3-DISPOSAL

3.30 REAL PROPERTY (LAND, BUILDINGS, AND INFRASTRUCTURE)
EFFECTIVE
07/01/04		LAST UPDATE
11/18/05
PURPOSE: To provide a process for recording the financial aspects of the disposal of University-owned real property, which consists of land, buildings, and infrastructure.

 
AUTHORITY: Powers and duties of the University President, ABOR Policy 3-801 and 3-802

ABOR Policy Chapter VII - Buildings, Infrastructure and Land

Section 7-204 - Sale of Real Property
Section 7-205 - Exchanges of Real Property

 
POLICY: The Sr. Vice President for Business Affairs shall authorize the sale or exchange of University-owned land, buildings, and infrastructure according to ABOR policies and procedures.

The Sr. Vice President for Business Affairs shall authorize the demolition of University-owned buildings and infrastructure.

Real Estate Administration, Facilities Design & Construction, and Facilities Management shall notify the Financial Services Office of the disposal of University-owned land or buildings or infrastructure as follows:

Real Estate Administration

  • Sale or Exchange (or other title conveyance) of land, buildings and infrastructure
  • Demolition of Buildings

Facilities Management and Facilities, Design & Construction

  • Demolition or abandonment of Infrastructure
  • Demolition of Buildings

Notification by Real Estate Administration, Facilities Management, and Facilities Design & Construction to the Financial Services Office shall be at least quarterly (monthly is preferred), with the final notification for sales, exchanges, and demolitions through the June 30 fiscal year close to be no later than the fifth working day of the month of July.

The Financial Services Office is responsible for recording the removal of the University's ownership in the disposed University-owned land, buildings, and infrastructure in the financial records of the institution, including the detailed asset subsidiary records.

 
PROCEDURE:
  1. SALE OR EXCHANGE OF LAND, BUILDINGS AND INFRASTRUCTURE:

    REAL ESTATE ADMINISTRATION
    1. If property is held as an investment asset in an endowment (07xxxx) FRS Account, notifies FSO - Financial Management - Non Operating Funds, (Endowment Accounting) of the sale or exchange.
    REAL ESTATE ADMINISTRATION
    1. If property is held as a physical plant asset in a net investment in Plant (08xxxx) FRS Account, notifies FSO - Capital Finance (Plant Funds Accounting and Property Management) of the sale or exchange. Records sales expenses and sale proceeds in accounts 840000 (for agriculture farm properties) or 840100 (for non-farm properties) or other 840xxx account created for a specific property sale. Forwards copies of sale documentation to FSO-Capital Finance such as Settlement Statement, legal description, street address, a location map, appraisal, property description, UA Deed Number, and parcel size.
    FINANCIAL SERVICES
    1. Records the sale or exchange in the University's asset subsidiary records and FRS accounting records, including recording any gain or loss, by:
      • removing the original asset cost
      • removing any accumulated depreciation and
      • reclassifying the sale revenues and expenses using accounts 084019 and 840190 (FSO use only).

  2. DEMOLITION OF BUILDINGS

    FACILITIES MANAGEMENT, FACILITIES DESIGN & CONSTRUCTION

     
    1. Notifies Real Estate Administration of building demolitions that they have overseen.
    REAL ESTATE ADMINISTRATION
    1. Notifies FSO-Capital Finance (Plant Funds Accounting and Property Management) of demolition of buildings, including those demolished by Facilities Management and Facilities Design & Construction as well as Real Estate Administration itself.
    FINANCIAL SERVICES
    1. Records the disposal of the buildings through demolition in the University's asset subsidiary records and FRS accounting records, including recording any gain or loss on disposal.

  1. DEMOLITION OF INFRASTRUCTURE

    FACILITIES DESIGN & CONSTRUCTION, FACILITIES MANAGEMENT

     
    1. Notifies FSO - Capital Finance (Plant Funds Accounting and Property Management) of the demolition or the abandonment of the infrastructure assets.
    FINANCIAL SERVICES
    1. Records the disposal of the infrastructure assets through demolition in the University's asset subsidiary records and FRS accounting records, including recording any gain or loss in disposal.

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