34 Tex. Admin. Code § 5.200 - State Property Accounting System
(a) Definitions. The following words and
terms, when used in this section, shall have the following meanings, unless the
context clearly indicates otherwise.
(1)
Annual physical inventory--The annual capitalized and controlled personal
property physical inventory count that a state agency must conduct once each
fiscal year in accordance with this section.
(2) Betterment of state property--An
improvement of state property that materially increases its serviceability or
useful life, or both.
(3) Capital
asset--A possession of the state that has an estimated useful life of more than
one year.
(4) Capital lease--A
lease of personal property under which the lessee substantially assumes the
risks and benefits of ownership as specified under pronouncements of the
Governmental Accounting Standards Board.
(5) Capitalized asset--A capital asset that
has a value equal to or greater than the capitalization threshold established
by the comptroller for that asset type.
(6) Comptroller--The Comptroller of Public
Accounts for the State of Texas.
(7) Controlled asset--An agency asset that
the state has determined to be at a high risk for loss; that must be secured
and tracked; and that has a value equal to or greater than the cost established
by the comptroller. The term does not include a capitalized asset, real
property, an improvement to real property, or infrastructure.
(8) Fiduciary fund--A fund held by a state
agency as trustee of the fund. The term includes pension funds and
non-expendable trust funds.
(9)
Fiscal year--The accounting period for state government, which begins on
September 1 and ends on August 31.
(10) Include--A term of enlargement and not
of limitation or exclusive enumeration. The use of the term does not create a
presumption that components not expressed are excluded.
(11) Institution of higher education--Has the
meaning assigned by Education Code, §
61.003(8).
(12) Internal state agency--A state agency
that uses the SPA system exclusively as its own property accounting
system.
(13) May not--A
prohibition. The term does not mean "might not" or its equivalents.
(14) Personal property--A capitalized or
controlled asset not classified as real property. The term includes trust
property.
(15) Proprietary fund--A
self-supporting fund whose resources are generated through user charges. The
term includes enterprise and internal service funds.
(16) Real property--Land including structures
or other improvements that are embedded into or permanently affixed to the
land.
(17) Replacement of state
property--A replacement of an internal or external part of state property that
allows it to complete its normal useful life.
(18) Reporting state agency--A state agency
that reports information from its own property accounting system to the SPA
system.
(19) Salvage personal
property--Personal property that no longer serves its original purpose because
it is depleted, worn out, damaged, consumed, outdated, or obsolete. The term
does not include personal property that has a remaining useful life.
(20) SPA system--The state property
accounting system, which is the fixed asset component of the uniform statewide
accounting system.
(21) State
agency--A state governmental entity that manages, administers, or controls
state property.
(22) State
property--Property possessed by the state. The term includes real property and
personal property.
(23) Surplus
personal property--Personal property in the possession of a state agency that
is not currently needed by the agency and is not required for the agency's
foreseeable needs. The term does not include salvage personal
property.
(24) Trust
property--Property not owned by the state that a state agency temporarily holds
on behalf of the owner and is not used in agency operations.
(25) University system--Has the meaning
assigned by Education Code, §
61.003(10).
(26) USAS--The Uniform Statewide Accounting
System, which is the integrated financial system of record for the State of
Texas financial records.
(b) Exemptions.
(1) Equipment and supplies purchased through
programs, contracts, or grants with the Department of State Health Services.
(A) An item of equipment or a supply is
exempt from the requirements of this section if it is:
(i) used to promote and maintain public
health;
(ii) purchased by or for a
qualified entity; and
(iii)
purchased through a program, contract, or grant with the Department of State
Health Services.
(B) The
exemption ends if the item of equipment or supply is returned to the Department
of State Health Services upon the termination of the applicable program,
contract, or grant. When the exemption ends, the formerly exempt item of
equipment or supply must be reported to the SPA system in accordance with the
comptroller's requirements.
(C) A
state agency that purchases an exempt item of equipment or a supply shall
develop and maintain internal control procedures for keeping a complete and
accurate inventory of the items of equipment or supplies exempt under
subparagraph (A) of this paragraph.
(D) In this paragraph, "qualified entity"
includes an individual, a corporation, a local unit of government, and a state
agency.
(2) Items
provided to an individual with a disability.
(A) A material, tool, book, or other
necessary apparatus provided to an individual with a disability by the Health
and Human Services Commission or the Texas Workforce Commission for use in
providing rehabilitation services to the individual is exempt from the
requirements of this section.
(B)
The Health and Human Services Commission and the Texas Workforce Commission
shall each develop and maintain internal control procedures for keeping a
complete and accurate inventory of the items that are exempt under subparagraph
(A) of this paragraph.
(C) An item
that no longer qualifies for an exemption under subparagraph (A) of this
paragraph must be reported to the SPA system in accordance with the
comptroller's requirements.
(3) Items provided to clients of state
agencies.
(A) The comptroller may exempt from
the reporting requirements of this section a material, tool, book, or other
necessary apparatus if the item is provided to a client by a qualifying state
agency.
(B) The appropriate state
agency shall develop and maintain internal control procedures for keeping a
complete and accurate inventory of the items that are exempt under subparagraph
(A) of this paragraph.
(C) An item
that no longer qualifies for an exemption under subparagraph (A) of this
paragraph must be reported to the SPA system in accordance with the
comptroller's requirements.
(4) University system or institution of
higher education.
(A) Except as provided in
this subsection and subsection (l) of this section, a university system or
institution of higher education is exempt from the requirements of this
section.
(B) A university system or
institution of higher education shall account for all personal property
possessed by the system or institution. At all times, the property records of a
university system or institution of higher education must accurately reflect
the personal property possessed by the system or institution.
(5) Items of state property
otherwise exempt by law. An item of state property is exempt from the
requirements of this section if it is otherwise exempt by law from the
requirements of the SPA system.
(c) General responsibilities.
(1) Designation, supervision and training of
property manager.
(A) The head of a state
agency shall:
(i) designate a property
manager for the agency;
(ii) inform
the comptroller of the designation not later than the 15th day after making the
designation by properly completing and submitting the form required by the
comptroller;
(iii) ensure that the
property manager receives training about this section and the SPA system;
and
(iv) ensure that the property
manager properly carries out the property manager's duties as required by this
section and applicable law.
(B) The property manager may be the head of
the state agency, or another official or employee of the state
agency.
(C) The head of a state
agency may designate more than one property manager for the agency only if the
comptroller approves.
(2) Responsibility for custody and care. The
head of a state agency is responsible for the custody and care of state
property in the agency's possession. This responsibility does not end when a
property manager is designated.
(3)
Change of head of a state agency or property manager. If the head of a state
agency or property manager changes, the outgoing head of the state agency or
outgoing property manager shall inform the comptroller of the change not later
than 15 days after the change occurs by properly completing and submitting the
form required by the comptroller.
(4) Perpetual inventory. A state agency shall
maintain a perpetual inventory.
(5)
Inventory controls. The head of a state agency shall ensure that the agency
maintains adequate inventory controls on state property.
(6) Maintaining records. The property manager
of a state agency shall maintain the records required by the comptroller, this
section, and applicable law.
(7)
Forms. A state agency shall use the forms prescribed by the comptroller when
taking any action authorized or required by this section. The comptroller may
adopt and modify forms as the comptroller deems necessary.
(8) Use of state property. State property may
only be used for state purposes.
(d) Certification of internal state agencies
and reporting state agencies.
(1) General
requirement. A state agency must be certified by the comptroller as an internal
state agency or a reporting state agency.
(2) Request for certification or change of
certification initiated by state agency.
(A)
A state agency that has not been certified or that is requesting a change of
certification must properly complete and submit to the comptroller the form
required by the comptroller, and obtain the comptroller's approval.
(B) The agency must specify on the form
whether the agency requests certification as an internal state agency or a
reporting state agency.
(C) The
comptroller shall review the form and consider the agency's ability to comply
with this section before determining whether to certify the agency or change
the agency's certification.
(3) Certification changes initiated by the
comptroller. The comptroller may change a state agency's certification any time
the comptroller determines the change is needed.
(4) Effective date of certification. If the
comptroller approves a request for certification or a change of certification
under paragraph (2) of this subsection or changes an agency's certification
under paragraph (3) of this subsection, the change is effective on the date
specified by the comptroller.
(e) Records and reporting.
(1) Internal state agencies.
(A) An internal state agency shall report
state property to the SPA system at the time of acquisition. The information
must be reported in accordance with the comptroller's requirements.
(B) An internal state agency shall maintain
its property records on the SPA system in accordance with the comptroller's
requirements.
(2)
Reporting state agencies.
(A) A reporting
state agency shall report information to the SPA system in accordance with the
comptroller's schedules, procedures, and classification system. The comptroller
may require a reporting state agency to submit information at any
time.
(B) A reporting state agency
shall maintain its property records in the manner and format required by this
section and the comptroller. The agency shall ensure that its property
accounting system is always capable of providing the information required by
the SPA system and shall modify its property accounting system to comply with
the comptroller's reporting requirements, as periodically amended.
(C) A reporting state agency shall ensure
that it has disaster recovery capability.
(3) Tracking of state property.
(A) Except as provided in subparagraph (B) of
this paragraph, a state agency shall track and report state property on a unit
basis.
(B) A state agency may track
and report library books, library reference materials, e-books, and software on
a group basis.
(4)
Access to the SPA system. An individual may have access to the SPA system only
in accordance with the procedures and security limitations prescribed by the
comptroller.
(f)
Valuation of state property.
(1) General
provision. This subsection governs the valuation of state property as reported
to the SPA system.
(2) Newly
acquired state property. The value of newly acquired state property must be
equal to the sum of:
(A) the cost of the
property; and
(B) the costs
required to place the property into service.
(3) Donated state property.
(A) The value of state property acquired
through donation must be equal to its fair market value on the date of
donation.
(B) The fair market value
of donated state property must be determined through a reasonable market
study.
(C) A state agency that
conducts a market study shall fully document the methods used to conduct the
study. The agency shall maintain the documentation concerning the market study
in accordance with the comptroller's requirements.
(4) State property constructed by the state.
The value of state property constructed by the state must be equal to the total
cost of labor and materials in accordance with the comptroller's
requirements.
(5) Betterments and
replacements of state property.
(A) A state
agency shall determine the value of a betterment or replacement of state
property:
(i) immediately following the
completion of the betterment or replacement; or
(ii) at the agency's earliest opportunity as
deemed appropriate by the agency and the comptroller.
(B) The value of a betterment of state
property must be expensed unless the betterment increases the value or useful
life of the property by a material amount. If a betterment is not expensed, the
value of the property must be increased on the SPA system in accordance with
the comptroller's requirements.
(C)
The value of a replacement of state property is equal to the cost of the
replacement less the original cost of the part being replaced. The value of the
replacement must be expensed unless the replacement materially increases the
value or estimated useful life of the property. If a replacement is not
expensed, the value of the property must be increased on the SPA system in
accordance with the comptroller's requirements.
(D) If a state agency is required to increase
the value of state property on the SPA system because of a betterment or
replacement, the agency shall maintain documentation that supports the amount
of the increase in accordance with the comptroller's requirements.
(6) Debt-financed state property.
(A) In this paragraph, the total principal of
debt-financed state property is equal to the purchase price of the property
plus the applicable service charge imposed by the Texas Public Finance
Authority.
(B) The acquisition cost
of debt-financed state property other than constructed items must reflect the
total principal of the property and the costs required to place the property
into service.
(C) The acquisition
cost of debt-financed state property that has been constructed should be equal
to the total cost of acquiring the property plus the cost of placing the
property into service, which includes the principal, interest, finance charges,
costs of issuance, and administrative fees.
(7) Leased state property.
(A) State property that a state agency has
leased under a capital lease must be valued in accordance with this
paragraph.
(B) Subject to
subparagraph (C) of this paragraph, the cost of leased state property is equal
to the present value of the minimum lease payments plus the cost of placing the
property into service. The cost of the property does not include any costs not
paid by the agency.
(C) The cost of
leased state property may not exceed the property's fair market
value.
(8) Trade-ins. If
a state agency is authorized to trade state property for other personal
property, the agency must report the trade to the SPA system in accordance with
the comptroller's requirements.
(g) Accounting practices.
(1) Depreciation of state property.
(A) The depreciable state property of
proprietary and fiduciary funds must be depreciated in accordance with
generally accepted accounting principles.
(B) Depreciation is calculated and reported
on the SPA system. Agencies that calculate depreciation locally must report the
depreciation expense at the end of the fiscal year in accordance with the
comptroller's schedules and procedures.
(C) The amount that state property
depreciates over a fiscal year is determined using the straight-line method,
which is the historical cost of the property less the residual value of the
property, divided by the useful life of the property expressed in
months.
(D) A state agency shall
use the SPA system's default value for the estimated useful life of state
property unless the agency documents a different value based on the agency's
experience.
(2) Transfer
of state property between funds. If a state agency transfers state property to
another fund, the acquisition cost of the property plus the associated
accumulated depreciation as recorded in the new fund must be the same as the
cost and the associated accumulated depreciation recorded in the old
fund.
(3) Reporting and
reconciliation of state property inventory balances.
(A) A state agency shall report additions,
deletions, and adjustments in state property throughout the fiscal year in
accordance with the comptroller's requirements.
(B) An internal state agency must reconcile
the accounting balances in USAS to the supporting financial detail on the SPA
system. All adjustments made during the reconciliation must be documented and
maintained in accordance with the comptroller's requirements.
(C) A reporting state agency must reconcile
the accounting balances in USAS and the agency's local property accounting
system to the supporting financial detail on the SPA system. All adjustments
made during the reconciliation must be documented and maintained in accordance
with the comptroller's requirements.
(h) Inventory control.
(1) Marking of personal property. A state
agency shall permanently mark each item of personal property in the agency's
possession as property of the State of Texas. The marking is permanent for the
purpose of this paragraph if the marking can be removed only through
considerable or intentional means. The marking shall be highly visible so that
conducting a physical inventory is facilitated.
(2) Property inventory numbers.
(A) A state agency shall assign a unique
property inventory number to each item of state property possessed by the
agency. For personal property, the number shall be printed on a label, which
shall be attached to the item in a highly visible location.
(B) A property inventory number may not be
reused, even if the appropriate disposal code for the property has been entered
into the SPA system.
(3)
Responsibility for securing and tracking personal property. A state agency is
responsible for ensuring that its personal property is tracked and secured in
the manner that is most likely to prevent damage to, and the theft, loss, or
misuse of, the property.
(4)
Locating state property.
(A) A state agency
must know where all of its state property is located at all times.
(B) An internal state agency must maintain
current location information on the SPA system.
(C) A reporting state agency must maintain
current location information on the agency's local property accounting
system.
(i)
Annual physical inventory.
(1) Timing of
annual physical inventory. Except as provided in paragraph (2) of this
subsection, a state agency shall conduct an annual physical inventory of the
capitalized and controlled personal property in the agency's possession each
fiscal year in accordance with the comptroller's schedules and procedures. The
agency may choose the date of the inventory.
(2) Exemptions.
(A) Except as provided in subparagraph (B) of
this paragraph, an agency's annual physical inventory is not required to
contain an inventory of library books, library reference materials, e-books,
software, antiques, artifacts, rare publications, historical books, historical
treasures, or historical manuscripts, in the agency's possession.
(B) Every fifth fiscal year, beginning in
fiscal year 2025, an agency's annual physical inventory must contain an
inventory of antiques, artifacts, rare publications, historical books,
historical treasures, and historical manuscripts, in the agency's possession,
in accordance with the comptroller's schedules and procedures.
(3) Certification. The head of a
state agency must certify completion of the agency's annual physical inventory
in accordance with the comptroller's schedules and procedures.
(4) Updating information. If the results of a
state agency's annual physical inventory vary from the information on the SPA
system, the agency shall immediately update the information on the SPA system.
An agency must maintain documentation in accordance with the comptroller's
requirements.
(j)
Entrusting personal property to other agency officials or employees.
(1) Required receipt. A state agency may not
entrust personal property in its possession to an agency official or employee,
other than the agency's property manager, unless the official or employee
provides to the agency's property manager a signed, written, and dated receipt,
which includes the statement described in paragraph (2) of this
subsection.
(2) Statement. The
receipts required under paragraph (1) of this subsection and subsection (k)(1)
of this section must contain a statement similar to the following: "I
understand that I am financially liable to the state for the disappearance of
the personal property if I fail to exercise reasonable care for its
safekeeping; the deterioration of the property if I fail to exercise reasonable
care to maintain and service it; and the damage or destruction of the property
if it occurs because of my negligent or intentional wrongful act."
(3) Use for other than state purposes. A head
of a state agency or property manager may not entrust personal property to a
person if the head of the state agency or property manager knows or reasonably
should know that the person will use the property for other than state
purposes.
(k) Loaning
personal property to another state agency.
(1) Written authorization. A state agency may
not loan personal property to another state agency unless the head of the
agency lending the property provides written authorization for lending the
property and the head of the agency to which the property is lent executes a
written receipt, which includes the statement described in subsection (j)(2) of
this section.
(2) Document the
loan. A state agency that loans personal property to another state agency shall
document the loan as required by the comptroller.
(3) Agency responsibility. A state agency
that loans personal property to another state agency does not suspend or
eliminate its responsibilities toward the property under this section and
applicable law.
(l)
Transferring state property.
(1) Comptroller
requirements. A state agency that transfers state property to another state
agency or receives state property from another state agency shall comply with
the comptroller's requirements.
(2)
Agency responsibility. State property that is in pending transfer status to
another state agency is the responsibility of the transferring state agency
until the transfer has been completed in accordance with the comptroller's
requirements.
(3) Master lease
financing program. A state agency may not transfer property purchased through
the master lease financing program administered by the Texas Public Finance
Authority unless the authority provides advance approval of the transfer in
accordance with the authority's requirements.
(4) University system or institution of
higher education. A university system or institution of higher education is
subject to the requirements of this subsection.
(m) Lost, destroyed, or damaged personal
property.
(1) Comptroller requirements. A
state agency must enter the appropriate disposal code for lost, destroyed, or
damaged personal property into the SPA system in accordance with the
comptroller's requirements.
(2)
Physical inventory. A state agency must include in the agency's annual physical
inventory the agency's lost, destroyed, or damaged personal property until the
appropriate disposal code for the property has been entered into the SPA system
in accordance with the comptroller's requirements.
(3) Reporting. If the head of a state agency
or property manager has reasonable cause to believe that any property in the
agency's possession has been lost, destroyed, or damaged through the negligence
of any state official or employee, the head of the agency or property manager
shall report the loss, destruction, or damage to:
(A) the comptroller immediately by entering
the appropriate disposal code into the SPA system; and
(B) the attorney general in the manner
prescribed by the comptroller not later than the fifth working day after
reasonable cause for the belief arises.
(n) Stolen personal property.
(1) Comptroller requirements. A state agency
must enter the appropriate disposal code for stolen personal property into the
SPA system in accordance with the comptroller's requirements.
(2) Physical inventory. A state agency must
include in the agency's annual physical inventory the agency's stolen personal
property until the appropriate disposal code for the property has been entered
into the SPA system in accordance with the comptroller's
requirements.
(3) Reporting. If the
head of a state agency or property manager has reasonable cause to believe that
any property in the agency's possession has been stolen, the head of the agency
or property manager shall report the theft to:
(A) the comptroller immediately by entering
the appropriate disposal code into the SPA system;
(B) the attorney general in the manner
prescribed by the comptroller not later than the fifth working day after
reasonable cause for the belief arises; and
(C) the appropriate law enforcement agency
not later than the 48th hour after reasonable cause for the belief
arises.
(o)
Surplus and salvage personal property.
(1)
Compliance with applicable law and rules. A state agency shall comply with
Government Code, Chapter 2175, and the rules promulgated by the Texas
Facilities Commission when transferring, selling, or disposing of its surplus
or salvage personal property.
(2)
Disposal of surplus or salvage personal property. A state agency shall enter
the appropriate disposal code for surplus or salvage personal property into the
SPA system in accordance with the comptroller's requirements.
(3) Physical inventory. A state agency must
include in the agency's annual physical inventory the agency's salvage or
surplus personal property until the appropriate disposal code for the property
has been entered into the SPA system in accordance with the comptroller's
requirements.
(p) Real
property. In addition to other requirements set forth in this section, a state
agency must submit information about real property to the General Land
Office.
(q) Abolished state
agencies.
(1) Application of this subsection.
This subsection applies to an abolished state agency only to the extent this
section is consistent with the law that abolishes the agency.
(2) Responsibilities of the head of an
abolished state agency.
(A) The head of an
abolished state agency shall:
(i) conduct a
complete and accurate physical inventory of the agency's state property in
accordance with the comptroller's requirements;
(ii) furnish a copy of the inventory to the
appropriate governmental entity designated to take custody of the agency's
state property not later than the date prescribed by the legislature or, if the
legislature did not prescribe a date, the effective date of the abolition of
the state agency; and
(iii)
transfer all state property of the agency to the appropriate governmental
entity designated to take custody of the agency's state property.
(B) The physical inventory
required by subparagraph (A)(i) of this paragraph is in addition to the annual
physical inventory required by subsection (i) of this section.
(r) Conflict with
federal laws or regulations. If a federal law or regulation conflicts with this
section, the federal law or regulation prevails over this section to the extent
necessary to avoid the conflict.
Notes
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