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4400 Assets Requiring Special Handling

4410 Property Donations

DFPS Asset Management Handbook February 2011

DFPS staff and volunteers may not solicit donations or accept unsolicited donations from contractors, vendors, or licensees. The gift must support DFPS’s goal of helping needy Texans and be for no other reason.

The regional or division director must follow non-monetary donations procedure as set out in the DFPS Volunteer and Community Engagement (VCE) Policy Handbook 2150 Donations from Contractors, Vendors, or Licensees. For procedures on accepting, tracking, and reporting donations to accounting staff, see 2132 In-Kind (Non-Monetary) Donations in the VCE handbook.

When a donated item meets the criteria for property tracking, accounting staff notify the DFPS asset records coordinator within five work days of reporting of the item. DFPS asset records coordinator adds it to the SPA according to policy, and initiates the appropriate procedure for the custodian to properly tag the item.

4420 Property Purchased by Contractors

DFPS Asset Management Handbook February 2011

Property purchased by entities in connection with a DFPS contract must be processed according to procedures outlined in Chapter 7.11.6 of the DFPS Contract Handbook, Property purchased through these means may be disposed of by several methods at the end of the contract, including recovery, and must be processed according to procedures outlined in the DFPS Contract Handbook, Disposition of Equipment.

The DFPS contract manager, upon determination that property purchased in connection with a DFPS contract should be returned to DFPS, must contact the DFPS Asset Management unit via the Inventory mailbox to request support in adding the returned property to the DFPS property accounting system.

If recovered property meets the definition of capitalized or controlled property, it must have a DFPS barcoded tag (see 4110 Identifying Capitalized or Controlled Assets (Asset Tags)).

If recovered property is not capitalized or controlled, it must be identified with a “property of” asset label (see 4120 Identifying Noncapital or Noncontrolled Assets (Property Tags)).

 

4430 Trade-Ins

DFPS Asset Management Handbook February 2011

Capitalized, controlled, and “property of” tagged property can be traded in for new property when such trade-in:

  •  has a value associated with it; and

  •  represents best value for the state.

DFPS Asset Management unit approval is required before the transaction.

Assets cannot be traded for services.

When approved, staff documents the trade-in of:

  •  capitalized or controlled property by listing the tag and serial numbers of the property being traded in on the purchase order or trade-in documents; and

  •  “property of” tagged property by listing the serial numbers (if available) of the property being traded in on the purchase order or trade-in documents.

Staff must forward documentation of the property approved for trade-in to the DFPS asset records coordinator. Appropriate documentation includes:

  •  copies of the purchase requisition or trade-in documents; and

  •  the tag and serial numbers (if available) of the new property.

Staff must:

  •  remove the barcoded tag or “property of” tag from property traded in; and

  •  return it to the DFPS Asset Management unit with appropriate documentation.

The unit cost of new property purchased with a trade-in is the sum of the amount disbursed, plus trade-in allowance. Any additional costs involved in the purchase of new property are added.

4440 Asset Betterments and Replacements

DFPS Asset Management Handbook February 2011

Chapter 4 of the SPA Process User’s Guide defines:

  •  “betterment” as an improvement of personal property that materially increases the property’s serviceability, useful life, or both; and

  •  “replacement” as the replacement of an internal or external part of personal property that allows the property to complete its normal useful life.

The originator should include in the WPR the asset ID number of the equipment to be bettered.

Once placed in service, DFPS may incur costs for an asset that are categorized as:

  •  repairs and maintenance of existing components;

  •  replacement of existing components; or

  •  acquisition of additional components.

The nature of the expense determines whether it should be capitalized.

More information on betterments and maintenance activities is contained in the Comptroller’s SPA guide.

4450 Computer Software

DFPS Asset Management Handbook February 2011

DFPS staff must follow the State of Texas Comptroller’s State Property Accounting Process User’s Guide for the capitalizing and tracking of computer software owned by state agencies.  IT staff must be familiar with the various computer software thresholds contained therein, and must apply these thresholds to all software, whether purchased or developed internally.

Capitalization of computer software includes software license fees, if the total cost, divided by the number of units served (terminals), meets the criteria to capitalize the purchase.

DFPS tracks all capitalized computer software via HHSAS. In addition, IT staff is responsible for maintaining a software binder that contains:

  •  a list of all capitalized software for the program that includes a complete description, assigned inventory number, and the name and serial number of the server on which the software is installed;

  •  a copy of each purchase order;

  •  inventory asset tags; and

  •  current and completed HHS-AM01 forms.

4460 Real Property

DFPS Asset Management Handbook February 2011

It is not usual for DFPS to own real property. In the event of acquisition, DFPS will refer to SPA requirements and HHSC Asset Management Guide, Section 4.15.

4470 Vehicles and Boats

DFPS Asset Management Handbook February 2011

Vehicles, boats, and airplanes are identified separately on the state’s Annual Financial Report (AFR), but are considered types of state property.

Each DFPS vehicle’s vehicle identification number (VIN) and license plate number must be recorded in the fixed assets system (enter the VIN as the vehicle’s serial number).

4500 Securing Assets

DFPS Asset Management Handbook February 2011

DFPS Asset Management unit ensures that property is tracked and secured in a manner that is most likely to prevent the theft, loss, damage, or misuse of DFPS assets.

DFPS managersmust be diligent to ensure building security, and notify DFPS asset management unit of violations or changes to security that could subject DFPS property to theft, loss, damage, or misuse.

The DFPS Asset Management unit, regional inventory coordinators, and employees must know where all assets are located at all times. Therefore, the DFPS Asset Management unit and HHS regional inventory coordinators must establish a method for locating any inventory item under their control, whether on-site or off-site, and report that location upon request.

DFPS owners and custodians must secure assets in a manner that is most likely to prevent the theft, loss, damage or misuse of DFPS assets, per requirements of Section 6000.

4510 Storage

DFPS Asset Management Handbook February 2011

The primary concerns when storing property are:

  •  securing the property against theft and vandalism,

  •  protecting the property against the elements, and

  •  maintaining the property in a serviceable condition and accessible location.

Storing the property does not change responsibility for the proper care, maintenance, and utilization of the asset. When state-owned property is placed in storage:

  •  the business unit to which the item was assigned is accountable for the property, and

  •  the person in charge of the warehouse facility is responsible for the custody and care of the item during storage.

4520 Property Not Found in Inventory Records

DFPS Asset Management Handbook February 2011

The regional inventory coordinator must immediately report to DFPS asset records support any capitalized, controlled, or tracked leased property:

  •  found within any DFPS program or region; but

  •  not found in the DFPS inventory system.

The regional inventory coordinator’s report must provide:

  •  a detailed description of the property, including the serial number; and

  •  contact information for the person to whom the item was assigned, including the person’s DFPS mail code.

Asset records support determines whether an inventory record for the item should be created in the SPA system.

4530 Changes to Information in the Property Accounting System

DFPS Asset Management Handbook February 2011

Requests to change the description, serial number, or cost of property must be routed to the DFPS Asset Management unit Inventory Mailbox, including documentation justifying the change. RIC reviews the request for completeness and forwards to the asset records coordinator.

The documentation must consist of copies of the purchase order, invoice, or other documents supporting the requested change. If the request is appropriate, the asset records coordinator will change the record.

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