Proceeds From the Sale of Surplus Property

Purchasing Capital Assets Through Surplus Property or Between State Agencies (Interagency Transfers in USAS)

Purchasing capital assets through the surplus property program is not considered a capital outlay accounting event. It is an interagency transfer, or reallocation of state resources, including any cash paid or received. The TFC fee does not apply to these transactions, as TFC is not acting as the facilitator of the transaction.

To record the purchase of a capital asset from another state agency or university, use comptroller object (COBJ) 7974 – Transfer Purchase – Capitalized Asset. Record the receipt of cash using COBJ 3984 – Sales Receipt – Asset Transfer. Both COBJs roll to either Other Financing Sources and Uses, or Back Out Not Applicable on the operating statement in the agency financial statements. Refer to RTI Table 12 in the Annual Financial Report (AFR) reporting requirements on how to record this activity.

Note: The selling agency should process a budget adjustment using T-codes 006 and 009 to increase budget using Document Type A, Batch Type 1 in the receiving appropriation.