FMX Home
Glenn Hegar  ·  Texas Comptroller of Public Accounts

Reporting Requirements for Annual Financial Reports of State Agencies and Universities


USAS Entries
Binding Encumbrances (due by Sept. 28 for SRAs and Oct. 30 for FRAs)

Encumbrances are commitments for services or goods made by Aug. 31, 20CY, but where the good or service has not yet been received. Encumbrances may also be established for actual contracts awarded. Anticipated contracts or contracts under negotiation are not legal commitments and are not reported as encumbrances. For example, funds dedicated for construction, but not yet specifically awarded as a contract, are not reported as an encumbrance.

Encumbrances are used for budgetary purposes only and are not included in an agency’s AFR. Implementation of GASB 54 eliminated the requirement to reserve fund balance for encumbrances. However, encumbrances can be included in all fund balance allocations.

Enter binding encumbrances and payables by appropriation number, appropriation year, fund, PCA and COBJ. Agencies must ensure encumbrance and payable transactions post to the PCA that points to the correct program code in USAS and use the COBJ that rolls up to the correct Legislative Budget Board (LBB) object code PDF. These COBJs are considered summary object codes only for reporting binding encumbrances and payables. For more information, see Encumbrance Report and Lapsing of Appropriations (APS 018) (FPP A.019).

Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact
Comptroller.Texas.Gov | FMX
FMX Sitemap | Contact FM
Accessibility Policy | Privacy and Security Policy