Revenues
Policy
FIACCT 07-02_13 Federal Revenues – Department Acting as Collecting Agent
Effective: July 1, 1994
Revised: April 1, 2013
Purpose
This policy provides procedures to transfer federal funds from a department acting as a collecting agent to a department that is the primary recipient of the federal funds. When the collecting department receives the money from the federal government and transfers the revenue to the primary recipient, the primary recipient recognizes the federal revenue and expends the money.
Procedures
NOTE: For more specific instructions on the following processes in FINET, either go to the State Finance web site (www.finance.utah.gov) and select FINET:FINET HELP or log into the FINET system and select the HELP link located on the primary navigation panel. Use the online search
function to find instructions for a specific process
Responsibility
Action
Department Collecting Federal Funds Acting Only as a Collecting Agent for Another State Department
Department (Collecting)
A. Record the receipt of the funds with a Cash Receipts (CR)
transaction using the appropriate revenue source in the range of
3000-3999.
B. Transfer the federal revenue to the primary recipient state
department using Internal Transaction Initiator/Internal
Transaction Agreement (ITI/ITA) transactions. The collecting
department prepares the ITI transaction with the same revenue
sources that were used to record the CR and selects the
Receiver/Buyer option in the INITIATOR field. This removes the
federal revenue from the collecting department that was recorded
on the CR and transfers it to the primary recipient department.
C. Obtain at least one valid coding line from the primary recipient
and enter the coding on the 2ND PARTY ACCOUNTING section of
the ITI.
Primary Recipient Department
A. The primary recipient completes the generated Internal
Transaction Agreement (ITA), verifies or selects the
Provider/Seller option in the INITIATOR field, and verifies or enters a department coding block that includes a revenue source in the range of 3000-3999 in the FUND ACCOUNTING section and Program Codes in the DETAIL ACCOUNTING section.
Division of Finance
Process the ITI/ITA transactions to the FINET system in the overnight processing cycle.