Policies & Procedures


Section: PUR
Part: PRO
Statement No.: 25.0
Date: 07/19/04
University of North Carolina - General Administration
Administrative Policies and Procedures Manual
Title: Real Property (Land) Transaction Procedure 

  

NOTE: The first set of procedures applies to leases for not more than $5,000 annual rental and for not more than three years duration if General Administration is the lessor.

 

  1. Departments compile the information to be included in the lease, if the lease originates with General Administration. If the lease originates with the lessee, reviews the lease.

 

  1. The department sends the information to be included in the lease, or sends the lease if it originated with the lessee, to Legal Affairs.

 

  1. Legal Affairs drafts a lease if applicable and reviews the lease.

 

  1. If the lease meets all the necessary legal requirements, Legal Affairs stamps the lease reviewed as to form, and signs the review stamp.

 

  1. The lease is taken to the Associate Vice President-Finance for review.

 

  1. Two copies of the lease are taken to the President for his signature.

 

  1. Legal Affairs returns copies of the lease to the department.

 

  1. The department sends the lessee the two copies of the lease for him to sign; requests that the lessee return one signed copy and keep one copy.

 

  1. If applicable, the department sends an invoice to the lessee when a payment is due.

 

  1. When a payment is received, the check is deposited in the appropriate account (see ACT Pro 2.0).

 

NOTE: The second set of procedures applies to leases for not more than $5,000 annual rental and for not more than three years duration: if General Administration is the lessee, and the lease originates with General Administration.

 

  1. The department compiles the necessary information and sends it to Legal Affairs.

 

  1. Legal Affairs drafts a lease that meets all the State requirements.

 

  1. Legal Affairs stamps the lease revised as to form, signs the review stamp, and takes the lease to the Associate Vice President-Finance for review.

 

  1. Two copies of the lease are taken to the President for his signature.

 

  1. Legal Affairs sends the lessor the two copies of the lease for the lessor to sign: requests that the lessor return one signed copy and keep one copy.

 

  1. A signed copy of the lease is sent to the department.

 

  1. The department reviews the lease and checks for the availability of funds.

 

 

  1. The lease is forwarded to Accounting.

 

  1. Accounting assigns the lease a lease number, writes the number on the document, and enters the lease in the Lease Log.

 

  1. Accounting completes an FAS encumbrance form, including the lease (L) number in the encumbrance field. Sends the encumbrance form to Data Control for processing.

 

  1. The lease is copied and the copy is filed, returning the original to the department.

 

  1. The department copies the lease and files the copy, sending the original to the lessor to be signed.

 

  1. When a payment is due, if an invoice is received, writes the lease (L) number on the invoice, and sends it to Accounting.

 

  1. Accounting issues a check to the lessor.

 

 

 

NOTE: The third set of procedures applies to leases for more than $5,000 annual rental; if General Administration is the lessee and if the lease is provided by the State Property Office.

 

  1. The department prepares and submits the following documents for leased space requisition to the Services Officer.

 

·     PO-27 Lease Specifications

·     Organizational chart showing job titles and number of personnel

·     If applicable, justification statements for special equipment space needs

 

  1. Note: The department should ensure that fund availability exist prior to submission.
  2.  The Services Officer reviews the documents for completeness and accuracy.
  1. The Services Officer will draft and submit a cover letter, which will accompany the PO-27, organizational chart and other supporting documentation, to the State Property Office. The lease will be advertised and bid by the State Property Office.
  2.       Once the bids are received, the State Property Office, the Services Officer and requesting department will inspect and review the bidding properties.
  1. The Services Officer will submit a recommendation for the lease to the State Property Office based on the review process in item 4.
  1. The State Property Office will coordinate the drafting/execution of the lease.
  1. The original lease and a two copy are sent to the Services Officer.
  1. Accounting assigns the lease a lease (L) number and records the lease in the Lease Log.
  1. Accounting encumbers the funds by completing an FAS encumbrance form, including the lease (L) number in the encumbrance reference field, and sends it to Data Control for processing. 
  1. Accounting files the encumbered lease copy.
  1. The Services Officer files the original lease and returns a lease copy to the department.
  1. When a payment is due, if an invoice is received, the department writes the lease (L) number on the invoice, and sends it to Accounting.
  1. Accounting issues a check to the lessor.