TDCJ-CJAD Data Manual - Texas Department of Criminal Justice

Page 1 of 6Quarterly Financial Report InstructionsTDCJ-CJAD funding allocated or granted to any entity, organization, or CSCD shall requireseparate quarterly financial reports for each program. All revenue and expenditures reportedmust be related to the approved program budget. TDCJ-CJAD requires the fiscal officer for eachfunding recipient to prepare and submit a financial report every quarter for each TDCJ-CJADfunded program budget.Although funding recipients are encouraged to use the modified accrual basis of accounting foreach quarter, the first, second, and third quarter reports may be prepared on the cash basismethod of accounting. The fourth quarter report, which closes out the fiscal year, must beprepared on the modified accrual basis of accounting. The modified accrual basis of accountingrequires that revenues are recognized when "measurable and available" and expenditures arerecognized in the "accounting period in which the fund liability is incurred.” In order for thefunding recipient to report an accrual on the fourth quarter report, TDCJ-CJAD requires that theexpenditures be paid and the item received by October 31.The financial reports are to be prepared using dollars and cents, and the information on thefinancial reports is to be verified for accuracy by preparing reconciliations to the bank balances.The Balance Sheet, also known as a Statement of Financial Position, is to be submitted to TDCJ­CJAD at the end of each fiscal year.The financial reports are due to TDCJ-CJAD within 30 days after the close of the reportingperiods (due the end of December, March and June). The final report (or fourth quarter report) isdue to TDCJ-CJAD 90 days after the close of the fiscal year (the end of November). Reviewcriteria for funding of grant programs includes reduced scores (and perhaps reducedfunding) for CSCDs that submit late quarterly financial reports.Revised fourth quarterly financial reports will be considered in the succeeding year foradjustments to the fund balance if received at TDCJ-CJAD by January 31. After January 31, anyadjustments that affect the fund balance must be reported on the then-current quarterly report butwill not result in any adjustment to any previously calculated refund or for calculation of the sixmonthreserve.Expenditures by funding recipients are subject to review, and any expenditure not supported bythe appropriate documentation may be deemed unallowable. If an expenditure is not listed in theFMM as allowable under the funding source used for the program, it is not to be charged to theprogram without prior approval from TDCJ-CJAD. Any expenditure charged to a CCP, DP orTAIP program which is deemed unallowable must be reimbursed through the Basic Supervisionfund, provided the expenditure is allowable for Basic Supervision Programs or state funding maybe reduced to reimburse for the unallowable. Therefore, the funding recipient is to carefullyreview all transactions, request authority from TDCJ-CJAD on questionable items, and amendthe budget if appropriate.- 71 ­