Lesson 1: State Grant Pass-Through Funds

Comptroller’s Policies

The Comptroller’s office established the following guidelines to facilitate the related process:

1. Agencies must coordinate state pass-through activities with other agencies.
   1. The disbursing agency is responsible for determining the classification of funds:
      • Pass-through vs. vendor
      • Federal vs. state
      • The portions of federal funding and state funding

      The disbursing agency must confirm these decisions in writing to the receiving agency.

   2. The receiving agency must:
      • Record the transactions as determined by the disbursing agency
      • Determine the amount of accrual
2. Agencies reconcile pass-through transactions using one of the following reports:
   1. Interagency/Interfund Activity

      Note: This report is located in FMQuery — SIRS , under USAS Research Tool in the General Ledger Reports drop-down menu

   2. PT201 — State Pass-through Activity by General Ledger Account
   3. PT202 — State Pass-through Activity by AGL

      Note: PT201 & PT202 reports are located in FMQuery — SIRS , under AFR Desk Review in the SEFA/SPTR drop-down menu.

3. The recurring transaction index (RTI) process is required in recording pass-through activities.
4. Agencies are highly encouraged to reconcile pass-through funds on a quarterly basis.
5. Agencies must also use the SPTR web application to report and reconcile state pass-through transactions at the Grant ID level and the USAS summary level.

Next: Funds Classification