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Diplomacy in Action

Deferred Maintenance for the Fiscal Year Ended September 30, 2012


Bureau of the Comptroller and Global Financial Services
Report
November 16, 2012

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Photo showing the new embassy that was completed in October 2011 and the office annex that was completed in July 2012. Both buildings were built on a 12-acre site in the capital city of Kyiv, Ukraine. The design creates an image of a gateway to the United States combining cordiality and security while representing both cultures.

The new embassy was completed in October 2011 and the office annex was completed in July 2012. Both buildings were built on a 12-acre site in the capital city of Kyiv, Ukraine. The design creates an image of a gateway to the United States combining cordiality and security while representing both cultures. Department of State/OBO

The Department occupies more than 3,000 government-owned or long-term leased real properties at more than 270 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 $143 million and $185 million in 2012 and 2011 for buildings and facilities-related equipment and heritage assets that have not been funded.

 




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