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eXpendit

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Miscellaneous Expenditures — Real and Personal State Property
Purchases of Real Property by State Agencies

A state agency may only use appropriated money to purchase real property with statutory authority or other legislative authorization.

See also: Chapter 2: Advance payments.

Definitions:

State agency
  • A board, commission, department, institution, office or other agency in the executive branch of state government created by the constitution or a statute of this state, including an institution of higher education as defined by Texas Education Code Section 61.003, other than a public junior college.
  • The Supreme Court, the Court of Criminal Appeals, a court of appeals or other agency in the judicial branch.

Sources [+]

Texas Government Code Section 658.001(2), Section 2204.002. Texas Attorney General No. LO-96-106 (1996).

Documentation Requirements [+]

  1. A state agency intending to use funds appropriated by the General Appropriations Act (GAA) to purchase real property must cite the specific statutory authority for the purchase. A state agency intending to use other funds also must cite the specific or implied statutory authority for the purchase.
  2. Unless a state agency is purchasing real property through condemnation proceedings, the agency must send a copy of the settlement or closing statement to the Comptroller’s office.
  3. Unless a state agency is purchasing real property through condemnation proceedings, the agency must send a copy of the real property purchase contract to the Comptroller’s office. The copy must show all necessary signatures. The amount of the contract must correspond with the amount indicated in the documents sent to the Comptroller’s office.
  4. A state agency purchasing real property through condemnation proceedings must send a copy of the commissioners’ award or other appropriate court order to the Comptroller’s office. The copy must show all necessary signatures and must correspond with the amount of the voucher.
  5. Unless a state agency is purchasing real property through condemnation proceedings, the agency must send a copy of either the commitment for title insurance or the attorney general’s title opinion to the Comptroller’s office. If a copy of the commitment for title insurance is attached, the copy must show all necessary signatures and must reflect the actual amount of title insurance purchased. That amount may not exceed the purchase price of the real property.
  6. Unless a state agency is purchasing real property through condemnation proceedings, the agency must state the date of the closing.
  7. Comptroller objects of expenditure 7342 (Real Property-Buildings-Capitalized), 7345 (Real Property- Land-Capitalized), or 7350 (Real Property- Buildings- Capital Lease) must be used. Also, see FPP I.008 for additional information about all required pre-approval codes.
  8. Please remit any above required materials to:

    State Comptroller of Public Accounts
    Fiscal Management Division/Expenditure Audit Section
    Attn: Pre-Approval Codes Required
    Or email the materials to Exp.Audit@cpa.texas.gov
    Or call (512) 475-0995 or (512) 475-0479