ENTRY NO. 28 – [CLAIM IS FILED FOR ACQUISITION OF PROPERTY UNDER CONDEMNATION PROCEEDINGS] - 10528-OCT-2015
This entry is made to record the claim filed against the department's fund and appropriation in settlement of a condemnation proceeding for acquisition of real property.
Information:
In settlement of some condemnation proceedings, payment is made to the grantor from the department's fund and appropriation prior to return of the deposit from the Condemnation Deposits Fund. In these cases, the State Controller’s Office (SCO) is requested to transfer the amount of the deposit back to the department's fund and appropriation, and the amount of the deposit is transferred from GL 2730 to GL 1400. At this time, the actual cost of the capital assets is recorded in the General Ledger Capital Asset Group of Accounts. Since the amount deposited was recorded as an appropriation expenditure, only the difference between the amount of the deposit and the amount of the final settlement now is recorded as an appropriation expenditure or abatement.
If a claim for settlement has been filed on or before June 30 but the deposit has not been returned by that date, the amount to be returned will be reported to the SCO as an abatement accrual.
Source Document:
Claim Schedule
Register:
Claims Filed Register
Journal Entry for General Ledger Accounts:
Debit:
5390 Other Reserves a/
Credit:
2730 Deposits in Condemnation Proceedings a/
AND
Debit:
2310 Land b/
2331 Improvements Other than Buildings c/
Credit:
5200 Investment in Capital Assets e/
AND
Debit:
1400 Due from Other Funds or Appropriations a/
9000 Appropriation Expenditures d/
Credit:
3020 Claims Filed e/
a/ amount deposited in the Condemnation Deposits Fund for the case now being settled.
b/ amount of settlement for land acquired.
c/ amount of settlement for improvements acquired.
d/ excess of amount of settlement over amount of the deposit (if amount of judgment is less than the amount of the deposit, this entry will be the reverse of that shown).
e/ amount of claim filed settlement (b+c).