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Glenn Hegar  ·  Texas Comptroller of Public Accounts

SPA Process User’s Guide

SPA Process User’s Guide – Chapter 6 – Deleting Property and Funds

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Disposal of Property

The Disposal of Property (PADLET) screen allows agencies to delete property on the SPA system. Depending on the disposal method used, certain conditions may have to be met before the property can be deleted. See Appendix C for a listing of disposal methods.

Procedure

  1. Access the Disposal of Property (PADLET) screen on the Main Menu.
  2. Verify the agency number in the AGENCY field. SPA automatically defaults to the user’s agency number. If data is maintained 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.
  6. Tab to the DISPOSAL METHOD field and enter the appropriate disposal method.
  7. Press Enter. If a message appears at the bottom of the screen, refer to the procedures for the disposal method you are attempting to use.
  8. Enter the disposal date in the DISPOSAL DATE field (using MM-DD-YYYY format).
  9. Press Enter. For some disposal methods, Proceeds from Sale Value is required.
  10. Press Enter. The message Press F4 to Continue or F5 To Cancel appears. After you press F4, the message Information Has Been Deleted appears.

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Recovery of Deleted Property

Property can only be recovered by agency representatives with a security designated title code P or A or by a SPA analyst.

Property can be recovered if:

  • Deleted in error
  • It was previously reported as missing or stolen and has been found

Property should not be recovered to:

Procedure

  1. Access the Recover Deleted Property (PARCVR) screen on the main menu.
  2. Enter the property number in the PROPERTY field.
  3. Enter the component number in the COMPONENT field.
  4. Enter Y (yes) or N (no) in the RECOVER PROPERTY field.
  5. Press Enter. The message Recovery Was Successful appears.

Data Fields Affected by the Recovery

Disposal Method
The disposal method used to delete the property will be removed when the property is recovered.
Disposal Date
The disposal date will be removed when the property is recovered.
Effective Date
If the original disposal occurred in a closed period, the effective date of the recovery will be assigned as the agency’s open date. If the disposal occurred in an open period, the effective date of the recovery will be assigned as the original disposal date.
Class Code
If the class code on the property being recovered is invalid, the SPA system will prompt you to change the class code before the property can be recovered.

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Disposal of Surplus Property Not in SPA (ZZ property)

Non-capitalized or controlled property not on the SPA system can be entered in the TFC surplus process on SPA using the following procedures:

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. If data is maintained for more than one agency, a different agency number may be entered by typing over the system-generated number.
  3. Enter a dummy property number in the PROPERTY field. This dummy number must start with ZZ and be no more than ten characters long. For example: ZZ00000001.

    Note: ZZ property numbers do not show up on any SPA reports except Surplus Property Reports.

  4. Enter the component number in the COMPONENT field.
  5. Press Enter.
  6. Enter the fund number.
  7. Enter the receipt date in the REC DATE field (using MM-DD-YYYY format). If the receipt date is not known, use the current date.
  8. Enter the effective date in the EFF DATE field (using MM-DD-YYYY format).
  9. Enter a description of the property in the 40-character DESCRIP field.
  10. Enter the class code in the CLA field.
  11. Enter 99 in the ACQ MD field. (ZZ property must have acquisition method 99)
  12. Enter the acquisition cost in the ACQ COST field. If you do not know the original cost, enter 1.00.
  13. Enter the current fiscal year in the FISC YR field.
  14. Enter a detailed description of the exact location of the property in the LOC 1 field. (Required for internal agencies only.)
  15. Enter the first name of the person responsible for the property in the RESP FIRST field.
  16. Enter the last name of the person responsible for the property in the LAST field.
  17. Press Enter. The message Information Has Been Added appears.
  18. Press F3 to return to the Main Menu.
  19. Access the Surplus Property Process screen (PADGSC) and follow the procedures for “Disposal Method 05 (Surplus)” in this chapter.

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Disposal Method 01 and 02 (Completed and Pending Transfers)

Disposal methods 01 and 02 are system-generated when the Transfer Property Screen (PATRAN) or the Receive Transfer Property Screen (PARXER) are utilized. See Chapter 7 for procedures regarding the transfer of property to another state agency.

  • Disposal method 01 – completed transfer. A property that has been accepted by the receiving agency. System generated by the Receive Transfers screen (PARXER)
  • Disposal method 02 – 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. System generated by the Transfer Property Screen (PATRAN).

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Disposal Method 03 (Dismantled for Parts or Salvage with No Value [Trash])

Dismantled for Parts or Salvage with No Value (Trash) — Property that has been dismantled for parts, or is 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.

Property disposed under this method cannot have proceeds from sale; property that has value must be disposed of using the TFC surplus property process.

See Chapter 2 for more information on cannibalization or salvage property.

Procedure

  1. Access the Disposal of Property (PADLET) screen on the Main Menu.
  2. Enter the property and component number in the corresponding fields.
  3. Press Enter.
  4. Enter 03 in the DISPOSAL METHOD field of the Disposal of Property screen.
  5. Enter the disposal date (using MM-DD-YYYY format) in the DISPOSAL DATE field.
  6. Press Enter. The message Press F4 to Continue or F5 to Cancel appears.
  7. Press F4 to delete the record. The message Information Has Been Deleted appears.

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Disposal Method 04 (Surplus/Exempt Entities)

This disposal method is used by eleemosynary institutions, institutions of higher education, legislative institutions and other state agencies exempt by law from the TFC surplus process. (See Chapter 2.)

Procedure

  1. Access the Disposal of Property (PADLET) screen on the Main Menu.
  2. Enter the property and component number.
  3. Press Enter.
  4. Enter 04 in the DISPOSAL METHOD field of the Disposal of Property screen.
  5. Enter the disposal date in the DISPOSAL DATE field (using MM-DD-YYYY format).
  6. Press Enter. The message Press F4 To Continue Or F5 To Cancel appears.
  7. Press F4 to delete the record. The message Record Deleted appears.

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Disposal Method 05 (Surplus/Enter in TFC Surplus Process)

The Surplus Property Process (PADGSC) screen allows agencies to enter an asset into the surplus property process administered by the Texas Facilities Commission (TFC). TFC is responsible for the disposal of surplus and salvage property of the state.

Eleemosynary institutions, institutions of higher education, legislative institutions and some state agencies are exempt by law from the TFC surplus property process (See Chapter 2), but have the option to use the process if they choose to advertise their property on the TFC Surplus Property website.

Property entered on the PADGSC screen is assigned system generated disposal method DM05. This is the first step to enter the property in the TFC Surplus Process. DM05 is a temporary soft disposal code. The asset will remain in a DM05 only until that night’s processing when the DM05 will be automatically updated to DM06 and sent on a file to TFC. Agencies can only remove an asset from the surplus process while it is in DM05. Once the disposal method is converted to DM06, the asset is locked and can only be updated or removed from the process by TFC. Contact TFC for any questions or help with an asset that is in DM06.

To remove an asset from the surplus process while it is in DM05:

  • Access the Disposal of Property (PADLET) screen
  • Space through DM05
  • Press enter
  • The message Delete Surplus Information? Press PF4 to continue -or- PF5 to cancel appears
  • Press PF4 and the message Information has been updated appears

If changes need to be made to surplus information while the asset is in DM05, follow the steps above to remove the asset from surplus and then re-enter the asset with the correct information on the Surplus Property Process screen. If corrections need to be made after an asset has updated to DM06, contact TFC for assistance.

Procedure

The following procedure explains how to advertise single or multiple properties.

  1. Access the Surplus Property Process (PADGSC) screen option on the Main Menu.
  2. Enter the agency number, property number and component number in the corresponding fields.
  3. Press Enter. The COND/CLASS CD and SURPLUS DESCRIPTION fields are populated by the system.

    Note: Notice that the NEXT PROPERTY/COMPONENT field now appears on the screen.

  4. The table below explains how to enter single or multiple properties.
    If you are entering… then…
    a single property, leave the NEXT PROPERTY/COMPONENT field blank.
    multiple properties, enter the property number for the next property to be advertised in the NEXT PROPERTY/COMPONENT field.
  5. Enter the date you want to begin advertising the property.
  6. Enter the name of the contact person in the CONTACT PERSON field.
  7. Enter the name of the sale person in the SALE PERSON field.
  8. Enter the contact person’s telephone number in the PHONE NUMBER field beneath the CONTACT PERSON field.
  9. Enter the sale person’s telephone number in the PHONE NUMBER field beneath the SALE PERSON field.
  10. Enter Y (for yes) or N (for no) in the APP REQ IND field to indicate if an appointment is required to view the surplus property. (The system defaults to Y.)
  11. Enter the sale person’s fax number, if applicable, in the FAX NUMBER field.
  12. Enter the SERIAL #, if applicable. This field is required on specific asset class codes.
  13. Enter the asking price of the property in the ASKING PRICE field. (This field is optional, TFC generally sets the asking price.)
  14. Make necessary changes to the condition code field.
  15. Enter the physical location of the property in the SURP LOCATION field.

    Note: Include the applicable inspection hours, the street address and the city. For example: 8 a.m. – Noon and 1–3 p.m. at 123 Avenue B, Austin.

  16. Update the description in the SURP DESCRIPT field to provide an accurate description of the property. (The description may be up to eight 50-byte lines, a total of 400 bytes.)

    Examples: Laptop computer, printer, filing cabinet, Ford 150 truck.

  17. Enter any necessary comments in the SURP COMMENT field.
  18. The table below explains how to complete the process of advertising a single or multiple properties.
    If you are advertising… then…
    a single property, press Enter. The message Property/Component Surplused appears.
    multiple properties, Press F6 to surplus the first property. This also moves the property from the NEXT PROPERTY/COMPONENT field (which you entered in step 4) to the PROPERTY field and duplicates all other fields.

    The message Property ##### Surplused and Next Property ##### Ready for Update appears.

    Repeat this until all properties have been processed.

    Note: Be extremely careful to check all fields for accuracy, especially the DESCRIPTION and PRICE fields.

    Once the very last property number populates the PROPERTY NUMBER field, press Enter. The message Property/Component Surplused appears.

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Disposal Method 5r (Surplus/Rejected by TFC)

This disposal method is generated by TFC and cannot be entered in SPA by an agency or SPA staff.

TFC uses this code for property that has been rejected for advertisement on the TFC Surplus Property website. Reasons for rejection include, but are not limited to, incorrect VIN or incomplete asset information. Agencies must contact TFC to learn the reason for rejection.

This code is also used by TFC for property that an agency has advertised as surplus in error, or needs a correction to data entered by the agency. Agencies must contact TFC to request the asset be reported to SPA as a 5r for corrections or removal from the process.

Agencies must remove the property from 5r following the procedures below and then correct the errors and re-enter the property in the surplus process.

Procedure

  1. Access the Disposal of Property (PADLET) screen on the Main Menu.
  2. Enter the property and component number.
  3. Press Enter.
  4. Use the space bar to space through the 5r.
  5. Press Enter. The asset is now in active status.

To correct information and re-enter the property in the surplus process, see Disposal Method 05 – Surplus Property Process.

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Disposal Method 5c (Surplus/Pending Agency Disposal)

This disposal method is generated by TFC and cannot be entered in SPA by an agency or SPA staff.

TFC uses this code for property that has completed the TFC advertisement and has been requested by a political subdivision or assistance organization, or must be sent to the Texas Department of Criminal Justice (TDCJ) Computer Recovery Program.

Property must be advertised on the TFC Surplus Property Website for the entire advertisement period before it can be made available to political subdivisions or assistance organizations. State agencies have priority for the entire advertisement period.

Agencies are responsible for verifying an assistance organization’s eligibility.

For assets sold or donated to a political subdivision or assistance organization, agencies must contact TFC for steps to complete the transaction. TFC will then report a disposal method 5c to SPA and then the agency is responsible for updating the 5c to the following appropriate disposal method:

  • DM 08 – Surplus property donated or sold to a political subdivision
  • DM 09 – Surplus property donated or sold to an assistance organization

For data processing equipment, the property must first be advertised and complete the advertisement period. TFC will then automatically return a disposal method 5c to SPA and the agency is responsible for updating the disposal method to:

  • DM 15 – Surplus data processing equipment that must be sent to the TDCJ Computer Recovery Program.

Please see TFC TDCJ Computer Recovery PDF and TDCJ Computer Recovery Program for more information.

Procedure

  1. Access the Disposal of Property (PADLET) screen on the Main Menu.
  2. Enter the property and component number.
  3. Press Enter.
  4. Update the 5r to the appropriate DM 08, 09 or 15.
  5. Press Enter.

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Disposal Method 06 (Surplus/Advertised by TFC)

This code pertains to property currently in the TFC Surplus Process. When agencies enter assets into the TFC surplus property process via the Surplus Property Process screen in SPA, the property is assigned a DM05 until that night’s processing. The property is then automatically updated to a DM06 and sent on a nightly file to TFC. Once an asset is assigned DM06, it is locked in the SPA system and can only be updated by TFC.

TFC will evaluate the asset and complete one of the following actions:

  • Reject the asset with a DM5r if there are errors or the agency notifies TFC the asset was entered in the surplus process in error.
  • Advertise the asset on the TFC surplus property website.

During the advertisement, the agency must notify TFC if:

  • The asset is requested for transfer to another state entity.
  • Donated or sold to an assistance organization or political subdivision.

After the advertisement period, TFC will complete one of the following actions:

  • Place the asset for sale to the public.
  • Auction the asset.
  • Donate or otherwise dispose of the asset.
  • If the asset is data processing equipment, return a DM5c to SPA so the agency may send the asset to the Texas Department of Criminal Justice Computer Recovery Program.

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 DM5R. Contact TFC for any questions related to assets in DM06.

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Disposal Method 08 (Surplus Property Donated or Sold to a Political Subdivision)

This disposal method is used to delete surplus property donated or sold to a political subdivision. Assets are required to complete the 10-day TFC advertisement before they can be sold or donated to a political subdivision. The following steps must be completed before an asset can be disposed with disposal method 08:

  1. Asset must be entered in the TFC Surplus Process in SPA and complete the 10-day advertisement period. If a political subdivision contacts the agency to request the property during the TFC advertisement period, the organization must wait for the full 10-day advertisement period to complete. Requests from state agencies have priority over any other organizations during the entire advertisement period. If no state agency requests the property, the first organization requesting the property and agreeing to the price will be awarded the property.
  2. Once the advertisement is complete, the agency must contact TFC to request approval to donate or sell the asset to the assistance organization. Include a list of the asset numbers in the email.
  3. TFC, in conjunction with the agency, will determine the sales price, if any, for each item.
  4. Complete any TFC required procedures.
  5. TFC will then update the disposal method to a 5c in SPA. The asset must be in DM 5c before it can be updated to 08.
  6. After the organization has picked up the property, update the disposal method to 08 in SPA.

Procedure

  1. Confirm that payment, if any, has been received and that the asset has been picked up by the receiving organization.
  2. Access the Disposal of Property (PADLET) screen on the Main Menu.
  3. Enter the property and component number in the corresponding fields.
  4. Press Enter. Disposal method must be 5c.
  5. Enter 08 in the DISPOSAL METHOD field.
  6. Press Enter. The message Enter Disposal Date appears.
  7. Enter the disposal date. No entry defaults to current date.
  8. Press Enter. The message Disposal Method Requires a Comment appears.
  9. Enter the name of the political subdivision receiving the asset in the COMMENT field.
  10. Enter the proceeds, if any, in the PROCEEDS FROM SALE field. The proceeds from sale value is the amount for which the property was sold.
  11. Press Enter. The message Press F4 To Continue Or F5 To Cancel appears.
  12. Press Enter. The message Information has been Deleted appears.

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Disposal Method 09 (Surplus Property Donated or Sold to an Assistance Organization)

This disposal method is used to delete surplus property donated or sold to an assistance organization. Assets are required to complete the 10-day TFC advertisement before they can be sold or donated to an assistance organization. The following steps must be completed before an asset can be disposed with disposal method 09:
  1. Asset must be entered in the TFC Surplus Process in SPA and complete the 10-day advertisement period. If an assistance organization contacts the agency to request the property during the TFC advertisement period, the organization must wait for the full 10-day advertisement period to complete. Requests from state agencies have priority over any other organizations during the entire advertisement period. If no state agency requests the property, the first organization requesting the property and agreeing to the price will be awarded the property.
  2. Once the advertisement is complete, verify that the assistance organization is eligible to receive assets from the state using the TFC Approved Assistance organizations list.
  3. Contact TFC to request approval to donate or sell the asset to the assistance organization. Include a list of the asset numbers in the email.
  4. TFC, in conjunction with the agency, will determine the sales price, if any, for each item.
  5. Complete any TFC required procedures.
  6. TFC will then update the disposal method to a 5c in SPA. The asset must be in DM 5c before it can be updated to 09.
  7. After the organization has picked up the property, update the disposal method to 09 in SPA.

Procedure

  1. Confirm that payment, if any, has been received and that the asset has been picked up by the receiving organization.
  2. Access the Disposal of Property (PADLET) screen on the Main Menu.
  3. Enter the property and component number in the corresponding fields.
  4. Press Enter. Disposal method must be 5c.
  5. Enter 09 in the DISPOSAL METHOD field.
  6. Press Enter. The message Enter Disposal Date appears.
  7. Enter the disposal date. No entry defaults to current date.
  8. Press Enter. The message Disposal Method Requires a Comment appears.
  9. Enter the name of the assistance organization receiving the asset in the COMMENT field.
  10. Enter the proceeds, if any, in the PROCEEDS FROM SALE field. The proceeds from sale value is the amount for which the property was sold.
  11. Press Enter. The message Press F4 To Continue Or F5 To Cancel appears.
  12. Press Enter. The message Information has been Deleted appears.

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Disposal Method 14 (Assets Sold that are Exempt by Law from the TFC Surplus Process)

This disposal method is used to dispose specific types of property sold directly by an agency as allowed by law. This includes, but is not limited to, guns sold to retired peace officers, and chairs sold to elected/appointed officials. See Sale of Capital Assets to State Employees for more information.

This disposal method is also used for the sale of livestock, agriculture equipment or other assets exempted from the surplus process by type, per Sec. 2175.303. EXCEPTION FOR CERTAIN PRODUCTS.

DM 14 is limited by class code/asset type. Please contact a SPA analyst to request the addition of any asset class codes that statutorily fall in this category, but are not currently included in the set class codes for this disposal method.

This type of property should not be entered into the surplus process.

Procedure

  1. Confirm that payment for the property has been received by the agency.
  2. Access the Disposal of Property (PADLET) screen on the Main Menu.
  3. Enter the property and component number in the corresponding fields.
  4. Press Enter.
  5. Enter 14 in the DISPOSAL METHOD field.
  6. Press Enter. The message Enter Disposal Date appears.
  7. Enter the disposal Date.
  8. Press Enter. The message Proceeds From Sale Value Required appears.
  9. Enter the sale price in the PROCEEDS FROM SALE field.
  10. Press Enter. The message Press F4 To Continue Or Press F5 To Cancel appears.
  11. Press F4. The message Information Has Been Deleted appears.

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Disposal Method 15 (Surplus Sent to the TDCJ Computer Recovery Program)

This disposal method is used for data processing equipment not sold or transferred through the surplus process or by other means.

Data processing equipment is defined as central processing units, front-end processing units, mini-processors, microprocessors and related peripheral equipment such as data storage devices, document scanners, data entry equipment, terminal controllers, data terminal equipment, computer-based word processing systems other than memory typewriters and equipment and systems for computer networks.

Please contact the TDCJ Computer Recovery Program for specific questions regarding what property they will take.

This disposal method should be used to delete data processing equipment after completion of the TFC advertisement and after pickup by TDCJ.

Property must be in a disposal method 5c before it can be updated to disposal method 15.

Procedure

  1. Confirm that the property has been picked up by TDCJ.
  2. Access the Disposal of Property (PADLET) screen on the Main Menu.
  3. Enter the property and component number in the corresponding fields.
  4. Press Enter. Disposal method should be 5c.
  5. Enter 15 in the DISPOSAL METHOD field.
  6. Enter DISPOSAL DATE.
  7. Press Enter. The message Press F4 To Continue Or Press F5 To Cancel appears.
  8. Press F4. The message Record Deleted appears.

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Disposal Method 16 (Disposal of Real Property)

This disposal method is used to delete real property such as land, buildings, infrastructure or facilities and other improvements sold or donated (via legislation) to an entity external to the state.

Real estate transactions may require the involvement of the General Land Office (GLO). If the legislature authorizes a real estate transaction involving real property owned or held in trust by the state, GLO takes possession and control of the property and negotiates and closes the real estate transaction on behalf of the state (Natural Resource Code, Section 31.158).

The GLO may not take possession and control of property under Chapter 2201 of the Texas Government Code if the state agency is ineligible to benefit from the Texas capital trust fund.

Upon notification by the GLO, a state agency initiates the transfer of property in SPA to the GLO. Proceeds from the real estate transaction are entered by the GLO and deposited into the Texas capital trust fund, unless the constitution dedicates the proceeds to another fund, or the enabling legislation ordering the real estate transaction stipulates otherwise.

SPA Procedure

  1. Access the Disposal of Property (PADLET) screen on the Main Menu.
  2. Enter the property and component number in the corresponding fields.
  3. Press Enter.
  4. Enter 16 in the DISPOSAL METHOD field.
  5. Enter the disposal date in the DISPOSAL DATE field (using MM-DD-YYYY format).
  6. Press Enter. The message Disposal method requires a comment appears.
  7. Enter comment. The comment must indicate the legislation authorizing the sale.
  8. Press Enter. The message Proceeds From Sale Value Required appears.
  9. Enter proceeds amount, if any. If no proceeds, enter 0.
  10. Press Enter. The message Press F4 To Continue Or F5 To Cancel appears.
  11. Press F4. The message Information Has Been Deleted appears.

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Disposal Method 17 (Missing – Employee Negligence)

This disposal method is used to dispose property that is missing and an internal agency investigation determined there was employee negligence.

The following procedures should be followed when an asset is found to be missing during the annual physical inventory or at any other time.

  1. Report the asset as missing in SPA with a Disposal Method 19 (Missing – Temporary Hold for Deletion). This is a soft disposal code that should only be used temporarily while the asset is searched for and an investigation is conducted. An asset cannot remain in DM 19 longer than two years, but should be updated at the end of an investigation or when it is determined that the asset is not likely to be recovered. An asset can be placed directly in disposal method 17 without using disposal method 19.
  2. Complete an internal investigation to determine if there is employee negligence related to the missing asset. Each agency must have internal policies established providing procedures to conduct an investigation for missing property. See Missing or Stolen Property for more information.
  3. Complete form 74-194 to document the investigation.
  4. If there is no employee negligence, maintain the form 74-194 on file; do not submit the form to the Comptroller.
  5. If employee negligence is indicated, update the disposal method in SPA from 19 to 17 and submit a copy of form 74-194 to the Office of the Attorney General (OAG) within five (5) business days of discovery, and maintain a copy of the form on file. Do not submit the form to the Comptroller’s office.

SPA Procedure

  1. Access the Disposal of Property (PADLET) screen on the Main Menu.
  2. Enter the property and component number.
  3. Enter disposal method 17 in the DISPOSAL METHOD field.

    Note: If disposal method 19 displays, enter disposal method 17 and press Enter.

  4. Enter the disposal date in the DISPOSAL DATE field (using MM-DD-YYYY format).
  5. Press Enter. The message Press F4 To Continue Or F5 To Cancel appears.
  6. Press F4. The message Information Has Been Deleted appears.

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Disposal Method 18 (Missing – No Employee Negligence)

This disposal method is used to dispose of property that is missing and an internal agency investigation determined there was NO employee negligence.

The following procedures should be followed when an asset is found to be missing during the annual physical inventory or at any other time.

  1. Report the asset as missing in SPA with a Disposal Method 19 (Missing – Temporary Hold for Deletion). This is a soft disposal code that should only be used temporarily while the asset is searched for and an investigation is conducted. An asset cannot remain in DM 19 longer than two years, but should be updated at the end of an investigation or when it is determined that the asset is not likely to be recovered. An asset can be placed directly in disposal method 18 without using disposal method 19.
  2. Complete an internal investigation to determine if there is employee negligence related to the missing asset. Each agency must have internal policies established providing procedures to conduct an investigation for missing property. See Missing or Stolen Property for more information.
  3. Complete form 74-194 to document the investigation.
  4. If there is no employee negligence, maintain the form 74-194 on file, do not submit the form to the Comptroller.
  5. If NO employee negligence is involved, update the disposal method in SPA from 19 to 18.

SPA Procedure

  1. Access the Disposal of Property (PADLET) screen on the Main Menu.
  2. Enter the property and component number.
  3. Enter disposal method 18 in the DISPOSAL METHOD field.

    Note: If disposal method 19 displays, enter disposal method 18 and press Enter.

  4. Enter the disposal date in the DISPOSAL DATE field (using MM-DD-YYYY format).
  5. Press Enter. The message Press F4 To Continue Or F5 To Cancel appears.
  6. Press F4. The message Information Has Been Deleted appears.

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Disposal Method 19 (Missing – Temporary Hold for Deletion)

This disposal method is used by an agency to temporarily report property as missing. Disposal method 19 is a soft disposal method; therefore the property will continue to be included in an agency’s books until the asset is updated to a final hard disposal method.

This disposal code should only be used temporarily while the asset is searched for and an investigation is conducted. Missing property may only be retained in the SPA system for a maximum of two calendar years from the soft disposal date before disposal method 17 or 18 must be used to delete the property, or it is removed from disposal method 19 status. While there are two years provided to search for an asset, the disposal method should be immediately updated at the end of the investigation or when it is determined that the asset is not likely to be recovered.

The following procedures should be followed when an asset is found to be missing during the annual physical inventory or at any other time.

  1. Report the asset as missing in SPA using disposal method 19.
  2. Complete a search for the missing asset.
  3. If the asset is not recovered during the search, complete an internal investigation to determine if there is employee negligence related to the missing asset. Each agency must have internal policies established providing procedures to conduct an investigation for missing property. See Missing or Stolen Property for more information.
  4. If it is determined that NO employee negligence is indicated, update the disposal method in SPA from 19 to Disposal Method 18 (Missing – No Employee Negligence) and follow DM 18 procedures.
  5. If it is determined that employee negligence is indicated, update the disposal method in SPA from 19 to Disposal Method 17 (Missing – Employee Negligence) and follow DM 17 procedures.

SPA Procedure

  1. Access the Disposal of Property (PADLET) screen on the Main Menu.
  2. Enter the property and component number in the corresponding fields.
  3. Press Enter.
  4. Enter 19 in the DISPOSAL METHOD field. Press Enter.
  5. Enter the disposal date in the DISPOSAL DATE field.
  6. Press Enter. The message Press F4 To Continue Or F5 To Cancel appears.
  7. Press F4. The message Information Has Been Deleted appears.

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Disposal Method 20 (Stolen – Employee Negligence)

This disposal method is used to dispose of property that has been stolen and an internal agency investigation determined there was employee negligence.

The following procedures should be followed when an asset is found to be stolen:

  1. Report stolen property to the appropriate law enforcement agency within 48 hours of realizing the property has been stolen.
  2. Immediately conduct an internal investigation to determine if there was employee negligence related to the stolen asset. Each agency must have internal policies established providing procedures to conduct an investigation for stolen property. See Missing or Stolen Property for more information.
  3. If it is determined that employee negligence is indicated, update the disposal method in SPA to 20, which will report the asset as stolen to the Comptroller’s office. If it is determined that there was NO employee negligence involved, see Disposal Method 21 (Stolen – No Employee Negligence).
  4. Report the stolen asset to the Office of the Attorney General (OAG) on form 74-194 within five (5) business days of discovery.

SPA Procedure

  1. Access the Disposal of Property (PADLET) screen on the Main Menu.
  2. Enter the property and component number. Press Enter.
  3. Enter disposal method 20 in the DISPOSAL METHOD field.
  4. Press Enter. The message Enter Disposal Date appears.
  5. Enter the disposal date in the DISPOSAL DATE field (using MM-DD-YYYY format).
  6. Enter any proceeds in the PROCEEDS FROM SALE field. (Proceeds from sale can be updated after disposal using the Update Inactive Property screen)
  7. Press Enter. The message Press F4 To Continue Or F5 To Cancel appears.
  8. Press F4. The message Information Has Been Deleted appears.

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Disposal Method 21 (Stolen – No Employee Negligence)

This disposal method is used to dispose of property that has been stolen and an internal agency investigation determined there was NO employee negligence.

The following procedures should be followed when an asset is found to be stolen:

  1. Report stolen property to the appropriate law enforcement agency within 48 hours of realizing the property has been stolen.
  2. Immediately conduct an internal investigation to determine if there is employee negligence related to the stolen asset. Each agency must have internal policies established providing procedures to conduct an investigation for stolen property. See Missing or Stolen Property for more information.
  3. If it is determined that NO employee negligence is indicated, update the disposal method in SPA to 21, which will report the asset as stolen to the Comptroller’s office. If it is determined that there is employee negligence indicated, see Disposal Method 20 (Stolen – Employee Negligence).
  4. Report the stolen asset to the Office of the Attorney General (OAG) on form 74-194 within five (5) business days of discovery.

SPA Procedure

  1. Access the Disposal of Property (PADLET) screen on the Main Menu.
  2. Enter the property and component number. Press Enter.
  3. Enter disposal method 21 in the DISPOSAL METHOD field.
  4. Press Enter. The message Enter Disposal Date appears.
  5. Enter the disposal date in the DISPOSAL DATE field (using MM-DD-YYYY format).
  6. Enter any proceeds in the PROCEEDS FROM SALE field. (Proceeds from sale can be updated after disposal using the Update Inactive Property screen)
  7. Press Enter. The message Press F4 To Continue Or F5 To Cancel appears.
  8. Press F4. The message Information Has Been Deleted appears.

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Disposal Method 22 (Eleemosynary Donations Allowed by Law)

This disposal method is used to delete property donated to clients by agencies qualified to do so by law or for the disposition of surplus or salvage property by a state eleemosynary institution.

This disposal method can only be used by agencies that are exempt from surplus in the SPA system.

SPA Procedure

  1. Access the Disposal of Property (PADLET) screen on the Main Menu.
  2. Enter the property and component number in the corresponding fields.
  3. Press Enter.
  4. Enter the appropriate disposal method in the DISPOSAL METHOD field.
  5. Enter the disposal date in the DISPOSAL DATE field (using MM-DD-YYYY format).
  6. Press Enter. The message Proceeds From Sale Value Required appears.
  7. Enter the proceeds amount, if any.
  8. Press Enter. The message Press F4 To Continue Or F5 To Cancel appears.
  9. Press F4. The message Information Has Been Deleted appears.

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Disposal Method 23 (Trade-In)

This disposal method is used to delete property used as a trade-in toward the purchase of a new property.

The value received for the trade-in must be recorded in the Proceeds from Sale field. The trade-in value must also be included in the acquisition cost of the property received as a result of the trade-in.

SPA Procedure

  1. Access the Disposal of Property (PADLET) screen on the Main Menu.
  2. Enter the property and component number in the corresponding fields. Press Enter.
  3. Enter the appropriate disposal method in the DISPOSAL METHOD field.
  4. Press Enter. The message Enter Disposal Date appears.
  5. Enter the disposal date in the DISPOSAL DATE field (using MM-DD-YYYY format).
  6. Press Enter. The message Disposal Method Requires a Comment appears.
  7. Enter a comment in the COMMENT field, this should include the property number of the new asset the trade in asset was exchanged for.
  8. Press Enter. The message Proceeds From Sale Value Required appears.
  9. Enter the proceeds amount, this is the value received for the trade in.
  10. Press Enter. The message Press F4 To Continue Or F5 To Cancel appears.
  11. Press F4. The message Information Has Been Deleted appears.

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Disposal Method 24 (Completed Construction in Progress [CIP])

This disposal method is used to dispose of a completed CIP property (class code 090). A CIP property must be disposed of at the earliest occurrence of:

  • Substantial completion of contract documents are executed
  • Occupancy
  • The asset is placed into service

See Construction in Progress for more information.

SPA Procedure

  1. Access the Disposal of Property (PADLET) screen on the Main Menu.
  2. Enter the property and component number in the corresponding fields. Press Enter.
  3. Enter the appropriate disposal method in the DISPOSAL METHOD field.
  4. Press Enter. The message Enter Disposal Date appears.
  5. Enter the disposal date in the DISPOSAL DATE field (using MM-DD-YYYY format).
  6. Press Enter. The message Disposal Method Requires a Comment appears.
  7. Enter a comment in the COMMENT field, this should include the new, permanent property number assigned to the completed asset.
  8. Press Enter. The message Press F4 To Continue Or F5 To Cancel appears.
  9. Press F4. The message Information Has Been Deleted appears.

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Disposal Method 25 (Leasehold Improvements)

This disposal method is used to dispose leasehold improvement property involving a third party (not a state agency) that has been fully amortized.

To use this disposal method, property must be in class code 091 – leasehold improvement.

SPA Procedure

  1. Access the Disposal of Property (PADLET) screen on the Main Menu.
  2. Enter the property and component number in the corresponding fields. Press Enter.
  3. Enter disposal method 25 in the DISPOSAL METHOD field. Press Enter.
  4. Enter the disposal date in the DISPOSAL DATE field (using MM-DD-YYYY format)
  5. Enter the proceeds amount, if any.
  6. Press Enter. The message Press F4 To Continue Or F5 To Cancel appears.
  7. Press F4. The message Information Has Been Deleted appears.

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Disposal Method 26 (Assets Held in Trust or Leased Assets Returned)

This disposal method is used for property held in trust that has been returned to the owner or awarded to a state agency by a court.

This disposal method is also used for leased assets that have been returned to the vendor.

SPA Procedure

  1. Access the Disposal of Property (PADLET) screen on the Main Menu.
  2. Enter the property and component number in the corresponding fields. Press Enter.
  3. Enter disposal method 26 in the DISPOSAL METHOD field. Press Enter.
  4. Enter the disposal date in the DISPOSAL DATE field (using MM-DD-YYYY format)
  5. Press Enter. The message Press F4 To Continue Or F5 To Cancel appears.
  6. Press F4. The message Information Has Been Deleted appears.

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Disposal Method 27 (Property Entered in Error)

This disposal method is used to dispose of 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.

SPA Procedure

  1. Access the Disposal of Property (PADLET) screen on the Main Menu.
  2. Enter the property and component number in the corresponding fields. Press Enter.
  3. Enter disposal method 27 in the DISPOSAL METHOD field. Press Enter.
  4. Enter the disposal date in the DISPOSAL DATE field (using MM-DD-YYYY format)
  5. Press Enter. The message Press F4 To Continue Or F5 To Cancel appears.
  6. Press F4. The message Information Has Been Deleted appears.

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Disposal Method 28 (Property Damaged by Nature)

This disposal method is used to dispose of property damaged by an act of nature such as hurricane, tornado, lightening, or hail, for example.

SPA Procedure

  1. Access the Disposal of Property (PADLET) screen on the Main Menu.
  2. Enter the property and component number in the corresponding fields. Press Enter.
  3. Enter disposal method 28 in the DISPOSAL METHOD field. Press Enter.
  4. Enter the disposal date in the DISPOSAL DATE field (use MM-DD-YYYY format)
  5. Enter a comment in the COMMENT field (Required, use to indicate the act of nature)
  6. Enter proceeds from sale, if any (Optional, use XX.XX format)
  7. Press Enter. The message Press F4 To Continue Or F5 To Cancel appears.
  8. Press F4. The message Information Has Been Deleted appears.

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Disposal Method 29 (Property Damaged by Accident)

This disposal method is used to dispose of property damaged by accident.

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

SPA Procedure

  1. Access the Disposal of Property (PADLET) screen on the Main Menu.
  2. Enter the property and component number in the corresponding fields. Press Enter.
  3. Enter disposal method 29 in the DISPOSAL METHOD field. Press Enter.
  4. Enter the disposal date in the DISPOSAL DATE field (use MM-DD-YYYY format)
  5. Enter a comment in the COMMENT field (Required, use to indicate type of damage and accident details)
  6. Enter proceeds from sale, if any (Optional, use XX.XX format)
  7. Press Enter. The message Press F4 To Continue Or F5 To Cancel appears.
  8. Press F4. The message Information Has Been Deleted appears.

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Disposal Method 30 (Property Damaged by Other, or an Employee)

This disposal method is used to dispose of property damaged by something other than an act of nature or accident, or property damaged by an employee.

SPA Procedure

  1. Access the Disposal of Property (PADLET) screen on the Main Menu.
  2. Enter the property and component number in the corresponding fields. Press Enter.
  3. Enter disposal method 30 in the DISPOSAL METHOD field. Press Enter.
  4. Enter the disposal date in the DISPOSAL DATE field (use MM-DD-YYYY format)
  5. Enter a comment in the COMMENT field (Required, use to indicate type of damage and employee)
  6. Enter proceeds from sale, if any (Optional, use XX.XX format)
  7. Press Enter. The message Press F4 To Continue Or F5 To Cancel appears.
  8. Press F4. The message Information Has Been Deleted appears.

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Disposal Method 31 and 32 (Completed and Pending Transfers from Internal to External Agency)

Disposal methods 31 and 32 are system-generated when an INTERNAL agency transfers property to an EXTERNAL agency.

Note: External agencies are institutions of higher education not reporting to SPA. Internal agencies are all state agencies and those institutions of higher education reporting to the SPA system. Please refer to the Internal/External SPA Institutions of Higher Education List.

See Chapter 7 for procedures regarding the transfer of property to another state agency.

  • Disposal method 31 – completed transfer. A property transferred from an internal agency (on PATRAN) that has been accepted by the EXTERNAL receiving agency (on PARXER). This code is system-generated.
  • Disposal method 32 – pending transfer. A property transfer initiated by an INTERNAL sending agency to an EXTERNAL receiving agency that has not yet been accepted by the EXTERNAL receiving agency. This code is system-generated.

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Disposal Method 33 or 34 (TFC Surplus Process Sale to Public, or TFC Donation)

This disposal method is for property sold or auctioned to the public through the TFC Surplus Process, and is system-generated by TFC. See Surplus Property for more information.

  • Disposal Method 33 – TFC Surplus Process Sale to Public – Property sold or auctioned to the public through the TFC Surplus Process.
  • Disposal Method 34 – TFC Donation – Property that is donated by TFC during the TFC surplus process.

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Disposal Method 35 (TFC Authorized Sale or Donation)

Property that is sold or donated by the agency outside of the surplus process with prior authorization from TFC.

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

SPA Procedure

  1. Access the Disposal of Property (PADLET) screen on the Main Menu.
  2. Enter the property and component number in the corresponding fields. Press Enter.
  3. Enter disposal method 35 in the DISPOSAL METHOD field. Press Enter.
  4. Enter the disposal date in the DISPOSAL DATE field (use MM-DD-YYYY format)
  5. Enter a comment in the COMMENT field (Required, use to indicate TFC authorization and sale/donation information)
  6. Enter proceeds from sale, if any (Optional, use XX.XX format)
  7. Press Enter. The message Press F4 To Continue Or F5 To Cancel appears.
  8. Press F4. The message Information Has Been Deleted appears.

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Disposal Method 36 (Intangible Asset Disposal)

This disposal method is used to dispose an intangible asset that is no longer in use by the agency and cannot be sent through the TFC surplus process. An agency can contact TFC for any questions related to the disposal of intangible assets.

SPA Procedure

  1. Access the Disposal of Property (PADLET) screen on the Main Menu.
  2. Enter the property and component number in the corresponding fields. Press Enter.
  3. Enter disposal method 36 in the DISPOSAL METHOD field. Press Enter.
  4. Enter the disposal date in the DISPOSAL DATE field (using MM-DD-YYYY format)
  5. Enter proceeds from sale, if any (Optional, use XX.XX format)
  6. Press Enter. The message Press F4 To Continue Or F5 To Cancel appears.
  7. Press F4. The message Information Has Been Deleted appears.

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Disposal Method 37 (Non-Monetary Exchange)

This disposal method is used to complete a non-monetary asset exchange with another entity.

Please see Non-monetary transactions for more information.

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

SPA Procedure

  1. Access the Disposal of Property (PADLET) screen on the Main Menu.
  2. Enter the property and component number in the corresponding fields. Press Enter.
  3. Enter disposal method 37 in the DISPOSAL METHOD field. Press Enter.
  4. Enter the disposal date in the DISPOSAL DATE field (using MM-DD-YYYY format)
  5. Enter a comment in the COMMENT field (Required, use to indicate the partner asset)
  6. Enter proceeds from sale, if any (Optional, use XX.XX format)
  7. Press Enter. The message Press F4 To Continue Or F5 To Cancel appears.
  8. Press F4. The message Information Has Been Deleted appears.

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