**PRESENTATION TO THE**

**UNITED STATES GOVERNMENT STANDARD GENERAL LEDGER BOARD**

**SGL IMPACT**

**FASAB STANDARDS**

**ACCOUNTING FOR PROPERTY, PLANT AND EQUIPMENT (SFFAS #6)**

**AND**

**SUPPLEMENTARY** **STEWARDSHIP REPORTING (SFFAS #8)**

BY THE

**IRC PP&E/STEWARDSHIP SUBCOMMITTEE**

Karl Boettcher, Chairperson, Financial Management Service

Phil Daniels, Department of Interior

Dave Mielke, National Aeronautics and Space Administration

Sue Mundstuk, Department of Health and Human Services

Eileen Parlow, Department of Education

Thurman Soloman, Financial Management Service

**NOVEMBER 21, 1996**

**[TABLE OF CONTENTS]{.underline}**

**SECTION I**

**Purpose and Impact 4**

**SGL Accounts**

New Accounts **5**

Removed Accounts **6**

Reduced Accounts **6**

Modified Accounts **7**

**SECTION II**

**Illustrative Transactions**

Property, Plant and Equipment

General **9**

Stewardship

Federal Mission **11**

Heritage **13**

Stewardship Land **15**

Deferred Maintenance **17**

Cleanup Cost **18**

Stewardship

Stewardship PP&E **20**

Stewardship Investments

Nonfederal Physical Property **21**

Human Capital **23**

Research and Development **24**

Stewardship Responsibilities

Current Services Assessment **25**

**ATTACHMENT**

Accounts and Definitions **26**

**SECTION I**

**[PURPOSE AND IMPACT]{.underline}**

The purpose of this presentation is to present the USSGL account impact
and the related illustrative transactions for the FASAB standards for
Accounting for Property, Plant and Equipment (SFFAS #6), and the
Supplementary Stewardship Reporting Standard (SFFAS #8). These standards
are for periods beginning after September 30, 1997. The illustrative
transactions contain SGL accounts which reflect the FASAB standards
effective in FY 1998. Also attached to this presentation are account
definitions for the affected SGL accounts.

A minimal number of new SGL asset and liability accounts would be
established. Existing expense account 6100 would be used to record
Stewardship PP&E and Investment costs and Cleanup costs. The
subcommittee initially discussed an option of establishing a new expense
account series (6200) for stewardship expenses. However, a number of
unresolved implementation issues related to the draft JFMIP cost
accounting document surfaced and are currently being addressed by the
CFO council and other groups. It was therefore decided that at this time
it would be advisable to declare a moratorium on establishing new
expense accounts.

The collection of nonstandard financial and nonfinancial Stewardship
information would be collected outside the SGL.

Initial discussions included the possible use of SGL 8000 memorandum
account series to facilitate Stewardship reporting. However, it was
decided not to make this a governmentwide SGL requirement. Information
can be collected by the use of agency data stores and/or the use of SGL
9000 series accounts reserved for agency internal statistical/memorandum
use.

FASAB is currently undertaking a related project to address natural
resources (materials beneath the surface, space above the surface, and
the outer continental shelf). Preliminary FASAB Board meetings to
discuss the issue have taken place. The treatment of natural resources
as a stewardship item is a possibility. A natural resources project task
force has been formed and will be chaired by a representative from the
Department of Interior. Any SGL impact (accounts 1840 and 1849) which
may result from this initiative will be addressed in the future.

**[USSGL ACCOUNTS]{.underline}**

**[PROPERTY, PLANT & EQUIPMENT]{.underline} [SGL ACCOUNTS
]{.underline}**

**CURRENT NEW**

**Balance Sheet**

General PP&E Operations

Land, and Land Rights

(Exclude Stewardship) **1711**

Improvements to Land **1712**

Accumulated depreciation on

Improvements to Land **1719**

Accrued Clean-up cost

(General & Stewardship) **2995**

**Statement of Net Cost**

Stewardship PP&E 6100 &

Stewardship Land Agency

Heritage PP&E Specific

Mission PP&E Identifier

Clean-up costs \"

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

**[STEWARDSHIP REPORTING]{.underline} [DATA STORES/9000 ]{.underline}**

**I**

**N**

**T**

**Stewardship PP&E / D U E**

Stewardship land **/ A S R**

Heritage assets **/ T E N**

Mission PP&E **/ A A**

Weapons **/ O O L**

Space Exploration **C U F**

Other **S O T S**

**Stewardship Investments T L S U T**

Non-Federal Physical property 6100 & **E L I S A**

(federally financed) Agency **W E D S T**

Human capital Specific **A C E O G I**

Research & development Identifier **R T R L S**

Basic research \" **D E O T**

Applied research \" **S D F 9 I**

Development \" **H 0 C**

Transfers to State/Local **I A 0 A**

Stewardship PP&E **P N U 0 L**

Stewardship land **/ D S /**

Heritage assets **/ S S M**

Mission PP&E **/ S G E E**

General operations PP&E **/ T L R M**

Land **/ O I O**

Other PP&E **/ R E**

**Stewardship Responsibilities / E S A**

Current Services Assessment **/ D C**

**C**

**T**

**[REMOVE SGL ACCOUNTS]{.underline}**

Military Equipment 1760 **Remove** account - Now part of

Stewardship - Mission PP&E

Accumulated Depreciation

on Military Equipment 1769 **Remove** account

**[REDUCE AMOUNTS IN SGL ACCOUNTS]{.underline}**

Other USSGL accounts containing a mixture of Stewardship PP&E
(Mission/Heritage/Stewardship Land)and General PP&E should be reduced by
the stewardship portion.

Land 1710 **Reduce** balance for public domain land amounts. Will no
longer be reported on the balance sheet.

Other Fixed Assets 1890 **Reduce** balance for statues, monuments, and
artwork amounts. Heritage assets will no longer be reported on the
balance sheet.

Other **Reduce** balance in any other

SGL account and contra account containing Stewardship PP&E.

1730 Buildings

1739 Accumulated Depreciation on Buildings

1740 Other Structures and Facilities

1749 Accumulated Depreciation on Other Structures and Facilities

1750 Equipment

1759 Accumulated Depreciation on Equipment

1810 Assets Under Capital Lease

1819 Accumulated Depreciation on Assets Under Capital Lease

1820 Leasehold Improvements

1829 Accumulated Amortization on Leasehold Improvements

**[MODIFY SGL ACCOUNTS]{.underline}**

Fixed Assets, Net 1700 **Modify -** Title - Change Fixed Assets to
General PP&E**.**

**Modify** - Remove GAO criteria and add Federal entity. Add \"meeting
definitions of General PP&E.\"

Land, Net 1710 **Modify** - Change to Summary account and reflect land
for agency general operations.

Buildings 1730 **Modify** Title - Add Improvements and Renovations
**Modify** - Definition - Reflect improvements/renovations to multi-use
Heritage assets when those costs are directly tied to the conduct of
government operations. Also, remove lease purchase.

Accumulated Depreciation

on Buildings 1739 **Modify** Title - Add Improvements and Renovations

Equipment 1750 **Modify -** Definition Remove word processors,
typewriters, Personal computers, calculators, furniture, copiers,
machinery, automotive equipment

Information Technology - 1830 **Modify** - Title - Change

Software Automated Data Processing to Information Technology Software.

**Modify** - Definition - add Off- the- shelf, contractor and user
charges.

Accumulated Amortization on

Information Technology - 1839 **Modify** - Title - Change Automated Data
Processing to Information Technology Software.

**Modify** - Definition - Add - Internally developed software.

Other Fixed Assets 1890 **Modify -** Title - Change Fixed Assets to
General PP&E

**Modify -** Definition - Remove statues, monuments, and artwork. Change
fixed assets to General PP&E.

**SECTION II**

**Illustrative Transactions**

**Proposed and existing proprietary and budgetary accounts needed to
implement the FASAB PP&E (SFFAS #6) and Stewardship Standards (SFFAS
#8).**

**[PP&E - General]{.underline}**

**IMPROVEMENTS TO HERITAGE ASSETS**

**1. PP&E Reference:**

**Improvements to Heritage assets**

Cost of renovating, improving, or reconstructing operating components of
heritage assets used in government operations shall be included in
general PP&E.

**\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_**

**TRANSACTIONS:**

**1a.** To record the portion of **improvements to Heritage property**
which is used **for General Operations**.

**[Proprietary]{.underline}**

1730 Buildings/**Improvements/Renovations** XXXX

1010 Fund Balance with Treasury XXXX

If Appropriated -

3100 Unexpended Appropriations XXXX

5700 Appropriations Used XXXX

**[Budgetary]{.underline}**

4801 Undelivered Orders XXXX

4902 Expended Authority - Paid XXXX

**1b.** To record accumulated depreciation to Heritage property used in
general operations.

**[Proprietary]{.underline}**

6100 Operating/Program Expense

(Production Cost-Operating) XXXX

1739 Accumulated Depreciation on

Buildings/**Improvements/**

**Renovations** used in General

Operations XXXX

**[Budgetary]{.underline}**

**None**

**IMPROVEMENTS TO LAND**

**2. PP&E Reference:**

**Certain improvements to Land** (Including Stewardship Land) Cost of
pavement or gravel to roadbeds will be capitalized and depreciated.

**\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_**

**TRANSACTIONS:**

**2a.** To record Non-Permanent Improvements to Land, e.g., cost of
pavement or gravel to roadbeds.

**[Proprietary]{.underline}**

**1712 Non-Permanent Improvements to Land**

**(Including Stewardship Real Property)** XXXX

1010 Fund Balance with Treasury XXXX

If appropriated -

3100 Unexpended Appropriations XXXX

5700 Appropriations Used XXXX

**[Budgetary]{.underline}**

4801 Undelivered Orders - Unpaid XXXX

4902 Expended Authority - Paid XXXX

**2b.** To record accumulated depreciation on Non-Permanent Improvements
to Land.

**[Proprietary]{.underline}**

6100 Operating/Program Expenses

(Production Cost-Operating) XXXX

**1719 Accumulated Depreciation**

**on Non-Permanent Improvements**

**to Land XXXX**

**[Budgetary]{.underline}**

**None**

**[PP&E - Stewardship]{.underline}**

**Stewardship Summary \*\*\*\*\*\*\***

**Stewardship PP&E includes Federal Mission PP&E, Heritage PP&E and**

**Stewardship Land**

**PP&E - Federal Mission \*\*\*\*\*\***

**PP&E Reference:**

**3. Cost of acquiring, constructing, improving, reconstructing, or
renovating Federal Mission PP&E shall be shown as a \"Cost of Federal
mission PP&E\" on the statement of net cost.** Examples: Weapons systems
and space exploration Equipment.

**a. Initial Implementation Recognition:** **Federal Mission**

Federal mission PP&E previously recognized as assets and contra assets
shall be removed. Amounts removed shall be charged to the Net Position
of the entity and shown as a prior period adjustment.

**\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_**

**TRANSACTIONS:**

To remove Federal Mission from the SGL for Balance Sheet reporting. The
initial adjusting transaction entry assumes that the balance in account
3210 Capital Investments has been eliminated.

**[Proprietary]{.underline}**

**Adjusting Entry**

7400 Prior Period Adjustment XXXX

1769 Accumulated Depreciation on

Military Equipment XXXX

17X9 Accumulated Depreciation on Buildings

Equipment and Other Structures XXXX

1760 Military Equipment XXXX

17XX Buildings, Equipment, and

Other Structures XXXX

**Closing Entry**

3310 Cumulative Results of Operations XXXX

7400 Prior Period Adjustment XXXX

**[Budgetary]{.underline}**

None

**b. Establish expense accounts**

Record the cost of **Federal mission weapons, space and other PP&E.**

**\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_**

**TRANSACTIONS**

To record purchase or cost of constructing, improving, reconstructing,
or renovating Federal Mission.

**[Proprietary]{.underline}**

6100 Operating/Program Expenses

**(Mission Property, Plant & Equipment) XXXX**

1010 Fund Balance with Treasury XXXX

If Appropriated -

3100 Unexpended Appropriations XXXX

5700 Appropriations Used XXXX

**[Budgetary]{.underline}**

4801 Undelivered Orders - Unpaid XXXX

4902 Expended Authority - Paid XXXX

**PP&E Heritage \*\*\*\*\*\*\*\*\***

**PP&E Reference:**

**4.** Those assets possessing significant natural, historical
significance; educational, cultural, or artistic importance; or
architectural characteristics.

Examples: Washington monument, federal office buildings.

**a. Initial Implementation Recognition of** heritage assets previously
recognized as assets will be removed from the balance sheet.

Amounts removed shall be charged to net position of entity, shown as a
prior period adjustment and disclosed as a footnote.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

**TRANSACTIONS:**

To remove Heritage Assets from the SGL for Balance Sheet reporting. The
initial adjusting transaction entry assumes that the balance in account
3210 Capital Investments has been eliminated.

**[Proprietary]{.underline}**

**Adjusting Entry**

7400 Prior Period Adjustment XXXX

17X9 Accumulated Depreciation on

Equipment/Building XXXX

1890 Other Fixed Assets -

(Statutes, Monuments, Artwork) XXXX

17XX Buildings, Equipment, Other

Structures XXXX

**Closing Entry**

3310 Cumulative Results of Operations XXXX

7400 Prior Period Adjustment XXXX

**[Budgetary]{.underline}**

**None**

**b. Cost of improving, reconstructing, or renovating** heritage asset
shall be recognized as a cost in the period incurred and disclosed on
the face or as a footnote.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

**TRANSACTIONS:**

To record purchase or cost of constructing, improving, reconstructing,
or renovating Heritage Property.

**[Proprietary]{.underline}**

6100 Operating/Program Expenses

**(Heritage Property) XXXX**

1010 Fund Balance with Treasury XXXX

If Appropriated -

3100 Unexpended Appropriations XXXX

5700 Appropriations Used XXXX

**[Budgetary]{.underline}**

4801 Undelivered Orders - Unpaid XXXX

4902 Expended Authority - Paid XXXX

**c. Multi-use:**

Heritage portion should be treated as periodic cost General PP&E portion
should be capitalized and depreciated (See general PP&E).

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

**TRANSACTIONS:**

**Multi-use:**

Heritage portion should be treated as periodic cost - See transaction
**4b.**

General PP&E portion should be capitalized and depreciated - See
transaction **1a**.

**PP&E Stewardship Land** **\*\*\*\*\*\***

**PP&E REFERENCE:**

**5.** Land other than that included in general PP&E

Examples: National parks and forests.

**a. Initial Implementation Recognition: Stewardship Land**

Stewardship Land previously recognized as an asset will be removed from
the balance sheet.

Amounts removed shall be charged to net position of entity, shown as a
prior period adjustment and disclosed as a footnote.

**\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_**

**TRANSACTIONS**

To remove Stewardship Land from the SGL for Balance Sheet reporting. The
initial adjusting transaction entry assumes that the balance in account
3210 Capital Investments has been eliminated.

**[Proprietary]{.underline}**

**Adjusting Entry**

7400 Prior Period Adjustment XXXX

1710 Land (Public Domain Lands) XXXX

**Closing Entry**

3310 Cumulative Results of Operations XXXX

7400 Prior Period Adjustment XXXX

**[Budgetary]{.underline}**

None

**b.** Recognized stewardship land acquired as a cost in the period
incurred on the statement of net cost.

**\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_**

**TRANSACTIONS:**

To record purchase of stewardship land

**[Proprietary]{.underline}**

6100 Operating/Program Expenses

**(Stewardship land) XXXX**

1010 Fund Balance with Treasury XXXX

If Appropriated -

3100 Unexpended Appropriations XXXX

5700 Appropriations Used XXXX

**[Budgetary]{.underline}**

4801 Undelivered Orders - Unpaid XXXX

4902 Expended Authority - Paid XXXX

**c.** The cost of pavement and gravel are general PP&E and would be
capitalized and depreciated. **(See general PP&E).**

[**Deferred Maintenance** **Standard**]{.underline}

**PP&E Reference:**

Maintenance (Keeping fixed asset in acceptable condition) not performed
(put off or delayed) when it should have been.

Currently not sufficiently measurable to be recognized as a liability on
the balance sheet for all four categories of PP&E.

**Reporting:**

A line item shall be presented on the Statement of Net Cost with a note
reference in lieu of a dollar amount.

**SGL Impact: NONE**

**[Cleanup Cost Standard]{.underline}**

**PP&E REFERENCE:**

Costs (required by Federal, state or local regulations as of balance
sheet date) of removing, containing and/or disposing of hazardous waste
(Solid, liquid or gas) from property or material at permanent or
temporary closure or shutdown of associated PP&E. Cleanup can not occur
until the end of the useful life or at regular intervals during the life
of the PP&E.

**For General and Stewardship PP&E**

**6a. One Time** **Initial Implementation recognition**

**General PP&E and Stewardship**

\(1\) a. Recognize as liability that portion that has passed or

b\. If costs are not to be recovered - Recognize total estimated costs
as a liability. Recognize total liability for Stewardship.

\(2\) Offsetting implementation charge shall be made to net position of
the entity on the **balance sheet**.

\(3\) Prior period adjustment in statement of changes in net position.
No amounts shall be recognized as expense in the period of
implementation.

\(4\) Amounts involved disclosed.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

**TRANSACTIONS:**

To record initial implementation of **past Cleanup costs**

**[Proprietary]{.underline}**

**Adjusting Entry**

7400 Prior Period Adjustment XXXX

**2995 Accrued Unfunded Cleanup Costs XXXX**

**Closing Entry**

3310 Cumulative Results of Operations

7400 Prior Period Adjustment

**[Budgetary]{.underline}**

None

**PP&E Reference:**

**b. General PP&E**

Recognize a portion of the total cleanup costs as an **expense on**
**statement of net cost** and as a **liability on the balance sheet**
when placed in service and continued each period until PP&E ceases
operation.

**Stewardship**

Recognize the total estimated cleanup costs as an **expense on the
statement of** **net cost** and as a **liability on the balance sheet**.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

**TRANSACTIONS:**

To record current cleanup costs for general and stewardship PP&E. Use
existing expense account for general PP&E and establish a new expense
account for stewardship PP&E and a new liability account for both
general and stewardship cleanup costs.

**[Proprietary]{.underline}**

6100 Operating/Program Expenses

**(General and stewardship**

**cleanup costs) XXXX**

**2995 Accrued Unfunded Cleanup costs XXXX**

**[Budgetary]{.underline}**

None

**PP&E Reference:**

**c.** Adjustments for reestimates of current and past operations as an
**expense on the statement of net** **cost** and as a **liability on the
balance** **sheet** in the period of the change.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

**TRANSACTIONS:**

To record upward adjustment of cleanup costs.

**[Proprietary]{.underline}**

6100 Operating/Program expenses

**(General and stewardship**

**cleanup costs) XXXX**

**2995 Accrued Cleanup costs XXXX**

**[Budgetary]{.underline}**

None

**[Supplementary Stewardship Reporting]{.underline}**

**[Stewardship PP&E]{.underline}**

**Stewardship PP&E includes Federal Mission PP&E, Heritage PP&E and
Stewardship Land.**

**\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_**

**Stewardship Heritage Standard \*\*\***

**See PP&E -** Heritage for transactions

**Stewardship Federal Mission** **Standard \*\*\***

**See PP&E -** Federal Mission for transactions

**Stewardship Land** **Standard \*\*\***

**See PP&E** - Stewardship Land for transactions

**\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_**

**[STEWARDSHIP INVESTMENTS]{.underline}**

**Stewardship - Non Federal Physical Property** **Standard
\*\*\*\*\*\*\*\*\*\*\***

**Definition**

Federal expenditures for the purchase, construction, renovation (Major
additions, alterations, and replacements) of physical property owned by
state or local governments. In addition, the

difference between the fair market value of federal property transferred
to state or local governments and any consideration received.

**Recognition/Measurement**

Expenses related to related to nonfederal physical property programs are
reported as expenses in arriving at the net cost of operations.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

**TRANSACTIONS:**

**8a.** To record Federal expenses related to Stewardship Nonfederal
Physical Property.

**[Proprietary]{.underline}**

6100 Operating/Program Expenses

**(Nonfederal Physical Property) XXXX**

1010 Fund Balance with Treasury XXXX

If appropriated -

3100 Unexpended Appropriations XXXX

5700 Appropriations Used XXXX

**[Budgetary]{.underline}**

4801 Undelivered Orders - Unpaid XXXX

4902 Expended Authority - Paid XXXX

**TRANSACTIONS:**

**b.** To record the transfer of ownership of General PP&E (land,
buildings, equipment and other) to state and local governments.

**[Proprietary]{.underline}**

**1719 Accumulated Depreciation on**

**Improvements to Land XXXX**

17X9 Accumulated Depreciation on Buildings

Equipment and other Structures XXXX

7210 Losses on disposition of Assets XXXX

**1711 Land and Land Rights XXXX**

**1712 Improvements to Land XXXX**

17XX Buildings, Equipment, and

Other Structures XXXX

**[Budgetary]{.underline}**

**None**

**Stewardship - Human Capital** **Standard \*\*\*\*\*\*\*\*\*\*\***

**Definition**

Expenses incurred for public education and training programs intended to
maintain or increase national productive capacity and that produce
outputs and outcomes that provide evidence of maintaining or increasing
national productive capacity. (Training for Federal civilian and
military personnel not included).

**Reporting - Recognition/Measurement:** Form and Content

\(1\) Actual program expenses incurred - Statement of Net Cost

\(2\) Program output and outcome - Stewardship Report

\(1\) Data in current dollars on investment for current year and the
preceding 4 years - Stewardship Report

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

**TRANSACTIONS:**

**9**. To record Federal expenses related to Stewardship Human Capital.

**[Proprietary]{.underline}**

6100 Operating/Program Expenses

**(Stewardship Human Capital) XXXX**

1010 Fund Balance with Treasury XXXX

If Appropriated -

3100 Unexpended Appropriations XXXX

5700 Appropriations Used XXXX

**[Budgetary]{.underline}**

4801 Undelivered Orders - Unpaid XXXX

4902 Expended Authority - Paid XXXX

**Stewardship - Research and Development Standard
\*\*\*\*\*\*\*\*\*\*\*\***

**Definition:**

Expenses incurred to support the search for new or refined knowledged
and ideas and for the application or use of such knowledge and ideas for
the development of new or improved products and processes with the
expectation of maintaining or increasing national economic productive
capacity or yielding other future benefits.

**Reporting - Recognition/Measurement**

\(1\) Actual program expenses incurred

\(2\) Program output and outcome

\(1\) Data in current dollars for the current year and the preceding 4
years.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

**TRANSACTIONS:**

**10**. To record expenses related to research and development - basic,
applied and development.

**[Proprietary]{.underline}**

6100 Operating/Program Expenses

**(Research and development) XXXX**

1010 Fund Balance with Treasury XXXX

If Appropriated -

3100 Unexpended Appropriations XXXX

5700 Appropriations Used XXXX

**[Budgetary]{.underline}**

4801 Undelivered Orders - Unpaid XXXX

4902 Expended Authority - Paid XXXX

**[Stewardship Responsibilities]{.underline}**

**Current Services Assessment Standard \*\*\*\*\*\*\*\*\*\*\*\***

**Supplementary Stewardship Reference:**

**Definition**

Provides receipt and outlay data on the basis of projections of future
activities of total government operations. This will aid

in assessing the sufficiency of future budgetary resources to

sustain public services and meet obligations as they become due.

**Measurement:**

\(1\) CSA data for base year will represent receipt and outlay data
submitted for the budget and will be actual receipt and outlay data for
the last completed fiscal year.

\(2\) CSA data for 6 years subsequent to the base year will be identical
to projected data published in the President\'s Budget for the same
period.

**Reporting:**

Consolidated financial Statement of the US Government

OMB would provide projected 6 year data.

**SGL Impact:** None

**Accounts and Definitions**

**Proposed additions to and, modifications and removal of existing**

**U.S. Standard General Ledger accounts and definitions needed to**

**implement the FASAB PP&E (SFFAS #6) and Stewardship Standards (SFFAS
#8).**

**[I. ASSET ACCOUNTS]{.underline}**

**Modify Title**

**Modify Definition**

**1.** Account Title: **General Property, Plant and Equipment, Net**

Account Number: 1700

Normal Balance: Debit

Type of Account: Summary

Current Definition: The current book value of real and personal property
in accordance with capitalization criteria established by GAO.

**Revised** **Definition: The current book value of real and personal
property in accordance with capitalization criteria established by the
Federal entity.**

**\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_**

**Modify Definition**

**Change Posting to Summary**

**2.** Account Title: Land**, Net**

Account Number: 1710

Normal Balance: Debit

Type of Account: **Summary**

Current definition: The cost or appraised value of land owned by the
government including public domain lands, standby facilities, and
permanent improvements to the land.

**Revised definition: The current book value of land, land rights and
improvements made to land that were acquired for agency general
operations.**

**New Account**

**3.** Account Title: **Land and Land Rights**

Account Number: **1711**

Normal Balance: **Debit**

Type of Account: **Posting**

**Definition: The identifiable cost of land and land rights of unlimited
duration acquired for or in connection with plant, property and
equipment used in general operations, including permanent improvements.
Stewardship land (national park or forest and land in the public domain)
is excluded. Also, excluded are materials beneath or above the surface
and outer-continental shelf resources.**

**\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_**

**New Account**

**4.** Account Title: **Improvements to Land**

Account Number: **1712**

Normal Balance: **Debit**

Type of Account: **Posting**

**Definition: The cost of non-permanent, depreciable improvements to
land used in general operations. Also includes similar costs to land
subject to stewardship reporting, as well as land rights of limited
duration that are associated with general operations.**

**\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_**

**New Account**

**5.** Account Title: **Accumulated Depreciation on Improvements to
Land**

Account Number: **1719**

Normal Balance: **Credit**

Type of Account: **Posting**

**Definition: Accumulates depreciation charged to expense for
improvements Land.**

**Modify Definition**

**Modify Title**

**6.** Account Title: Buildings**/Improvements and Renovations**

Account Number: 1730

Normal Balance: Debit

Type of Account: Posting

Current definition: The cost of Government-Owned Buildings under the
control of the Agency. This account includes Buildings acquired under
lease-Purchase Agreements.

**Revised definition:** **Cost of government-owned buildings acquired
for and used in providing general government services or goods. Includes
the cost of renovation, improvement, restoration or reconstruction of
multi-use heritage assets when the costs are directly tied to the
conduct of government operations.**

**\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_**

**Modify Title**

**Modify Definition**

**7.** Account Title: Accumulated Depreciation on Buildings**,
Improvements and Renovations**

Account Number: 1739

Normal Balance: Credit

Type of Account: Posting

Current definition: Accumulates depreciation charged to expense for
buildings.

**Revised definition: Accumulates depreciation charged to expense for
buildings, Improvements and Renovations.**

**Modify Definition**

**8.** Account Title: Equipment

Account Number: 1750

Normal Balance: Debit

Type of Account: Posting

Current definition: Tangible items of a durable nature used in the
operations of an agency including but not limited to items such as word
processors, typewriters, personal computers, calculators, furniture,
copiers, machinery, automotive equipment, and ADP Equipment (Excluding
ADP Software).

**Revised definition: The capitalized cost of tangible equipment items
of a durable nature used by the agency in providing goods and services.
(Excluding computer software)**

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**Remove Account**

**9.** Account Title: Military Equipment

Account Number: 1760

Normal Balance: Debit

Type of Account: Posting

Definition: All categories of combat-type equipment such ships,
aircraft, and other military hardware (tanks, weapon systems, etc.)

**\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_**

**Remove Account**

**10.** Account Title: Accumulated Depreciation on Military Equipment

Account Number: 1769

Normal Balance: Credit

Type of Account: Posting

Definition: Accumulates depreciation charged to expense for military
equipment.

**Modify Title**

**Modify Definition**

**11.** Account Title: **Information Technology** **Software**

Account Number: 1830

Normal Balance: Debit

Type of Account: Posting

Current definition: The capitalized amount of acquired and/or internally
developed automated data processing software.

**Revised definition: The capitalized cost of purchased off-the-shelf
and contractor developed information technology software. Also includes
cost elements of internally developed software when the cost of
development is to be recovered through charges to users.**

**\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_**

**Modify Title**

**Modify Definition**

**12.** Account Title: **Accumulated Amortization on Information
Technology software**

Account Number: 1839

Normal Balance: Credit

Type of Account: Posting

Current definition: Accumulates amortization charged to expense for
automated data processing software. Software acquired for research and
development with no alternative future use will be amortized over the
period of the project as opposed to the normal life cycle amortization.

**Revised definition: Accumulates amortization charged to expense for
information technology software.**

**Modify Title**

**Modify Definition**

**13.** Account Title: **Other General Property, Plant and Equipment**

Account Number: 1890

Normal Balance: Debit

Type of Account: Posting

Current definition: The value of fixed assets not otherwise classified
above such as statues, monuments, and artwork.

**Revised definition:** **The value of General PP&E not otherwise
classified above.**

**[II. LIABILITY ACCOUNT]{.underline}**

**New Account**

**1.** Account Title: **Accrued Cleanup costs**

Account Number: **2995**

Normal Balance: **Credit**

Type of Account: **Posting**

Definition: **The estimated liability for projected future clean-up
costs associated with the removing, containing and/or disposing of
hazardous materials associated with the current portion of general and
the total portion of stewardship PP&E.**