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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

Pass-Through Activity

Federal Funded Loans/Grants
Federally Funded Loan Programs

Federally funded loans are included in SEFA. Loans made from federal funds are reported in SEFA at the value of the federally guaranteed portions and the portion of loans disbursed during the year. Also included in SEFA are administrative costs recovered from the federal government under the student loan programs.

Student Loan Programs

Federally funded student loan programs reported in SEFA include:

  • 84.032 Federal Family Education Loan Program (FFELP)*
  • 84.038 Federal Perkins Loan Program (Perkins)*
  • 84.268 Federal Direct Student Loans (Direct Loans)
  • 93.108 Health Education Assistance Loans (HEAL)*
  • 93.264 Nursing Faculty Loan Program (NFLP)
  • 93.342 Health Professions Student Loans (HPSL), including Primary Care Loans and Loans for Disadvantaged Students
  • 93.364 Nursing Student Loans
  • 93.408 ARRA – Nursing Faculty Program*

* These program have been phased out as a federal program that originates loans. A sizeable loan portfolio still exists and certain schools may have currently enrolled students with active federal loans.

New Loans

New loans made during the fiscal year by agencies are reported as increases in loans receivable and decreases in cash on the balance sheet. New loans made under the federally funded student loan programs above do not flow through the operating statement. Therefore, they are a reconciling item for the reconciliation in SEFA Note 2. Agencies also report all new loans processed in SEFA Note 3a.

Administrative Costs

Administrative costs recovered from the federal government are reported as federal revenue on the operating statement. In accordance with NACUBO’s GASB 35 Implementation Guide (Question 41), facility and administrative (indirect) cost recoveries associated with exchange transactions are recorded as operating revenues and reported as such in the statement of revenues, expenses and changes in net position. Facilities and administrative cost recoveries associated with nonexchange transactions are recorded as nonoperating revenues. Therefore, they are not reconciling items for the reconciliation in SEFA Note 2. Agencies also report all administrative costs recovered in SEFA Note 3a.

Specific reporting requirements pertaining to the Federal Family Education Loan Program (FFELP) are:

  • FFELP made by the Texas Higher Education Coordinating Board (THECB) to students enrolled at universities, referred to as FFELP Lender programs, are reported in THECB’s SEFA as federal revenue and expenditures. The funds must be reported at the value of the federal guaranteed portion of the loans made during the year using ALN 84.032-L. These funds must be designated with the “L” qualifier to note that they relate to the FFELP Lender program. The FFELP Lender program is not included in the Student Financial Assistance (SFA) cluster. In addition, THECB is the only agency that utilizes ALN 84.032-L. See the next bullet for treatment of FFELP funds for agencies other than THECB.
  • Universities reporting the receipt of funds for the FFELP program directly from the federal government must use ALN 84.032 under the SFA cluster. These amounts must not include funds flowed through the university related to the FFELP Lender program administered by THECB. Coordination is required to ensure that FFELP Lender loans received from the THECB are not reported in universities’ SEFAs.
  • New loans processed related to FFELP (ALN 84.032 and ALN 84.032-L) are recognized as reconciling items between SEFA and the financial statements in SEFA Note 3a because new loans processed are reported in SEFA as revenue and expenditures but not in the financial statements.

Texas Water Development Board Loan Programs

The Texas Water Development Board administers and reports two revolving loan programs funded by federal capitalization grants in its SEFA:

  • 66.458 Capitalization Grants for Clean Water State Revolving Funds
  • 66.468 Capitalization Grants for Drinking Water State Revolving Funds

Texas Public Finance Authority Loan Programs

The Texas Public Finance Authority (TPFA) administers and reports a federally funded credit enhancement program for charter school bonds — 84.354 Credit Enhancement for Charter School Facilities. The federal receipts under this program are reported in TPFA’s SEFA.

Comptroller State Energy Conservation Office Loan Program

The State Energy Conservation Office administers and reports a federally funded State Energy Program (SEP) to maximize energy efficiency — 81.041 State Energy Program. The federal receipts under this program are reported in the Comptroller State Energy Conservation Office’s SEFA.