National Academies Press: OpenBook
« Previous: REFERENCES
Suggested Citation:"Focus on First Costs." 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. doi: 10.17226/10095.
Page 45

Below is the uncorrected machine-read text of this chapter, intended to provide our own search engines and external engines with highly rich, chapter-representative searchable text of each book. Because it is UNCORRECTED material, please consider the following text as a useful but insufficient proxy for the authoritative book pages.

APPENDIX A 45 APPENDIX A Excerpts from Stewardship of Federal Facilities: A Proactive Strategy for Managing the Nation's Public Assets (pp. 13-18) FACTORS CONTRIBUTING TO THE DETERIORATING CONDITION OF FEDERAL FACILITIES Despite the historic, cultural, and architectural importance of, and economic investment in, federal facilities, evidence is mounting that the physical condition, functionality, and quality of the federal facilities portfolio is deteriorating. In response to Congressional inquiries, the General Accounting Office (GAO) has published a number of reports documenting the deterioration of federal facilities since 1990. These include NASA Maintenance: Stronger Commitment Needed to Curb Facility Deterioration (GAO, 1990), Federal Buildings: Actions Needed to Prevent Further Deterioration and Obsolescence (GAO, 1991), Federal Research: Aging Federal Laboratories Need Repairs and Upgrades (GAO, 1993), and National Parks: Difficult Choices Need to be Made About the Future of the Parks (GAO, 1995b). To cite only two examples from these reports, “at Ellis Island in New York, the nation's only museum devoted exclusively to immigration, 32 of 36 historic buildings have seriously deteriorated, and, according to park officials, about two-thirds of these buildings could be lost within 5 years if not stabilized.” In one building used for storing cultural artifacts, “much of the collection is covered with dirt and debris from crumbling walls and peeling paint, and leaky roofs have caused water damage to many artifacts” (GAO, 1995a). A number of factors that contribute to the deteriorating condition of federal facilities, are described below. Focus on First Costs The deteriorating condition of federal facilities is attributable, in part, to the federal government's failure to recognize the total costs of facility ownership. Although the “costs to operate and maintain a facility vary between 60 to 85 percent of its total ownership cost” (Christian and Pandeya, 1997), government budgeting practices have focused on the design and construction costs, or 5 to 10 percent of the total costs of

Next: Inadequate Funding for Maintenance and Repair »
Deferred Maintenance Reporting for Federal Facilities: Meeting the Requirements of Federal Accounting Standards Advisory Board Standard Number 6, as Amended Get This Book
Buy Paperback | $47.00 Buy Ebook | $37.99
MyNAP members save 10% online.
Login or Register to save!
Download Free PDF

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.

  1. ×

    Welcome to OpenBook!

    You're looking at OpenBook,'s online reading room since 1999. Based on feedback from you, our users, we've made some improvements that make it easier than ever to read thousands of publications on our website.

    Do you want to take a quick tour of the OpenBook's features?

    No Thanks Take a Tour »
  2. ×

    Show this book's table of contents, where you can jump to any chapter by name.

    « Back Next »
  3. ×

    ...or use these buttons to go back to the previous chapter or skip to the next one.

    « Back Next »
  4. ×

    Jump up to the previous page or down to the next one. Also, you can type in a page number and press Enter to go directly to that page in the book.

    « Back Next »
  5. ×

    To search the entire text of this book, type in your search term here and press Enter.

    « Back Next »
  6. ×

    Share a link to this book page on your preferred social network or via email.

    « Back Next »
  7. ×

    View our suggested citation for this chapter.

    « Back Next »
  8. ×

    Ready to take your reading offline? Click here to buy this book in print or download it as a free PDF, if available.

    « Back Next »
Stay Connected!