| (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.
Cont'd... |
