ACCOUNTING FOR PROPERTY DISPOSITIONS - 8640
Government Code sections 14673, 14674, and 14675 authorize the Director of General Services to approve the sale, exchange, or transfer between agencies/departments of real or personal property owned by the state if the sale, exchange, or transfer is in the best interest of the state. Before disposing of real or personal property (e.g., sale, transfer, trade-in, etc.), agencies/departments must receive approval from the Department of General Services, Surplus Property and Reutilization program.
Disposal of Surplus Property
Refer to the Department of General Services’ procedures in SAM section 3520 for specific instructions regarding the necessary approvals required – prior to the disposal of surplus property.
Approval is obtained by:
- Submitting a Property Survey Report, STD. 152, electronically requesting direction and approval prior to disposing of any state-owned surplus property, regardless of whether the property was capitalized for accounting purposes.
- Final disposition, which includes sale, trade-in, disposal or transferring the property to the Surplus Property and Reutilization program, may not occur until the Department of General Services has approved the disposition.
Transfer of Surplus Property
Approval is required when an agency/department proposes to transfer state-owned, nonexpendable surplus property to another agency/department or to a unit within the same agency/department. Approval must be obtained from the Department of General Services.
Approval is obtained by:
- Submitting a Property Transfer Report, STD. 158.
Timely Disposition of Property
The agency/department will retain the original copy of the approved STD.152 or STD. 158 in a suspense file pending disposition of the property. Property listed on approved STD. 152 or STD. 158 will be disposed of without delay, and items held in the suspense file for more than 30 days will be reviewed by an asset manager to determine why the disposition has not been completed. All dispositions of capital assets/property, regardless of disposition type, should be recorded in the year of disposition as current year deductions and be removed from the asset accounts and property register.