Issues in Deferred Maintenance


Book Description

This report presents the findings from an examination of public agency practices (federal, state, and local) in analyzing and reporting deferred maintenance on their facilities, such as roads, bridges, buildings, water or sewer systems, etc. The study team examined existing literature (the results of which are presented in detail in a separate report), and followed up on a small number of past and active Federal, state, and local agency efforts (including field visits to review the activities in New York City and San Jose, California). The study revealed a highly limited amount of either literature or actual ongoing efforts by public agencies directly addressed to the analysis and reporting of deferred maintenance. A consensus appears to exist that "deferred maintenance" should be defined to mean that maintenance and repair needed to bring current assets up to at least a minimum-acceptable physical condition level. Improvements in the asset's capacity or its capability over the original intent for the assets should not be included. Deferred maintenance is usually expressed in reports as the cost to bring assets back to an acceptable physical condition. The needed repairs can include costs that are considered to be capital costs. That is, costs are not limited to only those funded out of operating budget appropriations. The literature and field interviews make a strong case for reporting annually the amount of deferred maintenance. Such information is needed for proper stewardship of public assets and can provide needed information to public officials to help them make more informed judgments as to the allocation of scarce public resources.




Deferred Maintenance Reporting for Federal Facilities


Book Description

In 1996 the Federal Accounting Standards Advisory Board (FASAB) 1 enacted Standard Number 6, Accounting for Property, Plant, and Equipment (PP&E), the first government-wide initiative requiring federal agencies to report dollar amounts of deferred maintenance annually. The FASAB has identified four overall objectives in federal financial reporting: budgetary integrity, operating performance, stewardship, and systems and control. FASAB Standard Number 6, as amended, focuses on operating performance and stewardship. The FFC Standing Committee on Operations and Maintenance has prepared this report to identify potential issues that should be considered in any future amendments to the standard and to suggest approaches for resolving them. The committee's intent is to assist the CFO Council, federal agencies, the FASAB, and others as they consider how best to meet the objectives of federal financial reporting for facilities.




Deferred Maintenance Reporting


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Deferred Maintenance


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Financial Management


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Mortgaging the Future


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Higher Education Deferred Maintenance


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Deferred maintenance is a major contributor to the huge infrastructure problems plaguing the nation (ASCE, 2017). The bill for deferred maintenance at Massachusetts public higher education institutions is estimated at $5.5 billion (Krantz, 2017). Deferred maintenance causes premature equipment failure, health and safety issues, increased energy costs, interruptions in student learning, and reduced student recruitment and retention (Smith, 2017). To understand problems associated with deferred maintenance at state universities, knowing the views of those responsible for maintenance programs is essential. This study explored how facilities leaders at state universities perceived deferred maintenance issues by addressing five research questions. 1. To what degree are the magnitude and consequences of deferred maintenance realized? 2. What factors contribute to deferred maintenance? 3. What factors hinder implementation of reduction efforts? 4. What are successful strategies for reducing deferred maintenance? 5. How can facilities leaders affect institutional change to reduce deferred maintenance? The study used Q methodology, which combines both quantitative and qualitative techniques (Ellingsen, Størksen, & Stephens, 2010), to analyze relative viewpoints on deferred maintenance of purposefully selected state university facilities leaders (N = 19). Data collection was accomplished through participants ranking 49 statements from agree with to disagree with by sorting and positioning the statements into a normal curve distribution grid (Brown, 1993). PQMethod Release 2.35 freeware (Schmolck & Atkinson, 2014) was employed for calculating correlations, factoring, needed rotations, and final analysis. Data analysis revealed three factor groups: Realist Leaders, Optimistic Leaders, and Front Line Leaders. Each group had some unique viewpoints while sharing consensus on several viewpoints. Overall, the results showed little realization of the magnitude and the consequences of deferred maintenance issues; sometimes this was by design. Building age, construction quality, usage, and building acquisitions were major factors contributing to deferred maintenance. Lack of funds, unexpected projects, and procurement procedures were viewed as hindrances. Identified successful strategies included preventive maintenance, shared use of standardized and non-proprietary equipment, and reliance on study results. Participation of facilities leaders at senior level meetings was viewed as key to affecting change. Results of the study should assist educational leaders in understanding and reducing deferred maintenance.