FMX Home
Glenn Hegar  ·  Texas Comptroller of Public Accounts

USAS Profile Review and Cleanup Procedures > next

USAS Profile Review and Cleanup Procedures – Pass-Through Funds

Background

Pass-through grants as defined under GASB Statement No. 24, Accounting and Financial Reporting of Certain Grants and Other Financial Assistance, are grants received by a recipient government to transfer to or spend on behalf of a secondary recipient and should be recognized as revenues and expenditures/expenses in a governmental, proprietary or trust fund. The only exception to this is if the recipient government serves only as a cash conduit (i.e., has no administrative or direct financial involvement in the program), the grant should be reported in a GAAP agency fund.

To facilitate the agencies’ AFRs and the CAFR, RTI T-codes have been developed that post to revenue and expenditure GLs for pass-through money. These comptroller objects should only be used for pass-through money.

Federal Pass-Through

  1. Agency A receives federal money.
    Agency A uses comptroller object 3XXX to record the revenue.
  2. Agency A sends some of the federal money to agency B.
    Agency A uses comptroller object 7971 to record a federal pass-through expenditure, non-operating.
    Agency B uses comptroller object 3971 to record a federal pass-through revenue, non-operating.
  3. Agency B spends the money by providing services or giving it to the ultimate consumer.
    Agency B uses comptroller object 7XXX to record an expenditure.

State Grant Pass-Through

  1. Agency A receives appropriated money for grants.
    Agency A uses comptroller object 3XXX to record a revenue.
  2. Agency A sends some of the state grant money to agency B.
    Agency A uses comptroller object 7614 to record a state grant pass-through Expenditure, non-operating.
    Agency B uses comptroller object 3725 to record a state grant pass-through revenue, non-operating.
  3. Agency B spends the money by providing services or giving it to the ultimate consumer.
    Agency B uses comptroller object 7XXX to record an expenditure.

For both federal and state grant pass-through money, agency A and B records will record transaction 2 as expenditures and revenue on their AFRs. The Comptroller’s office will eliminate the revenue for comptroller objects 3725, 3842, 3971 and 3978 and the expenditure for comptroller objects 7614, 7615, 7971 and 7978 so that there will be no double counting on the CAFR.

The roll-up and the name for these comptroller objects are as follows:

Comptroller Object Name Roll-up
3725 State Grant Pass-Through Revenue, Non-operating Revenues
3842 State Grant Pass-Through Revenue, Operating Revenues
3971 Federal Pass-Through Revenue, Non-operating Revenues
3978 Federal Pass-Through Revenue, Operating Revenues
7614 State Grant Pass-Through Expenditure, Non-operating Expenditures
7615 State Grant Pass-Through Expenditure, Operating Expenditures
7971 Federal Pass-Through Expenditure, Non-operating Expenditures
7978 Federal Pass-Through Expenditure, Operating Expenditures
Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.texas.gov
Comptroller.Texas.Gov | FMX
FMX Sitemap | Contact FM
Accessibility Policy | Privacy and Security Policy