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Reporting Requirements for Annual Financial Reports of State Agencies and Universities

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Reporting Requirements for Annual Financial Reports of State Agencies and Universities




Actuarial Accrued Liability
See Automated Budget Evaluation System for Texas.
ACFR Note Reporting & Certification (ANRC)
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.
Access Identification
Accounts Payable
Amounts owed for goods or services actually rendered or provided to the agency by Aug. 31, but 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.
Accumulated Depreciation
The amount of depreciation expense recognized for an asset, or class of assets, to date.
The change in the price of a bond bought at a deep discount to the par value of the bond. Accretion can be thought of as the antonym of amortization.
Accrual Basis
The basis of accounting under which revenues are recorded when earned and expenditures (or expenses) are recorded as soon as they result in liabilities for benefits received, notwithstanding that the receipt of cash or the payment of cash may take place, in whole or in part, in another accounting period.
To record revenues when earned and to record expenditures (or expenses) as soon as they result in liabilities for benefits received, even though the receipt or payment of cash may not take place, in whole or in part, until a subsequent fiscal year.
See Annual Comprehensive Financial Report.
Access Identification — A user’s seven-character (alpha/numeric) code used to access the Comptroller’s mainframe (including systems such as USAS, USPS, SPRS, etc.).
Appropriation Control Officer
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.
See Americans with Disabilities Act.
American depository receipts
Accounting event
See Annual Financial Report.
Any agency, university or component unit that has an agency number.
Agency Fund
A fund consisting of resources received and held by the governmental unit as an agent for others (for example, the child support employee deduction).
Formed or calculated by the combination of many separate units or items; total.
Agency general ledger account
American Institute of Certified Public Accountants
Adjustment journal entry
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.
American Recovery and Reinvestment Act (ARRA)
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.
Americans with Disabilities Act
The Americans with Disabilities Act of 1990 (ADA) was enacted by the U.S. Congress and signed into law on July 26, 1990 by President George H. W. Bush and later amended with changes effective Jan. 1, 2009. The ADA is a wide-ranging civil rights law that prohibits (under certain circumstances) discrimination based on disability. It affords similar protections against discrimination to Americans with disabilities as the Civil Rights Act of 1964, which made discrimination based on race, religion, sex, national origin and other characteristics illegal. Disability is defined by the ADA as “…a physical or mental impairment that substantially limits a major life activity.” The determination of whether any particular condition is considered a disability is made on a case-by-case basis. Certain specific conditions are excluded as disabilities (such as current substance abuse and visual impairment that is correctable by prescription lenses).
Allocating in a systematic manner the cost of an intangible asset over its useful life.
Annual Financial Report (AFR)
The financial report of the agency’s financial condition legislatively required to be submitted to the Texas Comptroller of Public Accounts.
Annual Comprehensive Financial Report (ACFR)
A statewide financial report that encompasses all funds and component units of the state of Texas, prepared in conformance with Generally Accepted Accounting Principles (GAAP) and Governmental Accounting Standards (GASB) requirements.
Annual Required Contribution (ARC)
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.
See ACFR Note Reporting & Certification (ANRC).
Accounting Principles Board
Appropriated Funds
Legal funds created in the state’s 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.
Accounting Policy Statement
See Annual Required Contribution (ARC).
Asset retirement obligation
See American Recovery and Reinvestment Act.
Probable future economic benefits obtained or controlled by a particular agency as a result of past transactions or events.
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.
Automated Budget Evaluation System for Texas (ABEST)
The Legislative Budget Board’s system for maintaining and evaluating the state’s appropriation budgets. ABEST produces reports used by agencies to reconcile expenditures posted in USAS to appropriation authority.
Appropriation year


Build America Bonds
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 Conversion (BC)

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

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

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.
See Basis conversion.
Benefit Replacement Pay (BRP)
BRP 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.
The method of reporting the financial data of a component unit in a manner similar to the presentation of the primary government.
Bond Reporting System (BRS)
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.
See Benefit Replacement Pay.
See Bond Reporting System (BRS).
Balance type
See Business-Type Activity.
Build America Bonds (BABs)
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.
Business-Type Activity (BTA)
Commercial-type activities of a government 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.


Capital Asset/Asset Balance (CAAB)
See Capital Assets Note Submission System (CANSS).
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 capitalization thresholds.
Capital Assets Note Submission System (CANSS)
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 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.
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 in bank (CIB)
Reflects the total bank balance held at a specific period in time.
Cash in State Treasury (CIST)
Reflects all funds held with the Comptroller’s Treasury Operations Division that does not include general revenue funds or reimbursements due on an agency’s books.
Cash Management Improvement Act (CMIA)
Provides general rules and procedures for the efficient transfer of federal financial assistance between the federal government and states.
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’s treasury. The Cash Report is prepared on a fiscal year basis with a hard cash close on Aug. 31 of each fiscal year.
Catalog of Federal Domestic Assistance (CFDA)
A compilation of federal programs, projects, services and activities providing assistance or benefits to the American public. It contains financial and nonfinancial assistance programs administered by departments and establishments of the federal government.
See Catalog of Federal Domestic Assistance above.
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.
See Cash in Bank.
See Comprehensive Implementation Guide.
See Construction in Progress.
See Cash in State Treasury.
See Current liabilities.
See Cash Management Improvement Act.
See Change in Net Position.
See Comptroller Object Code.
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.
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.
Comprehensive Implementation Guide (CIG)
The annual Comprehensive Implementation Guide (CIG) is issued by GASB. GASB issues separate implementation guides that accompany major GASB standards — from which the guidance in all the separate guides is eventually combined and issued as the annual CIG.
Comptroller Object Code (COBJ)
COBJs record revenue and expenditure data for reporting purposes in USAS.
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.
  • 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.
Construction in Progress (CIP)
The economic construction activity status used for substantially incomplete assets.
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.
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 system (SPA).
Controlling Agency
The agency required to reconcile the entire cash activity for a fund and report the cash in state treasury balance on their 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.
Continuing Professional Education
Component Unit & Related Organizations (CURO)
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 (CL)
Liabilities payable within a relatively short period of time, usually no longer than one year.
Current Year


See Detailed Accounting Financial Report.
Data Universal Numbering System (DUNS)
The Office of Management and Budget (OMB) requires the reporting of a DUNS number on all direct expenditures of federal awards. A DUNS number is a unique nine-digit identification number provided by Dun & Bradstreet (D&B) and serves as the universal identifier for federal grants and cooperative agreements. The DUNS number supplements other identification numbers. Agencies must have a different nine-digit DUNS number for each physical location/different address as well as each legal division that may be co-located.
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 government that is applicable to a future fiscal year.
Deferred Outflows of Resources
The consumption of net assets by the government that is applicable to a future fiscal year.
Deposit and Investment Note Submission System (DINSS)
The web application used to electronically submit certain GASB disclosures to the Comptroller’s office during the AFR process and ensure uniformity of these disclosures for the ACFR. DINSS automatically extracts USAS general ledger (GL) account balances for deposits and investments.
Allocating in a systematic manner the cost of a tangible capital asset over its useful life.
Contracts whose value depends on, or derives from, the value of an underlying asset, reference rate or index.
Detailed Accounting Financial Report (DAFR)
The USAS reports used for financial reporting.
See Deposit and Investment Note Submission System (DINSS).
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. The discount rate is used to calculate an employer’s total pension liability.
Disproportionate Share Program (DSP)
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.
United States Department of Defense
See Disproportionate Share Program.
See Data Universal Numbering System.
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.


Early Retiree Reinsurance Program (ERRP)
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.
Earned Federal Funds
Moneys 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 of 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.
See Employer identification number.
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.
Employer identification number (EIN)
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 — formerly known as the Federal Tax Identification Number (FEIN).
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 should also be established for actual contracts awarded. Anticipated contracts or contracts under negotiation are not legal commitments and should not be reported as encumbrances.
Enterprise Fund
Proprietary fund type 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).
See Early Retiree Reinsurance Program.
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.
Decreases in net financial resources under the current financial resources measurement focus not properly classified as other financing uses.
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 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.
Extraordinary Items
Extraordinary items are events and transactions distinguished by their unusual nature and by the infrequency of their occurrence.


Fair Labor Standards Act (FLSA)
The FLSA establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in federal, state and local governments.
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.

See Financial Accounting Standards Board.
See Federal Deposit Insurance Corporation below.
Federal Deposit Insurance Corporation (FDIC)
Federal corporation that insures up to $250,000 per deposit.
Federal Family Education Loan Program (FFELP)
Federally funded student loan program reported in SEFA.
Federal Pell Grant Program (PELL)
Federally funded student loan program reported in SEFA.
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.
Federal Savings and Loan Insurance Corporation (FSLIC)
Federal corporation that insures up to $250,000 per deposit.
Federal Supplemental Educational Opportunity Grants (FSEOG)
Student Financial Aid (SFA) Title IV funds include programs such as Pell and Federal Supplemental Educational Opportunity Grants (FSEOG).
See Federal Family Education Loan Program.
See Fund Financial Statements.
Fiduciary Activities
Activities in which the government acts in a fiduciary capacity, either as an agent or trustee, for parties outside the government (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 governmental unit in a fiduciary capacity for an external party, ordinarily as agent or trustee.
Financial Accounting Standards Board (FASB)
Authoritative accounting and financial reporting standard-setting body for business enterprises and nonprofit organizations.
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.
See Fair Labor Standards Act.
Fiscal Policies and Procedures
Full reporting agency
Financial Reporting section of the Comptroller’s office.
See Federal Supplemental Educational Opportunity Grants.
See Federal Savings and Loan Corporation.
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 Financial Statements (FFS)
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.
Fund Type (FT)
A classification of funds that are similar in purpose and character.
Funds Held for Others
Consists of 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).


General Appropriations Act
See Generally Accepted Accounting Principles.
See Governmental Accounting Standards Board.
General revenue consolidated agency
General Fund
A fund used to account for all transactions of a governmental unit that are not accounted for in another fund.
General Ledger Account
General ledger accounts record all financial transactions throughout the period.
General Obligation (GO) 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.
General Revenues

All revenues are general revenues unless they are required to be reported 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 reporting government’s citizenry not restricted to be used for specific programs.
  • Revenues financed by the government’s taxpayers (from all taxpayers, regardless if they benefit from a particular program).
  • Revenues financed by the government itself (such as investment revenue, including earnings from endowments or permanent fund investments) that can be used to finance general fund programs.
Generally Accepted Accounting Principles (GAAP)
Conventions, rules and procedures that serve as the norm for the fair presentation of financial statements.
See Group Insurance Program.
General Ledger
Government-Wide Financial Statements (GWFS)
Financial statements that incorporate all of a government’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.
Governmental Accounting Standards Board (GASB)
The ultimate authoritative accounting and financial reporting standard-setting body for state and local governments.
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).
Group Insurance Program (GIP)
Group insurance managed by the Employees Retirement System of Texas for state employees and families, with the exception of the self-insured University of Texas System and Texas A&M University System.
See General Revenue.
GR Reconciliation (GR Recon)
The web application used to electronically submit the General Revenue Certification to the Comptroller’s office during the AFR process. The General Revenue Certification for an agency 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 the ACFR.
GAAP Source/Object
See Government-Wide Financial Statements.


See Higher Education Assistance Fund.
Health Professions Student Loans (HPSL)
Federally funded student loan programs reported in SEFA.
Higher Education Assistance Fund (HEAF)
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.
See Health Professions Student Loans.


Interbank Offering Rate (IBOR)
The interest rate that banks in the same jurisdiction charge one another for short-term, interbank loans.
Internal Service Fund (ISF)
A fund established to finance and account for services and commodities furnished by a designated department or agency to other departments and agencies within a single governmental unit, or to other governmental units.
A security or other asset that (a) a government holds primarily for the purpose of income or profit and (b) has a present service capacity based solely on its ability to generate cash or to be sold to generate cash. See GASB 72.
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.
See Internal Service Fund above.
Interagency Transaction Voucher.


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 should 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.
See Legislative Budget Board.
See Leveraging Educational Assistance Partnership Program.
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 for a period of time 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 Note Submission System (LNSS)
The web application used to electronically submit lease obligations to the Comptroller’s office during the AFR process.
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.
Legislative Budget Board (LBB)
The permanent joint committee of the Texas Legislature that develops budget and policy recommendations for legislative appropriations for all agencies of state government. The LBB completes fiscal analyses for proposed legislation and conducts evaluations and reviews for the purpose of identifying and recommending changes that improve the efficiency and performance of state and local operations and finances.
Leveraging Educational Assistance Partnership Program (LEAP)
Federally funded student loan program reported in SEFA.
London Interbank Offered Rate
See Lease Note Submission System.
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’s 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’s treasury) should only be deposited into the state’s treasury local operating fund to the extent funds are needed for payment of expenditures.
London Interbank Offered Rate (LIBOR)
The average interbank interest rate at which a selection of banks on the London money market are prepared to lend to one another.
Long-Term Liabilities
Liabilities with a maturity of more than one year after fiscal year-end.
Long-Term Liability Note (LTLN)
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.


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 extraordinary 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.
Management’s Discussion and Analysis (MD&A)
Narrative information, in addition to the basic financial statements, in which management provides a brief, objective and easily readable analysis of the government’s financial performance for the fiscal year and its financial position at fiscal year-end. MD&A is required by GASB 34 for state and local governments to discuss the current fiscal year results in comparison with the prior fiscal year, with emphasis on the current fiscal year. The narrative should be a fact-based analysis discussing the positive and negative aspects of the comparison with the prior fiscal year. The analysis should focus on the primary government.
Master Lease Purchase Program (MLPP)
A lease revenue financing program established in 1992, primarily to finance capital equipment acquisitions by state agencies.
See Management’s Discussion and Analysis.
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.
See Master Lease Purchase Program.
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.


National Council of Governmental Accounting (NCGA)
Immediate predecessor of the Governmental Accounting Standards Board as the authoritative accounting and financial reporting standard setting body for state and local governments.
See National Council of Governmental Accounting.
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 and deferred inflows of resources. Net position is displayed in three components: (a) net investment in capital assets; (b) restricted; and (c) 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.
Norman Hackerman Advanced Research Program (NHARP) is 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.
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-Reciprocal Interfund Activity
Includes transfers and reimbursements. Reimbursements are eliminated in the ACFR and therefore are not reported as interfund activity on the financial statements. Transfers are reported as the final item before change in net position.
Non-Recycled Loan Repayments
Loan repayments that are not applied back into the loan program but are put to other uses.
Non-Operating Expenses
Expenses incurred for the performance of activities not directly related to supplying the basic service by a governmental enterprise. An example of a non-operating expense is the interest paid on outstanding revenue bonds.
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.


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.
See Other Notes and Disclosures (ONDSS).
See Other Post-Employment Benefits.
Operating Expense
These expenses are incurred as a direct result of the nature of the activity being reported.
Operating Revenue
Revenues derived from the nature of the activity being reported (i.e., tax revenue or assessed fees).
Optional Retirement Program (ORP)
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.
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.
See Optional Retirement Program.
Other Contracts and Grants
This category includes contracts and grants received from city and county agencies, organizations or individuals.
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.
Other Notes and Disclosures (ONDSS)
The web application used to electronically submit note disclosures to the Comptroller’s office during the AFR process.
Other Post Employment Benefits (OPEB)
Postemployment benefits other than pension benefits (such as life insurance and health care insurance).


Parity Issue
A parity debt (an issued debt [bond]) with equal rights to claim as other debt (bonds) already issued.
Payment Distribution Type (PDT)
Functions as the general payment instructions to the USAS system
Payment Provisions
In derivatives, specifies a fixed or determinable settlement to be made if the underlying behaves in a specified manner.
See Program Cost Account.
See Payment Distribution Type.
Pension Trust Fund
A fiduciary fund type 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 for purposes that support the reporting government’s programs — that is, for the benefit of the government or its citizenry.
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 for the purpose of making change or paying small obligations for which the issuance of a formal voucher and check would be too expensive and time consuming.
See Federal Pell Grant Program.
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
A state government or general-purpose local government. Also, a special-purpose government with a separately elected governing body that is legally separate and fiscally independent of other state or local governments.
Private Purpose Trust Fund
A fiduciary fund type 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.
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 could 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 Cost Account (PCA)
A five-digit number in USAS that allows updates to the Strategic/Program Structure for the purpose of tracking revenues and expenditures for agency goals, objectives and strategies — as well as administrative and support costs and other activity.
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 government’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 government’s taxpayers or citizenry or be a subset of it.
  • Revenues financed by parties outside the reporting government’s citizenry that are restricted to be used for specific programs. This group includes other governments 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
Business-like or commercial-type funds of a state or local governmental unit (sometimes referred to as income determination).
Permanent University Fund


Recurring Transaction Index (RTI)
An identifier that tells USAS how to post the receiving transaction when funds are being 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.
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
In derivatives, the rate to which a derivative instrument’s variable payment is linked. Common reference rates are LIBOR, the SIFMA swap index, the AAA general obligations index and the 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.)
Required Supplementary Information (RSI)
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.
Residual Value
The estimated fair value of a capital asset — infrastructure or otherwise — remaining at the conclusion of its estimated useful life.
Restatement Note Submission System (RNSS)
The web application used to electronically submit certain restatement note disclosures to the Comptroller’s office during the AFR process.
Restricted Net Position
The component of the difference between assets, deferred outflows of resources, liabilities and deferred inflows of resources that consists of assets with constraints placed on their use that are either externally imposed by creditors, grantors, contributors or laws/regulations of other governments or through constitutional provisions or enabling legislation.
Right to Use Assets
The right to use asset is a lessee's right to use an asset over the life of a lease. 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.
See Restatement Note Submission System (RNSS).
See Required Supplementary Information.
See Recurring Transaction Index.


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).
Schedule of Expenditures of Federal Awards (SEFA)
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.
State Energy Conservation Office
Section 457 Accounts
A type of tax-advantaged retirement plan with deferred compensation. (IRC 457[b])
See Schedule of Expenditures of Federal Awards.
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 should 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.
Short-Term Lease
A contract (at the commencement of the lease term) that has a maximum possible term of 12 months – including any options to extend, regardless of the probability of being exercised.
See Special Leveraging Educational Assistance Partnership Program.
Special Items
Significant transactions or other events within the control of management that are unusual in nature or infrequent in occurrence.
Special Leveraging Educational Assistance Partnership Program (SLEAP)
Federally funded student loan program reported in the SEFA web application.
See Statement of Cash Flows (SOCF).
Special Revenue Fund
A governmental fund type 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.
See State Grant Pass-Through Reporting.
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 Reporting (SPTR)
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 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 (known as “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
Presents the operations of the government in a format that reports the net (expense) revenue 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 Cash Flows (SOCF)
The web application 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.
Statement of Cash Flows
Explains the change during the period in cash and cash equivalents regardless of restrictions on their use.
Statement of Net Position
Reports the difference between (assets + deferred outflows of resources) – (liabilities + deferred inflows of resources) as net position.
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
Subsystem of a Network
Composed of all assets that make up a similar portion or segment of a network of assets. For example, all the roads of a government 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 fund 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.


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.
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.
Transmittal Letter
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.


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.
Unique Entity Identifier (UEI)
A unique 12-character (alpha numeric) ID assigned by System for Award Management (SAM ). The UEI replaced the Data Universal Numbering System (DUNS) as the ID number assigned and used to do business with the federal government. State agencies and institutions of higher education that receive direct federal awards or pass-throughs from recipients of direct federal awards must have an assigned UEI.
Uniform Statewide Accounting System
Useful Life
The amount of time an asset is expected to be in service. This timing varies and is based on the government’s own experience and plans for the assets.
Uniform Statewide Payroll/Personnel System