Required Supplementary Information
Deferred Maintenance
As of the end of FY 2007, GSA had no material amounts of deferred maintenance cost to report. GSA administers the Building Maintenance Management Program that, on an ongoing basis, maintains the Building Class inventory in acceptable condition, as defined by GSA management. GSA utilizes a condition assessment survey methodology, applied at the overall portfolio level, for determining reportable levels of deferred maintenance. Under this methodology, GSA defines “acceptable condition” and “acceptable level of service” in terms of certain National Performance Measures, formulated under the provisions of the Government Performance and Results Act (GPRA) of 1993.
GSA expenses normal repair and maintenance costs as incurred. Although GSA has no substantive backlog of deferred maintenance tasks, the average building in the GSA inventory is 44 years old, and only 29 percent of these buildings have had extensive modernization. This has led to a large inventory of capital repairs and alterations (R&A) work items of which approximately $6.3 billion has not yet been addressed by an ongoing PBS R&A project. As this backlog is related to capitalizable improvements and modernization, they are not considered deferred maintenance in accordance with FASAB SFFAS No. 6, Accounting for Property, Plant, and Equipment, which is intended to report only maintenance items that would be expensed through the normal course of business.