National Academies Press: OpenBook
« Previous: FASAB STANDARD NUMBER 6, AS AMENDED
Suggested Citation:"STUDY ORIGIN." 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 14

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.

INTRODUCTION 14 Examples of condition information are averages of standardized condition rating codes; percentage of assets above, at, or below acceptable condition; or narrative information. If the agency chooses to use the total life-cycle cost method, it should include the following for each major class of PP&E: a. the original date of the maintenance forecast and an explanation for any changes to the forecast. b. prior-year balance of the cumulative deferred maintenance amount. c. the dollar amount of maintenance that was defined by the professionals who designed, built, or manage the PP&E as required maintenance for the reporting period. d. the dollar amount of maintenance actually performed during the period. e. difference between the forecast and actual maintenance. f. any adjustments to the scheduled amounts deemed necessary by the managers of the PP&E. g. the ending cumulative balance for the reporting period for each major class of asset experiencing deferred maintenance. The standard states that agencies may provide as optional information the stratification between critical and noncritical amounts of maintenance needed to return each major class of asset to its acceptable operating condition. If management elects to report this information, management's definitions of critical and noncritical maintenance must be included; Standard Number 6, as amended, does not provide definitions for critical or noncritical maintenance. STUDY ORIGIN The FASAB, 6 the entity that created Standard Number 6, has determined that information about deferred maintenance is of importance to users of federal financial reports and for measuring an agency's effectiveness and efficiency in managing PP&E. Recognizing that this is a new standard, specifically with regard to deferred maintenance reporting, the FASAB believed that a period of experimentation was desirable to determine the best methods to report deferred maintenance. Experience to date with implementing the standard has raised concerns by both agencies and auditors regarding the number of different interpretations of the standard, as well as cost- benefit and audit issues. The FASAB and the Office of Management and Budget (OMB) suggested that an interagency project be initiated to suggest government-wide methods to calculate 6 State and local government agencies are held accountable to accounting standards and principles established by the Governmental Accounting Standards Board. Its mission is to establish and improve standards of state and local governmental accounting and financial reporting that will result in useful information for users of financial reports and guide and educate the public, including issuers, auditors, and users of those financial reports.

Next: STUDY METHOD »
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, NAP.edu'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!