Property Management Systems Requirements: Checklist for Reviewing
Systems Under the Federal Financial Management Improvement Act
(01-DEC-01, GAO-02-171G).
The Joint Financial Management Improvement Program's Property
Management Systems Requirements assist (1) agencies in
implementing and monitoring their property management systems and
(2) managers and auditors in reviewing agency property management
systems to determine if they substantially comply with the
Federal Financial Management Improvement Act. This checklist is
provided as a tool for use by experienced staff and is one in a
series of documents issued by GAO to assist agencies in improving
or maintaining effective operations.
-------------------------Indexing Terms-------------------------
REPORTNUM: GAO-02-171G
ACCNO: A02593
TITLE: Property Management Systems Requirements: Checklist for
Reviewing Systems Under the Federal Financial Management
Improvement Act
DATE: 12/01/2001
SUBJECT: Auditing procedures
Auditing standards
Financial management
Reporting requirements
JFMIP
Joint Financial Management Improvement
Program
******************************************************************
** This file contains an ASCII representation of the text of a **
** GAO Testimony. **
** **
** No attempt has been made to display graphic images, although **
** figure captions are reproduced. Tables are included, but **
** may not resemble those in the printed version. **
** **
** Please see the PDF (Portable Document Format) file, when **
** available, for a complete electronic file of the printed **
** document's contents. **
** **
******************************************************************
GAO-02-171G
PROPERTY MANAGEMENT SYSTEMS REQUIREMENTS
Checklist for Reviewing Systems Under the Federal Financial Management
Improvement Act
United States General Accounting Office December 2001
GAO
GAO- 02- 171G
GAO- 02- 171G - Property Management Systems Requirements Checklist (12/ 01)
______________________________________________________________________________
PREFACE
______________________________________________________________________________
December 2001 The Federal Financial Management Improvement Act (FFMIA) of
1996 requires, among other things, that agencies implement and maintain
financial management systems that substantially comply with federal
financial management system requirements. These requirements are detailed in
the Federal Financial Management System Requirements series issued by the
Joint Financial Management Improvement Program (JFMIP), in Office of
Management and Budget (OMB) Circular A- 127, Financial Management Systems,
and in OMB?s Revised Implementation Guidance for the Federal Financial
Management Improvement Act (FFMIA) of 1996, issued January 4, 2001. JFMIP
intends for the requirements to promote understanding of key financial
management systems concepts and requirements, to provide a framework for
establishing integrated financial management systems to support program and
financial managers, and to describe specific requirements of financial
management systems.
We are issuing this checklist, which reflects JFMIP?s Property Management
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 their property management systems
to determine if they substantially comply with FFMIA. This checklist is not
required to be used in assessing property management systems. Rather, it is
provided as a tool for use by experienced staff and is one in a series of
documents we have issued to assist agencies in improving or maintaining
effective operations. (See the last page of this document for a list of
related products.) This checklist, the JFMIP source document, and the two
previously mentioned OMB documents should be used concurrently. Those using
this tool must apply experienced judgment in its interpretation and
application. They must consider the impact of the completed 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
Accounting Office, 700 4th Street NW, Room 1100, Washington, DC 20548, or by
calling (202) 5126000, or TDD (202) 512- 2537. This checklist replaces GAO?s
previously issued exposure draft of the Property Management Systems
Requirements Checklist (GAO- 01- 554G, June 2001) 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 be downloaded from the JFMIP website at http:// www. jfmip. gov under
?JFMIP Documents? and the subheading ?System Requirements.?
Jeffrey C. Steinhoff Managing Director Financial Management and Assurance
Page 2 GAO- 02- 171G - Property Management Systems Requirements Checklist
(12/ 01) (BLANK)
Page 3 GAO- 02- 171G - Property Management Systems Requirements Checklist
(12/ 01)
______________________________________________________________________________
CONTENTS
______________________________________________________________________________
Overview 5
Authoritative Guidance 6 How to Use This Checklist 7
Property Management Systems Requirements 8 General Requirements 9 Acquiring/
Receiving Property 13 Managing and Accounting for Property 16 Interface
Requirements 25
Related Products 26
Figure
Figure 1: Agency Systems Architecture 5
Abbreviations
CFO chief financial officer CFR Code of Federal Regulations FASAB Federal
Accounting Standards Advisory Board FFMIA Federal Financial Management
Improvement Act FMR Federal Management Regulation FPMR Federal Property
Management Regulation GSA General Services Administration JFMIP Joint
Financial Management Improvement Program OMB Office of Management and Budget
OPM Office of Personnel Management PP& E property, plant, and equipment
SFFAS Statement of Federal Financial Accounting Standards
Page 4 GAO- 02- 171G - Property Management Systems Requirements Checklist
(12/ 01) (BLANK)
Page 5 GAO- 02- 171G - Property Management Systems Requirements Checklist
(12/ 01)
______________________________________________________________________________
OVERVIEW
______________________________________________________________________________
The Federal Financial Management Improvement Act (FFMIA) of 1996 requires,
among other things, that agencies implement and maintain financial
management systems that substantially comply with federal financial
management system requirements. These requirements are detailed in the
Federal Financial Management System Requirements series issued by the Joint
Financial Management Improvement Program (JFMIP) 1 and Office of Management
and Budget (OMB) Circular A- 127, Financial Management Systems. The JFMIP
requirements document describes the federal financial system architecture as
consisting of (1) core financial systems, (2) other financial and mixed
systems (including the property management systems), not all of which are
applicable to all agencies, (3) shared systems, and (4) departmental
executive information systems (systems to provide management information to
all levels of management). 2 Figure 1 is the JFMIP model that illustrates
how these systems interrelate in an agency?s overall systems architecture.
Figure 1: Agency Systems Architecture Source: JFMIP Property Management
Systems Requirements (October 2000). 1 JFMIP is a joint undertaking of OMB,
the General Accounting Office, the Department of the Treasury, and the
Office of Personnel Management (OPM), working in cooperation with each other
and with operating agencies to improve financial management practices
throughout the government. The program was initiated in 1948 by the
Secretary of the Treasury, the Director of the Bureau of the Budget (now
OMB), and the Comptroller General and was given statutory authorization in
the Budget and Accounting Procedures Act of 1950. The Civil Service
Commission, now the Office of Personnel Management, joined JFMIP in 1966. 2
JFMIP has also issued the Framework for Federal Financial Management Systems
(FFMSR- 0,
January 1995), which defines the framework for establishing and maintaining
financial management systems to support management and deliver programs of
the federal government. GAO published a companion checklist, Framework for
Federal Financial Management System Checklist (GAO/ AIMD- 98- 21.2.1, May
1998).
Page 6 GAO- 02- 171G - Property Management Systems Requirements Checklist
(12/ 01) 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
Property Management 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 to determine 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 JFMIP source
document; OMB Circular A- 127, Financial Management Systems; and OMB?s
Revised Implementation Guidance for the Federal Financial Management
Improvement Act (FFMIA) of 1996, issued January 4, 2001, should be used
concurrently. Staff members who use this tool must apply experienced
judgment in its interpretation and application. They must consider the
impact of the completed checklist on the entire property management system
and whether the system, as a whole, substantially complies with
requirements.
Authoritative Guidance
The basis for assessing compliance with the FFMIA requirements is provided
by OMB Circular A- 127 and OMB?s implementation guidance, which agencies use
in order to implement and maintain financial management systems that comply
substantially with federal requirements. The implementation guidance
identifies various criteria that an agency must meet to substantially comply
with these requirements. One of the criterion listed in the OMB guidance is
the JFMIP system requirements series.
The source of all the questions in this checklist is the JFMIP Property
Management Systems Requirements (JFMIP- SR- 00- 04, October 2000), which
addresses requirements for property management systems. The JFMIP document
acknowledges that property management system functionality does not
necessarily reside in a single software application or functional system. In
fact, property information may reside in or may be calculated in a number of
applications or systems. The property management systems described 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 that the checklist is based on the existing published JFMIP standards
and that changes in laws, regulations, and standards and practices since the
JFMIP standards were issued are not 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 must do. They consist of the minimum acceptable
functionality necessary to establish a system and are based on federal laws,
regulations, directives, or judicial decisions. Mandatory requirements are
those against which agency heads evaluate their systems to determine
substantial compliance with system requirements under FFMIA. These
requirements apply to existing systems in operation and new systems planned
or under development.
3 Thus far, the series includes the (1) Core Financial System Requirements,
(2) Inventory System Requirements, (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
System Requirements, and (10) Property Management Systems Requirements.
Page 7 GAO- 02- 171G - Property Management Systems Requirements Checklist
(12/ 01) The checklist uses ?( M)? immediately following the question to
indicate a mandatory
system requirement. The value- added requirements describe optional features
and may consist of any combination of the following: (1) using state- of-
the- art technology, (2) employing the preferred or best business practices,
or (3) meeting the special management needs of an individual agency.
Agencies should consider value- added features when judging systems options.
The need for these value- added features in agency systems is left to the
discretion of each agency head. The checklist uses ?( V)? immediately
following the question 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)
and inspectors general with a means for determining whether their agencies?
financial management systems substantially comply with federal financial
management system requirements. The annual reporting required by 31 U. S. C.
3512( d) is one means of assisting agencies in the determination of
substantial compliance. Agencies can also use this checklist as a tool to
help determine compliance with federal financial management system
requirements.
Completing this checklist will allow agencies to systematically determine
whether specific systems requirements are being met. In determining
substantial compliance, agencies should assess the results of the completed
checklist based on the property management system requirements taken as a
whole.
The checklist contains three columns with the first citing the question. Use
the second column to answer each question ?yes,? ?no,? or ?na.? Use the
third column to explain your answer. A ?yes? answer should indicate that the
agency?s property management systems provide for the capability described in
the question. For each ?yes? answer, the third column should contain a brief
description of how the property management systems satisfy that capability
and should also refer to a source that explains or shows the capability.
A ?no? answer indicates that the capability does not exist. For a ?no?
answer, the third column should provide an explanation and, where
applicable, a reference to any related supporting documentation (e. g., the
agency is working on modifying or implementing its property management
systems to have the capability available in subsequent years; management
believes the capability is not cost effective and will not enhance the
property management systems? ability to manage operations). Cost- benefit
studies or support for a ?no? answer should be identified in the explanation
column. If there are no cost- 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
management systems and the extent to which the ?no? answers inhibit the
entire property management systems from achieving compliance.
Certain questions within the checklist may not be applicable to the agency.
Answer such nonapplicable questions with ?na? and provide an appropriate
explanation in the third column.
Page 8 GAO- 02- 171G - Property Management Systems Requirements Checklist
(12/ 01)
______________________________________________________________________________
PROPERTY MANAGEMENT SYSTEMS REQUIREMENTS
______________________________________________________________________________
The property management systems requirements document defines mandatory and
valueadded functional requirements for the three sections described below,
which are (1) general requirements, (2) acquiring/ receiving property, and
(3) managing and accounting for property. Additionally, an interface
requirements chapter provides information on input and output interfaces
with the property management system. (There are no checklist questions drawn
from pages 20- 21 of the JFMIP source document.)
1. General requirements identify mandatory and value- added system
functionalities that are common for all property management functions. In
addition, there are functional requirements that apply to specific
categories of property. (The checklist questions for this area are drawn
from pages 12- 13 of the JFMIP source document.)
2. Acquiring/ receiving property addresses initial physical control when
property is delivered or real property is placed in service. Property is
recognized as accounted for when title passes to the entity obtaining the
property or when goods are delivered. Property may be purchased, leased,
loaned, granted, transferred, constructed, or donated. The property
management system may obtain information from the acquisition system when
property is ordered. The property management system records receipt of
property and the results of an initial physical inspection regarding the
condition of property, whether from vendor, donated, transferred, or gained
through discovery. (The checklist questions for this area are drawn from
pages 14- 15 of the JFMIP source document.)
3. Managing and accounting for property. The managing property function
captures and provides data to assist property managers and officials in
managing property. The accounting- for- property function pertains to
recording the acquisition cost of the 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 JFMIP source document.)
The checklist questions follow the JFMIP source document. It should be noted
that not all questions will apply in all situations and, as with the use of
any checklist, professional judgment should be exercised. Using the JFMIP
source document and its ?Appendix C: Glossary,? which defines terms used,
along with OMB Circular A- 127, Financial Management Systems, and OMB?s
Revised Implementation Guidance for the Federal Financial Management
Improvement Act (FFMIA) of 1996, issued January 4, 2001, will help ensure
that the user is cognizant of the background information necessary to fully
understand the questions.
______________________________________________________________________________
Property Management Systems Requirements
______________________________________________________________________________
Page 9 GAO- 02- 171G - Property Management Systems Requirements Checklist
(12/ 01)
General requirements Yes/ no na Explanation
1. Does the property management system record- for all property management
functions- beginning balances, acquisitions, and withdrawals, and does it
calculate ending balances expressed in values and physical units, except for
heritage assets and stewardship land, for which all end- of- period balances
are expressed in physical units only? (M)
2. Does the property management system capture, for all property management
functions, the condition of the asset for heritage assets; stewardship land;
national defense property, plant and equipment (PP& E); and general PP& E
for which a condition assessment survey was performed? (M)
3. Does the property management system provide edits (controls), for all
property management functions, to prevent duplication and reduce the
likelihood of creating erroneous property documents/ records to ensure the
integrity of data recorded in the system? (M)
4. Does the property management system permit, for all property management
functions, only authorized users to enter, modify, or otherwise alter
property records? (M)
5. Does the property management system provide, for all property management
functions, an audit trail for entries to a property record, including the
______________________________________________________________________________
Property Management Systems Requirements
______________________________________________________________________________
Page 10 GAO- 02- 171G - Property Management Systems Requirements Checklist
(12/ 01)
General requirements Yes/ no na Explanation
identification of the individual( s) entering or approving the information
and/ or data? (M)
6. Does the property management system identify, for all property management
functions, the type of transaction affecting the property item, e. g.,
initial acquisition, change in location, and disposal? (M)
7. Does the property management system incorporate, for all property
management functions, adequate security features that prevent unauthorized
access to the property system by unauthorized individuals? (M)
8. Does the property management system enable, for all property management
functions, the transfer of responsibility for property from one authorized
manager to another authorized manager? (M)
9. Does the property management system capture, for all property management
functions, real property information for the General Services
Administration?s (GSA) Worldwide Inventory system as directed in Federal
Property Management Regulation (FPMR) 102- 84 (property management only)?
(M)
10. Does the property management system produce, for all property management
functions, reports
______________________________________________________________________________
Property Management Systems Requirements
______________________________________________________________________________
Page 11 GAO- 02- 171G - Property Management Systems Requirements Checklist
(12/ 01)
General requirements Yes/ no na Explanation
in accordance with user- defined criteria? (M)
11. Does the property management system capture, for all property management
functions, the fact that an environmental or hazardous substance is located
on or contained within a property item, in accordance with 41 Code of
Federal Regulations (CFR) 101- 42.202?
(M)
12. Does the property management system distinguish, for all property
management functions, between capitalized property and expensed property
tracked in the property management system? (M)
13. Does the property management system capture and prioritize the estimated
cost of repairs?
(V)
14. Does the property management system accumulate data from multiple
appropriations? (V)
15. Does the property management system provide an on- line search
capability based on userdefined parameters? (V)
16. Does the property management system provide the capability of
interfacing on- line or through the Internet with other property management
systems external to the agency to facilitate identification, location, or
transfer of federal property governmentwide? (V)
______________________________________________________________________________
Property Management Systems Requirements
______________________________________________________________________________
Page 12 GAO- 02- 171G - Property Management Systems Requirements Checklist
(12/ 01)
General requirements Yes/ no na Explanation
Specific categories - Information technology
17. Because information technology assets are personal property, the
property management system may already capture the data required to account
for these assets. However, does the property management system also capture
(1) information essential to ensuring that software and software licenses
are controlled and (2) information driven by contractual licenses and
agreements with software developers, vendors, or software licensers? (V)
Specific categories - Government property in the custody of others
Note: There are no checklist questions drawn from this section of the JFMIP
source document (p. 13).
Specific categories - National defense PP& E
Note: There are no checklist questions drawn from this section of the JFMIP
source document (p. 13).
______________________________________________________________________________
Property Management Systems Requirements
______________________________________________________________________________
Page 13 GAO- 02- 171G - Property Management Systems Requirements Checklist
(12/ 01)
Acquiring/ receiving property Yes/ no na Explanation
1. Does the property management system create a skeletal property record or
have any other mechanism for capturing information on property intransit
from the providing entity (e. g., vendor, donator, loaner, grantor)? The
skeletal property record or other mechanism is required only for property
for which the government has taken title. For example, the skeletal property
record or other mechanism may identify the following on newly acquired
property:
name and address of the shipper/ vendor;
estimated date of delivery;
shipping address (? ship to? address);
item identification (e. g., nomenclature, quantity, description, year of
manufacture, make/ model/ serial number, federal stock classification or
national stock number);
requisition information (e. g., contract/ purchase order or other
requisition document number, name and address of requisitioning
organization); and
order date. (M)
2. Does the property management system complete the skeletal property record
or create a property record for items with no skeletal property record, upon
the agency?s assuming possession of the item, placing the real property
asset in
______________________________________________________________________________
Property Management Systems Requirements
______________________________________________________________________________
Page 14 GAO- 02- 171G - Property Management Systems Requirements Checklist
(12/ 01)
Acquiring/ receiving property Yes/ no na Explanation
service, or initiation of a real estate instrument/ grant? (M)
3. Does the property management system capture the method of acquiring each
property item or bulk property items (e. g., direct purchase, completed
work- inprocess, capital lease, donation, nonreciprocal transfer, or
reciprocal transfer) and the date of acquisition? (M)
4. Does the property management system capture quantity, date of physical
receipt or date real property is available for use or placed into service,
and condition of item received when a condition assessment was made? (M)
5. Does the property management system forward physical receipt information,
including quantity and date of physical receipt, to the acquisition system
and the core financial system? 4 (M)
6. Does the property management system interface electronically with GSA?s
Worldwide Inventory? (V)
7. Does the property management system provide information on the status of
upgrades and overhauls to property? (V)
8. Does the property management system aggregate relatively homogenous
assets into asset
4 The property management system should be capable of interfacing with other
financial and/ or mixed systems. However, interface requirements and systems
architecture necessary to meet management and reporting requirements are
determined by each agency. The ?Interface
Requirements? section of the JFMIP source document contains more
information.
______________________________________________________________________________
Property Management Systems Requirements
______________________________________________________________________________
Page 15 GAO- 02- 171G - Property Management Systems Requirements Checklist
(12/ 01)
Acquiring/ receiving property Yes/ no na Explanation
pools? All assets in the asset pools have the same estimated useful life,
and the acquisition cost of each item in the asset pool would be the average
cost of all items in the pool. However, each item in the asset pool must
have a separate property record and a separate agency- unique identification
number. (V)
9. Does the property management system capture warranty/ guarantee
information, including terms and period of coverage? (V)
______________________________________________________________________________
Property Management Systems Requirements
______________________________________________________________________________
Page 16 GAO- 02- 171G - Property Management Systems Requirements Checklist
(12/ 01)
Managing and accounting for property Yes/ no
na Explanation Acquisition of property; Changes in asset values
1. Does the property management system, for capitalized property and
stewardship assets, classify PP& E by asset type (e. g., general, heritage,
stewardship land, national defense)? (M)
2. Does the property management system, for capitalized property and
stewardship assets, distinguish between heritage assets and multi- use
heritage assets? (M)
3. Does the property management system, for capitalized property and
stewardship assets, capture changes in quantities, including unit of
measure, where applicable, for beginning balance adjustments, additions, and
deletions and does it compute ending balances by asset category? (M)
4. Does the property management system, for capitalized property and
stewardship assets, provide an audit trail for all adjustments to quantities
and units? (M)
5. Does the property management system, for capitalized property and
stewardship assets, capture the acquisition cost of an asset and any changes
in the valuation, where applicable for reporting purposes? (M)
6. Does the property management system, for capitalized property
______________________________________________________________________________
Property Management Systems Requirements
______________________________________________________________________________
Page 17 GAO- 02- 171G - Property Management Systems Requirements Checklist
(12/ 01)
Managing and accounting for property Yes/ no
na Explanation
only, capture the estimated value of donated assets? (M)
7. Does the property management system, for capitalized property only,
provide an audit trail for all adjustments to property values? (M)
8. Does the property management system, for capitalized property only,
classify PP& E according to the Standard General Ledger
accounts (e. g., buildings, land, equipment, assets under capital lease,
software)? (M)
9. Does the property management system, for capitalized property only,
generate data for the journal entries necessary for recording changes in the
valuation, including any associated gains or losses? (M)
Depreciation, amortization, or depletion of capitalized assets
10. Does the property management system capture the estimated useful life,
depreciation/ amortization/ depletion method, and salvage/ residual value
for each asset or group of assets, when applicable? (M)
11. Does the property management system calculate depreciation/
amortization/ depletion based on a management- prescribed method (e. g.,
straight line, physical usage) and the net book value of capitalized assets?
(M)
______________________________________________________________________________
Property Management Systems Requirements
______________________________________________________________________________
Page 18 GAO- 02- 171G - Property Management Systems Requirements Checklist
(12/ 01)
Managing and accounting for property Yes/ no
na Explanation
12. Does the property management system accumulate amortization, depletion,
and depreciation expense? (M)
13. Does the property management system provide an audit trail for
amortization, depletion, and depreciation expense? (M)
14. Does the property management system allow authorized users system access
to change the estimated useful life of an asset, the depreciation method,
and estimated salvage value and to make adjustments to PP& E asset and
contra- asset accounts on an exception basis? (M)
Transfer, disposal, or retirement of assets
15. Does the property management system identify excess property or property
held for disposal/ retirement? (M)
16. Does the property management system transfer property record data to the
property disposal organization or receiving entity? 5 (M)
17. Does the property management system capture date of transfer,
transferring entity, and recipient organization (disposal organization or
recipient entity)? (M)
5 The property management system should be capable of interfacing with other
financial and/ or mixed systems. However, interface requirements and systems
architecture necessary to meet management and reporting requirements are
determined by each agency. The ?Interface
Requirements? section of the JFMIP source document contains more
information.
______________________________________________________________________________
Property Management Systems Requirements
______________________________________________________________________________
Page 19 GAO- 02- 171G - Property Management Systems Requirements Checklist
(12/ 01)
Managing and accounting for property Yes/ no
na Explanation
18. Does the property management system capture all essential information
related to excess property and disposal as required by Federal Management
Regulation (FMR) 102- 36 for applicable agencies?
(M)
19. Does the property management system capture type of disposal action (e.
g., retirement, exchange, sale, donation), final disposition, and date of
disposal? (M)
20. Does the property management system capture property retirement or
disposal status?
(M)
21. Does the property management system capture deletions? (M)
22. Does the property management system calculate gain or loss at time of
disposal or retirement, sale, exchange, or donation?
(M)
23. Does the property management system transfer the asset?s acquisition
cost, accumulated depreciation/ amortization, and the amount of gain or loss
to the core financial system at the time of asset transfer, disposal, or
retirement? (M)
24. Does the property management system maintain an audit trail of transfer,
disposal, and retirement actions? (M)
______________________________________________________________________________
Property Management Systems Requirements
______________________________________________________________________________
Page 20 GAO- 02- 171G - Property Management Systems Requirements Checklist
(12/ 01)
Managing and accounting for property Yes/ no
na Explanation Deferred maintenance and condition
25. Does the property management system capture management?s estimate of
deferred maintenance? This may be accomplished through a process or system
other than the property system. (M)
26. Does the property management system capture management?s assessment of
property condition? This may be accomplished through a process or system
other than the property system. (M)
27. Does the property management system capture the fact that an
environmental or hazardous substance is located on or contained within a
property item, in accordance with 41 CFR 101- 42.202? (M)
Clean- up costs
28. Does the property management system capture the total estimated clean-
up cost when the item is placed in service if the PP& E meets the criteria
established in paragraph 88 of Statement of Federal Financial Accounting
Standards (SFFAS) No. 6, Accounting for Property, Plant, and Equipment? This
may be accomplished through a process or system other than the property
system. (M)
29. Does the property management system capture environmental liabilities
associated with PP& E
______________________________________________________________________________
Property Management Systems Requirements
______________________________________________________________________________
Page 21 GAO- 02- 171G - Property Management Systems Requirements Checklist
(12/ 01)
Managing and accounting for property Yes/ no
na Explanation
when an event has occurred and the liability is probable and estimable? (See
Federal Accounting Standards Advisory Board?s (FASAB) Technical Release 2,
Environmental Liabilities Guidance (March 1998)). This may be accomplished
through a process or system other than the property system. (M)
30. Does the property management system, for general PP& E, calculate the
annual amortization of estimated material, clean- up costs, and the
unamortized balance? (M)
Property accountability
31. Does the property management system capture property identification
number, which may be the item?s serial number? (M)
32. Does the property management system capture location? (M)
33. Does the property management system capture an item?s current ownership
status (e. g., owned by the government, leased to the government under a
capital lease, leased to the government under an operating lease, loaned to
the government)? (M)
34. Does the property management system capture the current user (e. g., the
agency, contractor, grantee)? (M)
______________________________________________________________________________
Property Management Systems Requirements
______________________________________________________________________________
Page 22 GAO- 02- 171G - Property Management Systems Requirements Checklist
(12/ 01)
Managing and accounting for property Yes/ no
na Explanation
35. Does the property management system capture an item?s current use status
whether in use, in storage, in transit, etc.?
(M)
36. Does the property management system capture the identity of the property
custodian and/ or the accountable organization?
(M)
37. Does the property management system capture in- transit information to
establish/ maintain accountability and control over government property (e.
g., name and address of the shipper/ vendor, estimated date of delivery,
shipping address, item identification, source information)? (M)
Property record maintenance
38. Does the property management system provide the capability of
electronically transferring property records between interfacing systems for
the gaining and losing property custodians within the agency?
(V)
39. Does the property management system provide analytic tools for
supporting analysis and evaluation of annual maintenance status, needs, and
costs for effective program planning and budgeting? (V)
40. Does the property management system capture property
______________________________________________________________________________
Property Management Systems Requirements
______________________________________________________________________________
Page 23 GAO- 02- 171G - Property Management Systems Requirements Checklist
(12/ 01)
Managing and accounting for property Yes/ no
na Explanation
maintenance, upgrade, and overhaul schedules? (V)
41. Does the property management system capture actual maintenance, upgrade,
and overhaul data? (V)
42. Does the property management system capture space utilization
information? (V)
43. Does the property management system support the use of barcode scanners?
(V)
44. Does the property management system record the stratification of
critical and noncritical maintenance? (V)
45. Does the property management system record detailed information
regarding known flood hazard or flooding of real property? (V)
Acquisition of property; changes in asset value
46. Does the property management system calculate and allocate interest
expense for lease payments and apply the balance to reduce capital lease
liability?
(V)
47. Does the property management system identify the type of cost recorded
(e. g., acquisition cost, estimated fair market value, revaluation, present
value)?
(V)
48. Does the property management system capture the acquisition
______________________________________________________________________________
Property Management Systems Requirements
______________________________________________________________________________
Page 24 GAO- 02- 171G - Property Management Systems Requirements Checklist
(12/ 01)
Managing and accounting for property Yes/ no
na Explanation
cost of individual items acquired through bulk purchase, when required by
agency policy? (V)
49. Does the property management system capture the cost of capitalizable
improvements separate from the original cost, the estimated change in the
asset?s life as a result of the improvement, and the date of improvement?
(V)
Depreciation, amortization, or depletion of capitalized assets
50. Does the property management system calculate depreciation on asset
pools? (V)
51. Does the property management system separately calculate depreciation on
capital improvements? (V)
Deferred maintenance and condition
52. Does the property management system provide the capability of
forecasting or scheduling maintenance requirements for future periods? (V)
Transfer, disposal, or retirement of assets
53. Does the property management system capture estimated cost to demolish
property or otherwise dispose of property?
(V)
______________________________________________________________________________
Property Management Systems Requirements
______________________________________________________________________________
Page 25 GAO- 02- 171G - Property Management Systems Requirements Checklist
(12/ 01)
Interface requirements Yes/ no na Explanation
Note: There are no checklist questions drawn from this section of the JFMIP
source document (pp. 20- 21). (See footnotes 4 and 5.)
(193021)
______________________________________________________________________________
Related Products
______________________________________________________________________________
Page 26 GAO- 02- 171G - Property Management Systems Requirements Checklist
(12/ 01) These related products address three main categories: internal
control, financial
management systems, and financial reporting (accounting standards). We have
developed these guidelines and tools to assist agencies in improving or
maintaining effective operations and financial management.
Internal Control
Standards for Internal Control Streamlining the Payment Process in the
Federal Government, While Maintaining Effective Internal
GAO/ AIMD- 00- 21. 3.1, November 1999. Control, GAO/ AIMD- 00- 21.3.2, May
2000.
Determining Performance and Internal Control Management and Accountability
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 Requirements Cost
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 Requirements Systems
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 Assets Checklist,
GAO/ AIMD- 00- 21.2.8, Requirements Checklist,
May 2000. GAO- 01- 99G, October 2000.
Guaranteed Loan System Grant Financial System Requirements 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 the
GPO/ PCIE Financial Audit Manual, July 2001). This is a checklist containing
agency 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 4th Street NW, Room 1100, Washington, DC 20548, or by calling (202) 512-
6000 or TDD (202) 512- 2537.
*** End of document. ***