TITLE 34. PUBLIC FINANCE

PART 1. COMPTROLLER OF PUBLIC ACCOUNTS

CHAPTER 5. FUNDS MANAGEMENT (FISCAL AFFAIRS)

SUBCHAPTER N. FUNDS ACCOUNTING--ACCOUNTING POLICY STATEMENTS

34 TAC §5.160, §5.161

The Comptroller of Public Accounts proposes amendments to §5.160, concerning incorporation by reference: accounting policy statements 2015 - 2016, and proposes new §5.161, concerning general revenue fund reimbursement for statewide support services. Additionally, the title to Subchapter N, Funds Accounting--Accounting Policy Statements, is being changed to Accounting Policies.

Two statutes require the comptroller to adopt rules relating to specific accounting policies: Government Code, §403.248 (Travel Advances), and Government Code, §2106.006(e) (General Revenue Fund Reimbursement). Currently, accounting policies are adopted by reference in §5.160. The comptroller proposes to amend §5.160 and add new §5.161 to adopt these two accounting policies, and to eliminate the unnecessary inclusion of other accounting policies.

The amendments to §5.160 replace the current, unnecessary language relating to the incorporation by reference of certain accounting policy statements with language relating to petty cash accounts for travel advances. The amendments include requirements governing the use of petty cash accounts established under Government Code, Chapter 403, Subchapter K, for the purpose of advancing travel expense money to state officers and employees, including prohibited uses of this type of petty cash account, the requirement to complete a final accounting, and the maximum balance of this type of petty cash account. The amendments also change the title of the rule to Petty Cash Accounts for Travel Advances.

New §5.161 governs the reimbursement of the general revenue fund (GR) by a state agency for the cost of statewide support services allocated to the state agency under the Statewide Cost Allocation Plan. The rule requires a state agency to: submit a completed Statewide Cost Allocation Worksheet to the comptroller at the email address and by the date prescribed by the comptroller (failure to do so will result in the comptroller distributing the cost of statewide support services owed by the state agency based on the state agency's method of finance for the current fiscal year); make transfers to GR in one payment or in quarterly payments; and make transfers to GR in accordance with the payment schedule established by the comptroller.

Tom Currah, Chief Revenue Estimator, has determined that during the first five years that the proposals are in effect, the rules: will not create or eliminate a government program; will not require the creation or elimination of employee positions; will not require an increase or decrease in future legislative appropriations to the agency; will not require an increase or decrease in fees paid to the agency; will not increase or decrease the number of individuals subject to the rules' applicability; and will not positively or adversely affect this state's economy.

Mr. Currah also has determined that the proposed amendment and new rule would have no significant fiscal impact on the state government, units of local government, or individuals. The proposed amendment would benefit the public by clearly defining policy, definitions, calculations, and citations. There would be no significant anticipated economic cost to the public. The proposed amendment and new rule would have no fiscal impact on small businesses or rural communities.

Comments on the proposals may be submitted to Rob Coleman, Director, Fiscal Management Division, at rob.coleman@cpa.texas.gov or at P.O. Box 13528 Austin, Texas 78711. Comments must be received no later than 30 days from the date of publication of the proposals in the Texas Register.

The amendments to §5.160 are proposed under Government Code, §403.248, which requires the comptroller to adopt rules governing the use of petty cash accounts established under Government Code, Chapter 403, Subchapter K, for advancing travel expense money to state officers and employees. New §5.161 is proposed under Government Code, §2106.006(e), which requires the comptroller to adopt rules necessary to prescribe the timing and method of certain state agency transfers to GR for the cost of statewide support services allocated to the state agency under the Statewide Cost Allocation Plan and the manner in which a state agency shall send to the comptroller information the comptroller requires to transfer these amounts to GR.

The amendments to §5.160 implement Government Code, §403.248. New §5.161 implements Government Code, §2106.006.

§5.160.Petty Cash Accounts for Travel Advances [Incorporation by Reference: Accounting Policy Statements 2015 - 2016].

(a) Applicability. This section governs the use of petty cash accounts established under Government Code, Chapter 403, Subchapter K, for the purpose of advancing travel expense money to state officers and employees.

(b) Definitions. The following words and terms, when used in this section, have the following meanings, unless the context clearly indicates otherwise.

(1) Final accounting--A reimbursement from or additional payment to a state officer or employee so that the net amount received by the officer or employee equals the actual travel expenses incurred by the officer or employee.

(2) May not--A prohibition. The term does not mean "might not" or its equivalents.

(3) Petty cash account--A set amount of money held outside of the state treasury to be used for the purpose of advancing travel expense money to state officers and employees.

(4) State agency--Includes:

(A) a department, commission, board, office, or other state governmental entity in the executive or legislative branch of state government;

(B) the Supreme Court of Texas, the Court of Criminal Appeals of Texas, a court of appeals, the Texas Judicial Council, the Office of Court Administration of the Texas Judicial System, the State Bar of Texas, or any other state governmental entity in the judicial branch of state government;

(C) a university system or an institution of higher education as defined by Education Code, §61.003; and

(D) any other state governmental entity that the comptroller determines to be a component unit of state government for the purpose of financial reporting under Government Code, §403.013.

(5) State officer or employee--An elected or appointed official, or a person employed by a state agency.

(c) Prohibited uses. A state agency may not use a petty cash account:

(1) to advance more than projected travel expenses to a state officer or employee;

(2) to advance travel expense money to a prospective state officer or employee; or

(3) for any purpose other than advancing travel expense money to a state officer or employee.

(d) Final accounting. A state agency must complete a final accounting of travel expenses after a state officer or employee has incurred travel expenses.

(e) Account balance. A petty cash account may not exceed one-twelfth of a state agency's expenditures for travel in the immediately preceding fiscal year, unless approved by the comptroller.

[The "Accounting Policy Statements," issued by the Fiscal Management Division of the Comptroller of Public Accounts as of August 31, 2015, are incorporated by reference and filed with the secretary of state. All statements are published by the comptroller in Austin, and copies may be obtained from the comptroller upon request. All statements are also available on the comptroller's website at: https://fmx.cpa.texas.gov/fm/pubs/aps/index.php.]

§5.161.General Revenue Fund Reimbursement for Statewide Support Services.

(a) Applicability. This section governs the reimbursement of the general revenue fund by a state agency for the cost of statewide support services allocated to the state agency under the Statewide Cost Allocation Plan.

(b) Definitions. The following words and terms, when used in this section, have the following meanings, unless the context clearly indicates otherwise.

(1) SCAW--The Statewide Cost Allocation Worksheet prescribed by the comptroller.

(2) State agency--A department, board, commission, or other entity in the executive branch of state government that has statewide jurisdiction and administers a program to provide a service to the public or to regulate persons engaged in an occupation or activity.

(3) Statewide Cost Allocation Plan--A plan prepared annually by the office of the governor that identifies the costs of providing statewide support services and allocates those costs to the appropriate state agency.

(4) Support services--Include accounting, auditing, budgeting, centralized purchasing, and legal services.

(c) Each state agency shall complete a SCAW and email the completed SCAW to the comptroller at the email address and by the date prescribed by the comptroller. If a state agency fails to email the completed SCAW to the email address and by the date prescribed by the comptroller, the comptroller shall distribute the cost of statewide support services owed by the state agency based on the state agency's method of finance for the current fiscal year.

(d) A state agency must transfer to the general revenue fund the cost of statewide support services owed by the state agency by transferring the entire amount in one payment or in quarterly payments.

(e) The comptroller shall establish a schedule under which the state agency must transfer to the general revenue fund the cost of statewide support services owed by the state agency.

(f) After receiving from the comptroller the payment schedule described in subsection (e) of this section, the state agency must transfer to the general revenue fund the cost of statewide support services owed by the state agency in accordance with the payment schedule.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on October 4, 2019.

TRD-201903586

Victoria North

Chief Counsel, Fiscal and Agency Affairs Legal Services Division

Comptroller of Public Accounts

Earliest possible date of adoption: November 17, 2019

For further information, please call: (512) 475-0387