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.
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.
|ISSUES RELATED TO DEFINITIONS||3-3|
|ISSUES AND POTENTIAL APPROACHES RELATED TO METHODOLOGIES FOR DEFERRED MAINTENANCE REPORTING||4-4|
|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|
|Economic Life, Useful Life, Expected Life||20-21|
|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|
|4 Deferred Maintenance and Repairs as an Indicator of Facility Condition||41-42|
|Focus on First Costs||45-45|
|Inadequate Funding for Maintenance and Repair||46-46|
|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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