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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Reporting Requirements for Annual Financial Reports of State Agencies and Universities


Sample Process for Reconciling USAS to Agency Financial Info

The process an agency uses to reconcile its agency financial information to USAS may vary, but the final result must ensure the agency’s financial information is reconciled to USAS.

This sample process is one way to accomplish the task of reconciling the agency financial information to USAS. This is not the required way to reconcile to USAS, but merely an example of how to reconcile.

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Step 1 – Order USAS Financial Reports [+]

After accounts payable, encumbrances, revenue accruals and any other known adjustments are entered into USAS, order USAS reports. Use these reports to complete a USAS reconciliation worksheet (Excel).

Step 2 – Enter USAS Information Into Worksheet [+]

Using either the DAFR8920 or DAFR8580 report, Agency Z enters the USAS balance sheet/statement of net position information into the USAS column of the worksheet — entering debit balances as positive numbers and credit balances as negative numbers. The amounts on the DAFR8920 are signed in this same format.

Attention: Remember that the operating statement activity impact to fund balance is shown on the DAFR8580 in the post-closing fund balance GL account. Consider the total increase/decrease to fund balance on the work sheet when calculating any adjustments to fund balance GL accounts.

Using DAFR8590 ordered at object level 3, Agency Z enters USAS operating statement activity into the worksheet — entering debit amounts as positive numbers and credit amounts as negative numbers. The numbers on the operating statement are normally shown with all positives except for the other financing sources/uses section and the other changes to fund balance section. In these two sections, increases to fund balance are shown as positives and decreases to fund balance are shown as negatives. Negative numbers in the revenues, expenditures/expenses and fund balance sections indicate an abnormal balance. Further analysis may be required to ensure the negative balance is correct.

The USAS trial balance check figure should be Ø (zero) after data entry of this column is complete.

Step 3 – Enter Agency Financial Information Into Worksheet [+]

As figures are calculated for balance sheet items, Agency Z enters the desired adjusted balances into the worksheet — entering the debit amounts as positive and the credit amounts as negative. Agency Z can verify that the balance sheet is “in balance” by checking:

  • The figure in the agency financial information column at the bottom of the balance sheet section is Ø (zero).
  • The ending fund balance amount from the operating statement portion equals the total fund balance section of the balance sheet.

Once all the agency financial amounts are entered, Agency Z’s balance sheet should be “in balance” and the fund balance on the operating statement and balance sheet should tie.

Step 4 – Analyze the Adjustment Amount Column [+]

When making entries based on the adjustment amount column, the Comptroller’s office recommends using non-generic T-codes for data integrity purposes. These T-codes are consistent with the vision of USAS and the direction the edits and policies take. Internal agencies must adjust at a detail level of information. After all non-generic T-codes are exhausted for adjusting a balance, generic T-codes are considered for any remaining adjustments needed.

Attention: When choosing a T-code for adjustments on a GAAP basis, agencies should consider several factors — appropriation information, the ABEST Reconciliation and the Cash Report. Generic T-codes are acceptable for adjusting financial information — however, they do not post balance types so they are not reflected in the appropriation information on the appropriation (AP) table.

If an agency presents a breakout of the ending fund balance on its AFR, an entry to the GL 2325 fund balance account may be necessary. For more information on allocating fund balance and how operating activity closes to fund balance, see Allocation of Fund Balance or Net Position and How GL Accounts Close for Specific GAAP Fund Groups.

Step 5 – Prepare Data Entry Documentation [+]

Once it is determined which entries are required, Agency Z’s data entry documentation can be prepared for this fund. Agency Z uses the DAFR8590 to determine which COBJ to use for adjusting transactions. Additional adjustments may also be necessary and, if so, must be made in accordance with this manual.

DAFR operating statements include COBJ roll-ups. Use the Comptroller Object Selection (79) screen to view COBJs.

Agency Z enters an AY in the AY field and enters either:

  • A specific COBJ in the COMP OBJ field
  • A specific comptroller object group in the GROUP field

If no COBJ or group is entered, all COBJs for the AY entered are listed in numerical order.

For additional detail on expenditures at the COBJ level by PCA, request DAFR8700.

Step 6 – Verify the Effect of the Adjustments [+]

After the entries successfully post in USAS, Agency Z orders the applicable reports again and verifies that system clearing is zero. Agency Z may also view the information online using the General Ledger Summary Inquiry (56) screen. If the reports do not properly reflect financial information, Agency Z completes another spreadsheet and repeats the process.

Step 7 – Other Information [+]

Complete a separate reconciliation worksheet for each GAAP fund. The worksheet is not all inclusive, so the agency may need to add or delete applicable line items depending on the GAAP fund/GAAP fund type being reconciled.

Glenn Hegar
Texas Comptroller of Public Accounts
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