Section 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.34 Tex. Admin. Code § 5.200
The provisions of this §5.200 adopted to be effective July 21, 1994, 19 TexReg 5357; amended to be effective November 1, 1998, 23 TexReg 10884; amended to be effective September 9, 2008, 33 TexReg 7567; amended to be effective March 11, 2013, 38 TexReg 1696; Adopted by Texas Register, Volume 46, Number 22, May 28, 2021, TexReg 3418, eff. 6/2/2021