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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

SEFA – Required Data

SEFA captures the federal funds expended by an agency. The expenditures for each of the federal financial assistance programs are presented in SEFA on the accounting basis as presented on the fund financial statements. For agencies with governmental funds, expenditures are presented on the modified accrual basis. For agencies with proprietary or fiduciary funds, expenditures are presented on the full accrual basis. Cash basis is not permitted for SEFA reporting.

Although inclusion of a hard copy SEFA is not required as a part of the AFR submission package, the following data must be provided within the SEFA web application in order to comply with Uniform Guidance requirements.

  1. Identify all federal assistance received by the federal grantor agency. Use the federal program title and ALN available on the Assistance Listing page of the SAM.gov website. If the ALN is not available, contact the federal agency to determine the correct number. If unsuccessful, use the federal agency’s two-digit prefix number followed by a period and three zeros. This may result in an audit finding; therefore, the agency must make every effort to identify the correct ALN. It is the agency’s responsibility to maintain documentation of its reasonably exhausted efforts to secure a valid ALN for audit purposes. Refer to Table I – List of Federal Agency’s Two-Digit Prefix Numbers.
  2. Categorize all federal assistance received as either Direct programs or Pass-Through From programs as follows:
    • Categorize federal awards received directly from the federal grantor agency as Direct programs.
    • Categorize federal awards received from another agency as Pass-Through From Agy/Univ programs and identify the disbursing agency number and the amount received.
    • Categorize federal awards received from a non-state entity as Pass-Through From Non-State Entities programs and identify the disbursing non-state entity name, the amount received and the identification number.
  3. Categorize all federal assistance expended as either Expenditures or Pass-Through To expenditures as follows:
    • Categorize expenditures incurred directly by the agency as Expenditures.
    • Categorize expenditures passed through to another agency as Pass-Through To Agy/Univ and identify the receiving agency number and the pass-through amount.
    • Categorize expenditures passed through to non-state entities as Pass-Through To Non-State Entities. Federal awards pass-through to non-state entities must identify the amount of the award.

Expenditures are the federal funds expended in administering federal programs. Payments to vendors are expenditures and must not be classified as pass-through funds to subrecipients (see Distinguishing Between Subrecipients and Contractors (Vendors).

Agencies must estimate the expenditures to accrue and submit in SEFA at fiscal year-end. Determine routine fixed payments, trend expectations, seasonal fluctuations and direct information from overseeing projects or programs when calculating expenditure accruals. The agency objective in this process is to estimate, as closely as possible, the actual amount that will be spent in the next fiscal year.