| (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.
Cont'd... |
