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SPA Process User's Guide

SPA Process User’s Guide – Appendix C – Disposal Methods

Disposal Methods

Disposal Methods are used to inactivate property maintained in SPA.

There are four types of disposal methods:

  • System Generated (SG)
  • System Generated by the Texas Facilities Commission (TFC) Surplus Process (SG-TFC)
  • Soft Disposal (SD) – This property is not yet inactivated and is included in an agency’s balance until the soft disposal method is changed to a hard disposal method.
  • Hard Disposal (HD) – This property has been inactivated and excluded from the fiscal year-end balances used for the annual financial report.
Disposal Method Type Description
01 SG/HD Completed Transfer — A property transfer that has been accepted by the receiving agency.
02 SG/SD Pending Transfer — A property transfer initiated by the sending agency or the TFC Surplus Process that has not yet been accepted by the receiving agency.
03 HD

Dismantled for Parts or Salvage with No Value (trash) — Property that has been dismantled for parts or so damaged that it has no value and cannot be recycled or sold for scrap. This property is usually discarded as trash.

This does NOT include recyclables (including electronics), modular furniture, salvage/wrecked vehicles or scrap metal.

04 HD

Surplus/Exempt Entities — Property of a state entity that exceeds the state agency’s needs, is not required for the foreseeable future, has additional useful life and has been designated by the agency as surplus.

Note: This disposal method is only used by state entities exempt by law from the TFC surplus process.

05 SG/SD

TFC Surplus Property Process Initiated — Property of a state entity that exceeds the state agency’s needs, is not required for the foreseeable future and has been designated by the agency as surplus. Surplus property may be new, used or salvage (including recyclables). State agencies are required by law to use the TFC surplus process unless exempt by law.

Note: This disposal method is system generated when a state entity enters an asset on the Surplus Property Process Screen in SPA. Property in DM 05 can be removed from the surplus process by the agency.

5R SG-TFC/SD

Surplus/Rejected by TFC — Property that has been rejected by TFC for advertisement on the Advertise Surplus Property website. Reasons for rejection include, but are not limited to, incorrect VIN or incomplete asset information.

Also used for property that has been advertised as surplus in error or needs a correction to data entered by the agency.

5C SG-TFC/SD Surplus/Pending Agency Disposal — Property that has completed the TFC advertisement and is now ready for final agency disposal with one of the following methods:
  • DM 08 – Surplus property donated or sold to a political subdivision
  • DM 09 – Surplus property donated or sold to an assistance organization
  • DM 15 – Surplus data processing equipment that must be sent to the TDCJ Computer Recovery Program.
06 SG/SD

Property in TFC Surplus Process — Surplus property sent to the TFC surplus process by an agency. Property is locked in DM06 while the property is advertised by TFC and until TFC updates SPA with one of the following disposal method codes:

  • DM 5R or 5C – Need Agency Action.
  • DM 33 or 34 – Final Hard Disposal. TFC has taken physical possession of the property and it was sold, donated or placed in TFC storefront inventory.

Note: Property in this disposal method can only be updated by TFC, not the agency or a SPA analyst. If the asset was entered as surplus property in error or needs to be updated, contact TFC to request the property be released with a DM 5R. Contact TFC for any questions related to assets in DM06.

08 SG-TFC/HD

Surplus Property Donated or Sold to a Political Subdivision — Surplus property donated or sold to a political subdivision during the TFC Surplus process (i.e., a city, county, school district or volunteer fire department).

Note: Must have completed the TFC 10 business day advertisement. Must be in a DM 5C before being disposed with the DM 08.

09 SG-TFC/HD

Surplus Property Donated or Sold to a TFC Approved Assistance Organization — Surplus property donated or sold to an assistance organization during the TFC Advertise surplus process. See the TFC website for approved assistance organizations.

Note: Must have completed the TFC 10 business day advertisement. Must be in a DM 5C before being disposed with the DM 09.

14 HD

Assets Sold that are Exempt by Law from the Surplus Process — Property sold directly by the agency as allowed by law.

For example, but not limited to: Chairs, Firearms, Agriculture/Livestock

Note: This disposal method is limited by class code/asset type.

15 HD

TDCJ Computer Recovery Program — Surplus Data Processing Equipment sent to the TDCJ Computer Recovery Program.

Note: This disposal method can only be used after the property has completed the TFC Surplus Process. Must be in a DM 5C before being disposed with the DM 15.

16 HD Disposal of Real Property — Land, buildings, infrastructure, facilities and/or other improvements (1) sold or donated (via legislation) to an entity external to the state or (2) involving demolition of buildings, infrastructure, facilities and/or other improvements.
17 HD Missing – Employee Negligence — Property reported as missing and the results of an investigation determined there was employee negligence.
18 HD Missing — Missing property that an agency 1) could not locate after a complete search and 2) determined that no employee negligence existed.
19 SD Missing/Hold for Deletion — Missing property that an agency is actively searching for or conducting an investigation for. An asset may remain in this soft disposal code for a maximum of two years from the date it was first reported as missing. If the asset is not located within the two year limit, it must be updated to DM 17 or DM 18.
20 HD Stolen – Employee Negligence — Property reported as stolen, a police report was filed and the results of an investigation determined there was employee negligence.
21 HD Stolen — Property reported as stolen, a police report was filed and the results of an investigation determined there was no employee negligence.
22 HD Eleemosynary Donations Allowed by Law — Property donated to clients by qualifying agencies.
23 HD Trade-In — Surplus property used as a trade-in towards the purchase of a new property.
24 HD Construction In Progress (CIP) – Completed — CIP property (class code 090) that has been substantially completed and placed into service.
25 HD Leasehold Improvements — Leasehold improvements that are amortized in total.
26 HD Assets Held in Trust/Leased Assets – Returned or Awarded — Property held in trust that has been returned to the owner or awarded to a state agency by a court, or leased assets that are returned to the vendor at the end of a lease.
27 HD

Property Entered in Error — Property entered in SPA in error.

Note: DM27 executed on a prior fiscal year property will create an automatic restatement/adjustment on the SPA CAAB reports.

28 HD Property Damaged by Nature — Property damaged by an act of nature: hurricane, tornado, lightning, hail, etc.
29 HD

Property Damaged by Accident — Property damaged by accident.

Example: A car accident where the insurance company totals the car and keeps it.

30 HD Property Damaged by Other / Employee — Property damaged by something other than an act of nature or accident or property damaged by an employee.
31 SG/HD Completed External Transfer — A property transfer that has been accepted by the receiving external university.
32 SG/SD Pending External Transfer — A property transfer initiated by an internal sending agency but not yet accepted by the external receiving agency.
33 SG-TFC/HD TFC Surplus Process Sale to Public — Property sold or auctioned to the public through the TFC Surplus Process.
34 SG-TFC/HD TFC Donation — Property that is donated by TFC during the TFC surplus process.
35 HD

TFC Authorized Sale or Donation — Property that is sold or donated by the agency outside of the surplus process with authorization from TFC.

Note: Agencies must contact TFC for authorization before using this disposal method.

36 HD Intangible Asset Disposal — An intangible asset that is no longer in use by the agency.
37 HD

Non-Monetary Exchange — A non-monetary asset exchange with another entity.

Note: This disposal method must have a partner asset addition to represent the exchange.

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