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2014 Financial Report of the United States Government

United States Government Required Supplementary Information (Unaudited) For the Years Ended September 30, 2014, and 2013

Deferred Maintenance and Repairs

Deferred maintenance and repairs result from maintenance not being performed on a timely basis and is the estimated cost to bring Government-owned property, plant, and equipment to an acceptable condition. Deferred maintenance and repairs exclude the cost of expanding the capacity of assets or upgrading them to serve needs different from those originally intended. The consequences of not performing regular maintenance and repairs could include increased safety hazards, poor service to the public, higher costs in the future, and inefficient operations. Estimated deferred maintenance and repairs costs are not accrued in the Statements of Net Cost or recognized as a liability on the Balance Sheets.

The amounts disclosed for deferred maintenance and repairs are allowed to be measured using one of the following three methods:

  • Condition assessment surveys which are periodic inspections of Government-owned property to determine the current condition and estimated cost to bring the property to an acceptable condition.
  • Life-cycle cost forecast that is an acquisition or procurement technique that considers operation, maintenance, and other costs in addition to the acquisition cost of assets.
  • Management analysis method that is founded on inflation-adjusted reductions in maintenance funding since the base year.

The amounts disclosed in the table below have all been measured using the condition assessment survey method. The standards for acceptable operating condition, the changes in these standards, and changes in asset condition vary widely between federal entities.

Some deferred maintenance and repairs have been deemed critical. Such amounts and conditions are defined by the individual agencies with responsibility for the safekeeping of these assets. The critical maintenance amount is not included in the low or high estimates amounts and is reported separately. Low and high estimates are based on materiality of the estimated cost of returning the asset to the acceptable condition versus the total value of the corresponding asset.

Deferred Maintenance and Repairs as of September 30, 2014, and 2013
Deferred Maintenance and Repairs
Cost Range
(In billions of dollars) 2014 2013
2014 2013
2014 2013
Asset category:
Buildings, structures and facilities 27.4 29.5 31.2 32.3 103.7 99.5
Furniture, fixtures, and equipment 0.2 0.1 0.2 0.1 1.8 2.3
Other general property, plant, and equipment 7.7 5.9 7.7 6.0 0.9 0.9
Heritage assets 6.2 6.4 8.6 8.9 5.0 3.6
Total deferred maintenance 41.5 41.9 47.7 47.3 111.4 106.3

Deferred maintenance and repairs previously reported in fiscal year 2013 for stewardship land are now included under heritage assets.

Please refer to the individual financial statements for DOI, DOD, USDA, DOE, HHS, and VA for detailed significant information on deferred maintenance and repairs, including the standards used for acceptable operating condition and changes in asset condition.

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