State Pass-Through Activities Tutorial

Lesson 1: State Grant Pass-Through Funds

The following is a list of characteristics that distinguish a state grant pass-through from a vendor/interfund service provided and used activity:

State Pass-Through Grant	Vendor Activity
The grantor/disbursing agency received an appropriation with the authority to grant that money to another agency.	The receiving agency was contracted to perform a service for, or on behalf of, the paying agency but it did not apply for or receive a grant.
The receiving agency was granted the dollars based on meeting specific qualifications.	The paying agency receives services that are quantifiable based on time, piece completed, etc.
The grantor/disbursing agency does not directly receive any benefit in exchange for the funds.	The paying agency receives some direct benefit for exchange of funds.
These funds are reported in the AFR line item State Grant Pass-Through Revenue/Expense.	These funds are reported in the AFR line item Other Sales of Goods and Services.

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