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Consensus Study Report

VIEW LARGER COVER

In 1996 the Federal Accounting Standards Advisory Board (FASAB) 1 enacted Standard Number 6, Accounting for Property, Plant, and Equipment (PP&E), the first government-wide initiative requiring federal agencies to report dollar amounts of deferred maintenance annually. The FASAB has identified four overall objectives in federal financial reporting: budgetary integrity, operating performance, stewardship, and systems and control. FASAB Standard Number 6, as amended, focuses on operating performance and stewardship. The FFC Standing Committee on Operations and Maintenance has prepared this report to identify potential issues that should be considered in any future amendments to the standard and to suggest approaches for resolving them. The committee's intent is to assist the CFO Council, federal agencies, the FASAB, and others as they consider how best to meet the objectives of federal financial reporting for facilities.

RESOURCES AT A GLANCE

Suggested Citation

National Research Council. 2001. Deferred Maintenance Reporting for Federal Facilities: Meeting the Requirements of Federal Accounting Standards Advisory Board Standard Number 6, as Amended. Washington, DC: The National Academies Press. https://doi.org/10.17226/10095.

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Publication Info

66 pages |  8.5 x 11 | 

ISBNs: 
  • Paperback:  978-0-309-07407-0
  • Ebook:  978-0-309-17103-8
DOI: https://doi.org/10.17226/10095
Chapters skim
Front Matter i-viii
STUDY ORIGIN 1-1
STUDY OBJECTIVES 2-2
ISSUES RELATED TO DEFINITIONS 3-3
ISSUES AND POTENTIAL APPROACHES RELATED TO METHODOLOGIES FOR DEFERRED MAINTENANCE REPORTING 4-4
REFERENCE 5-6
BACKGROUND 7-7
FACILITIES MAINTENANCE AND REPAIR PROGRAMS 8-8
REASONS FOR DEFERRING MAINTENANCE AND REPAIRS 9-10
OTHER STANDARDS IN EFFECT 11-11
FASAB STANDARD NUMBER 6, AS AMENDED 12-13
STUDY ORIGIN 14-14
STUDY METHOD 15-15
REFERENCES 16-18
Maintenance 19-19
Economic Life, Useful Life, Expected Life 20-21
REFERENCES 22-22
3 Methodological Issues and Alternative Approaches for Calculating Deferred Maintenance for Facilities 23-23
CONDITION ASSESSMENT SURVEYS 24-24
TOTAL LIFE-CYCLE COST METHOD 25-25
Alabama Commission on Higher Education Model 26-26
Stanford University Model 27-28
University of Virginia Model 29-29
DoD Facilities Sustainment Model 30-30
Table of Responsibilities 31-31
NASA Backlog of Maintenance and Repair Model 32-33
Hypothetical Example for One Facility 34-34
NASA Dryden Flight Research Center Statistical Model 35-35
Simplified BMAR Algorithm 36-36
Sample Calculation 37-37
REFERENCES 38-40
4 Deferred Maintenance and Repairs as an Indicator of Facility Condition 41-42
REFERENCES 43-44
Focus on First Costs 45-45
Inadequate Funding for Maintenance and Repair 46-46
Deferred Maintenance 47-47
Aging of Facilities 48-48
Lack of Accountability for Stewardship 49-50
APPENDIX B Excerpts from FASAB Standard Number 6 51-54
Statement of Federal Financial Accounting Standards Number 10, June 1998 55-55
Statement of Federal Financial Accounting Standards No. 14, April 1999 56-56
Statement of Recommended Accounting Standards No. 16, July 1999 57-58

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