2010   Financial Report of the United States Government

United States Government Supplemental Information (Unaudited) for the Years Ended September 30, 2010, and 2009

Deferred Maintenance

Deferred maintenance is the estimated cost to bring Government-owned property, plant, and equipment to an acceptable condition, resulting from not performing maintenance on a timely basis. Deferred maintenance excludes 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 could include increased safety hazards, poor service to the public, higher costs in the future, and inefficient operations. Estimated deferred maintenance 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 are allowed to be measured using one of the following three methods:

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

Some deferred maintenance has 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 the materiality of the estimated cost of returning the asset to the acceptable condition versus the total value of the corresponding asset.

Deferred Maintenance as of September 30
Deferred Maintenance Cost Range
  Low Estimate High Estimate Critical Maintenance
(In billions of dollars) 2010 2009 2010 2009 2010 2009
Asset category:
Buildings, structures and facilities 129.7 93.5 134.8 98.7 95.0 2.4
Furniture, fixtures and equipment 4.7 0.3 4.7 0.3 4.5 0.2
Other general property, plant, and equipment 5.3 12.9 5.3 12.9 4.9 0.2
Heritage assets 1.9 10.0 1.9 10.0 1.6 0.1
Stewardship land 3.5 3.1 5.2 4.5   -
Total deferred maintenance 145.1 119.8 151.9 126.4 106.0 2.9

The agencies material to property, plant, and equipment are the DOD, DOE, DOI, DHS, GSA, TVA, and USPS. These agencies comprise 91 percent of the Government´s total reported property, plant, and equipment cost of $1,640.5 billion as of September 30, 2010.

Please refer to the individual financial statements of DOD, DOE, DOI, and DHS for detailed significant information on deferred maintenance, including the standards used for acceptable operating condition and changes in asset condition. As of the end of fiscal year 2010, GSA, TVA, and USPS had no material amounts of deferred maintenance cost.


Last Updated:  December 07, 2011