Background For state accounting purposes, items such as furniture, computer equipment and vehicles are classified as fixed assets, generally meaning tangible assets with a significant value having a useful life extending beyond the year of acquisition. However, while higher education institutions must report fixed-asset information to SPAS and the Uniform Statewide Accounting System, they are not required to report on the availability of surplus property and, in many instances, may dispose of such property as they see fit. Because of this exemption, substantial amounts of surplus property, purchased in part with state tax dollars, either are not made available to state agencies and political subdivisions, or are sold through competitive bid or auction. State Property Accounting System SPAS, which is administered by the Comptroller's office, is designed to track fixed assets from acquisition through disposal. SPAS is used as the internal property control system for two-thirds of all state agencies and institutions of higher education.
SPAS also is used to report available state surplus property.
However, Section 9.14 of the same article specifically exempts institutions of higher education from the requirement regarding disposal of surplus property. Policies for disposal of surplus property for state agencies are determined by GSC, while policies for higher education usually are determined by the college's or university's governing board. Within 35 days of receiving notice from GSC, state agencies and political subdivisions can negotiate for a transfer of the property, based on an agreed-upon price. GSC sells an average of 18,000 state surplus items through sealed bids each year. Many others have discovered that surplus property is a source for bargains and a way to stretch lean budgets.