SPA Phase-Out Plan
Over the next few years, the Comptroller’s office will be retiring the State Property Accounting system (SPA) and transitioning state agencies to CAPPS in incremental steps. Statewide asset management and required capital asset financial reporting will be accomplished using:
- The Centralized Accounting and Payroll/Personnel System (CAPPS) Asset Management (AM) module for both CAPPS Central and CAPPS Hub agencies
- The Capital Asset Note Submission System (CANSS)
- A new custom-built Capital Asset Transfer System (CATS)
The retirement of SPA is contingent on the development and implementation of necessary CAPPS AM modifications. During this transition, SPA will remain the state’s capital asset system of record, and all agencies, including those that are currently reporting to CAPPS AM, will be required to interface with SPA.
The expected final transition date is September 2024 and is subject to continued CAPPS funding from the Legislature.
Note: 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.
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, and thereafter will receive asset data from CAPPS Central and Hub agencies. This data will be used to fulfill standard ad hoc reporting, open records requests, legislative and State Auditor Office requests. The anticipated data warehouse implementation date is fiscal 2023.
Institutions of Higher Education
SPA will be retired for institutions of higher education effective Aug. 31, 2022. Institutions of higher education were exempted from reporting to SPA in 2011 per Senate Bill 5, 82nd Legislature, 2011, Chapter 1049. The only capital asset reporting requirements for higher education will be to report interagency transfers in the new CATS system and to submit Note 2 capital asset information in the CANNS system.
SPA depreciation will be replaced with CAPPS AM depreciation as agencies are deployed on CAPPS AM, and will be fully converted to CAPPS AM depreciation when SPA is retired and CAPPS becomes the state capital asset system of record. Both SPA and CAPPS AM use straight-line depreciation methodology. CAPPS AM depreciation is modeled after 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.
CAPPS AM uses SPA depreciation elements such as class code, useful life 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.
CAPPS AM is currently developing a depreciation report similar to the SPA CAAB201 report. Upon completion and availability of this report, CAPPS AM Central/Hub agencies will use the CAPPS AM depreciation report instead of the SPA CAAB201 report. Any differences between SPA and CAPPS AM depreciation in the year the agency stops using SPA depreciation will be booked as a change in accounting estimate at a statewide level for simplified reporting agencies and at the agency level for full reporting agencies.
Interagency transfers for all state entities will be reported to a new Capital Asset Transfer System (CATS) web application. CATS will accept transactions to and from SPA, CAPPS AM and institutions of higher education. 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). The CATS system will then be used to automatically populate CANSS at year end.
Agencies will not be allowed to certify Note 2 in CANSS until all open transfers are balanced and completed. The CATS system implementation date and more details regarding the new system will be released prior to implementation.
Capital Asset Note 2 Reporting
CANSS, which serves as the Annual Comprehensive Financial Report (ACFR) Note 2 reporting system, will be modified to receive summary-level detail from CAPPS Central and Hub agencies and institutions of higher education. CANSS will also receive transfer data from the new CATS web application. This modification will allow population of the system with capital asset summary information. CANSS will still have update functionality, but will no longer require initial manual entry of all data fields.
CAPPS will generate standard reports similar to the current SPA Capital Asset/Asset Balance (CAAB) reports and asset management reports.
For more information
If you have questions, contact your SPA analyst.