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Reporting Requirements for Annual Financial Reports of State Agencies and Universities

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Reporting Requirements for Annual Financial Reports of State Agencies and Universities

Capital Assets

Sale, Disposal or Interagency Transfer of Capital Assets
Recording Interagency Transfers of Capital Assets

When transferring capital assets between state agencies, a net increase or decrease is realized rather than recognizing a gain or loss. When figuring the effect of the transfer, the transfer out agency must determine if there is a net increase or decrease in the transfer of the asset.

Texas Facilities Commission (TFC) records the full amount of the sales proceeds in SPA when agencies transfer capital assets through the TFC surplus process. For information about accounting for the net proceeds in USAS when the sale is between state agencies, see Proceeds from the Sale of Suplus Property (FPP A.032). Do not charged a fee for transfers between other state agencies.

The transfer in agency (including agencies not reporting in SPA or agencies using local depreciation or amortization calculation methods) must book the amount provided by the transfer out agency. Reconciling differences are adjusted during CAFR preparation.

Run SPA report CAAB 106 to show the amount of transfers in for an agency. This report includes transfers in of property — however, be aware that the disposal method on the sending agency drives this report. The historical cost value of the asset comes from the asset balance table in SPA from the month prior to the transfer date. Since transfers in are reflected, the asset balances are debited and the accumulated depreciation is credited in the general ledger.

Run SPA report CAAB 107 to show the amount of transfers out for an agency. This report includes the transfers out of property. The historical cost value of the asset comes from the asset balance table in SPA from the month prior to the transfer date. Since transfers out are reflected, the asset balances are credited and the accumulated depreciation is debited in the general ledger.

Both these reports are sorted by:

Subtotals are at the GAAP fund group, depreciable code and AFR category levels.