SPA Process User’s Guide –
Chapter 2 – General Policies

SPA Fiscal Year-End Reconciliation and Certification of Fiscal Balances

• Policy and Contacts
• Requirements and Deadlines by Type of Agency
• SPA Fiscal Year-End Instructions
• SPA/CANSS Reconciliation Checklist

Policy and Contacts

Per Government Code, Section 403.271, each state agency (and university choosing to report to SPA) is responsible for ensuring that its fiscal year-end capitalized asset balance(s) reflected in SPA are accurate and materially correct. The balance(s) must reflect the agency’s financial position when reported in the annual financial report (AFR), Capital Asset Note (Note 2). Agencies and universities certify SPA fiscal balances and Note 2 using the Capital Asset Note Submission System (CANSS) Web application.

State agencies and universities reporting to SPA via batch are required to annually reconcile SPA capital asset balances and activity with their internal asset management system.

If the agency or university has multiple fund types, the agency or university is required to reconcile proprietary fund types at the fund level.

For questions, contact:

• Your SPA analyst – SPA questions or SPA/CANSS variances
• Your FRS Analyst – CANSS questions or CANSS/USAS variances

Requirements and Deadlines by Type of Agency

SPA Fiscal Year-End Instructions

Note: If any entries are made in SPA during the two-month period when both the current fiscal year and the prior fiscal year allow transactions, ensure that the correct effective date is assigned. Entering assets in the wrong fiscal year will cause errors in your capitalized asset balances. See SPA Fiscal Year-End Close Process (FPP N.008) for valid effective dates.

Automated SPA ad hoc report distribution includes all reports needed for reconciliation. See Daily Generation of SPA Ad Hoc Reports (FPP N.009) (login required) for the full report list and retrieval instructions.

All state agencies as well as universities choosing to report to SPA must:

1. Retrieve the DM19_MISSING report. All items listed on this report must be removed from disposal method (DM) 19. All assets listed must be assigned a permanent disposition code (DM 17 or 18) or must be removed from missing status if the asset has been recovered.
2. Retrieve the DM02_XFER report to identify Transfers-Out from your agency not processed as received by the receiving agency. As the transferor agency, you are accountable for making sure transfers are complete. Any transfer not completed by the receiving agency continues to be reflected in the sending agency’s balances. Contact the receiving agency property manager if necessary to complete the transfer.
3. Access the SPA Receive Transfers (PARXER) screen to verify that all pending transfers in have been processed. Process any pending transfers in. If there are any pending transfers in that need to be cancelled or corrected, contact the sending agency property manager.

   Note: All transfers between external/exempt universities and internal or reporting SPA agencies/universities must be completed in SPA by Sept. 20 to allow simplified agencies to meet their reporting deadline. See External/Internal Property Transfers for more information.

4. Property listed in SPA must accurately reflect the agency’s capital asset balances as of Aug. 31, 20CY. Retrieve the CAAB101D and CAAB201D reports. The CAAB201D is for agencies using SPA to calculate depreciation/amortization. Verify that all capitalized property is accurately reflected on the reports as follows:
   • All disposals have been entered in SPA for property that was sold, salvaged, lost or stolen. Enter in SPA any disposal made but not recorded for the current fiscal year.
   • All assets, including those financed by payables, reported at fiscal year-end in the AFR Capital Asset Note 2 have also been reported in SPA. Enter in SPA any capital property not yet reported for the current fiscal year.
   • All construction in progress (CIP) projects completed in the current fiscal year must be closed out and reclassed to the newly completed asset. First dispose the completed CIP asset with a DM 24 and then add the new reclassed asset to SPA via the Add Property (PAPADD) screen using acquisition method 04. The amount of completed CIP must equal the amount reclassed to new assets so that the RECLASS CIP column on the CAAB101S and CAAB201S nets to zero.
5. Retrieve the CAAB101S and the CAAB201S reports. These reports reflect SPA balances in Note 2 format. Verify that the reports accurately reflect the agency’s capital asset balances as of Aug. 31, 20CY.

Upon completion of all SPA fiscal year-end steps:

• GR consolidated agencies: Email your FRS and SPA analyst that SPA entries for the current fiscal year are complete. Upon notification, SPA staff will close the current fiscal year accounting period in SPA. FRS will complete the SPA/CANSS checklist and certify CANSS.
• AFR full reporting agencies and universities reporting to SPA: Continue to the SPA/CANSS reconciliation checklist.

SPA/CANSS Reconciliation Checklist

AFR full reporting state agencies and universities reporting to SPA are required to disclose the summary of changes for capital assets in Note 2:

• AFR full reporting agencies are required to submit capital asset activity disclosures through the CANSS Web application.
• The agency’s Note 2 submitted in CANSS must balance to SPA with any verified reconciling items clearly documented and emailed to spa@cpa.texas.gov.
• The balance for all capitalized property at Aug. 31, 20CY, must reconcile with the total property values in SPA. AFR line items must tie to SPA balances.
• Report capitalized property on Note 2 but not inventoried or controlled property.

For detailed instructions on preparing the Capital Asset Note, see Capital Assets and NOTE 2 — Capital Assets in the Reporting Requirements website.

1. Agencies should include these categories in the Capital Asset Note, if applicable.

   Category	Description
   1	Land and Land Improvements
   2	Buildings and Building Improvements
   3	Infrastructure (Depreciable)
   4	Furniture and Equipment
   5	Vehicles, Boats and Aircraft
   6	Construction in Progress
   7	Infrastructure (Non-depreciable)
   8	Other Capital Assets (Historical Arts and Treasures, Leasehold Improvements, Libraries)
   9	Facilities and Other Improvements
   A (11)	Land Use Rights (Intangible)
   B (12)	Computer Software (Intangible)
   C (13)	Other Capital Intangible Assets

2. Retrieve the SPA CAAB101S and CAAB201S reports. The CAAB201S is for agencies using SPA to calculate depreciation/amortization.
3. Verify that beginning balances on the CAAB101S and CAAB201S reports match the beginning balances in CANSS. The beginning balances in CANSS are the official beginning balances (prior year ending balances) and cannot be changed.
4. Input capital asset balances in CANSS. Ensure all columns of Note 2 match all columns on the CAAB101S and CAAB201S (if applicable) reports as follows:
   • Ending balances on Note 2 must match the ending balances on the CAAB101S and CAAB201S reports.
   • Adjustment/Restatement amounts must match.
   • Reclass CIP and Completed CIP amounts must match and the column must net to zero (0).
   • Transfers In columns must match.
   • Transfers Out columns must match.
   • Additions columns must match.
   • Deletions columns must match.
   • If the agency is using SPA depreciation, all columns for the CAAB201S report must match depreciation/amortization entered in CANSS. If local depreciation is used, the agency’s internal system depreciation is used instead of the CAAB201S. Transfer depreciation must match even if local depreciation is used.

     Note:

     • Notify your SPA analyst if you have a variance between SPA and CANSS that you need assistance to resolve. Email property-level detail explaining the variance(s). Your analyst will work with you to make necessary corrections or approve the variances as reconciling items that cannot be corrected in SPA.
     • Notify your FRS analyst if you have a variance between CANSS and USAS that you need assistance to resolve.
5. Certify in CANSS that CANSS and SPA are reconciled. After an agency has certified, SPA and FRS will conduct internal reviews. If reconciling items or errors are discovered during review, CANSS will be uncertified. The agency will be required to correct the errors or properly submit supporting reconciling item documentation to SPA and then re-certify in CANNS. The most recent certification date is the official certification date.

Upon CANSS certification, SPA staff will close the current fiscal year accounting period in SPA. CANSS and SPA will be closed globally on Oct. 20 per SPA Fiscal Year-End Close Process (FPP N.008). Contact your SPA analyst to open SPA for any changes after the deadline.

Note: The agency’s current fiscal year ending SPA balances can be changed until the accounting period is closed in SPA.