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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Reporting Requirements for Annual Financial Reports of State Agencies and Universities

USAS

USAS Entries
Allocation of Fund Balance or Net Position

Allocation of fund balance or net position may be necessary because of the USAS general ledger (GL) close process. During the close process, the nominal GL account (GAAP GL account category 55) are closed to the fund balance or net position GL accounts (GAAP GL account category 51 or 45) referenced in How GL Accounts Close for Specific GAAP Fund Groups. Therefore, if the agency’s AFR reports fund balance or net position GLs other than default GL closing accounts, the agency is responsible for allocating USAS fund balances or net position as needed.

Attention: For more information on all GAAP fund type allocation methodology including GL accounts and T-codes to be used for each GAAP fund type, refer to the table in How GL Accounts Close for Specific GAAP Fund Groups.

Fund Balance – USAS Transaction Entries

Based on GASB 54 guidelines, agencies can allocate the unassigned fund balance in GL 2325 (the residual fund balance) to other fund balance GLs (such as nonspendable, restricted, committed or assigned). The general revenue fund 0001 does not report a deficit fund balance, only a positive (credit) fund balance.

USAS automatically closes all funds categorized as fund type (FT) 01 to the unassigned fund balance GL 2325. Other governmental funds, not in FT01, close to GL 2310 (Restricted) and allocations are processed in the same manner as FT01. A negative (debit) fund balance residual amount cannot be reported for restricted, committed or assigned fund balances in any fund. If this occurs, a reallocation is necessary to eliminate the negative fund balances in these GLs and move to GL 2325. For more information on fund balance classifications, see Governmental Funds in Fund Balance/Net Position.

The following entries are associated with GAAP fund types where allocations are made through unassigned fund balance GL 2325.

Seq No Batch Type Doc Type Eff Date Fin Agy TC AY PCA COBJ Amount R Appn No Fund Input GL*
* The allowable GL accounts for this T-code can be found on the 28B screen.
** T-code 602/602R automatically reverses in USAS in the following fiscal year based on the current system management date with T-code 601/601R. T-code 601/601R can also be used to allocate fund balance, but does not reverse automatically. Therefore, the balance remains in the specific fund balance GL account in the next fiscal year. As a result, when allocating fund balance in the following fiscal year, only the difference between the beginning and ending balance in specific fund balance GL accounts is allocated.
To Allocate Fund Balance from GL 2325
(1) 5 U 0832CY XXX 602** XX 99999 N/A $ XX.XX   N/A XXXX XXXX
To Allocate Fund Balance to GL 2325
(2) 5 U 0832CY XXX 602** XX 99999 N/A $ XX.XX R N/A XXXX XXXX

Accounting effect of above entries

Debit Credit
(1) To Allocate Fund Balance from GL 2325    
  2325 Fd Bal – Unassigned $ XX.XX  
  XXXX Input Specific FB Account   $ XX.XX
(2) To Allocate Fund Balance to GL 2325    
  XXXX Input Specific FB Account $ XX.XX  
  2325 Fd Bal – Unassigned   $ XX.XX

EXAMPLE: Allocation of Fund Balance

GL Account in USAS Fiscal 20PY Ending Fund Balance After GL Close (Allocated Using T-code 602) Debit (Credit) Fiscal 20CY Beginning Fund Balance After Reversal of T-code 602 With T-code 601 Debit (Credit)
Fund Balances:   
2315 – Fd Bal – Committed (10,000.00)     0.00   
2320 – Fd Bal – Assigned (8,500.00)     0.00   
2325 – Fd Bal – Unassigned 0.00      (18,500.00)  
Total Fund Balances   (18,500.00)     (18,500.00)  

Assumption: Total fund balance between the operating statement and the balance sheet reconciles and the following amounts are reported on the 20CY agency AFR balance sheet.

Agency AFR Balance Sheet Fiscal 20CY Ending Fund Balance Debit (Credit)
Fund Balances:  
Committed             (25,000.00)
Assigned               (7,500.00)
Unassigned                      0.00
Total Fund Balances (to be allocated in USAS)             (32,500.00)

Perform 20CY fund balance allocation:

Seq No Batch Type Doc Type Eff Date Fin Agy TC AY PCA COBJ Amount R Appn No Fund Input GL
* T-code 602 automatically reverses in USAS in the following fiscal year based on the current system management date with T-code 601.
To Allocate Fund Balance to GL 2315
(1) 5 U 0832CY XXX 602* CY 99999 N/A $ 25,000.00   N/A XXXX 2315
To Allocate Fund Balance to GL 2320
(2) 5 U 0832CY XXX 602* CY 99999 N/A $7,500.00   N/A XXXX 2320

Accounting effect of above entries:

Debit Credit
(1) To Allocate Fund Balance To GL 2315    
  2325 Fd Bal – Unassigned $ 25,000.00  
  2315 Fd Bal – Committed   $ 25,000.00
(2) To Allocate Fund Balance To GL 2320    
  2325 Fd Bal – Unassigned $7,500.00  
  2320 2320 Fd Bal – Assigned   $7,500.00

Effect of allocation on GL 2325:

Fiscal 20CY Beginning Unassigned Fund Balance (18,500.00)
Fiscal 20CY Fund Balance Allocation 32,500.00
Fiscal 20CY After Allocation but Prior to USAS GL Close 14,000.00

Fiscal 20CY Operating Statement:

Agency AFR Operating Statement Debit (Credit)
Total Revenues (100,000.00)
Total Expenditures    82,000.00
Excess of Revenues over Expenditures (  18,000.00)
  
Other Financing (Sources)/Uses  
Transfer In (    2,000.00)
Transfer Out      6,000.00
Total Other Financing (Sources)/ Uses (    4,000.00)
  
Net Change in Fund Balances (  14,000.00)
Fund Balances, Sept. 1, PY    18,500.00
Fund Balances, Aug. 31, CY (  32,500.00)

Effect of USAS GL close on GL 2325:

Fiscal 20CY GL 2325 Balance After Allocation but Prior to USAS GL Close 14,000.00
Fiscal 20CY Net Operating Activity Fund Balance Closing in GL 2325 (14,000.00)
Fiscal 20CY GL 2325 Balance After USAS GL Close         0.00

Note: The USAS GL close process occurs in April or May of the following fiscal year.

Net Position – USAS Transaction Entries

After the allocation of GL 2950 (unrestricted net position) to other net position GLs, the balance in GL 2950 net of the total for GAAP GL account category 45 must equal GL 2950 in the agency’s AFR.

Net position can be allocated similar to the fund balance example above, except T-code 669/669R is used. T-code 669/669R automatically reverses in USAS in the following fiscal year based on the current system management date with T-code 672/672R. T-code 672/672R can also be used to allocate net position, but does not reverse automatically. Therefore, the balance remains in the specific net position GL account in the next fiscal year. As a result, when allocating net position in the following fiscal year, only the difference between the beginning and ending balance in specific net position GL accounts is allocated.

Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.texas.gov
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