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SPA Process User’s Guide –
Chapter 4 – Adding Property and Funds

Adding a New Property Record

The Add Property (PAPADD) screen allows agencies to add the following transactions to the SPA system: New Property, Surplus Property Not Tracked on SPA and Property Held in Suspense.

Note: The Add Property (PAPADD) screen is to be used for open years only. For closed years, use the Add PY Property (PAPPFY) screen.

The mandatory fields are: FUND, REC DATE, EFF DATE, DESCRIP, ACQ MD, ACQ COST, FISC YR., CLASS CODE and LOC (for internal agencies).

Note: Before adding a property record, obtain the necessary property and financial information from the agency’s accounting department or other appropriate source.

Procedure

  1. Access the Add Property (PAPADD) screen on the Main Menu.
  2. Verify the agency number in the AGENCY field.
    The SPA system automatically defaults to the user’s agency number. If data is maintained by your agency for more than one agency, a different agency number may be entered by typing over the system-generated number.
  3. Enter the property number in the PROPERTY field.
  4. Enter the component number in the COMPONENT field.
  5. Press Enter. The system tabs automatically to the FUND field.
  6. Enter the agency fund in the FUND field.
  7. Enter the receipt date in the REC DATE field (using MM-DD-YYYY format).
  8. Enter the effective date in the EFF DATE field (using MM-DD-YYYY format). The effective date must correspond to the fiscal year in the FISC YR field. See step 17.
  9. Enter the voucher date in the VOUCHER DATE field (using MM-DD-YYYY format).
  10. Enter the in-service date in the IN-SERVICE DATE field (using MM-DD-YYYY format). If left blank, the system populates the field with receipt date. The in-service date must correspond to the fiscal year in the FISC YR field. See step 17.
  11. Enter a description of the property in the DESCRIP field.

    Note: Agencies should create consistent descriptions for the property types they enter.

  12. Enter quantity in the QNTY field. If left blank, this field defaults to 1.

    Note: Due to SPA system limitations, if you enter a quantity other than 1 the asset will not be included on the CAAB capital asset reports. You may include the number of units purchased in the COMMENT field.

  13. Enter the class code in the CLA field.

    Note: This entry must be a valid code. For a list of valid class codes, refer to Appendix A.

  14. Enter the acquisition method in the ACQ MD field.

    Note: For a list of acquisition methods, refer to Appendix B.

  15. Enter the acquisition cost in the ACQ COST field (using XX.XX format).

    Note: The system reads an entry of 100 as $100.00.

  16. The USEFUL LIFE field is a display only field populated from the useful life value on the class codes table in Appendix A. Useful life can be updated via the Update Depreciation [Depreciable Entities] (PADPRE) screen.
  17. Enter the fiscal year in the FISC YR field (using YYYY format). The fiscal year must correspond to the effective date in the EFF DATE field and in-service date in the IN-SERVICE DATE field. See steps 8 and 10.
  18. Enter the comptroller object number in the COMPT OBJ field.

    Note: This field is mandatory only when Acquisition Method 02 – State Sources is used. See Capital Asset Object Codes.

    Special Note: The fields in steps 19-23 (below) are mandatory only when Acquisition Method 08 (Debt Financed Instruments) is used. Finance term is expressed in months.

  19. Enter the debt finance method in the DEBT MD field.
  20. Enter the series/lease supplement number in the LEASE NO field.
  21. Enter the finance term in the FIN TERM field.
  22. Enter the amount financed in the AMT FIN field. This number can be different from the acquisition cost.
  23. Enter the condition of the property in the COND field. See Chapter 2 for requirements in reporting asset condition. If left blank, the system defaults to G (good condition).
  24. Enter one of the following appraisal methods in the APPR MD field:
    1. Invoices and other documents stating original cost
    2. Manufacturer price list
    3. Distributor and supply company catalogs
    4. Industry publications and trade journals
    5. Public records and tax assessment records
    6. Realtors, appraisers and bankers
    7. Other

    Note: This field is mandatory only when Acquisition Methods 05 – Gifts or Donations and 09 – Assets Held in Trust are used.

    Special Note: The fields in steps 25–31 (below) are mandatory for internal agencies only.

  25. Enter a detailed description of the exact location of the property in the LOC 1 field.
  26. Enter a detailed description of the exact location of the property in the LOC 2 field.
  27. Enter a detailed description of the exact location of the property in the LOC 3 field.
  28. Enter the first name of the person responsible for a piece of property in the RESPONSIBLE FIRST field.
  29. Enter the middle name of the person responsible for a piece of property in the MIDDLE field.
  30. Enter the last name of the person responsible for a piece of property in the LAST field.
  31. Press Enter. The message Information Has Been Added appears.

Adding Multiple Property Records

To avoid re-entering information on multiple records of the same asset type (i.e. – 10 IBM computers), the following procedures should be followed:

  1. Create a new property record using the normal procedure. Then, instead of pressing Enter to process the property record information, press F6. This step processes the record but maintains the information – leaving the PROPERTY and COMPONENT fields blank.
  2. Enter the next property number in the PROPERTY field. Enter the component number in the COMPONENT field. Tab to the remaining fields to make any changes.

    Note: When adding property records using F6, be sure every field properly reflects the correct information. Once F6 is pressed, the new record is added.

  3. Press F6 to process the new record with the updated fields.
  4. Continue to press F6 to create additional property records.
  5. Press Enter instead of F6 after entering the information on the last property record.

Adding a Property In Suspense Record

Property that has been received by an agency should immediately be given a property number and entered into the SPA system for tracking purposes. There are some instances where the acquisition cost or other accounting information is not available. However, this should not prevent an agency from assigning the item a property number. Agencies can give an item a property number without the necessary accounting information by entering acquisition method 13 on the Add Property screen.

The mandatory fields are REC DATE, EFF DATE, FUND, DESCRIP, ACQ COST, CLASS CODE and FISC YR.

Note: Property with an Acquisition Method of 13 does not appear on any SPA reports and cannot be transferred until accounting and acquisition information is entered on the Update Property in Suspense (PAACQU) screen, which then removes the property from suspense.

Procedure

  1. Access the Add Property (PAPADD) screen on the Main Menu.
  2. Verify the agency number in the AGENCY field.
    SPA automatically defaults to the user’s agency number.
  3. Enter the property number in the PROPERTY field.
  4. Enter the component number in the COMPONENT field.
  5. Press Enter.
  6. Enter the agency fund in the FUND field. The property should be assigned a fund where the asset renders the most service.
  7. Tab to the field(s) necessary to enter information for property.
  8. Enter of the date the property was received in the REC DATE field (using MM-DD-YYYY format).
  9. Enter an effective date in the EFF DATE field (using MM-DD-YYYY format).
  10. Enter a description of the property in the DESCRIP field.
  11. Enter the quantity in the QNTY field.
  12. Enter the class code in the CLA field.
  13. Enter acquisition method 13 in the ACQ METHOD field.
  14. Enter an estimate of the acquisition cost in the ACQ COST field.
  15. Enter the fiscal year in the FIS YR field (using YYYY format).

    Special Note: The fields in steps 16-21 (below) are mandatory for internal agencies only.

  16. Enter a detailed description of the exact location of the property in the LOC 1 field.
  17. Enter a detailed description of the exact location of the property in the LOC 2 field.
  18. Enter a detailed description of the exact location of the property in the LOC 3 field.
  19. Enter the first name of the person responsible for a piece of property in the RESPONSIBLE FIRST field.
  20. Enter the middle name of the person responsible for a piece of property in the RESPONSIBLE MIDDLE field.
  21. Enter the last name of the person responsible for a piece of property in the RESPONSIBLE LAST field.
  22. Press Enter. The message Information Has Been Added appears.

    Note: Property information must be updated in the Update Property in Suspense (PAACQU) screen when the financial information becomes available (invoice received). Acquisition Method 13 should be changed to the appropriate method; otherwise, the property will not be reflected on SPA reports used to prepare the capital asset note.

Adding Property Purchased with More Than One Fund

Sometimes multiple funds are used to pay for one property or components of a property. To allocate the cost of the property to the various funds, follow these procedures:

  1. Refer to the “Adding a New Property Record” procedure (enter the first fund and the amount allocated to that fund).
  2. Go to the Update Financial screen on the menu and key in the property number.
  3. Insert the new fund number you want to add and press Enter.
  4. Message Fund does not exist, Press F4 to Add Fund or F5 to cancel appears.
  5. Enter the acquisition method, the comptroller object code (if required), the fiscal year, acquisition cost and effective date in the appropriate fields.
  6. Press Enter to add the new fund.
  7. The message Fund Added appears.

Adding Construction in Progress (CIP) in SPA

Construction in Progress (CIP) reflects the economic construction activity status of substantially incomplete:

  • buildings and other structures
  • infrastructure (highways, energy distribution systems, pipelines, etc.)
  • internally generated intangible assets
  • additions
  • alterations
  • reconstruction
  • installations

CIP should be used:

  • If the asset under construction meets the capitalization threshold for its asset category;
    –and–
  • The project is one year or more in length and/or spans two fiscal years.

If your agency receives federal funding and is constructing a building in which the total cost of the project will meet or exceed $1 million, the building is required to be componentized.

Note: Depreciation is not applicable to assets during the period they are accounted for as CIP.

Adding CIP Property

Please refer to the procedure “Adding a New Property Record” in this chapter. When adding property under construction, enter Class Code 090 in the CLA field as outlined in step 13.

CIP projects should be tracked in SPA using one or both of the methods documented below:

  1. Track projects using a single property number. Each project should be represented as a component of that property number. A maximum of 99 projects can be tracked under one property number.
  2. Assign a unique property number to each project.

Updating CIP Property

Please refer to the procedure “Updating Fund Value” in Chapter 5. Examples of expenditures to be capitalized include:

  • Completed project costs
  • Interest accrued during construction (not applicable to governmental funds)
  • Cost of excavation or grading or filling of land for a specific building
  • Expenses incurred for the preparation of plans, specifications, blueprints, etc.
  • Cost of building permits
  • Professional fees (architect, engineer, management fees for design and supervision, legal)
  • Costs of temporary buildings used during construction
  • Unanticipated costs such as rock blasting, piling or relocation of the channel of an underground stream
  • Permanently attached fixtures or machinery that cannot be removed without impairing the use of the building
  • Additions to buildings (expansions, extensions or enlargements)

Disposing of CIP Property

Construction in Progress assets should be reclassified to their appropriate capital asset category when one the following has already occurred:

  • execution of substantial completion contract documents
  • occupancy
  • the asset is placed into service.

Before the asset can be reclassified to its appropriate asset category, the CIP property (or component) must be deleted. Please refer to the procedure “Disposing of a Property Record” in Chapter 6. When disposing of Construction in Progress property or components, enter the disposal method 24 in the DISPOSAL METHOD field. The disposal date used to dispose CIP must be after the date of the last transaction added to the CIP property number.

Adding the Property Once Completed

Once property under construction has been completed and deleted from SPA, it must be added back into SPA using:

  • a new property number
  • the proper class code
  • an in-service date based on when the property was placed in service
  • acquisition method 04 (Constructed Property)

For more information, please refer to the “Adding a New Property Record” procedure in this chapter.

If a building is to be componentized, each component and its related cost should be accounted for when adding the property to SPA. The sum of all components should equal the value of the CIP property (component) deleted.

Note: Additional cost paid on the project after the CIP property number has been deleted in SPA must be added directly to the new property number by adding a new component number or increasing the value.

Example: A university has two separate construction projects in progress as illustrated in the table below. The university receives federal funds. Project A, New Dormitory, must be componentized because the value of the building meets or exceeds $1 million.

Project A – New Dormitory (2,000,000) Project B – Addition to Library ($400,000)
Start Date: 09/01/2001
Proposed End Date: 10/30/2003
1. Adding CIP Property  
  Professional Fees
Class Code 090		 $100,000
Start Date: 04/01/2001
Proposed End Date: 12/01/2001
1. Adding CIP Property  
  Cost of Building Permits
Class Code 090		 $50,000
2. Adding Cost Property  
  Construction Cost $1,800,000
  Plans/Blueprints
Class Code 090		 100,000
2. Adding Cost  
  Construction Costs $300,000
  Professional Fees
Class Code 090		 50,000
3. Disposing of CIP Property
Substantial Completion of Contract
Documents: 10/30/2003
Disposal Method 24
$2,000,000		  
3. Disposing of CIP Property
Occupancy: 12/01/2001
Disposal Method 24
$400,000		  
4. Adding the Property Once Completed
Acquisition Method 04
Required to Componentize		  
4. Adding the Property Once Completed
Acquisition Method 04
$400,000		  
Cpnt Class Code Description Value Cpnt Class Code Description Value
01 031 Bldg: Shell $1,000,000 01 030 Non-Componentized Building $400,000
02 043 Elevator 100,000        
03 046 Sprinkler Sys. 100,000        
04 047 Electrical 200,000        
05 048 Roof 200,000        
06 051 Heat/Cooling 300,000        
07 054 Fire Protection System 100,000        
      $2,000,000