SPA Phase-Out Plan
Over the next few years, the Comptroller’s office will retire the State Property Accounting system (SPA).
All agencies are required to interface with SPA while it remains the state’s capital asset system of record, including those that currently use Centralized Accounting and Payroll/Personnel System Asset Management (CAPPS AM).
Agencies will use Capital Asset Note Submission System (CANSS) for required capital asset financial reporting.
Institutions of Higher Education
SPA will be retired for institutions of higher education effective Dec. 31, 2025. Institutions were exempted from reporting to SPA in 2011 per Senate Bill 5, 82nd Legislature, 2011, Chapter 1049.
Institutions are required to report interagency transfers and submit Note 2 capital asset information using CANSS.
Data Warehouse
A data warehouse will serve as the state asset repository to allow for centralized reporting of capital assets and related financial reporting data. The data warehouse will initially be loaded with SPA historical data.
Depreciation Transition
Both SPA and CAPPS AM use straight-line depreciation methodology. CAPPS AM depreciation is modeled similarly to SPA depreciation and is calculated over the estimated useful life of the asset using the asset cost, useful life based on the asset class code, and residual value.
Like SPA, the depreciation convention used in CAPPS AM is the actual month convention for additions and disposals. This convention allocates a full month of depreciation in the month of the addition, and zero depreciation in the month of the asset disposal. The only depreciation difference between the systems is that SPA uses an entity fiscal year (EFY) layer method for improvement or betterment additions, which calculates depreciation separately for each fiscal year that a capitalized addition is made to the original asset.
In CAPPS AM, capitalized additions can be either added to the value of the existing capitalized asset or capitalized as a stand-alone fixed asset separate from the previously existing asset. When added to the value, the remaining net book value of the asset will be combined with the new outlay and the remaining total net book value spread over the new remaining useful life.
Interagency Transfers
Interagency transfers for all state entities will be reported in CANSS. Transfers involving an exchange of cash will require a Uniform Statewide Accounting System (USAS) entry at the time of transfer to balance statewide.
Transfers that do not involve exchange of cash will not require a USAS transaction at the time of transfer, but will be reconciled at the summary level during year-end preparation of the agency’s Annual Financial Report (AFR).
Agencies will not be allowed to certify Note 2 in CANSS until all open transfers are balanced and completed.
Capital Asset Note 2 Reporting
CANSS serves as the Annual Comprehensive Financial Report (ACFR) Note 2 reporting system. CANSS is updated with the beginning balance from USAS and requires manual entry of the activity to reflect and reconcile to the agency's ending balance.
Surplus Process
The current Comptroller and Texas Facilities Commission (TFC) surplus process will require modifications. The process is currently under review and details will be announced when available.
For more information
If you have questions, contact your SPA analyst.