Proceeds From the Sale of Surplus Property

Overview

Applicable to

State agencies

Policy

All proceeds from sales of surplus property must be deposited to general revenue (GR) in appropriation 99908. Proceeds include sale of surplus property, equipment and commodities.

This applies to:

• Sales made by the Texas Facilities Commission (TFC).
• Sales that TFC authorizes other agencies to make per Texas Government Code, Section 2175.181.

This does not apply to surplus property purchased from trust funds, bond funds, funds held outside the state treasury, and in some cases, federal funds. Proceeds from surplus property do not apply when an agency “purchases” an item (listed by TFC as available) from another agency. This activity is considered a transfer of state assets.

TFC deposits 100 percent of proceeds directly into appropriation 99908. An agency may re-appropriate 25 percent of the receipts from the sale of surplus property for expenditure based on House Bill 1, 88th Legislature, Regular Session, Article IX, Section 8.03.

Agency Responsibility

Each agency is responsible for:

• Moving out of appropriation 99908 any proceeds that do not apply to the surplus property rules/policy.
• After TFC deposits proceeds, and before Aug. 31 of each year, moving up to 25 percent out of appropriation 99908 to one or more like appropriations for expenditures out of GR (Fund 0001).

Legal Citations

HB 1, Article IX, Section 8.03, 88th Legislature, Regular Session, states:

1. Twenty-five percent of the receipts to a state agency specified in this Act received from the sale of surplus property, equipment, commodities or salvage (including recycled products) pursuant to Texas Government Code, Chapter 2175, are appropriated to the state agency for expenditure during the fiscal year in which the receipts are received. Receipts from such surplus equipment, commodities, or salvage (including recycled products) sales shall be expended from the appropriation item from which like property, equipment or commodities would be purchased.

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.

AGY NO	T-CODE	APPN NO	COBJ	PCA	FUND	RTI
Selling Agency	971	Determined by Agency	3984	Determined by Agency	Determined by Agency	Determined by Agency
Purchasing Agency	225	Determined by Agency	7974	Determined by Agency	Determined by Agency	Set by Selling Agency

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.

Entering Deposits for the Sale of Surplus Property in USAS

Establishing Profiles in USAS

Your agency must establish profiles in the Uniform Statewide Accounting System (USAS) before entering your deposits from the sale of surplus property in USAS.

The following step/action table tells agencies how to establish profiles in USAS:

Step	Action
1	Verify that appropriation 99908 has been created on the 20 PROFILE screen by the Comptroller’s office.
2	Use a D23 Fund Profile with the following look-ups: APPD FUND 0001 GAAP FUND 0001 GAAP FUND TYPE 01
3	Create a Program Cost Account (PCA) on the USAS 26 screen with the following elements (PCA is set up by your Appropriation Control officer): AGENCY = (Assigned three-digit agency number) APPN YEAR = (Two-digit appropriation year) PCA = 99908 TYPE = D TITLE = Unappropriated Receipts-Surplus Property PROGRAM CODE = 3992 APPN NO = 99908 FUND = (D23 fund that infers Appd Fund 0001)

Entering Deposits Into USAS

All deposits from the sale of surplus property must be entered into USAS using appropriation 99908.

The following table tells agencies how to record deposits in USAS:

AGY NO	T-CODE	APPN NO	COBJ	PCA	FUND
XXX	191 191 191 195	99908	3750 3839 3841 3754	99908	0001

Note: The Comptroller’s office will sweep the deposits from appropriation 99908 to the Comptroller’s unappropriated general revenue.

Procedure to Move Proceed Receipts From Sale of Surplus Property

Follow this procedure to:

• Move 25 percent of receipts into a direct strategy appropriation for expenditures out of Fund 0001.
• Move receipts that do not apply to the surplus property rules/policy.

Enter a Document Type J, Batch Type 2 to reverse original deposit T-code transactions in USAS using the coding blocks in the table below.

AGY NO	T-CODE	APPN NO	COBJ	PCA	FUND
Affected Agency	191R 191R 191R 195R	99908	3750 3839 3841 3754	99908	0001
Affected Agency	191 191 191 195	Determined by Agency	3750 3839 3841 3754	Determined by Agency	Determined by Agency

Note: Process a budget adjustment using T-codes 006 and 009 to increase budget using Document Type A, Batch Type 1 in the receiving direct strategy appropriation.

Agencies that require agency objects for the sweep process must have agency object 7973 (in the AGENCY OBJECT field on the D11 profile) match comptroller object 7973.

CAPPS Agencies

CAPPS agencies that track appropriation 99908 in CAPPS have two options:

1. Agencies can make entries directly into USAS using the coding block shown above in “Entering Deposits into USAS.” Then perform manual journal entries into CAPPS for the deposit using a MAN T-code. A manual budget adjustment entry can be done in Commitment Control.
2. Agencies can make the journal entry into CAPPS using the coding block shown above for the deposit. An agency must make sure all T-codes are set up by the agency before any entries can be performed. After the budget adjustment is made in USAS, a manual budget adjustment entry can be done in Commitment Control.

CAPPS agencies: For questions, contact your agency’s Level 1 Help Desk support staff. Authorized Level 1 users may contact the CAPPS Help Desk for additional assistance.

Important Dates

The first scheduled sweep of each fiscal year is the first week of August for deposits made in September through July. The second sweep is Aug. 31 for deposits made in August.