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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Reporting Requirements for Annual Financial Reports of State Agencies and Universities

Capital Assets

Impact of Threshold on Indirect Cost Plans
Costs Converted to Construction in Progress – Federal Funding Concerns

Additional consideration is advised for federally funded programs related to construction in progress (CIP). There are federal funding implications for capital assets during CIP that require attention due to capitalization requirements (such as the requirement to capitalize application development stage activities for internally generated computer software).

Capitalized costs cannot be included as current operation expenditures, as the federal government would be charged twice for the expenditure — once during the current period operation expenditures (such as salary expenses that could be capitalized during application development stage for internally generated computer software), and then a second time for the depreciation/amortization expense of the capitalized asset.

Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.texas.gov
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