Volume V, Chapter 9 - General Property, Plant, and Equipment
Financial Policy
Volume V Assets
Chapter 9
General Property, Plant, and Equipment
Questions concerning this policy chapter should be directed to:
VHA VBA NCA CFM All Others
VHA Financial Policy (Outlook) VAVBAWAS/CO/FINREP (Outlook) NCA Financial Policy Group (Outlook) VACO003CWEB (Outlook) OFP Accounting Policy (Outlook)
Department of Veterans Affairs General Property, Plant, and Equipment
April 2023 Volume V ? Chapter 9
0901 Overview .............................................................................................................. 3 0902 Revisions ............................................................................................................. 3 0903 Definitions............................................................................................................ 5 0904 Roles and Responsibilities............................................................................... 10 0905 Policies .............................................................................................................. 11
090501 General Policies ...................................................................................... 11 090502 Recognition of PP&E .............................................................................. 12 090503 Capitalization........................................................................................... 13 090504 Construction Work In Process............................................................... 14 090505 Depreciation/Amortization Expense...................................................... 15 090506 Other PP&E Expense .............................................................................. 17 090507 Disposition of PP&E ............................................................................... 17 090508 Proceeds of Sale of PP&E ...................................................................... 19 090509 Deferred Maintenance and Repairs ....................................................... 19 090510 Impairment .............................................................................................. 20 090511 Land ......................................................................................................... 20 090512 Reporting ................................................................................................. 21 0906 Authorities and References.............................................................................. 22 0907 Rescissions ....................................................................................................... 23 0908 Policy Approval ................................................................................................. 23 Appendix A: Guidance on Managing VA Assets ..................................................... 24 Appendix B: VA Real Property Estimated Useful Life Guide ................................. 25 Appendix C: Examples of Capitalization Versus Expense ..................................... 30
1
Department of Veterans Affairs General Property, Plant, and Equipment
April 2023 Volume V ? Chapter 9
Appendix D: FMS Procedures to Transfer PP&E Within VA................................... 32
Appendix E: iFAMS Procedures to Transfer PP&E Within VA ............................... 40
Appendix F: Deferred Maintenance and Repairs Estimates and FCA Process .... 41
Appendix G: NCA Capitalization Form ..................................................................... 44
Appendix H: VHA Capitalization Memo for Real Property ...................................... 46
2
Department of Veterans Affairs General Property, Plant, and Equipment
April 2023 Volume V ? Chapter 9
0901 Overview
This chapter establishes the Department of Veterans Affairs' (VA) financial policies regarding general property, plant, and equipment (PP&E). This chapter will cover capitalization, work in process, depreciation, disposition of PP&E, proceeds from PP&E, deferred maintenance, impairment, land, and other topics related to PP&E.
Key points covered in this chapter: ? VA will record all PP&E at cost; ? VA will capitalize PP&E that meets capitalization criteria; ? VA will record depreciation expense on PP&E in accumulated depreciation; ? VA will evaluate deferred maintenance and repairs expense annually; ? VA will evaluate impairment and report impairment in its financial statements; and ? VA will report land in the Agency Financial Report in accordance with current
guidance.
0902 Revisions
Section Various 090501 General Policies
090503 Capitalization
090511 Land
Appendix E
Revision
Reformatted to new policy format and completed full review
Quarterly PP&E data cleansing efforts
Personal property timing/recognition criteria updated to closely align with SFFAS 6
Land & Permanent Land Rights reporting as part of Required Supplementary Information while in SFFAS 59 implementation window
iFAMS Procedures to Transfer PP&E within VA
Office
Reason for Change
OFP Reorganized (047G) chapter layout
OFP (047G)
OFP (047G)
OFP (047G)
OFP (047G)
PP&E NFR's 22-4a 22-4b
Ensure consistent VAwide timing for personal property recognition
Ensure consistent accounting treatment and reporting for federal land
VA entity migration to iFAMS platform
Effective Date
April 2023 April 2023
April 2023
April 2023
April 2023
3
Department of Veterans Affairs General Property, Plant, and Equipment
April 2023 Volume V ? Chapter 9
Section Appendix H: Capitalization Memo for Real
Property 090202 E
090206 Appendix H: Capitalization Memo for Real
Property Various
Various
0906 Definitions
Appendix G: NCA
Capitalization Form
090201.02
090201.03
Revision
Updated to the current VHA Capitalization Memo for Real Property
Added clarification on capitalization of Construction WIP
Added that depreciation will be automatically calculated in iFAMS.
Updated to the current VHA Capitalization Memo for Real Property
Changed timeline to record assets to within 90 days of being placed in service.
Updated VA Financial Policy references to current volume / chapter numbers and titles
Revised definitions for major construction, major medical facility construction, and minor construction to be consistent with 38 U.S.C. ? 8104, Congressional approval of certain medical facility acquisitions
The NCA Capitalization Form Excel spreadsheet and screenshots were updated to reflect the current form.
Added clarity to site preparation costs.
Added information pertaining to the requirement that stations must use Equipment Lease Management Service (ELMS).
Office
Reason for Change
VHA
Reflect current capitalization memo
VHA Update request
OFP (047G)
Update request
VHA
Reflect current capitalization memo
OFP (047G)
Update request
OFP (047G)
Update request
OFP (047G)
Consistency among aligned policy definitions
OFP (047G)
Reflect current capitalization memo
OFP (047G)
Update request
OFP Update request (047G)
Effective Date
July 2022
April 2020 June 2020
April 2020
April 2020 December
2019
December 2019
December 2019
May 2017
May 2017
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