REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) 202 

Deferred Maintenance and Repairs 

DM&R result from maintenance not being performed on a timely basis and is the estimated cost to bring governmentowned PP&E to an acceptable condition. DM&R exclude 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 and repairs 

could include increased safety hazards, poor service to the public, higher costs in the future, and inefficient operations. 

Estimated DM&R costs are not accrued in the Statements of Net Cost or recognized as a liability on the Balance Sheets. 

The amounts disclosed for DM&R are allowed to be measured using one of the following three methods: 

x Condition assessment surveys which are periodic inspections of government-owned property to determine the 

current condition and estimated cost to bring the property to an acceptable condition. 

x Life-cycle cost forecast that is an acquisition or procurement technique that considers operation, maintenance, and 

other costs in addition to the acquisition cost of assets. 

x Any other method of choice that is similar to the condition assessment survey or life-cycle costing methods. 

The table below of DM&R is presented as a single estimate in accordance with SFFAS No. 42, Deferred Maintenance 

and Repairs: Amending Statements of Federal Financial Accounting Standards 6, 14, 29, and 32. These amounts were all 

measured using the condition assessment survey method. Please refer to the individual financial statements of DOD, DOI, 

VA, DOE, USDA, NASA, HHS, GSA, DHS, State, and DOT for additional information on DM&R. 

 

Deferred Maintenance and Repairs as of September 30, 2022, and 2021 

(In billions of dollars) 2022 2021 

Asset category: 

 General property, plant, and equipment .................................................................. 186.8 174.8 

 Heritage assets ..................................................................................................... 28.1 24.8 

 Stewardship land ................................................................................................... 0.8 0.7 

 Total deferred maintenance and repairs ................................................................. 215.7 200.3 

Other Claims for Refunds 

Other claims for refunds are claims filed for which specific administrative actions such as review by the courts are 

required before payments can be made and unasserted claims for refund by taxpayers or importers that may or may not 

become payable depending upon the resolution of subsequent events. As stated in SFFAS No. 7, Accounting for Revenue and 

Other Financing Sources and Concepts for Reconciling Budgetary and Financial Accounting, unasserted claims for refund 

such as unfiled claims for refunds or drawbacks for which no claim has been filed, are not known, therefore estimates are not 

able to be determined, and are not recognized on the Balance Sheet. Claims filed for refunds where required administrative 

actions are not yet complete as of the close of the reporting period may not be known however, the refunds, may be 

reasonably estimable. 

Management has estimated amounts that may be paid out as other claims for tax refunds. This estimate represents an 

amount (principal and interest) that may be paid for claims pending judicial review by the federal courts or, internally, by 

appeals. The total estimated payout (including principal and interest) for claims pending judicial review by the federal courts

is $2.1 billion and $1.5 billion for FYs 2022 and 2021, respectively. For those under appeal, the estimated payout is $1.3 

billion and $1.0 billion for FYs 2022 and 2021, respectively. To the extent judgments against the government for these claims 

prompt other similarly situated taxpayers to file similar refund claims, these amounts could become significantly greater.