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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Reporting Requirements for Annual Financial Reports of State Agencies and Universities

Capital Assets

Sale, Disposal or Interagency transfer of Capital Assets
Recording Transfers Out of Capital Assets

When transferring capital assets between state agencies, a net increase or decrease is realized — rather than recognizing a gain or loss.

In the entries below, it is important to note there are two “Seq. No. (4).” When figuring the effect of the transfer, the transfer out agency must determine if there is a net increase in the transfer of the asset or a net decrease in the transfer of the asset. This net increase/decrease determines which T-code and COBJ to use for “Seq. No. (4).”

Example of Increase Net Assets Due to Interagency Transfer of Capital Assets Example of Decrease Net Assets Due to Interagency Transfer of Capital Assets
       
Historical Cost 10,000   Historical Cost 10,000  
Less Accumulated Depreciation (7,000)   Less Accumulated Depreciation (7,000)  
Net Book Value   3,000   Net Book Value   3,000  
Less Cash Received from Transfer Out (5,000)   Less Cash Received from Transfer Out (2,000)  
Increase on Transfer Out (2,000)   Decrease on Transfer Out   1,000  
Treatment of Increase on Transfer of Asset Treatment of Decrease on Transfer of Asset
       
Accumulated Depreciation 7,000   Accumulated Depreciation 7,000  
Cash Received from Transfer Out 5,000   Cash Received from Transfer Out 2,000  
Increase Interagency Transfer Out      2,000 Decrease Interagency Transfer Out 1,000  
Capital Asset    10,000 Capital Asset       10,000

Business-Type Activities (Fund Type 05) and
Component Units (Fund Type 15)

  • Use T-code 631 with COBJ 3843 if there is a net increase in interagency transfers.
  • Use T-code 632 with COBJ 7858 if there is a net decrease in interagency transfers.
  • The GL account number used corresponds to the asset (and related depreciation) that is transferred.
Seq No Batch Type Doc Type Eff Date Fin Agy TC AY PCA COBJ Amount R Fund Input GL
To Reverse Cash Revenue Recorded for Assets Transferred Out
(1) 5 U 0832CY XXX 643 CY 99999 XXXX $ XX.XX R XXXX N/A
To Reverse the Accumulated Depreciation Associated with Asset Transferred Out
(2) 5 U 0832CY XXX 644 CY 99999 N/A $ XX.XX   XXXX XXXX
To Reverse the Historical Cost of the Asset Transferred Out
(3) 5 U 0832CY XXX 645 CY 99999 N/A $ XX.XX   XXXX XXXX
To Record a Net Increase on the Transfer of Assets
(4) 5 U 0832CY XXX 631 CY 99999 3843 $ XX.XX   XXXX 9999
–OR–
To Record a Net Decrease on the Transfer of Assets
(4) 5 U 0832CY XXX 632 CY 99999 7858 $ XX.XX   XXXX 9999

Accounting effect of above entries:

Debit Credit
*This entry assumes the original transfer out was recorded to cash revenue.
(1) To Reverse Cash Revenue Recorded for Assets Transferred Out    
  5100* GAAP Revenue Offset $ XX.XX  
  9999 System Clearing   $ XX.XX
(2) To Reverse the Accumulated Depreciation Associated with Asset Transferred Out    
  XXXX General Ledger Account for Asset Depreciation $ XX.XX  
  9999 System Clearing   $ XX.XX
(3) To Reverse the Historical Cost of the Asset Transferred Out    
  9999 System Clearing $ XX.XX  
  XXXX General Ledger Account for Asset   $ XX.XX
(4) To Record a Net Increase on the Transfer of Assets    
  9999 System Clearing $ XX.XX  
  5100 GAAP Revenue Offset   $ XX.XX
–OR–
(4) To Record a Net Decrease on the Transfer of Assets    
  5600 GAAP Expenditure Offset $ XX.XX  
  9999 System Clearing   $ XX.XX

Governmental Activities – Basis Conversion (Fund Type 11)

  • Use T-code 516R with COBJ 3843 if there is a net increase in interagency transfers.
  • Use T-code 517R with COBJ 7858 if there is a net decrease in interagency transfers.
  • The GL account number used corresponds to the asset (and related depreciation) that is transferred.
Seq No Batch Type Doc Type Eff Date Fin Agy TC AY PCA COBJ Amount R Fund Input GL
To Reverse Cash Revenue Recorded for Assets Transferred Out
(1) 5 U 0832CY XXX 516 CY 99999 XXXX $ XX.XX   XXXX 9992
To Reverse the Depreciation Associated with Asset Transferred Out
(2) 5 U 0832CY XXX 534 CY 99999 N/A $ XX.XX   XXXX XXXX
To Reverse the Historical Cost of the Asset Transferred Out
(3) 5 U 0832CY XXX 535 CY 99999 N/A $ XX.XX   XXXX XXXX
To Record a Net Increase on the Transfer of Assets
(4) 5 U 0832CY XXX 516 CY 99999 3843 $XX.XX R XXXX 9992
–OR–
To Record a Net Decrease on the Transfer of Assets
(4) 5 U 0832CY XXX 517 CY 99999 7858 $ XX.XX R XXXX 9992
Debit Credit
*This entry assumes the original transfer out was recorded to cash revenue.
(1) To Reverse Cash Revenue Recorded for Assets Transferred Out    
  6135* BC Other Financing Sources $ XX.XX  
  9992 BC System Clearing   $ XX.XX
(2) To Reverse the Depreciation Associated with Asset Transferred Out    
  XXXX General Ledger Account for Asset Depreciation $ XX.XX  
  9992 BC System Clearing   $ XX.XX
(3) To Reverse the Historical Cost of the Asset Transferred Out    
  9992 BC System Clearing $ XX.XX  
  XXXX General Ledger Account for Asset   $ XX.XX
(4) To Record a Net Increase on the Transfer of Assets    
  9992 BC System Clearing $ XX.XX  
  6135 BC Other Financing Sources   $ XX.XX
–OR–
(4) To Record a Net Decrease on the Transfer of Assets    
  6160 BC Other Financing Uses $ XX.XX  
  9992 BC System Clearing   $ XX.XX
Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.texas.gov
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