I'm drawing down grant funds in September 2026 for expenses incurred in File ID 6 (FY26). What are the correct journal entries for the due to, due from and revenue in each year's books?
Short answer
Record it as a FY26 accrual, not FY27 revenue: In File ID 6 (FY26, ended 8/31/2026) debit XXX-00-1241 Due from State and credit XXX-00-5929 Federal Revenues Distributed by TEA (XXX-00-5829 if it is a state grant). In September 2026 (FY27) debit XXX-00-1110 Cash and credit XXX-00-1241 to clear the receivable. No new revenue in FY27 (FASRG v20 Module 1: FAR Appendices, C.8.1, pp. 287-292).
The detail
Federal money that flows through TEA (Title I, Title II, IDEA) is a state source for coding purposes, so it lands in 1241, not 1242:
This code is used to record amounts earned or allocated to your school district from state sources, including federal funds received from state sources, that exceed amounts received during the fiscal year. (FASRG v20 Module 1: FAR Appendices, p. 102)
This code is used to record amounts that: were earned by your school district under a federal financial assistance program and exceed cash receipts during the fiscal year. (FASRG v20 Module 1: FAR Appendices, p. 102 - Object Code 1242)
1242 is only for funds received directly from a federal agency.
Why FY26 gets the revenue
Governmental / Special Revenue funds use modified accrual: revenues are recognized when they become both measurable and available to finance expenditures. Available refers to the collectability of the receivable with the current period or soon enough to be used to pay for liabilities of the current period. General criteria for availability is 60 days. (FASRG v20 Module 1: Financial Accounting & Reporting, p. 29)
September 2026 collection of August 2026 expenditures is within that 60-day window, so the revenue belongs to FY26 (FASRG v20 Module 1: Financial Accounting & Reporting, §1.2.2.2, p. 30).
Correct journals
1. At 8/31/2026 in File ID 6 - FY26 - accrue what you earned:
| Account | Debit | Credit |
|---|---|---|
| 211-00-1241-00-000-Y Due from State | $X | |
| 211-00-5929-00-000-Y Federal Revenues Distributed by TEA (5829 if it is a state grant) | $X |
Use your actual grant fund (211, 255, 263, etc.) and the grant's fiscal year code, which is the second digit of the NOGA ID (FASRG v20 Module 1: FAR Appendices, A.7, p. 216). Use the same digit on both lines of the FY26 accrual and on the September clearing entry in the FY27 file ID.
2. In September 2026 in new FY27 file ID - record the ER warrant:
| Account | Debit | Credit |
|---|---|---|
| 211-00-1110 Cash and Temporary Investments | $X | |
| 211-00-1241 Due from State | $X |
Do NOT credit revenue again in FY27. Posting the warrant straight to revenue leaves 1241 open and double-counts revenue. 1241 is a receivable, not a tracking bucket. It is supposed to return to zero (FASRG v20 Module 1: FAR Appendices, C.8.1, p. 292).
Cash received ahead of expenditures is the opposite direction: unearned revenue (2310), never 1241.
Which fiscal year digit?
A required single-digit code that identifies the fiscal year of a transaction or the beginning fiscal year of a grant project (a federally funded project that is accounted for as special revenue funds). (FASRG v20 Module 1: FAR Appendices, p. 11)
For a grant, the digit comes from the NOGA, not from the year the expenses were incurred: For federal or state grant-funded projects accounted for as special revenue funds, the fiscal year code corresponds with the second digit of the notice of grant award (NOGA) ID number ... Your district must use the same fiscal year code for the entire duration of the grant. (FASRG v20 Module 1: FAR Appendices, A.7, p. 216) So both sides use 6 only if the second digit of your NOGA ID is 6. A grant that began July 1, 2026 uses fiscal year code 7, even for July and August spending recorded in File ID 6 (FASRG v20 Module 1: FAR Appendices, p. 12).
Interfund Due to / Due from - only for pooled cash
1241/1242 is amount owed by the State/federal government. Due to/from other funds is amount one fund owes another fund:
These codes are used to record amounts owed to one fund by another fund. (FASRG v20 Module 1: FAR Appendices, p. 114)
If General Fund cash fronted the grant expenditures:
- FY26: Dr 199-00-1262 Due from Special Revenue Fund / Cr 211-00-2171 Due to General Fund
- When the cash arrives: Dr 211-00-2171 / Cr 211-00-1110, and Dr 199-00-1110 / Cr 199-00-1262, or settle it the district's usual way
(FASRG v20 Module 1: FAR Appendices, C.8.1, pp. 288-289)
How to enter in ASCENDER
Enter both sides as an Actual JV. It must balance within the fund and fiscal year:
This tab is used to create journal entries for realized revenue, expenditures, and balance sheet accounts. You can enter all transactions related to one journal voucher, as long as the debit and credit entries are balanced within the fund and fiscal year. (ASCENDER: Finance > Maintenance > Postings > Journal Actual - FIN3200)
Go to Finance > Maintenance > Postings > Journal Actual, click Add JV, enter JV Number / Description and Acct Per, add the two detail lines above, save.
If the grant fund is a continuing fund at Finance > Utilities > Fiscal Year Close, select Continue for the grant fund and make sure Carry Forward Balances is checked: Carry Forward Balances: Select to carry forward account balances (1XXX-4XXX) into the new fiscal year. (ASCENDER: Finance > Utilities > Fiscal Year Close). That is how your 8/31 1241 balance rolls to the new file ID to be cleared by the September cash. Do not re-enter it as a new opening entry.
Practical check before close: reconcile 1241 by grant year against TEA's payment ledger. A stale receivable overstates both assets and revenue in a federal fund: single-audit territory.
Where this comes from
- FASRG Update 20, Module 1: Financial Accounting and Reporting Appendices. Open the PDF
- A.1 fiscal year code definition, page 11; example of a grant that began July 1, 2026 using code 7, page 12
- 1241 Due from State and 1242 Due from Federal Agencies, page 102; 2170 Due to Other Funds, page 114; 2310 Unearned Revenue, page 115
- 5829, page 145; 5929, page 151
- A.7 fiscal year code for grants, pages 216-217
- C.8.1 Federally Financed Grant Funded Through TEA, Example 1, pages 287-292
- FASRG Update 20, Module 1: Financial Accounting and Reporting, 1.2.2 Accounts Receivable, page 29; 1.2.2.2 Other Receivables, page 30. Open the module
- ASCENDER: Finance > Maintenance > Postings > Journal Actual (FIN3200). Open the help page
- ASCENDER: Finance > Utilities > Fiscal Year Close, Carry Forward Balances. Open the help page
Related questions
Current as of: FASRG Update 20 (TEA documents dated June–July 2026); ASCENDER Business help (checked October 2026). Checked 20 October 2026.
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