employees Retirement System of Texas for state employees and families, with the exception of the self-insured health benefit plans in the University of Texas System and Texas A&M University System.
GL – General Ledger
The central record of an agency’s financial accounts, summarizing all transactions to support GAAP and GASB-compliant reporting.
GO – General Obligation Bonds
A municipal bond backed by the full faith and credit and taxing power of the state — rather than the revenue from a given projection or revenue financing system. GO bonds are issued with the belief that the state has the ability to repay its debt obligations through taxation or surplus revenue from projects. Assets are not used as collateral.
Governmental Funds
A generic classification used by GASB to refer to all funds other than proprietary and fiduciary funds (such as, the general fund, special revenue funds, capital projects funds, debt service funds and permanent funds).
GR – General Revenues

All revenues are general revenues unless agencies are required to report them as program revenues. All taxes are general revenues, even those levied for a specific purpose. The following types of revenue are classified as general revenues:

  • Revenues financed by parties outside the state’s citizenry not restricted to be used for specific programs.
  • Revenues financed by the state’s taxpayers (from all taxpayers, regardless if they benefit from a particular program).
  • Revenues financed by the state (such as investment revenue, including earnings from endowments or permanent fund investments) that can be used to finance general fund programs.
GR Reconciliation
Represents the amount of budget the agency was given by the General Appropriations Act (GAA), riders, some additional payroll expenditures and other special legislation. On a statewide basis, the accuracy of this number is critical in order to reconcile appropriated fund 0001 for an accurate ACFR.
GSO – GAAP Source/Object
GAAP source/objects are groupings of comptroller objects. The relationship between the GAAP source/object and comptroller objects is identified on the Comptroller Object Profile (D10) in USAS.
GWFS – Government-wide Financial Statements
Financial statements that incorporate all of the state’s governmental and business-type activities, as well as its nonfiduciary component units. There are two basic government-wide statements: the statement of net position and the statement of activities. Government-wide financial statements are presented using the economic resources measurement focus and the full accrual basis of accounting. Term used in contrast with fund financial statements.

H

HEAF – Higher Education Assistance Fund
The constitutional appropriation for acquiring land with or without permanent improvements; constructing and equipping buildings or other permanent improvements; major repair or rehabilitation of building; or other permanent improvements and acquisition of capital equipment, library books and library materials at the eligible institutions and agencies of higher education.
Hedging Derivative Instrument
The derivative instrument used to mitigate financial risk against a hedgeable item. The hedging derivative instrument must be evaluated for effectiveness against financial risk.
HPSL – Health Professions Student Loans
Federally funded revolving loan programs that provide low-interest loans to eligible health-profession students and are reported in the SEFA.
Historical Cost
Original acquisition cost.

I

IBOR – Interbank Offering Rate
The interest rate that banks in the same jurisdiction charge one another for short-term, interbank loans.
Incremental Borrowing Rate
The estimate of the interest rate that would be charged for borrowing the subscription payment amounts during the subscription term.
Indirect Costs
Costs incurred for shared or joint objectives that cannot be readily identified with any particular activity.
Infrequency of Occurrence
A transaction or event that is not reasonably expected to recur in the foreseeable future.
Investment
A security or other asset that an agency:
  • Holds primarily for the purpose of income or profit
    –AND–
  • Has a present service capacity based solely on its ability to generate cash or to be sold to generate cash.
See GASB 72.
Investment Derivative Instrument
A derivative instrument held for profit or income. Such as options, swaps, futures and forward contracts.
Investment Trade Payable
An account used to record a purchase of an investment pending the cash settlement.
Investment Trade Receivable
An account used to record a sale of an investment pending the cash settlement.
ISF – Internal Service Fund
A fund (FT06) established to finance and account for services and commodities furnished by a designated department or agency to other departments and agencies.
ITV – Interagency Transaction Voucher
A form used to document and process financial transactions between agencies, including billing, reimbursements, and fund transfers.

L

Lapsed Appropriations
This amount represents unexpended legislative appropriations according to the General Appropriations Act and from other special appropriations returned to the state. Current fiscal year appropriations normally must not be lapsed until the following fiscal year. This amount must agree with the appropriation activity in USAS (62 screen) as of Aug. 31 of each fiscal year. Lapses must not be backdated after Aug. 31, 20CY.
LBB – Legislative Budget Board
The permanent joint committee of the Texas Legislature that develops budget and policy recommendations for legislative appropriations for all state agencies. The LBB completes fiscal analyses for proposed legislation and conducts evaluations and reviews to identify and recommend changes that improve the efficiency and performance of state and local operations and finances.
LEAP – Leveraging Educational Assistance Partnership Program
Federally funded student loan program reported in SEFA.
Lease
A contract that conveys control of the right to use the lessor’s nonfinancial asset (the underlying asset) to the lessee as specified in the contract’s term limits in an exchange or exchange-like transaction.
Leasehold Improvements
Construction of new buildings or improvements made to existing structures by the lessee, who has the right to use these leasehold improvements over the term of the lease. These improvements will revert to the lessor at the expiration of the lease.
Lease Liability
The present value of payments expected to be made during the lease term.
Lease Receivable
The present value of lease payments expected to be received during the lease term, reduced by any provision for estimated uncollectible amounts.
Lease Term
The period during which a lessee has a noncancelable right to use an underlying asset.
Lease Leaseback Transaction
An asset is leased by one party (first party) to another party (second party) and then leased back to the first party. The leaseback may involve an additional asset (such as leasing a school building that has been constructed by a developer on land owned by and leased back to a school district) or only a portion of the original asset (such as leasing back only one floor of a building to the owner).
Legislative Appropriations
This amount represents the balance of an agency’s unexpended legislative appropriations authority on the balance sheet and the total spending authority received on the operating statement.
Liability
Present obligation to sacrifice resources that the state has little or no discretion to avoid.
LNSS – Lease Note Submission System
The web application used to electronically submit lease obligations to the Comptroller’s office during the AFR process.
Loans and Contracts
Written contractual agreements containing an unconditional promise to pay a certain sum of money under terms specified in the contract or loan. Include any variable rate notes receivable that are not in substance bonds and all student loans in this account.
Local Funds
Legal funds created outside the state treasury (by order of the Legislature) that do not require appropriation authority for payment of expenditures. Local funds include funds profiled to appropriated fund number 9999 and local operating funds.
Local Operating Funds
Funds created in USAS at the request of agencies that need to use the USAS payment process to make expenditures associated with local funds. Funds from the local fund (outside the state treasury) can only be deposited into the state treasury local operating fund to the extent funds are needed for payment of expenditures.
Long-Term Liabilities
Liabilities with a maturity of more than one year after fiscal year-end.
LTLN – Long-Term Liability Note
The web application provides a user-friendly and intuitive method to electronically submit long-term liability note disclosures. LTLN ensures uniformity of these disclosures for ACFR Note 5 and automatically extracts USAS GL account balances for long-term liabilities.

M

Major Component Unit
A component unit that is significant enough to require separate presentation.
Major Class of Capital Asset

Grouping of capital assets used for disclosure purposes.

Examples:

  • Buildings
  • Equipment
  • Infrastructure
Major Funds
A governmental fund or enterprise fund reported as a separate column on the basic fund financial statements. Major funds are funds whose revenues, expenditures/expenses, assets or liabilities (excluding unusual or infrequent items) are at least 10 percent of corresponding totals for all governmental or enterprise funds and at least 5 percent of the aggregate amount for all governmental and enterprise funds for the same item. Only agencies that require an outside audit opinion use major funds. Major funds for the state of Texas are only used at the ACFR level. If agency officials believe any other governmental or enterprise fund is particularly important, that fund may be reported as a major fund.
MD&A – Management’s Discussion and Analysis
Narrative information, in addition to the basic financial statements, in which management provides a brief, objective and easily readable analysis of the state’s financial performance for the fiscal year and its financial position at fiscal year-end. The form and content is governed by GASB 103.
Measurement Date
The date that pension liability and pension-related amounts are measured and reported in the financial statements.
Measurement Focus
Refers to what is expressed in reporting an agency’s financial performance and position. A particular measurement focus is accomplished by considering which resources are measured and when the effects of transactions and events involving those resources are recognized. When effects are recognized is referred to as the basis of accounting.
Measurement Period
The period between prior and current measurement dates.
Mitigation actions
Steps taken by the agency before issuance of financial statements to reduce risk.
MLPP – Master Lease Purchase Program
A lease revenue financing program, primarily to finance capital equipment acquisitions by state agencies.
Modified Accrual Basis of Accounting
Accrual accounting adapted or modified for governmental funds. Under the modified accrual basis of accounting, revenues are recognized in the fiscal year in which they are both measurable and available to finance operations of the fiscal year or liquidate liabilities existing at fiscal year-end. The state of Texas considers revenues to be available if the revenues are due at fiscal year-end and collected within 60 days thereafter. With a few exceptions, the modified accrual basis of accounting recognizes the expenditures when liabilities are incurred.
More Likely Than Not
Threshold used for recognition. Probability greater than 50% that an event will occur.

N

National Association of College and University Business Officers (NACUBO)
Provides functional expense classifications (such as instruction, research, public service, etc.) to both public and private higher education institutions. The reporting expense information is used in the Integrated Postsecondary Education Data Systems (IPED) Finance Survey. In USAS, view D54 screen for NACUBO function code profile.
Net Book Value
An asset’s historical cost less accumulated depreciation.
Net Pension Liability
The difference between total pension liability and the pension plan’s net assets that are used to pay benefit payments.
Net Position
On the statement of net position, the difference between:
  • Assets
  • Deferred outflows of resources
  • Liabilities
  • Deferred inflows of resources
Net position is displayed in three components:
  1. Net investment in capital assets
  2. Restricted
  3. Unrestricted
Network of Assets
Composed of all assets that provide a particular type of service for a government. For example, a network of infrastructure assets may be a dam composed of a concrete dam, a concrete spillway and a series of locks.
NHARP – Norman Hackerman Advanced Research Program
A competitive grant program whose purpose is to encourage and provide support to faculty members and students in Texas institutions of higher education to conduct basic research.
Noncash Settlement
Settlement of leave through conversion to pension or OPEB benefits and other noncash mechanisms.
Noncapital subsidies
Subsidies, not designated for capital purposes, reported separately in proprietary fund statements and presented before other non-operating items.
Non-Controlling Agency
The state agency authorized to spend money from a shared fund but is not the controlling agency. This agency does not report the shared cash in state treasury balance on its annual financial report. Term used in contrast with controlling agency.
Non-Exchange Transactions
Transactions in which the donor derives no direct tangible benefits from the recipient agency (for example, a contribution to or support for a government or not-for-profit organization).
Non-Federal Entity
Any state or local government, Indian tribe, university or non-profit organization that receives financial assistance from the government.
Nonoperating Revenues and Expenses

Defined categories include:

  • Subsidies
  • Contributions to endowments
  • Financing-related revenues/expenses
  • Disposal of capital assets
  • Inventory and investment income and expenses
Non-Reciprocal Interfund Activity
The interfund equivalent to non-exchange transactions (Refer – Nonreciprocal Interfund Activity). Includes transfers and reimbursements. Reimbursements are eliminated in the ACFR and therefore are not reported as interfund activity on the financial statements.
Non-Recycled Loan Repayments
Loan repayments that are not applied back into the loan program but are put to other uses.
Notes and Loans Payable

These liabilities result from issuing an interest-bearing certificate or making a loan to derive resources to finance acquisition of long-lived assets. Include any variable rate notes in this account.

Any debt instrument considered to be commercial paper or variable rate notes re-financed after less than one year are classified as notes and loans payable — not as bonds payable. These debt instruments are not considered long term in nature (for example, permanent university fund (PUF) variable rate notes).

Separate the debt instruments into current and non-current liabilities for presentation on the balance sheet or statement of net position.

Notional Amount
In derivatives, the number (such as current units, shares or bushels) to which an underlying is applied.
NSE – Non-State Entity
A local government, non-profit organization or for-profit organization that receives financial assistance from a state agency.

O

Obligations/Securities Lending
Under the securities lending program, an agency transfers securities to an independent broker or dealer in exchange for collateral in the form of cash, governmental securities or bank letters of credit. The obligation under securities lending represents a current liability for the collateral received on securities lending transactions and the securities lending collateral is recorded as a current asset on the balance sheet or statement of net position.
ONDSS – Other Notes and Disclosures
The web application used to electronically submit note disclosures to the Comptroller’s office during the AFR process.
OPEB – Other Postemployment Benefits
Postemployment benefits other than pension benefits (such as life insurance and health care insurance).
Operating Revenues and Expenses
Revenues or expenses that do not meet the definition of Nonoperating Revenues and Expenses or Subsidies.
Orderly Transaction
A transaction that assumes exposure to the market for a period of time prior to the measurement date allowing for usual and customary marketing activities for transactions — not forced transactions (such as forced liquidation or distress sale). See GASB 72.
ORP – Optional Retirement Program
A defined contribution pension plan in which participants select from a variety of investments offered by several insurance and investment companies through annuity contracts or mutual fund investments. Full-time faculty, librarians and certain professionals and administrators employed in public education are eligible to elect ORP in lieu of the Teacher Retirement System of Texas Plan before the 91st day after becoming eligible.
Other Contracts and Grants
This category includes contracts and grants received from city and county agencies, organizations or individuals.
Other Derivative Instruments
Derivative instruments that were intended to be a hedge but did not meet the definition of an investment derivative instrument or the definition of a hedging derivative instrument.
Other Financing Sources
A governmental fund operating statement classification in which financial inflows other than revenues are reported (such as proceeds of long-term capital-related debt and transfers-in).
Other Financing Uses
A governmental fund operating statement classification in which financial outflows other than expenditures (such as transfers-out) are reported.

P

Parity Issue
A parity debt (an issued debt [bond]) with equal rights to claim as other debt (bonds) already issued.
Payment Provisions
In derivatives, specifies a fixed or determinable settlement to be made if the underlying behaves in a specified manner.
PCA – Program Cost Account
A five-digit number in USAS that allows updates to the Strategic/Program Structure in order to track revenues and expenditures for agency goals, objectives and strategies — as well as administrative and support costs and other activity.
PDT – Payment Distribution Type
Functions as the general payment instructions to USAS. See USAS User’s Manual, Chapter 11 – Payment Processing.
Pension Trust Fund
A fiduciary fund type (FT10) used to report resources that are required to be held in trust for the members and beneficiaries of defined benefit pension plans, defined contribution plans, other post-employment benefit plans or other employee benefit plans.
Permanent Fund
A fund used to report resources legally restricted to the extent that only earnings, and not principal, may be used to support the reporting agency’s programs — that is, for the benefit of the state or its citizenry.
Perpetual License
A software license that authorizes an individual to use a program indefinitely.
Personal Property
Fixed or movable tangible assets to be used for operations from which the benefits extend beyond one year from the date the asset was acquired and rendered into service. Capitalize as a betterment and record as an addition of value to the existing asset only if improvements or additions to existing personal property constitutes a capital outlay or increases the value or life of the asset by 25 percent of the original cost or life.
Petty Cash
A sum of money set aside to make change or pay small obligations for which issuing a formal voucher and check would be too expensive and time consuming.
PELL – Federal Pell Grant Program
A federal financial aid award for undergraduate students who display exceptional financial need and have not earned a bachelor's, graduate or professional degree. A Federal Pell Grant, unlike a loan, does not have to be repaid, except under certain circumstances. According to GASB 103, it is considered operating revenue for agencies.
PPP – Public-Private Public-Public Partnership
An arrangement in which a state agency (the transferor) contracts with an operator (governmental or nongovernmental entity) to provide public services by conveying control of the right to operate or use a nonfinancial asset for the contract’s term limits in an exchange or exchange-like transaction.
PPP Term
The period during which an operator has a noncancellable right to use an underlying PPP asset.
PSF – Permanent School Fund
It is created from state-owned assets like land or mineral rights. The principal is invested long-term, and only the annual investment earnings are used to support public school (for example, K–12 funding, infrastructure, scholarships) without touching the principal.
Prepaid Items
Long-term prepayments of expenses subject to amortization. Examples are the cost of issuing bonds and certain pension costs.
Preservation Costs
Costs that extend the useful life of an asset beyond its previously established useful life.
Primary Government
The state of Texas and all its core operations. This includes all governmental and business-type activities. It excludes discretely presented component units and fiduciary activities.
Private Purpose Trust Fund
A fiduciary fund type (FT20) used to report all trust arrangements (other than those properly reported in pension trust funds or investment trust funds) under which principal and income benefit individuals, private organizations or other governments.
Probable
The future event is likely to occur.
Professional Fee Revenue
Revenues for colleges and universities derived from the fees charged by the professional staff at health institutions as part of the medical practice plans. These revenues are also identified as practice plan income. Examples of such fees include:
  • Doctor’s fees for clinic visits
  • Medical and dental procedures
  • Professional opinion and anatomical procedures (such as analysis of specimens after a surgical procedure, etc.)
Other revenues generated from non-professional fees and miscellaneous income are reported in the hospital sales of goods and services category. Some examples of these non-professional fees and miscellaneous incomes include:
  • Reimbursements for long distance charges
  • Collections for photocopy services
  • Lab fees
  • Computer services
  • Rental of microscopes
Program Revenue

A term used in connection with the government-wide statement of activities and defined as revenue provided by those who purchase, use or directly benefit from the goods or services of a program. Program revenues reduce the net cost of the function to be financed from the state’s general revenues.

The statement of activities separately reports three categories of program revenues:

  1. Charges for services
  2. Program-specific operating grants and contributions
  3. Program-specific capital grants and contributions

The following types of revenue are classified as program revenues:

  • Revenues financed by those who purchase, use or directly benefit from the goods and services of the program. This group may extend beyond the boundaries of the reporting state’s taxpayers or citizenry or be a subset of it.
  • Revenues financed by parties outside the reporting state’s citizenry that are restricted to be used for specific programs. This group includes other governmental and nongovernmental entities or individuals.
  • Earnings on endowments or permanent fund investments that are restricted to programs specifically identified in the agreement or contract.
Proprietary Fund
A governmental accounting fund type used to report activities that operate in a manner similar to private-sector business, where the intent is to recover cost primarily through user charges or fees.
Prospectively
Applying a change in accounting policy or estimate only to future financial statements, meaning the change is not applied to prior periods, but rather to transactions and events occurring after the change.
Public-Private Partnership
A contract between a governmental entity and a nongovernmental entity to provide public services.
Public-Public Partnership
A contract between two governmental entities to provide public services.
PUF – Permanent University Fund
A public endowment fund established by the Texas Constitution in 1876 to support higher education in Texas, specifically the University of Texas System and the Texas A&M University System.

Q

Qualitative Characteristics

Financial reporting encompasses five qualitative characteristics:

  • Understandability
  • Reliability
  • Relevance
  • Timeliness
  • Consistency and comparability

R

R&D – Research and Development
All research activities (both basic and applied) and all development activities performed by a non-federal entity.
Reciprocal Interfund Activity
Includes loans and interfund services provided and used as sales and purchases of goods and services between funds for a price approximating their external exchange value. Report interfund services provided and used as revenues in seller funds, and expenditures or expenses in purchaser funds. Previously referred to as quasi-external transactions that would be treated as revenues, expenditures or expenses if they involved organizations external to state government.
Reference Rate

The rate to which a derivative instrument’s variable payment is linked. Common reference rates are the:

  • Secured Overnight Financing Rate (SOFR)
  • SIFMA swap index
  • AAA general obligations index
  • Pricing point of a commodity
Regulated Leases
Leases that are subject to external laws, regulations or legal rulings, according to GASB 87, paragraph 42. (For example, the U.S. Department of Transportation and the Federal Aviation Administration regulate aviation leases between airports and air carriers and other aeronautical users.)
Residual Value
The estimated fair value of a capital asset — infrastructure or otherwise — remaining at the conclusion of its estimated useful life.
Restricted Fund Balance
The portion of fund balance that is constrained to specific purposes by external restrictions imposed by creditors, grantors, contributors, laws or regulations of other governments, or through constitutional provisions or enabling legislation. These constraints are legally binding and cannot be changed without the consent of the external party or through formal legal processes.
Restricted Net Position
Assets that have constraints placed on their use. Those constraints are imposed by creditors, grantors, contributors or laws/regulations of other governments or through constitutional provisions or enabling legislation. The restricted net position consists of the restricted assets less:
  • Liabilities
  • Deferred inflows of resources
Retainage
An amount withheld from payment to a contractor or subcontractor until a project milestone is achieved or until the end of a construction project.
Retrospectively
Applying a change in accounting policy or principle to prior periods as if the new policy had always been in use, requiring restatement of past financial statements.
Right to Use Assets
A lessee’s right to use an asset over the life of a contract. The asset is calculated as:

the initial amount of the lease liability
+ (plus)
any lease payments made to the lessor before the lease commencement date
+ (plus)
any initial direct costs incurred
– (minus)
any lease incentives received


Right to Use Lease Income
See Lease Receivable.
Right to Use Lease Liability
See Lease Liability.
Right to Use Lease Receivable
See Lease Receivable.
Right to Use Subscription Liability
See Subscription Liability.
Risk
A condition that gives rise to the potential for loss or harm to an agency. Not all risks are disclosed; only those tied to concentrations or constraints are considered within scope.
RNSS – Restatement Note Submission System
The web application used to electronically submit certain restatement note disclosures to the Comptroller’s office during the AFR process.
RSI – Required Supplementary Information
Information required under GASB to support the basic financial statements. Information includes the Management Discussion and Analysis, budgetary comparison schedules for governmental funds and information on infrastructure assets reported using the modified approach.
RTI – Recurring Transaction Index
An identifier that tells USAS how to post the receiving transaction when funds are passed from one agency to another. The RTI is established by the receiving agency on the Recurring Transaction Profile (55) screen and is used to automate the receiving transaction on behalf of the receiving agency.

S

Sabbatical Leave
Extended period of leave, potentially paid or unpaid, granted to an employee for personal or professional development, and it is accounted for as a form of compensated absence.
Sale Leaseback
Transactions that involve the sale of an underlying asset by the owner and a lease of the property back to the seller (original owner).
SAM – System for Award Management
SAM.gov is the federal government’s official system to register or update a Unique Entity Identification number (UEI), search for Assistance Listing Numbers (ALN), and access public available federal award data.
SBITA – Subscription-Based Information Technology Arrangements
A contract that conveys control of the right to use another party’s (a SBITA vendor’s) information technology (IT) software, alone or in combination with tangible capital assets (the underlying IT assets), as specified in the contract’s term limits in an exchange or exchange-like transaction.
SCA – Service Concession Arrangements

A PPP (Public-Public Partnership or Public-Private Partnership) in which:

  • The operator collects and is compensated by fees from third parties.
  • The transferor:
    • Determines (or can modify or approve which services the operator is required to provide) to whom the operator is required to provide the services and the prices or rates that can be charged for the services.
      –AND–
    • Is entitled to significant residual interest in the service utility of the underlying PPP asset at the end of the arrangement.
SECO – State Energy Conservation Office
SECO is a division under the Texas Comptroller of Public Accounts that serves as the state’s lead agency for energy efficiency.
Section 457 Accounts
A type of tax-advantaged retirement plan with deferred compensation. (IRC 457[b])
Service Cost
The portion of the actuarial present value of projected benefit payments is attributed to a valuation year.
SEFA – Schedule of Expenditures of Federal Awards
The web application used to report the federal financial assistance and federal cost-reimbursement contracts that non-federal entities receive directly from federal awarding agencies or indirectly from pass-through entities.
Shared Funds
Funds statutorily authorized for use by more than one state agency (such as the state highway fund [fund 0006] or the Texas collegiate license plate fund [fund 5015]). The controlling agency is the state agency that receives the major portion of the shared fund and is identified in the Comptroller Manual of Accounts or the Appropriated Fund (D22) profile in USAS in the REPORT ROUTE AGENCY field. The controlling agency is responsible for reporting the entire cash in state treasury balance of the fund on its report. Other balance sheet/statement of net position accounts must only reflect the accounts of the controlling agency. The cash in state treasury (CIST) balance on the non-controlling agency is reclassified as a due from other agencies. Non-controlling agencies report their own activities out of shared funds by reporting actual revenues and expenditures. See CIST/Shared Funds.
Short-Term Lease
A contract that (at the commencement of the contract term) has a maximum possible term of 12 months – including any options to extend, regardless of the probability of being exercised.
Short-Term Subscription-Based Information Technology Arrangements (SBITA)
A contract that (at the commencement of the contract term) has a maximum possible term of 12 months – including any options to extend, regardless of the probability of being exercised. See Subscription-Based Information Technology Arrangements (SBITA).
Single Audit
An organization-wide financial statement and federal awards audit of a non-federal entity that expends at least $1 million in federal funds in one year. The audit is intended to provide assurance to the federal government that a non-federal entity has adequate internal controls in place and is generally in compliance with program requirements.
SLEAP – Special Leveraging Educational Assistance Partnership Program
Federally funded student loan program reported in the SEFA web application.
SOCF – Statement of Cash Flows
A statement explaining the change during the period in cash and cash equivalents regardless of restrictions on their use. The SOCF web application is used for electronic submission of agency cash flow statements to the Comptroller’s office during the AFR process and ensures statewide uniformity of cash flow statement submissions for the ACFR.
SOFR – Secured Overnight Financing Rate
A benchmark interest rate for dollar-denominated derivatives and loans that replaced the London Interbank Offered Rate (LIBOR).
SPA – State Property Accounting
SPA is the official statewide system of records for tracking and reporting capital assets owned by Texas state agencies. It maintains inventory for capitalized, controlled, and inventoried assets, aiding in Annual Financial Reporting (AFR) preparation.
Special Purpose Governments
A government that is legally separate and usually provides a single or limited number of services (for example, school districts, utility authorities).
Special Revenue Fund
A governmental fund type (FT02) used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects.
SPTR – State Pass-Through Reporting
The web application used to submit the state grant pass-through schedule and report state grant money passed between agencies. This generally occurs when an agency has an appropriation with the authority to grant that money to another agency and retains administrative responsibilities for that money.
State Grants and Contracts
This category includes grants and contracts received from state of Texas junior colleges and private universities and those of other states and cities.
State Pass-Through Grants from Other State Agencies and Universities
A state pass-through grant is applied for and received from another agency that had the appropriation with the authorization to grant it to other agencies. The agency received the funds based on meeting specific qualifications. The agency disbursing the grant did not receive any consideration or benefit in exchange for the funds. The disbursing agency records a state grant pass-through expenditure and the receiving agency records a state grant pass-through revenue. These grants include (but are not limited to) Norman Hackerman Advanced Research Program (NHARP), Advanced Research Program (ARP), Remedial Education Program, College Work Study Program and Scholarship Fund for Fifth Year Accounting Students Account received from the Texas Higher Education Coordinating Board (THECB).
Statement of Activities
A statement presenting the operations of the agency in a format that reports the net revenue (or expense) of its individual functions. It presents governmental activities at the level of detail required on the governmental fund statement of revenues, expenditures and changes in fund balances — at a minimum by function.
Statement of Net Position
A statement reporting the difference between (assets + deferred outflows of resources) – (liabilities + deferred inflows of resources) as net position.
Sublease
When the original lessee assigns the leased property to a third party and the original lease agreement remains in effect. It involves three parties, the:
  • Original lessor
  • Original lessee (who becomes the lessor in the sublease)
  • New lessee
Subscription Asset
The software and other information technology (IT) assets included in a SBITA contract.
Subscription Liability
The present value of all payments expected to be made during the subscription term of a SBITA.
Subscription Term
The period during which a subscription to a SBITA remains in effect for a user of a particular service, under the same terms and conditions.
Subsequent Events
Events occurring after the reporting period but before financial statements are issued that may require recognition or disclosure.
Subsidy
A transfer of resources from one party (the provider) to another party (the recipient) for which the provider does not receive equal value in return.
Subsystem of a Network
A group composed of all the assets that make up a similar portion or segment of a network of assets. For example, all roads of the state could be considered a network of infrastructure assets. Interstate highways, state highways and rural roads could each be considered a subsystem of that network.
Suspense Fund
A temporary holding place in accounting for unclassified transactions or funds until a decision can be made about their classification or allocation. A suspense fund is established to account separately for certain receipts pending the distribution or disposal thereof.
Sweep Accounts
Arrangements in which a bank automatically sweeps cash that exceeds the target balance into short-term cash investments.
System Clearing
GL accounts used on generic T-codes as the offsetting debit or credit. A balance in these accounts indicates that the GL is not in balance. For more information, see Procedures to Zero Out Balances in the System Clearing Accounts (GL 9999 and 9992) in the USAS Profile Review and Cleanup Procedures.

T

TANF Program and Early High School Program
Programs such as the Temporary Assistance for Needy Families (TANF) Program and the Early High School Program received from the THECB are applied to tuition of qualified students. Any accruals at fiscal year-end must be reported as accounts receivable/accounts payable.
Termination of Employment
End of an employee-employer relationship that includes both voluntary and involuntary termination.
Total Pension Liability
The portion of the pension plan related to past periods of member services. This portion is reported as the actuarial present value of the projected benefit payments.
Transaction code (T-code)
A three-digit number that defines the system requirements of the accounting event being recorded including the general ledger impact of the entry. For more information, see the USAS T-Code Reference Guide and Chapter 6 Transaction Codes of the USAS User’s Manual.
Transfer
A transfer is any giving of resources (like cash) or reduction of liabilities from one party to another.
Transmittal Letter
A letter accompanying an annual financial report containing information on the report’s context that expresses more subjective information than the MD&A.
Tuition and Fees
This category covers all tuition and fees assessed against students (net of refunds) for educational and general purposes. Tuition and fee exemptions are assessed and reported as revenues even though there is no intention of collection from the student. The amount of such tuition exemptions will be offset as tuition and fee discounts and allowances, allowing the disclosure of net tuition and fees. Any residual is to be offset as scholarship and fellowship expenditures. This income category shall differentiate tuition and fee amounts pledged to revenue bond debt issues.
Tuition Rebates for Certain Undergraduates
A qualified student is eligible for the rebate of a portion of the undergraduate tuition the student has paid as prescribed in Texas Education Code, Section 54.0065.

U

UEI – Unique Entity Identifier
A unique 12-character alphanumeric ID (assigned by SAM.gov) that is the official identifier for doing business with the federal government. Any agency that wants to apply for federal contracts or wants to receive federal funds must register with SAM. The UEI replaced the DUNS number as of April 4, 2022.
Unassigned Fund balance
The portion of fund balance in governmental funds not restricted, committed or assigned to specific purposes.
Unearned Revenue
On the governmental fund financial statements, revenue not expected to be collected within 60 days is not available to liquidate the liabilities of the current fiscal year and is reported as unearned revenue. Unearned revenue also includes cash or other assets received prior to being earned.
Unusual in Nature
A transaction or event that is highly abnormal and not related to typical operations.
Unusual Items
An event or transaction that is not part of normal governmental activities and is significantly abnormal in nature.
Unusual or Infrequent Items
Events and transactions distinguished by their unusual nature or by the infrequency of their occurrence.
USAS – Uniform Statewide Accounting System
USAS is Texas’s official statewide financial accounting system, maintained by the Comptroller of Public Accounts. It handles all governmental accounting for state agencies, including budgeting, expenditures, revenue collection, and financial reporting.
Useful Life
The amount of time an asset is expected to be in service. This timing varies and is based on the agency’s own experience and plans for the asset(s).
USPS – Uniform Statewide Payroll/Personnel System
USPS is a comprehensive system used by state agencies to manage payroll, personnel and employee data.

V

Vulnerability
Exposure to a heightened possibility of loss or harm.