This Real Property Accountability Report has been developed to report all required financial information. This accounting will continue to be adapted to changing financial reporting requirements. The report is organized into sections by the current stipulations.

Contained herein are the current Real Property Policy and Procedures. These policies and procedures provide information and clarification about how real property should be accounted for in order to comply with the current requirements. These procedures are not intended to replace FASAB or other reporting standards, but to clarify how they relate to real property accounting and to ensure consistency.

Operating Leases and Capital Leases are a substantial part of the real property portfolio and have very distinct reporting requirements. The report contains descriptions of the leases and future liabilities. RSMIS is unable to report changes in lease payments, therefore spreadsheets are included to recognize changes to future lease payments. Capital lease payment schedules are included to report principal and interest payments on these obligations. These are necessary due to the requirement of disclosure of future lease payments based on a constant rate of interest. Leases with a total payment amount of $25,000 to $199,999 are also included for review.

Depreciation Reports for the following real property categories are included in the report by organization and task codes:

Capital Improvements to Land

Buildings

Structures

Land

Capitalized Leasehold Improvements

Capital Leases

These reports include the property description, acquisition date, useful life, depreciation basis, monthly depreciation, accrued depreciation, and net book value. Support for this information is maintained in the property files.

Reports are also included in various sections to detail changes to or information about real property. Properties that are excessed to GSA in the current year are reported. Excessed property is removed from the depreciation module when the property is no longer in use. Properties for which there is not adequate support for the value are disclosed. Most of the properties were acquired prior to increased reporting requirements. Acquisitions and Disposals of property are listed as well as the associated gain or loss for disposals. Stewardship properties that must be disclosed in a footnote are reported. Currently there are only multi-use heritage assets in the real property portfolio.

A roll forward for property is included in the report. The roll forward provides the detail of how the balances in Fiscal Year 1998 are obtained from the Fiscal Year 1997 balances. This information is separated by task and type of property.

Prepaid rent is reported in a spreadsheet. This has currently occurred in two locations where NOAA has made payments prior to occupancy to assist the owner with construction costs. Donated property is reported, however, no donated property has been received in Fiscal Year 1998. Outleases are reported. Currently there is one outlease for an immaterial amount.

GSA rent projections are also reported.