California Code of Regulations
Title 2 - Administration
Division 2 - Financial Operations
Chapter 2 - State Controller
Subchapter 3 - Accounting Procedures for Special Districts
Article 10 - Redevelopment Agencies
Section 1115.7 - Fixed Assets

Redevelopment agencies exist to facilitate improvements in designated areas. To accomplish this they engage in planning, clearance, construction and reconstruction activities, expenditures for which are normally capitalized. However, such improvements are held by the agency for disposal rather than agency use. Section 1115.8 provides accounting alternatives for these activities. The Fixed Asset Group of Accounts for projects will contain relatively minor acquisitions which are to be utilized by the project. A redevelopment agency which acquires fixed assets using funds of more than one project may maintain accounting control by use of an agency-wide fixed asset group of accounts. In the event an agency elects to use an agency-wide Fixed Asset Group of Accounts the investment in fixed assets must be distributed to individual projects for year-end reporting purposes. The distribution may be made by either worksheet or formal journal entry. If a formal journal entry is used, a reversing journal entry would be made at the beginning of the subsequent fiscal year. Definitions and accounting procedures are those described in "Accounting for General Fixed Assets" published by the State Controller's Office.