The University of ArizonaThe University of Arizona
Financial Policies & ProceduresFinancial Policies & Procedures
 

3.30 Real Property (Land, Buildings, and Infrastructure)

PURPOSE:

To provide a process for recording the financial aspects of the retirement 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, Planning, 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

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

Facilities Management and Planning, Design & Construction

  1. Demolition or abandonment of Infrastructure
  2. Demolition of Buildings

Notification by Real Estate Administration, Facilities Management, and Planning, 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:

I. SALE OR EXCHANGE OF LAND, BUILDINGS AND INFRASTRUCTURE:

REAL ESTATE ADMINISTRATION

  1. If property is held as an investment asset in an endowment (7xxxxxx) Account, notifies FSO - Financial Management - Non Operating Funds, (Endowment Accounting) of the sale or exchange. 
  2. If property is held as a physical plant asset in a net investment in Plant (8xxxxxx) Account, notifies FSO - Capital Finance (Plant Funds Accounting and Property Management) of the sale or exchange. Records sales expenses and sale proceeds in accounts 8400000 (for agriculture farm properties) or 8401000 (for non-farm properties) or other 840xxxx 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 accounting records,including recording any gain or loss, by:
    1. removing the original asset cost
    2. removing any accumulated depreciation and
    3. reclassifying the sale revenues and expenses using account 8401900 (FSO use only).

II. DEMOLITION OF BUILDINGS

FACILITIES MANAGEMENT, PLANNING, 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 Planning, 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 accounting records, including recording any gain or loss on retirement.

III. DEMOLITION OF INFRASTRUCTURE

PLANNING, 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 accounting records, including recording any gain or loss in retirement.