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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Reporting Requirements for Annual Financial Reports of State Agencies and Universities

Pass-Through Activity

Special Conditions
Federal Surplus Property

Federal surplus personal property received from the Texas Facilities Commission (TFC) is reported as Non-Monetary Pass-Through From revenue in SEFA at 22.47 percent of the original federal acquisition cost. The cash paid to TFC, however, does not necessarily equal 22.47 percent of the original federal acquisition cost. The cash paid to TFC was for freight and handling and is not related to the original federal acquisition cost reported in SEFA. The agency reports the freight and handling as a normal expenditure to TFC. The CFDA number and title for this program is 39.003 – Donation of Federal Surplus Personal Property. Also include surplus property received in Notes 1 and 2 of SEFA.

TFC reports surplus property distributed as a Pass-through To agencies at 22.47 percent of the original federal acquisition cost in SEFA. The TFC also includes surplus property distributed in Notes 1 and 2 of SEFA.

According to the GASB 72, donated property is recorded for financial reporting purposes at acquisition value at the time the property is received.

The decision to capitalize depends on the agency’s capitalization threshold for fixed assets. If the acquisition value is:

  • Less than the capitalization threshold — no entry is needed on the financial statements.
  • More than the capitalization threshold — report the donated property as follows:
    • For governmental fund types – Record donated property as capital assets in the government-wide financial statements using fund type 11.
    • For proprietary fund types (including internal service funds) – Record donated property as capital assets and recognize federal revenue.

For more information on recording the receipt of donated capital assets, see Recording Capital Asset Donations.

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