Reporting Requirements for Annual Financial Reports of State Agencies and Universities

Pass-Through Activity

Miscellaneous Topics
Lost and Foregone Revenue

General

Lost revenue (also called “foregone revenue”) is the revenue the agency expected to receive but did not receive because of an outside event. The amount of revenue that was actually received may have been reduced or eliminated completely because of the event.

The lost revenue is an estimate of the difference between the revenue the agency expected to receive and the revenue the agency actually received.

Reimbursement of Lost Revenue

Federal awards may allow for reimbursement of lost revenue. If lost revenue is an allowable cost, treat the lost revenue like an expenditure in SEFA.

Allowable lost revenue is considered an incurred cost. The allowable cost is the reimbursement of the lost revenue itself. Agencies will record the lost revenue in the SEFA expenditure records.

Refer to the federal program to determine the federal requirements for calculating allowable lost revenue.