| (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.
Cont'd... |
