OSC Alert 241
Approved by: Robert Jaros, State Controller
Date: June 18, 2025
Subject:
- New Department Code
- New Balance Sheet Accounts
- New Revenue Source Codes
- New Revenue Source Class
- Transfer Code Name Changes and Revised Guidance
- Statutory Transfers
- Statutory Transfer Completion Certificate on the Quarterly Reporting
- Elimination of Roll-Forward Authority for a State Department's Utilities Line Item
- Changes to the Six-Month Capital Construction Encumbrance Requirement and Timeline to Spend Supplemental Capital Construction Appropriations
- GASB 101 and GASB 102
- SLFRF Reversion Notification to the OSC
- SLFRF Diagnostic IHE Capital Balancing Report Revised
- Refi Capital Construction Obligation and Expenditure End Date Clarification
- SLFRF/Refi FY25 Budget Restrictions may be Released with the Passage of SB25-312
- SB25-312 SLFRF/Refi ARPA Refinance True-Up Implementation
- OSC Staffing Changes
- Senate Bill 25-173 - Expanded Definitions of TABOR-Exempt Property Sales
- FSU Schedule of Extended Year-End Coverage
Senate Bill 25-311
This new legislation requires that the OSC transfer the balance of any repealed cash fund to the general fund. The OSC will identify repealed cash funds with ledger balances in CORE and coordinate with departments to close and inactivate repealed funds. Refer to the Fiscal Procedures Manual, Chapter 3, Section 3.26 for related guidance. The anticipated timing for closing repealed funds will be after the Treasury posts interest allocations for June 2025.
New Department Code (DEPT)
DEPT EFCA - Governor - Building Decarbonization Enterprise related to a new enterprise created by C.R.S. 24-38.5-125(3)(a).
New Balance Sheet Accounts (BSA)
BSA 2151 - FAMLI Premium Refunds Payable for use by DPA to record the liability for FAMLI premium refunds due to employers. BSA 2720 - Patient Accounts Payable for use by CDHS to isolate VCLC program refund transactions from related revenue accruals.
New Revenue Source Codes (RSRC)
RSRC 2005 - Firearms and Ammunitions Tax for use by DOR to record the firearms and ammunitions tax in accordance with C.R.S. 39-37-104(1). RSRC 4341 - Building Decarbonization Fee for use by the Colorado Energy Office to record the building decarbonization fee in accordance with C.R.S. 24-38.5-125(5)(b). RSRC 4238 - Geologic Storage Stewardship Fee for use by DNR to record the Geologic Storage Stewardship Fee in accordance with C.R.S. 34-60-144(6)(b).
New Revenue Source Class (RSCLS)
RSCLS PRKK - Proposition KK for use by OSC to support TABOR reporting.
Transfer Code Name Changes and Revised Guidance
The previously named "General Fund Surplus Transfers Out" and "Transfers to Augment General Fund" pairings have been renamed to "Statutory Transfer Out From General Fund" (7040/9040) and Statutory Transfers In To General Fund" (7020/9020 or 9030). The previous naming reflected statutory terminology that is no longer used consistently. These transfer OBJs and RSRCs should be used for transfers prescribed in statute. These transfers must be recorded separately from other transfers as the OSC provides special reporting for tracking General Fund resources. For additional information refer to the Fiscal Procedures Manual, Chapter 3, Section 3.17.
Statutory Transfers
The state departments and IHEs are responsible to review legislation that impacts their agencies and complete the statutory transfers timely. The State Treasury shared a Google Sheet named GF/CF Transfer Checklist with agencies to track and assist on transfers with explicit statutory language. Please follow the guidance on the Google Sheet provided by the State Treasury.
For transfers from the department-managed cash funds to the general fund, departments can use ITI/ITAs or IETs to process those transfers to the general fund. The general fund transfer revenue should be recorded to Fund 1000, Department WAAA, Appr Unit WC9999999, and transfer RSRC 9020/9030. The transfer expenses need to be recorded to transfer Obj 7020 with the department-managed cash fund coding.
When the state departments or IHEs have general fund appropriations to cash funds, the state departments or IHEs need to process IET or IET4 transactions using the appropriate transfer codes. When the state agencies are not given general fund appropriations and the statute indicates "the State Treasury shall transfer…" from the general fund to the cash funds managed by the agencies, the State Treasury will set up the statutory spending authority (SAI 10) in the general fund. The state agencies should work with the State Treasury to complete the transfers on the ITI/ITA or IET documents using the transfer object 7040 and revenue 9040.
All statutory transfers with specified amounts should be completed on the date identified in the statute. For transfers based on a formula that relies on a fiscal year accrual-based calculation and a transfer date of 6/30 or 7/1, it is the expectation of the OSC that those transfers be completed as soon as practically feasible, but no later than the close of period 13 of the closing fiscal year for 6/30 transfers.
Statutory Transfer Completion Certificate on the Quarterly Reporting
The Statutory Transfer Completion Certificate will be added to the quarterly reporting in Part 2 starting from FY25 Q4. CORE Security, Payroll Reconciliations, and CPPS Security will be in Part 3, 4, and 5, respectively.
Elimination of Roll-Forward Authority for a State Department's Utilities Line Item
The Senate Bill 25-267 eliminated the roll-forward spending authority, C.R.S. 24-75-114, for a state department's utilities line item, effective immediately.
Changes to the Six-Month Capital Construction Encumbrance Requirement and Timeline to Spend Supplemental Capital Construction Appropriations
House Bill 25-1313 amended the requirements related to encumbering funds for capital construction projects. Specifically, if a department or institution is unable to meet the six-month encumbrance requirement, the Capital Development Committee may grant an extension up to six months, no longer a waiver. Additionally, supplemental capital construction appropriations are no longer effective for three full fiscal years. Instead, the appropriations remain available for the remainder of the fiscal year of the supplemental and two full fiscal years. The Bill is effective 90 days after final adjournment.
GASB 101 and GASB 102
GASB 101, Compensated Absences is effective for FY25, requires recording a liability for leave that accumulates and (1) is more likely than not to be used or (2) settled in cash. The State will include annual leave and sick leave in compensated absences liability. All other leave, including compensatory time, have been deemed immaterial and will not be included. OSC's "Implementation of GASB Statement No. 101" decision paper, that outlines OSC's determinations and recommendations regarding compensated absences liability calculation, is included with this Alert.
GASB 101 Compensated Absences Tool worksheet to assist departments in calculating their compensated absences liability will be distributed bye the OSC via email and may be requested at dpa_farmailbox@state.co.us.
PERA's actuary provided the percentage of employees expected to retire with PERA benefits applicable to FY25. The percentages are 56.9% for State Division members other than Safety Officers and 48.0% for Safety Officers. Please use these percentages to develop compensated absences accruals as required by Chapter 3, Section 3.11 of the Fiscal Procedures Manual. The letter from PERA's actuary is included with this Alert to support the financial audit.
OSC will be providing the state's short-term percentage for annual leave and sick leave in a future Alert, once data has been gathered after the year end leave conversions have occurred.
GASB 102, Certain Risk Disclosures is effective for FY25, requires disclosures if there is a concentration or constraint. A concentration is a lack of diversity related to an aspect of a significant inflow of resources or outflow of resources. A constraint is a limitation imposed on a government by an external party or by formal action of the government's highest level of decision-making authority.
OSC's "Implementation GASB 102: Certain Risk Disclosures" paper and Exhibit U2-Section H instructions that provides the definition of a concentration or constraint and disclosure requirements of GASB 102 are included in this Alert.
SLFRF Reversion Notification to the OSC
If you become aware of SLFRF reversion, please e-mail the SLFRF mailbox noting the amount, related encumbrance (if applicable), and appropriation unit. Do not wait for an SLFRF reporting cycle. This will enable the OSC and Governor's Office to determine what reallocation options may be available within the US Treasury FAQs and incorporate into quarterly reporting cycles in a timely manner.
SLFRF Diagnostic IHE Capital Balancing Report Revised
The OSC-SLFRF-005E - SLFRF Diagnostics - IHE Capital Construction Report has been revised. The prior report compared object code 7300 SLFRF Fund CSFL IHE capital expenditures to institutional 305*/320* 9300 revenue. With the split of many SLFRF IHE capital construction projects to include an additional Refi Fund CRFL component, it became more helpful to compare the SLFRF capital construction fund expenditures to federal revenue posted in institutional funds. See Chapter 3, Section 8.6.16 for additional accounting information for recording IHE SLFRF capital construction federal revenue. For this purpose, federal Revenue should generally be recorded in revenue source code 7530. If the additional journal entry to convert the IET4 draw 9300 transfer revenue to 7530 federal capital revenue had been completed, the report will balance to zero by project. This is the expected result. If the report is not zero, action is required. Any questions can be directed to the SLFRF mailbox.
Refi Capital Construction Obligation and Expenditure End Date Clarification
Expenditures in Capital Construction Refi Funds must be incurred by December 31, 2026. Any unexpended Refi funds as of this date are required to revert to the General Fund per HB24-1466. If Refi Funds were added or transferred to a project with an end date past December 31, 2026, the end date for the Refi portion of the project remains December 31,2026, even if the entire project has a longer end date. If Refi Funds were added or transferred to a project with an end date earlier than December 31, 2026, then the funds may be carried forward if encumbered by June 30 (the typical requirement), however, in all cases the Refi portion must be spent by December 31, 2026. Any remaining amount of the Refi Funds after December 30, 2026, must be reverted to the General Fund.
SLFRF/Refi FY25 Budget Restrictions may be Released with the Passage of SB25-312
With the passage of SB25-312, the overexpended SLFRF appropriations in FY24 were funded, with a like reduction to the Refi appropriation. Departments may submit BG documents to reverse the controller restrictions on the Refinance Funds, and the Departments of Human Services and Corrections may submit BG documents to reverse the federal overexpenditure restrictions. In the temporary absence of the Higher Education Fiscal Coordinator, the OSC will prepare the restriction removal BG documents and route to the impacted IHEs for approval. Any questions can be directed to the SLFRF mailbox.
SB25-312 SLFRF/Refi ARPA Refinance True-Up Implementation
With the passage of SB25-312, budgets were adjusted and cash transferred to true up the ARPA Refinance to reflect the actual funding split for projects that overexpended SFLRF funds due to the HB24-1466 refinance.
The related SFLRF budget increase and the Refi budget decrease for appropriated projects for the FY24 ovexpenditures, will occur through PB for interface to CORE similar to any other bill with appropriation clauses. Because the budget processed cannot accommodate pennies, the OSC will complete restriction entries and/or SLFRF/Refi reallocations authorized in the bill to reflect the impacted SLFRF/Refi budgets to the cent. Departments with projects in continuously appropriated funds will need to submit manual BG documents to increase the SFLRF budget and reduce the Refi budget in the overexpended amount, which is supported by a cash transfer in the legislation.
There are a number of statutory cash transfers in the bill. The OSC will complete the cash transfers in consultation with the Governor's Office and in accordance with the Treasury's new process. The transfers will be completed on June 30, 2025 and after this time any related existing abnormal cash and unearned revenue balances will clear. With the passage of this bill, related abnormal cash and unearned balances in SLFRF funds will no longer be an acceptable abnormal balances report condition.
Forms on the OSC website
The OSC is working with the DPA Accessibility team to update some forms on the OSC website, including the Appropriation Rollforward Request Form, Accounts Receivable Forgiveness Request Form, Accounts Receivable Debt Forgiveness Detail Worksheet, Budget Transfer Request Form, Overexpenditure Request Form, and Agency Collections Plans and Report to comply with accessibility standards. They will be either converted to webforms or the reformatted & rearranged spreadsheets. The contents or information collected by the forms will remain the same as on the previous versions. If you have any questions while using those forms, please contact your assigned financial specialist.
Senate Bill 25-173 - Expanded Definition of TABOR-Exempt Property Sales
Senate Bill 25-173 expands the definitions of damage awards and property sales, which are exempt revenues for TABOR purposes. The departments affected by the expanded definition are explicitly named for most of the newly exempt revenues. However, there are three revenues described that are now exempt as property sales that do not explicitly name the impacted department. The OSC has identified the Department of Agriculture (III and V) and the Department of Public Safety (IV) as likely impacted by these new property sales definitions. However, because the definitions do not name an affected department (or institution of higher education), these definitions would be applicable to any department or institution of higher education receiving the described revenues. If your department or institution of higher education receives revenues that may meet the definitions of (III), (IV), or (V), and you have not yet been contacted, please contact Mark Davis at mark.l.davis@state.co.us.
"(c) For State fiscal years commencing on or after July 1, 2024, a transfer of rights in tangible or intangible property, excluding leasehold interest, in which or to which the State has rights protected by law from the State to any party for consideration, such a transfer of rights includes:
(III) Sales of supplies related to agricultural inspections;
(IV) Sales of supplies related to wildfire equipment repair;
(V) Sales of supplies related to pesticide inspections;"
FSU Schedule of Extended Year-End Coverage
July (Period 12 Close) 5:00pm-9:00pm
- Thursday, July 17, 2025: Specialist Jing Ye
- Friday, July 18, 2025 Close: Specialist Daniel Saint and Accountant Mohamed Mashkooke
August (Period 13 Close) 5:00pm-9:00pm
- Friday, August 1, 2025: Specialist Jing Ye and Specialist Kevin Rockman
- Monday, August 4, 2025 P13 Close: Specialists, Jennifer Henry, Feicui Dong, Daniel Saint and Accountants Mohamed Mashkooke
August (Period 14 Close) 5:00pm-9:00pm
- Thursday, August 7, 2025: Specialist Kevin Rockman and Accountant Jonathan De Jong
- Friday, August 8, 2025: Specialists Jennifer Henry, Feicui Dong and Accountant Jonathan De Jong
- Cutoff for document submission is 6:00pm
Attachments
PERA Expected Future Retirements
Exhibit US Section H Instructions