REAL PROPERTY ACQUISITION - 8705-MAR-2014

(Revised: 03/2014)

In most cases laws authorizing the acquisition of real property provide that such acquisitions be subject to the provisions of the Property Acquisition Law. In recent years many appropriations for the acquisition of real property also provide for construction, improvements, and equipment.

To facilitate accounting for acquisitions of real property subject to the Property Acquisition Law, the following procedure is prescribed:

1. The benefiting agency will record the entire amount of such appropriations in its allotment-expenditure accounts.
2. The benefiting agency will submit a working budget to the Department of Finance for the entire amount appropriated.
3. After approval by the Department of Finance, one copy of the working budget will be forwarded to the Accounting Section of the Department of General Services (DGS), where the amounts allotted for the acquisition of real property will be recorded.
4. All claims for the acquisition of real property will be filed by the Accounting Section and accounted by that section as decreases in memorandum allotment accounts. In preparing these claims the Accounting Section will prepare an extra copy of the Claim Schedule, STD. 218 (Continuous), for the benefiting agency and will attach copies of all invoices. These copies of STD. 218 will be forwarded to the benefiting agencies after receipt by the Accounting Section of the Controller's Notice of Claim Paid, Form CO–I 02, and inclusive warrant numbers have been noted on the copy of STD. 218.
5. Upon receipt of their copies of the Claim Schedule, STD. 218, the benefiting agencies shall record the expenditures in their accounts. Entries to the property accounts will be made at the same time and from the same source that expenditures are reflected in the accounts.
6. The records maintained by the DGS will be memorandum records only. Expenditures from these appropriations will not be reflected in expenditure statements of the DGS.
7. The benefiting agencies will be responsible for reconciling these appropriations with State Controller's Office accounts.
8. State agencies that acquire real property are required to provide information to DGS for inclusion in the Statewide Property Inventory (SPI) and routing to the Secretary of State Archives to be in compliance with GC 11011.1-11011.21. For assistance in determining the appropriate documents to be submitted, contact RESD’s SPI Unit at SPIweb@dgs.ca.gov.