GAO-02-171G Property Management Systems Requirements ... · Page 7 GAO-02-171G - Property Management Systems Requirements Checklist (12/01) The checklist uses “(M)” immediately

PROPERTYMANAGEMENTSYSTEMSREQUIREMENTS

Checklist forReviewing SystemsUnder the FederalFinancial ManagementImprovement Act

United States General Accounting Office

December 2001

GAO

GAO-02-171G

GAO-02-171G – Property Management Systems Requirements Checklist (12/01)

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PREFACE______________________________________________________________________________

December 2001

The Federal Financial Management Improvement Act (FFMIA) of 1996 requires, amongother things, that agencies implement and maintain financial management systems thatsubstantially comply with federal financial management system requirements. Theserequirements are detailed in the Federal Financial Management System Requirementsseries issued by the Joint Financial Management Improvement Program (JFMIP), inOffice of Management and Budget (OMB) Circular A-127, Financial ManagementSystems, and in OMB’s Revised Implementation Guidance for the Federal FinancialManagement Improvement Act (FFMIA) of 1996, issued January 4, 2001. JFMIP intendsfor the requirements to promote understanding of key financial management systemsconcepts and requirements, to provide a framework for establishing integrated financialmanagement systems to support program and financial managers, and to describespecific requirements of financial management systems.

We are issuing this checklist, which reflects JFMIP’s Property Management SystemsRequirements (JFMIP-SR-00-4, October 2000), to assist (1) agencies in implementing andmonitoring their property management systems and (2) managers and auditors inreviewing their property management systems to determine if they substantially complywith FFMIA. This checklist is not required to be used in assessing property managementsystems. Rather, it is provided as a tool for use by experienced staff and is one in a seriesof documents we have issued to assist agencies in improving or maintaining effectiveoperations. (See the last page of this document for a list of related products.) Thischecklist, the JFMIP source document, and the two previously mentioned OMBdocuments should be used concurrently. Those using this tool must apply experiencedjudgment in its interpretation and application. They must consider the impact of thecompleted checklist on an entire property management system and whether the system,as a whole, substantially complies with requirements.

Additional copies of the checklist can be obtained from the U.S. General AccountingOffice, 700 4th Street NW, Room 1100, Washington, DC 20548, or by calling (202) 512-6000, or TDD (202) 512-2537. This checklist replaces GAO’s previously issued exposuredraft of the Property Management Systems Requirements Checklist (GAO-01-554G, June2001) and is available on the Internet on GAO’s Home Page (http://www.gao.gov) under“Other Publications” and the subheading “Accounting and Financial Management.”Printed copies of the JFMIP document also can be obtained from GAO, or they can bedownloaded from the JFMIP website at http://www.jfmip.gov under “JFMIP Documents”and the subheading “System Requirements.”

Jeffrey C. SteinhoffManaging DirectorFinancial Management and Assurance

http://www.gao.gov/

GAO-02-171G - Property Management Systems Requirements Checklist (12/01)

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CONTENTS______________________________________________________________________________

Overview 5Authoritative Guidance 6How to Use This Checklist 7

Property Management Systems Requirements 8General Requirements 9Acquiring/Receiving Property 13Managing and Accounting for Property 16Interface Requirements 25

Related Products 26

Figure

Figure 1: Agency Systems Architecture 5

Abbreviations

CFO chief financial officerCFR Code of Federal RegulationsFASAB Federal Accounting Standards Advisory BoardFFMIA Federal Financial Management Improvement ActFMR Federal Management RegulationFPMR Federal Property Management RegulationGSA General Services AdministrationJFMIP Joint Financial Management Improvement ProgramOMB Office of Management and BudgetOPM Office of Personnel ManagementPP&E property, plant, and equipmentSFFAS Statement of Federal Financial Accounting Standards

GAO-02-171G – Property Management Systems Requirements Checklist (12/01)

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OVERVIEW______________________________________________________________________________

The Federal Financial Management Improvement Act (FFMIA) of 1996 requires, amongother things, that agencies implement and maintain financial management systems thatsubstantially comply with federal financial management system requirements. Theserequirements are detailed in the Federal Financial Management System Requirementsseries issued by the Joint Financial Management Improvement Program (JFMIP)1 andOffice of Management and Budget (OMB) Circular A-127, Financial ManagementSystems. The JFMIP requirements document describes the federal financial systemarchitecture as consisting of (1) core financial systems, (2) other financial and mixedsystems (including the property management systems), not all of which are applicable toall agencies, (3) shared systems, and (4) departmental executive information systems(systems to provide management information to all levels of management).2 Figure 1 isthe JFMIP model that illustrates how these systems interrelate in an agency’s overallsystems architecture.

Figure 1: Agency Systems Architecture

Source: JFMIP Property Management Systems Requirements (October 2000).

1JFMIP is a joint undertaking of OMB, the General Accounting Office, the Department of theTreasury, and the Office of Personnel Management (OPM), working in cooperation with eachother and with operating agencies to improve financial management practices throughout thegovernment. The program was initiated in 1948 by the Secretary of the Treasury, the Director ofthe Bureau of the Budget (now OMB), and the Comptroller General and was given statutoryauthorization in the Budget and Accounting Procedures Act of 1950. The Civil ServiceCommission, now the Office of Personnel Management, joined JFMIP in 1966.2JFMIP has also issued the Framework for Federal Financial Management Systems (FFMSR-0,January 1995), which defines the framework for establishing and maintaining financialmanagement systems to support management and deliver programs of the federal government.GAO published a companion checklist, Framework for Federal Financial Management SystemChecklist (GAO/AIMD-98-21.2.1, May 1998).


To date, JFMIP has issued 10 of the 15 functional requirements shown in figure 1.3

We are issuing this checklist—which reflects JFMIP’s first issuance of the PropertyManagement Systems Requirements (JFMIP-SR-00-4, October 2000)—to assist(1) agencies in implementing and monitoring their property management systems and(2) managers and auditors in reviewing agency property management systems todetermine if they substantially comply with FFMIA. This checklist is not a requirement.However, it is provided as a tool for use by experienced staff. This checklist; the JFMIPsource document; OMB Circular A-127, Financial Management Systems; and OMB’sRevised Implementation Guidance for the Federal Financial ManagementImprovement Act (FFMIA) of 1996, issued January 4, 2001, should be used concurrently.Staff members who use this tool must apply experienced judgment in its interpretationand application. They must consider the impact of the completed checklist on the entireproperty management system and whether the system, as a whole, substantially complieswith requirements.

Authoritative Guidance

The basis for assessing compliance with the FFMIA requirements is provided by OMBCircular A-127 and OMB’s implementation guidance, which agencies use in order toimplement and maintain financial management systems that comply substantially withfederal requirements. The implementation guidance identifies various criteria that anagency must meet to substantially comply with these requirements. One of the criterionlisted in the OMB guidance is the JFMIP system requirements series.

The source of all the questions in this checklist is the JFMIP Property ManagementSystems Requirements (JFMIP-SR-00-04, October 2000), which addresses requirementsfor property management systems. The JFMIP document acknowledges that propertymanagement system functionality does not necessarily reside in a single softwareapplication or functional system. In fact, property information may reside in or may becalculated in a number of applications or systems. The property management systemsdescribed in the JFMIP document may comprise all these applications and/or systems,their interfaces, and the processes required to manage property. It should be noted thatthe checklist is based on the existing published JFMIP standards and that changes inlaws, regulations, and standards and practices since the JFMIP standards were issued arenot included in the checklist.

The JFMIP document segregates functional requirements into two general categories—mandatory and value-added. The mandatory requirements describe what the system mustdo. They consist of the minimum acceptable functionality necessary to establish a systemand are based on federal laws, regulations, directives, or judicial decisions. Mandatoryrequirements are those against which agency heads evaluate their systems to determinesubstantial compliance with system requirements under FFMIA. These requirementsapply to existing systems in operation and new systems planned or under development.

3Thus far, the series includes the (1) Core Financial System Requirements, (2) Inventory SystemRequirements, (3) Seized Property and Forfeited Assets System Requirements,(4) Direct Loan System Requirements, (5) Guaranteed Loan System Requirements,(6) Travel System Requirements, (7) Human Resources & Payroll Systems Requirements,(8) System Requirements for Managerial Cost Accounting, (9) Grant Financial SystemRequirements, and (10) Property Management Systems Requirements.


The checklist uses “(M)” immediately following the question to indicate a mandatorysystem requirement.

The value-added requirements describe optional features and may consist of anycombination of the following: (1) using state-of-the-art technology, (2) employing thepreferred or best business practices, or (3) meeting the special management needs of anindividual agency. Agencies should consider value-added features when judging systemsoptions. The need for these value-added features in agency systems is left to thediscretion of each agency head. The checklist uses “(V)” immediately following thequestion to indicate that the item is value-added and not mandatory.

How to Use This Checklist

OMB’s 2001 implementation guidance provides chief financial officers (CFO) andinspectors general with a means for determining whether their agencies’ financialmanagement systems substantially comply with federal financial management systemrequirements. The annual reporting required by 31 U.S.C. 3512(d) is one means ofassisting agencies in the determination of substantial compliance. Agencies can also usethis checklist as a tool to help determine compliance with federal financial managementsystem requirements.

Completing this checklist will allow agencies to systematically determine whetherspecific systems requirements are being met. In determining substantial compliance,agencies should assess the results of the completed checklist based on the propertymanagement system requirements taken as a whole.

The checklist contains three columns with the first citing the question. Use the secondcolumn to answer each question “yes,” “no,” or “na.” Use the third column to explainyour answer. A “yes” answer should indicate that the agency’s property managementsystems provide for the capability described in the question. For each “yes” answer, thethird column should contain a brief description of how the property management systemssatisfy that capability and should also refer to a source that explains or shows thecapability.

A “no” answer indicates that the capability does not exist. For a “no” answer, the thirdcolumn should provide an explanation and, where applicable, a reference to any relatedsupporting documentation (e.g., the agency is working on modifying or implementing itsproperty management systems to have the capability available in subsequent years;management believes the capability is not cost effective and will not enhance theproperty management systems’ ability to manage operations). Cost-benefit studies orsupport for a “no” answer should be identified in the explanation column. If there are nocost-benefit studies or other support, a full explanation should be provided.

“No” answers should not be viewed individually or taken out of context. Rather, “no”answers should be assessed as to their impact on the overall property managementsystems and the extent to which the “no” answers inhibit the entire property managementsystems from achieving compliance.

Certain questions within the checklist may not be applicable to the agency. Answer suchnonapplicable questions with “na” and provide an appropriate explanation in the thirdcolumn.


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PROPERTY MANAGEMENT SYSTEMS REQUIREMENTS______________________________________________________________________________

The property management systems requirements document defines mandatory and value-added functional requirements for the three sections described below, which are(1) general requirements, (2) acquiring/receiving property, and (3) managing andaccounting for property. Additionally, an interface requirements chapter providesinformation on input and output interfaces with the property management system. (Thereare no checklist questions drawn from pages 20–21 of the JFMIP source document.)

1. General requirements identify mandatory and value-added system functionalitiesthat are common for all property management functions. In addition, there arefunctional requirements that apply to specific categories of property. (Thechecklist questions for this area are drawn from pages 12–13 of the JFMIP sourcedocument.)

2. Acquiring/receiving property addresses initial physical control when property isdelivered or real property is placed in service. Property is recognized asaccounted for when title passes to the entity obtaining the property or whengoods are delivered. Property may be purchased, leased, loaned, granted,transferred, constructed, or donated. The property management system mayobtain information from the acquisition system when property is ordered. Theproperty management system records receipt of property and the results of aninitial physical inspection regarding the condition of property, whether fromvendor, donated, transferred, or gained through discovery. (The checklistquestions for this area are drawn from pages 14–15 of the JFMIP sourcedocument.)

3. Managing and accounting for property. The managing property function capturesand provides data to assist property managers and officials in managing property.The accounting-for-property function pertains to recording the acquisition cost ofthe property, or net book value/fair market value for donated or transferred items.(The checklist questions for this area are drawn from pages 16–19 of the JFMIPsource document.)

The checklist questions follow the JFMIP source document. It should be noted that not allquestions will apply in all situations and, as with the use of any checklist, professionaljudgment should be exercised. Using the JFMIP source document and its “Appendix C:Glossary,” which defines terms used, along with OMB Circular A-127, FinancialManagement Systems, and OMB’s Revised Implementation Guidance for the FederalFinancial Management Improvement Act (FFMIA) of 1996, issued January 4, 2001, willhelp ensure that the user is cognizant of the background information necessary to fullyunderstand the questions.

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Property Management Systems Requirements______________________________________________________________________________

Page 9 GAO-02-171G - Property Management Systems Requirements Checklist (12/01)

General requirementsYes/no

na Explanation1. Does the property management

system record—for all propertymanagement functions—beginning balances,acquisitions, and withdrawals,and does it calculate endingbalances expressed in valuesand physical units, except forheritage assets and stewardshipland, for which all end-of-periodbalances are expressed inphysical units only? (M)

2. Does the property managementsystem capture, for all propertymanagement functions, thecondition of the asset forheritage assets; stewardshipland; national defense property,plant and equipment (PP&E);and general PP&E for which acondition assessment surveywas performed? (M)

3. Does the property managementsystem provide edits (controls),for all property managementfunctions, to preventduplication and reduce thelikelihood of creating erroneousproperty documents/records toensure the integrity of datarecorded in the system? (M)

4. Does the property managementsystem permit, for all propertymanagement functions, onlyauthorized users to enter,modify, or otherwise alterproperty records? (M)

5. Does the property managementsystem provide, for all propertymanagement functions, an audittrail for entries to a propertyrecord, including the

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na Explanationidentification of theindividual(s) entering orapproving the informationand/or data? (M)

6. Does the property managementsystem identify, for all propertymanagement functions, the typeof transaction affecting theproperty item, e.g., initialacquisition, change in location,and disposal? (M)

7. Does the property managementsystem incorporate, for allproperty managementfunctions, adequate securityfeatures that preventunauthorized access to theproperty system byunauthorized individuals? (M)

8. Does the property managementsystem enable, for all propertymanagement functions, thetransfer of responsibility forproperty from one authorizedmanager to another authorizedmanager? (M)

9. Does the property managementsystem capture, for all propertymanagement functions, realproperty information for theGeneral ServicesAdministration’s (GSA)Worldwide Inventory system asdirected in Federal PropertyManagement Regulation(FPMR) 102-84 (propertymanagement only)? (M)

10. Does the property managementsystem produce, for all propertymanagement functions, reports

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na Explanationin accordance with user-definedcriteria? (M)

11. Does the property managementsystem capture, for all propertymanagement functions, the factthat an environmental orhazardous substance is locatedon or contained within aproperty item, in accordancewith 41 Code of FederalRegulations (CFR) 101-42.202?(M)

12. Does the property managementsystem distinguish, for allproperty managementfunctions, between capitalizedproperty and expensed propertytracked in the propertymanagement system? (M)

13. Does the property managementsystem capture and prioritizethe estimated cost of repairs?(V)

14. Does the property managementsystem accumulate data frommultiple appropriations? (V)

15. Does the property managementsystem provide an on-linesearch capability based on user-defined parameters? (V)

16. Does the property managementsystem provide the capability ofinterfacing on-line or throughthe Internet with other propertymanagement systems externalto the agency to facilitateidentification, location, ortransfer of federal propertygovernmentwide? (V)

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na ExplanationSpecific categories —Information technology

17. Because informationtechnology assets are personalproperty, the propertymanagement system mayalready capture the datarequired to account for theseassets. However, does theproperty management systemalso capture (1) informationessential to ensuring thatsoftware and software licensesare controlled and (2)information driven bycontractual licenses andagreements with softwaredevelopers, vendors, orsoftware licensers? (V)

Specific categories —Government property inthe custody of others

Note: There are no checklistquestions drawn from this sectionof the JFMIP source document(p. 13).

Specific categories —National defense PP&E

Note: There are no checklistquestions drawn from this sectionof the JFMIP source document(p. 13).

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Acquiring/receiving propertyYes/no

na Explanation1. Does the property management

system create a skeletalproperty record or have anyother mechanism for capturinginformation on property in-transit from the providing entity(e.g., vendor, donator, loaner,grantor)? The skeletal propertyrecord or other mechanism isrequired only for property forwhich the government has takentitle. For example, the skeletalproperty record or othermechanism may identify thefollowing on newly acquiredproperty:

• name and address of theshipper/vendor;

• estimated date of delivery;• shipping address (“ship to”

address);• item identification (e.g.,

nomenclature, quantity,description, year ofmanufacture, make/model/serial number, federal stockclassification or nationalstock number);

• requisition information (e.g.,contract/purchase order orother requisition documentnumber, name and addressof requisitioningorganization); and

• order date. (M)

2. Does the property managementsystem complete the skeletalproperty record or create aproperty record for items withno skeletal property record,upon the agency’s assumingpossession of the item, placingthe real property asset in

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na Explanationservice, or initiation of a realestate instrument/grant? (M)

3. Does the property managementsystem capture the method ofacquiring each property item orbulk property items (e.g., directpurchase, completed work-in-process, capital lease, donation,nonreciprocal transfer, orreciprocal transfer) and the dateof acquisition? (M)

4. Does the property managementsystem capture quantity, date ofphysical receipt or date realproperty is available for use orplaced into service, andcondition of item received whena condition assessment wasmade? (M)

5. Does the property managementsystem forward physical receiptinformation, including quantityand date of physical receipt, tothe acquisition system and thecore financial system?4 (M)

6. Does the property managementsystem interface electronicallywith GSA’s WorldwideInventory? (V)

7. Does the property managementsystem provide information onthe status of upgrades andoverhauls to property? (V)

8. Does the property managementsystem aggregate relativelyhomogenous assets into asset

4The property management system should be capable of interfacing with other financial and/ormixed systems. However, interface requirements and systems architecture necessary to meetmanagement and reporting requirements are determined by each agency. The “InterfaceRequirements” section of the JFMIP source document contains more information.

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na Explanationpools? All assets in the assetpools have the same estimateduseful life, and the acquisitioncost of each item in the assetpool would be the average costof all items in the pool.However, each item in the assetpool must have a separateproperty record and a separateagency-unique identificationnumber. (V)

9. Does the property managementsystem capture warranty/guarantee information,including terms and period ofcoverage? (V)

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Managing and accounting forproperty

Yes/nona Explanation

Acquisition of property;Changes in asset values

1. Does the property managementsystem, for capitalized propertyand stewardship assets, classifyPP&E by asset type (e.g.,general, heritage, stewardshipland, national defense)? (M)

2. Does the property managementsystem, for capitalized propertyand stewardship assets,distinguish between heritageassets and multi-use heritageassets? (M)

3. Does the property managementsystem, for capitalized propertyand stewardship assets, capturechanges in quantities, includingunit of measure, whereapplicable, for beginningbalance adjustments, additions,and deletions and does itcompute ending balances byasset category? (M)

4. Does the property managementsystem, for capitalized propertyand stewardship assets, providean audit trail for all adjustmentsto quantities and units? (M)

5. Does the property managementsystem, for capitalized propertyand stewardship assets, capturethe acquisition cost of an assetand any changes in thevaluation, where applicable forreporting purposes? (M)

6. Does the property managementsystem, for capitalized property

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only, capture the estimatedvalue of donated assets? (M)

7. Does the property managementsystem, for capitalized propertyonly, provide an audit trail forall adjustments to propertyvalues? (M)

8. Does the property managementsystem, for capitalized propertyonly, classify PP&E accordingto the Standard General Ledgeraccounts (e.g., buildings, land,equipment, assets under capitallease, software)? (M)

9. Does the property managementsystem, for capitalized propertyonly, generate data for thejournal entries necessary forrecording changes in thevaluation, including anyassociated gains or losses? (M)

Depreciation, amortization, ordepletion of capitalized assets

10. Does the property managementsystem capture the estimateduseful life, depreciation/amortization/depletion method,and salvage/residual value foreach asset or group of assets,when applicable? (M)

11. Does the property managementsystem calculate depreciation/amortization/depletion based ona management-prescribedmethod (e.g., straight line,physical usage) and the netbook value of capitalizedassets? (M)

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12. Does the property managementsystem accumulateamortization, depletion, anddepreciation expense? (M)

13. Does the property managementsystem provide an audit trail foramortization, depletion, anddepreciation expense? (M)

14. Does the property managementsystem allow authorized userssystem access to change theestimated useful life of an asset,the depreciation method, andestimated salvage value and tomake adjustments to PP&Easset and contra-asset accountson an exception basis? (M)

Transfer, disposal, orretirement of assets

15. Does the property managementsystem identify excess propertyor property held for disposal/retirement? (M)

16. Does the property managementsystem transfer property recorddata to the property disposalorganization or receivingentity?5 (M)

17. Does the property managementsystem capture date of transfer,transferring entity, and recipientorganization (disposalorganization or recipiententity)? (M)

5The property management system should be capable of interfacing with other financial and/ormixed systems. However, interface requirements and systems architecture necessary to meetmanagement and reporting requirements are determined by each agency. The “InterfaceRequirements” section of the JFMIP source document contains more information.

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18. Does the property managementsystem capture all essentialinformation related to excessproperty and disposal asrequired by FederalManagement Regulation (FMR)102-36 for applicable agencies?(M)

19. Does the property managementsystem capture type of disposalaction (e.g., retirement,exchange, sale, donation), finaldisposition, and date ofdisposal? (M)

20. Does the property managementsystem capture propertyretirement or disposal status?(M)

21. Does the property managementsystem capture deletions? (M)

22. Does the property managementsystem calculate gain or loss attime of disposal or retirement,sale, exchange, or donation?(M)

23. Does the property managementsystem transfer the asset’sacquisition cost, accumulateddepreciation/amortization, andthe amount of gain or loss to thecore financial system at the timeof asset transfer, disposal, orretirement? (M)

24. Does the property managementsystem maintain an audit trail oftransfer, disposal, andretirement actions? (M)

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Deferred maintenanceand condition

25. Does the property managementsystem capture management’sestimate of deferredmaintenance? This may beaccomplished through a processor system other than theproperty system. (M)

26. Does the property managementsystem capture management’sassessment of propertycondition? This may beaccomplished through a processor system other than theproperty system. (M)

27. Does the property managementsystem capture the fact that anenvironmental or hazardoussubstance is located on orcontained within a propertyitem, in accordance with 41 CFR101-42.202? (M)

Clean-up costs

28. Does the property managementsystem capture the totalestimated clean-up cost whenthe item is placed in service ifthe PP&E meets the criteriaestablished in paragraph 88 ofStatement of Federal FinancialAccounting Standards (SFFAS)No. 6, Accounting for Property,Plant, and Equipment? Thismay be accomplished through aprocess or system other thanthe property system. (M)

29. Does the property managementsystem capture environmentalliabilities associated with PP&E

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when an event has occurred andthe liability is probable andestimable? (See FederalAccounting Standards AdvisoryBoard’s (FASAB) TechnicalRelease 2, EnvironmentalLiabilities Guidance (March1998)). This may beaccomplished through a processor system other than theproperty system. (M)

30. Does the property managementsystem, for general PP&E,calculate the annualamortization of estimatedmaterial, clean-up costs, and theunamortized balance? (M)

Property accountability

31. Does the property managementsystem capture propertyidentification number, whichmay be the item’s serialnumber? (M)

32. Does the property managementsystem capture location? (M)

33. Does the property managementsystem capture an item’scurrent ownership status (e.g.,owned by the government,leased to the government undera capital lease, leased to thegovernment under an operatinglease, loaned to thegovernment)? (M)

34. Does the property managementsystem capture the current user(e.g., the agency, contractor,grantee)? (M)

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35. Does the property managementsystem capture an item’scurrent use status whether inuse, in storage, in transit, etc.?(M)

36. Does the property managementsystem capture the identity ofthe property custodian and/orthe accountable organization?(M)

37. Does the property managementsystem capture in-transitinformation toestablish/maintainaccountability and control overgovernment property (e.g.,name and address of theshipper/vendor, estimated dateof delivery, shipping address,item identification, sourceinformation)? (M)

Property recordmaintenance

38. Does the property managementsystem provide the capability ofelectronically transferringproperty records betweeninterfacing systems for thegaining and losing propertycustodians within the agency?(V)

39. Does the property managementsystem provide analytic toolsfor supporting analysis andevaluation of annualmaintenance status, needs, andcosts for effective programplanning and budgeting? (V)

40. Does the property managementsystem capture property

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maintenance, upgrade, andoverhaul schedules? (V)

41. Does the property managementsystem capture actualmaintenance, upgrade, andoverhaul data? (V)

42. Does the property managementsystem capture space utilizationinformation? (V)

43. Does the property managementsystem support the use ofbarcode scanners? (V)

44. Does the property managementsystem record the stratificationof critical and noncriticalmaintenance? (V)

45. Does the property managementsystem record detailedinformation regarding knownflood hazard or flooding of realproperty? (V)

Acquisition of property;changes in asset value

46. Does the property managementsystem calculate and allocateinterest expense for leasepayments and apply the balanceto reduce capital lease liability?(V)

47. Does the property managementsystem identify the type of costrecorded (e.g., acquisition cost,estimated fair market value,revaluation, present value)?(V)

48. Does the property managementsystem capture the acquisition

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cost of individual items acquiredthrough bulk purchase, whenrequired by agency policy? (V)

49. Does the property managementsystem capture the cost ofcapitalizable improvementsseparate from the original cost,the estimated change in theasset’s life as a result of theimprovement, and the date ofimprovement? (V)

Depreciation, amortization,or depletion ofcapitalized assets

50. Does the property managementsystem calculate depreciationon asset pools? (V)

51. Does the property managementsystem separately calculatedepreciation on capitalimprovements? (V)

Deferred maintenanceand condition

52. Does the property managementsystem provide the capability offorecasting or schedulingmaintenance requirements forfuture periods? (V)

Transfer, disposal, orretirement of assets

53. Does the property managementsystem capture estimated costto demolish property orotherwise dispose of property?(V)

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Interface requirementsYes/no

na ExplanationNote: There are no checklistquestions drawn from this sectionof the JFMIP source document (pp.20–21). (See footnotes 4 and 5.)

(193021)

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Related Products______________________________________________________________________________

Page 26 GAO-02-171G – Property Management Systems Requirements Checklist (12/01)

These related products address three main categories: internal control, financialmanagement systems, and financial reporting (accounting standards). We have developedthese guidelines and tools to assist agencies in improving or maintaining effectiveoperations and financial management.

Internal Control

Standards for Internal Control Streamlining the Payment Processin the Federal Government, While Maintaining Effective InternalGAO/AIMD-00-21.3.1, November 1999. Control, GAO/AIMD-00-21.3.2,

May 2000.

Determining Performance and Internal Control Management andAccountability Challenges and High Evaluation Tool, GAO-01-1008G,Risks, GAO-01-159SP, November 2000. August 2001.

Financial Management Systems

Framework for Federal Financial Inventory System Checklist,Management System Checklist, GAO/AIMD-98-21.2.4, May 1998.GAO/AIMD-98-21.2.1, May 1998.

System Requirements for Managerial Core Financial System RequirementsCost Accounting Checklist, Checklist, GAO/AIMD-00-21.2.2,GAO/AIMD-99-21.2.9, January 1999. February 2000.

Human Resources and Payroll Direct Loan System RequirementsSystems Requirements Checklist, Checklist, GAO/AIMD-00-21.2.6,GAO/AIMD-00-21.2.3, March 2000. April 2000.

Travel System Requirements Seized Property and Forfeited AssetsChecklist, GAO/AIMD-00-21.2.8, Requirements Checklist,May 2000. GAO-01-99G, October 2000.

Guaranteed Loan System Grant Financial SystemRequirements Checklist, Requirements Checklist,GAO-01-371G, March 2001. GAO-01-911G, September 2001.

Financial Reporting (Accounting Standards)

“Checklist for Reports Prepared Under the CFO Act,” (Section 1004 of theGPO/PCIE Financial Audit Manual, July 2001). This is a checklist containingagency financial statement reporting requirements.

These documents are available on the Internet on GAO’s Home Page(http://www.gao.gov) under the heading “Other Publications” and the subheading“Accounting and Financial Management.” They can also be obtained from GAO, 700 4thStreet NW, Room 1100, Washington, DC 20548, or by calling (202) 512-6000 or TDD (202)512-2537.

http://www.gao.gov/

PREFACEDecember 2001The Federal Financial Management Improvement Act (FFMIA) of 1996 requi\res, among other things, that agencies implement and maintain financial \management systems that substantially comply with federal financial mana\gement system requirements. These requirCONTENTSFigureAbbreviationsAuthoritative GuidanceHow to Use This ChecklistYes/no