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U.S. Department of State

Diplomacy in Action

Deferred Maintenance


Bureau of Resource Management
Report
November 15, 2010

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The Department occupies more than 3,000 government-owned or long-term leased real properties at more than 260 overseas locations. It uses a condition assessment survey method to evaluate the asset’s condition, and determine the repair and maintenance requirements for its overseas buildings.

SFFAS No. 6, Accounting for Property, Plant, and Equipment, requires that deferred maintenance (measured using the condition survey method) and the description of the requirements or standards for acceptable operating condition be disclosed. Fundamentally, the Department considers all of its overseas facilities to be in an “acceptable condition” in that they serve their required mission. Adopting standard criteria for a classification of acceptable condition is difficult due to the complex environment in which the Department operates.

From a budgetary perspective, funding for maintenance and repair has been insufficient in the past. As a result, the Department has identified current maintenance and repair backlogs of $111 million and $84 million in 2010 and 2009 for buildings and facilities-related equipment and heritage assets that have not been funded. The deferred maintenance amount rose primarily due to a refinement in our facility condition survey method of gathering maintenance requirements and the inclusion of normal maintenance determined to have been deferred.




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