Reporting Requirements for Annual Financial Reports of State Agencies and Universities

Capital Assets

Overview of Purchasing & Reporting of Capital Assets
Capital Asset Definitions

Capital assets are real or personal property with an estimated life of greater than one year. Capital assets may or may not be capitalized for financial reporting purposes.

A capitalized asset is a capital asset with a value equal to or greater than the capitalization threshold established for that asset type. Capitalized assets are reported in an agency’s AFR.

A Comptroller-controlled asset is a capital asset with a value less than the capitalization threshold established for that asset type, but due to its high-risk nature, is required to be reported to SPA. Controlled assets are not reported in an agency’s AFR. For a list of Comptroller-controlled assets, see SPA’s Controlled Property Class Codes.

A locally controlled asset is a capital asset not capitalized nor listed on the Comptroller’s controlled asset list, but is tracked and accounted for as mandated by agency management.

Capital Asset Classification

Capital assets purchased, constructed or donated that meet or exceed the Comptroller’s established capitalization thresholds or minimum reporting requirements must be uniformly classified using the SPA class code structure.

The SPA Process User’s Guide, Appendix A lists current class code structures for personal and real property. Included in the SPA class code structure are codes that can be used to componentize buildings as required by Texas Government Code, Section 2101.015.