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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

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 for federal surplus property received before Oct. 1, 2019.
  • 23.34 percent of the original federal acquisition cost for federal surplus property received on or after Oct. 1, 2019.

The cash paid to TFC, however, does not necessarily equal the percent of the original federal acquisition cost. The cash paid to TFC is 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 ALN 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 in SEFA at:

  • 22.47 percent of the original federal acquisition cost in SEFA for federal surplus property distributed before Oct. 1, 2019.
  • 23.34 percent of the original federal acquisition cost for federal surplus property distributed on or after Oct. 1, 2019.

TFC also includes surplus property distributed in Notes 1 and 2 of SEFA.

According to 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 donated property for:
    • Governmental Fund Types as capital assets in the government-wide financial statements using fund type 11.
    • Proprietary Fund Types (including internal service funds) as capital assets and recognize federal revenue.

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