(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
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