Texas Comptroller Manual of Accounts - Fiscal 2024
Revenue Object 3860 – Basis Conversion - Increase/Decrease Net Assets - Pass-Through Tolls Financing

To record the GAAP Fund Type 11 and Fund Type 12 basis conversion pass-through tolls and NTA (see below) adjustment entry balancing amounts between the two fund types. When combined, the two sides net to zero.  A decrease in the net assets is recorded in Fund Type 12 to offset the pass-through tolls and NTA long-term liabilities and financing fees recorded.  An increase is recorded in Fund Type 11 for the net amount of the assets, capital outlay and donations of capital assets.

With pass-through tolls local governments fund upfront costs for constructing a state highway project. The state then reimburses a portion of the project cost to the community over time. TxDOT, not the motorist, reimburses the local government through an agreed-upon fee based on the number of vehicles using the highway; hence the "pass-through" financing.

Non-traditional agreements (NTA) or service concession agreements are between a transferor (a government) and an operator (governmental or nongovernmental entity) where the transferor conveys to the operator the right to provide public services through the use of a facility (either existing or newly constructed infrastructure) or other asset, in exchange for fees from third parties.

At time of transfer.