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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

COVID-19 and the CARES Act
Coronavirus State and Local Fiscal Recovery Funds

Purpose of ALN 21.027, Coronavirus State and Local Fiscal Recovery Funds (CSLFRF)

The CSLFRF is administered by the United States Department of Treasury and provides assistance in the form of direct payments to states in order to:

  1. Respond to public health emergencies or the negative economic impacts of COVID-19.
  2. Respond to workers providing essential work during the COVID-19 public health emergency.
  3. Provide government services to the extent COVID-19 caused a reduction in revenues collected.
    Note: The amount of CSLFRF that may be used to provide government services is limited by the dollar amount of the loss.
  4. Make necessary investments in water, sewer or broadband infrastructure.

On Jan. 6, 2022, the Secretary of the Treasury adopted the final rule to implement the requirements of the CSLFRF program. The final rule (31 CFR Part 35; RIN 1505-AC77) for the CSLFRF program took effect on April 1, 2022.

SEFA Reporting

In SEFA’s Schedule 1A, report the sum of all four (4) expenditure categories identified above as ALN 21.027.

COVID-19 Indicator in SEFA

CSLFRF is a COVID-19 relief program. Therefore, the Special Funds COVID-19 indicator must be selected for all ALN 21.027 record entries in SEFA. For more information, see Identifying COVID-19 Funds in SEFA on the COVID-19 and the CARES Act page.

Non-Entitlement Units (NEUs)

Agencies must not report ALN 21.027 expenditures to NEUs in SEFA.

An NEU is a local government that received funds from Texas under ALN 21.027. The NEUs are required to report ALN 21.027 award expenditures in their local government’s SEFA and data collection form. Therefore ALN 21.027 awards from Texas to NEUs are excluded from the Texas statewide SEFA and data collection form.