Financial Management: Accounting Implications of DOD's Facilities Demolition Programs
Abstract
The Secretary of Defense has designated facilities demolition as an important element of the Department of Defenses (DOD) strategy to improve facilities management and reduce maintenance costs. The military services have programs in place to identify unneeded facilities on active bases that the services intend to dispose of through demolition. In general, the objectives of the services programs are to demolish facilities that are (1) in excess of current requirements, (2) costly to maintain and operate, (3) unsafe or potentially harmful to the environment, and (4) unsightly and not in keeping with the concept of installations of excellence. Properly accounting for facilities demolition will entail consideration of several issues, including how and when to record assets, liabilities, and depreciation. DOD is currently updating its Financial Management Regulation to incorporate the requirements of the new federal accounting standards, some of which address how the military services should account for their facilities and their demolition programs. This letter presents information that the Department should consider in formulating those accounting policies and related guidance.
Document Details
- Document Type
- Technical Report
- Publication Date
- Aug 28, 1998
- Accession Number
- AD1172977
Entities
People
- Lisa G. Jacobson
- Molly Boyle
Organizations
- United States Government Accountability Office