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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Reporting Requirements for Annual Financial Reports of State Agencies and Universities


Frequently Asked Questions

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Capital Assets

For a capital asset that is built in phases, is it ok to record construction in progress (CIP) for a cost incurred related to a past project phase now recorded as a capital asset since the cost is related to the completed CIP project phrase? [+]

Yes. If the related phase has moved from construction in progress (CIP) to capital assets, the incurred cost is recorded as a capital asset. Contact your SPA analyst with project phase questions.

Discrete Component Units and Statement of Cash Flows

Is a statement of cash flows required for an agency's proprietary component unit? [+]

No. A statement of cash flows is not required for discrete component units.

Default Fund

Our agency made an entry to remove a deposit that went to the default fund; however, the entry removed cash from another fund instead of the default fund. Will a due from/due to USAS entry remove the deposit that remains in the default fund? [+]

Yes. Record a due from/due USAS entry. For more information, see Due From/ Due to Within Same Agency.

Exhibit I

If compensable leave liability is reported in Note 5, does it also need to be reported in Exhibit I? [+]

Yes. Compensable leave liability is reported in Exhibit I as shown on the Agency Template Exhibit I located in the Templates & Sample Exhibits. The amounts tie to Note 5 balances. For additional information, see Employee Compensable Leave.

Should agencies include capital asset adjustments and long-term liability adjustments within Exhibit I since they are reported in Notes 2 & 5? [+]

Yes. They should be included in your combined Exhibit I, as the exhibit notates. The amounts tie to Note 2 and Note 5 balances. Unless you are an agency with independent audits required by statute, the Comptroller’s Financial Reporting section does not require these exhibits as a part of the AFR submission package and does not reconcile them to USAS or the notes. These exhibits are provided for agency reporting needs.

Fund Balance Allocation

Is there an additional report that can be used to verify if entries were posted correctly for unrestricted and restricted fund balances other than the DR110 — Review Fund Balances at the GAAP Fund Level (BS,SNA-8580) report located on FMQuery–SIRS in the AFR Desk Review menu? [+]

Yes. The DAFR8580 at the D23 fund level (4) is post-close and shows the allocated ending fund balance.

According to GASB 54, certain fund balances should be classified as unassigned. However, on the DR110 report, some of the same funds also have restricted balances. Are there any working papers to help classify those amounts to fund balance balance-unassigned? [+]

Yes. Agencies can use the following Working Papers templates to allocate fund balances:

  • Fund Balance Governmental Activities, Allocating FT01 (Excel)
  • Fund Balance Governmental Activities, Allocating FT02, FT03 and FT04(Excel)
  • Fund Balance Governmental Activities, Allocating FT19 (Excel)

GR Reconciliation

Our agency has determined that the difference between Calc I and Calc II is the 20XX judges supplemental salary increase. How do we correct the difference? [+]

Enter salary increase expenditures on Salary Increase Line 200700 in the GR Reconciliation web application, on the Salary Increase – Column I. For additional information, see Salary Increase – Column I.

Note 6 – Bonded Indebtedness

For a bond that was partially defeased and partially refunded in this reporting year, should the defeased/refunded par value be reported as current year principal on the Principal and Interest screen in the BRS web application? [+]

No. Once bonds are paid off, refunded, defeased or early extinguished, they are no longer reported as a liability of the agency. The only remaining requirement for any of the refunded/defeased bonds is to report the outstanding principal balance that is paid by your escrow agent subsequent to year-end. The purpose of the Principal and Interest screen in the BRS web application is to provide the information for all remaining principal (the agency’s liability) and associated interest by future fiscal year.

Schedule 2E Defeased Bonds Outstanding

What amount is used for “par value outstanding” as of August 31, 20CY? Do we use the same amount as last year –or– do we need to consider payments made against it during the current fiscal year? If so, how can we find out what those payments were, since we didn’t make them? [+]

The amount reported is the amount of par value that has still not been paid to the bondholders as of the reporting date.

When some or all of a bond issue is refunded, it is possible that the first call date of the bonds has not been reached. Payment of principal and interest continues to be made on these refunded bonds until the bonds can be called or maturity of the bond occurs. At the time of refunding, sufficient money was placed with an escrow agent to make all required interest payments until maturity (or call) of each bond not yet paid. When that event occurs, principal on the bond is made by the escrow agent.

Your bond financial advisor can assist you in confirming the amount (par value) that was still outstanding each August 31 for each refunded issue not yet repaid to the bond holders. The amount is less from year-to-year if maturity was reached on some of the bonds being held by the escrow agent. This disclosure is required because your agency is still secondarily responsible for the payments to the bond holders in the event the escrow agent does not pay. This event is highly unlikely, but could happen.

Note 8 – Leases

For this reporting fiscal year, do we report the operating lease payments in the LNSS web application under operating lease payments? [+]

Yes. These are reported in the LNSS web application.

For a new lease (obtained during this reporting fiscal year but will not be active until the next reporting fiscal year) do we include the new lease amount for the next five years in the LNSS web application under future payments for this reporting year? [+]

No. Since the new lease does not begin until the next reporting fiscal year, include the future lease payments for the next five years in Note 8. Do not record an amount due on the financial statements for this new lease in the current reporting fiscal year in the LNSS web application.

Petty Cash

Petty Cash Account (APS 010) (FPP A.044) instructs agencies to process warrant cancellations with T-code 632. Why am I receiving a USAS error when using petty cash GL accounts with T-code 632? [+]

T-code 632 does not allow petty cash GL accounts. To process the warrant cancellation entry using T-code 632, contact your financial reporting analyst to temporarily allow the original petty cash GL account on the Trans Code Options Profile (28B) screen for T-code 632. For more information, see Petty Cash.

Pass-Through Activity

What is the proper course of action if an agency determines (during the current reporting fiscal year) that federal realize revenue and/or expense was under/overstated in the prior reported fiscal year? [+]

There are no restatements for federal revenue or SEFA.

  • For direct federal revenue — Reduce the current amount of revenue received and return that amount to the federal government. Record the offset to federal payable.
  • For pass-throughs — Reduce the pass-through amount for the current reporting fiscal year. If there is no activity for either agency for the current reporting fiscal year:
    • The receiving agency must return the revenue to the original sending agency.
    • The sending agency must return the excess to the federal agency or adjust its current reporting fiscal year draws against that CFDA number. If the prior reporting fiscal year was understated, include the amount understated in the current reporting fiscal year activity.

Are loan programs that require institutional contributions (such as matching funds) reported within the SEFA federal loans? [+]

Only report federal funds related to the loan program. Do not report the portion of loans that are distributed using institutional contributions. For more information, see Federally Funded Loan Programs.

For student loans, does an agency stop reporting new loans once federal funds have been disbursed?

For example: $200K federal funds are received and the entire amount was disbursed in Year 1; therefore $200K was reported for new loans. In year 2, interest and payments were made; therefore another $10K of those funds was loaned.

Are the interest and payments reported in the SEFA? How do I differentiate the amount that was loaned with federal repayments and the amount that was loaned with interest? [+]

Earned federal funds not received from the federal government are included as interest income or another appropriate category. Differentiating the amounts loaned with federal repayments from that loaned with interest is something agencies determine and document internally. For more information, see Earned Federal Funds vs. Federal Funds.

Is SEFA Note 7 (Federal Deferred Revenue) optional for universities? [+]

Yes. Universities are exempt from SEFA Note 7. For more information, see Note 7: Federal Deferred Revenue.

If the CFDA number cannot be identified, is it ok to use a generic CFDA number? [+]

Generic CFDAs are only allowed as a last measure. The agency must exhaust every avenue of communication with the federal agency in an effort to identify the correct CFDA. For more information, see SEFA Required Data.

How do I enter non-monetary donations in the SEFA web application? [+]

On the Notes menu, enter non-monetary donations in Note 1-Non-Monetary Assistance and include a description of the donation as well as the CFDA number and amount.

Glenn Hegar
Texas Comptroller of Public Accounts
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