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Proceeds from the Sale of Surplus Property

Issued: Oct. 31, 2005
Updated: Aug. 16, 2019 – View Changes

FPP A.032

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.

An agency may re-appropriate 25 percent of the receipts from the sale of surplus property for expenditure based on on House Bill 1, 86th Legislature, Regular Session, Article IX, Section 8.03.

TFC deposits 100 percent of proceeds directly into appropriation 99908.

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, 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 7, 78th Legislature, Regular Session, originally established this procedure that was applied retroactively to fiscal 2003 sales.

HB 1, Article IX, Section 8.03, 86th 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 the provisions of Chapter 2175, Government Code, 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.

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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

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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.

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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.

Changes to this Document
Date Updates
08/16/2019 Updated per acts of the 86th Legislature, Regular Session
06/04/2018
  • Updated legal citations to reference acts of the 85th Legislature, Regular Session
  • Updated for interagency transfer comptroller object codes
09/01/2017 Updated per acts of the 85th Legislature, Regular Session
08/28/2015 Updated per acts of the 84th Legislature, Regular Session

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