Reporting Requirements for Annual Financial Reports of State Agencies and Universities
Pass-Through Activity
COVID-19 and the CARES Act
ESF and HEERF
Background
ALN 84.425, Education Stabilization Fund (ESF) and Higher Education Emergency Relief Fund (HEERF)
The United States Department of Education (USDE) was allocated COVID-19 relief funds from the CARES Act, CRRSA Act and ARP under a single federal program, (the ESF), ALN 84.425. USDE divided the funding allocated under ALN 84.425 into sections:
- Section 1: Higher Education Stabilization Fund (ESF)
- Section 2: Higher Education Emergency Relief Fund (HEERF)
- Neither Section 1 nor Section 2
COVID-19 Indicator in SEFA
All ALN 84.425 subprograms are related to COVID-19 relief. Therefore, the Special Funds COVID-19 indicator must be selected for all ALN 84.425 subprogram record entries in SEFA. (See COVID-19 and the CARES Act, “Identifying COVID-19 Funds in SEFA”).
Education Stabilization Funds (ALN 84.425) Subprograms
Each section of the ESF contains multiple subprograms. Each subprogram has unique federal compliance requirements. Refer to the most current Compliance Supplement— 2 CFR Part 200 Appendix XI, available from the White House’s Office of Federal Financial Management webpage, which will provide ALN 84.425 subprogram compliance requirements.
Agencies must report SEFA entries for ALN 84.425 by subprogram in the format 84.425Z, where “Z” represents the alpha character of the subprogram (see Data Elements). ALN 84.425 subprograms are listed by section in the tables below.
Section 1: ESF Subprograms
The Section 1, ESF subprograms, are generally focused on elementary and secondary education.
| ALN | Subprogram Name |
|---|---|
| 84.425A | Education Stabilization Fund – State Educational Agency (Outlying Areas) (ESF-SEA) |
| 84.425C | Governor’s Emergency Education Relief (GEER) Fund |
| 84.425D | Elementary and Secondary School Emergency Relief (ESSER) Fund |
| 84.425H | Education Stabilization Fund – Governors (Outlying Areas) (ESF-Governors) |
| 84.425R | Coronavirus Response and Relief Supplemental Appropriations Act, 2021 –Emergency Assistance to Non-Public Schools (CRRSA EANS) |
| 84.425U | American Rescue Plan – Elementary and Secondary School Emergency Relief (ARP ESSER) |
| 84.425V | American Rescue Plan – Emergency Assistance to Non-Public Schools (ARP EANS) |
| 84.425X | American Rescue Plan – Outlying Areas State Educational Agency (ARP-OA SEA) |
Section 2: HEERF Subprograms
The Section 2, HEERF subprograms, are generally focused on higher education.
| ALN | Subprogram Name |
|---|---|
| 84.425E | Higher Education Emergency Relief Fund (HEERF) Student Aid Portion |
| 84.425F | HEERF Institutional Portion |
| 84.425J | HEERF Historically Black Colleges and Universities (HBCUs) |
| 84.425K | HEERF Tribally Controlled Colleges and Universities (TCCUs) |
| 84.425L | HEERF Minority Serving Institutions (MSIs) |
| 84.425M | HEERF Strengthening Institutions Program (SIP) |
| 84.425N | HEERF Fund for the Improvement of Postsecondary Education (FIPSE) Formula Grant |
| 84.425P | HEERF Institutional Resilience and Expanded Postsecondary Opportunity (IREPO) Program |
| 84.425S | HEERF Supplemental Assistance to Institutions of Higher Education (SAIHE) Program |
| 84.425T | HEERF Supplemental Support Under American Rescue Plan (SSARP) Program |
Neither Section 1 nor Section 2
These subprograms are classified as “Neither Section 1 nor Section 2”:
| ALN | Subprogram Name |
|---|---|
| 84.425B | Discretionary Grants: Rethink K-12 Education Models Grants (ESF-REM) |
| 84.425G | Discretionary Grants: Reimagining Workforce Preparation Grants (ESF-RWP) |
| 84.425W | American Rescue Plan – Elementary and Secondary School Emergency Relief – Homeless Children and Youth |
| 84.425Y | American Rescue Plan — American Indian Resilience in Education (AIRE) |
GEER Fund (ALN 84.425C) Pass-through from Agency 781
GEER pass-through funds received from The Texas Higher Education Coordinating Board (THECB, agency 781) and expended directly must be entered in the SEFA web application as:
- ALN: 84.425C
- Special Funding: COVID-19
- Pass-through Revenue from Agency 781
- Direct Expenditure
Do not enter interest earned on GEER funds in SEFA. Interest earned on GEER funds is a form of Earned Federal Funds (EFF). EFF are not included in federal revenue in the operating statement and are not recorded in SEFA. Interest earned on GEER funds must be returned to agency 781. Coordinate with agency 781 to determine due-to/ due-from timing and amounts.
Refer to THECB’s GEER Frequently Asked Questions for more information about GEER funds passed-through from agency 781.
HEERF (Section 2) Lost and Foregone Revenue
Allowable Lost and Foregone Revenues that are allocable to the HEERF subprograms are considered incurred costs. Agencies are not required to assign specific costs or expenses to estimate lost and foregone revenue. The allowable cost for the HEERF subprogram is the reimbursement of the lost revenue itself.
Examples of HEERF lost revenue include:
- Academic Sources:
- Tuition, fees and institutional charges (including unpaid student accounts receivable or other student account debts)
- Room and board
- Enrollment declines (including reduced tuition, fees, and institutional charges)
- Supported research
- Summer terms and camps
- Auxiliary Services Sources:
- Cancelled ancillary events
- Food service disruption
- Dormitory services
- Childcare services
- Facility use
- Bookstore revenue
- Parking revenue
- Lease revenue
- Royalties
- Other operating revenue
Agencies record the incurred costs related to lost and foregone revenue in the SEFA expenditure records — recording in SEFA no earlier than the date of the award or any substantial amendments to the award.
For example: if in January 2024, the agency receives an amendment to a HEERF award that allows the agency to record lost revenue beginning in March 2023, the agency reports the lost revenue in its fiscal 2024 SEFA records.
Do not report lost revenue for ALN 84.425E. Reimbursement of lost revenue is not an allowable use of the HEERF Student Aid portion, which must be used to provide financial aid grants to students.