Real Property: Stewardship Land, Heritage Assets, Construction, and Impairment

020.FFM.L3.01 Real Property: Stewardship Land, Heritage Assets, Construction, and Impairment
End-to-End Business Process: 020 Acquire-to-Dispose
Business Scenario(s) Covered
  • Heritage Assets
  • Stewardship Land
  • Construction in Progress
  • Capitalization of Labor Costs
  • Environmental Hazardous Substances on/in Property
  • Impairment
  • Construction in Abeyance
Business Actor(s)
Property Management Office; Finance Office; Procurement Office
Synopsis
Approval to construct an additional structure (e.g., gift shop) on stewardship land containing a heritage asset is received. Site preparation costs for the additional structure are included as costs for the stewardship land. The cost of construction is capitalized as work progresses and invoices are received. The cost of government labor for managing construction is capitalized as part of the overall cost of the additional structure. Hazardous substances are found on the property during construction. A stop work order is issued, and after evaluation of the hazard, the construction is placed in abeyance. The asset value of the incomplete structure is impaired because the asset cannot be used.
Assumptions and Dependencies
  1. There may or may not be automated (near/real-time or batch) interfaces between functional areas/functions/activities or between provider solutions/systems.
  2. There is no presumption as to which activities are executed by which actor, or which activities are automated, semi-automated, or manual.
  3. Supporting information for general ledger transactions includes sub-ledger entries when sub-ledgers are used.
  4. Appropriate attributes (e.g., object class and project) are included as part of the accounting string.
  5. Relationships between use cases are described in the Framework for Federal Financial Management Use Cases found in the related overview document.
  6. All predecessor activities required to trigger the Initiating Event have been completed.
  7. Funds availability checks are performed against appropriations/fund accounts for obligating funds, and against obligations for disbursing funds in accordance with OMB A-11, Section 150.2.
  8. The heritage asset is not a multi-use heritage asset.
  9. The construction vendor is properly registered in government systems, the relevant payee information has been set up in the FM system, and invoices are submitted electronically.
  10. Tolerance percentages or amounts between obligation and commitment amounts and between expenditure and obligation amounts have been established.
  11. Attempts to have the previous owner remediate the hazardous substance have failed.
  12. The hazardous substance prohibits continuation of construction and prevents structure from being used for its intended purpose.
  13. Contract termination activities to place construction in abeyance are properly executed but are not included as events in this use case.
FFMSR ID Reference(s) 1.1.2; 1.1.3; 2.1.1; 2.1.2; 2.2.1; 2.2.2
Initiating Event

The decision to develop an additional structure on stewardship land containing a heritage asset is made.

USE CASE 020.FFM.L3.01 REAL PROPERTY: STEWARDSHIP LAND, HERITAGE ASSETS, CONSTRUCTION, AND IMPAIRMENT
Typical Flow of Events
FFM Event Non-FFM Event Input(s) Output(s) / Outcome(s)
1
  1. Develop specifications for construction of additional structure (PRM.020.020 Property Space Design and Construction)
  2. Prepare and submit purchase request for construction of additional structure (ACQ.020.010 Procurement Request (PR) Processing)
  3. Request funds availability check (ACQ.020.010 Procurement Request (PR) Processing)
  • Property title
  • Additional structure functional needs
  • Specifications for construction of additional structure
  • Submitted purchase request for construction of additional structure
  • Request for funds availability check
2

Receive and process request for status of funds availability (FFM.010.020 Fund Allocation and Control)
  • Request for funds availability check
  • Funds availability response
3

Approve purchase request (ACQ.020.010 Procurement Request (PR) Processing)
  • Funds availability response
  • Submitted purchase request for construction of additional structure
  • Approved purchase request for construction of additional structure
4

Receive approved purchase request for construction of additional structure and commit funds (FFM.030.020 Obligation Management)

  • Approved purchase request for construction of additional structure
  • Appropriate commitment entry created with reference to source information
5

Post appropriate budgetary, proprietary, and/or memorandum entries to the general ledger (GL) (FFM.090.020 General Ledger Posting)
  • GL entries
  • Appropriate GL accounts updated
6
  1. Develop solicitation for construction of additional structure (ACQ.020.080 Solicitation Documentation Development)
  2. Issue solicitation (ACQ.020.100 Solicitation Issuance)
  3. Receive vendors’ responses to solicitation and evaluate responses (ACQ.030.010 Proposal Evaluation)
  4. Select a vendor (ACQ.030.060 Award Decision)
  5. Develop order or award for that vendor for construction of additional structure (ACQ.030.070 Contract Award Issuance)
  6. Request funds availability check (ACQ.030.070 Contract Award Issuance)
  • Specifications for construction of additional structure
  • Approved purchase request for construction of additional structure
  • Approved acquisition schedule
  • Vendor responses to solicitation
  • Solicitation
  • Selected vendor
  • Order or award information for construction of additional structure
  • Request for funds availability check
7

Receive and process request for funds availability check (FFM.010.020 Fund Allocation and Control)
  • Request for funds availability check
  • Funds availability response
8

Approve and issue order or award for construction of additional structure (ACQ.030.070 Contract Award Issuance)
  • Order or award information for construction of additional structure
  • Funds availability response
  • Approved order or award for construction of additional structure
9

Receive approved order or award information, confirm difference between obligation amount and commitment amount does not exceed tolerance percentage/amount, obligate funds, and liquidate commitment (FFM.030.020 Obligation Management)
  • Approved order or award for construction of additional structure
  • Appropriate obligation entry created with reference to source information
  • Appropriate commitment liquidation entry created with reference to source information
10

Post appropriate budgetary, proprietary, and/or memorandum entries to the general ledger (GL) (FFM.090.020 General Ledger Posting)
  • GL entries
  • Appropriate GL accounts updated
11
  1. Receive vendor invoice information for site preparation costs in an OMB-approved electronic invoicing solution
  2. Provide notification of vendor invoice submission for review and acceptance of vendor invoice for site preparation costs (ACQ.040.020 Documentation of Delivery/Acceptance)
  • Vendor invoice for site preparation costs
  • Receiving report, if used
  • Approved order or award for construction of additional structure
  • Notification of vendor invoice submission
  • Accepted vendor invoice for site preparation costs
12

Receive and process accepted vendor invoice for site preparation costs from OMB-approved electronic invoicing solution and perform a three-way match (FFM.030.070 Payment Processing - Commercial Payments)
  • Accepted vendor invoice for site preparation costs
  • Receiving report, if used
  • Approved order or award
  • Successful three-way match
  • Appropriate payable entry created with reference to source information
  • Validated vendor invoice for site preparation costs
13

Request funds availability check (ACQ.040.020 Documentation of Delivery/Acceptance)
  • Validated vendor invoice for site preparation costs
  • Request for funds availability check
14

Receive and process request for funds availability check (FFM.010.020 Fund Allocation and Control)
  • Request for funds availability check
  • Funds availability response
15
  1. Approve vendor invoice for site preparation costs
  2. Request for processing of approved vendor invoice (ACQ.040.020 Documentation of Delivery/Acceptance)
  • Funds availability response
  • Validated vendor invoice for site preparation costs
  • Approved vendor invoice for site preparation costs
  • Request for processing of approved vendor invoice
16
  1. Receive and process approved vendor invoice (FFM.030.070 Payment Processing - Commercial Payments)
  2. Confirm difference between expenditure amount and obligation amount does not exceed tolerance percentage/amount (FFM.030.020 Obligation Management)
  3. Establish payable (FFM.030.070 Payment Processing – Commercial Payments)
  4. Liquidate obligation (FFM.030.020 Obligation Management)
  • Approved vendor invoice
  • Request for processing of approved vendor invoice
  • Appropriate payable entry created with reference to source information
  • Appropriate obligation liquidation entry created with reference to source information
  • Appropriate accrual reversal entry created with reference to source information
17

Request for disbursement (ACQ.040.020 Documentation of Delivery/Acceptance)
  • Approved vendor invoice
  • Request for disbursement
18
  1. Receive and process disbursement request (FFM.030.070 Payment Processing – Commercial Payments)
  2. Initiate disbursement (FFM.030.070 Payment Processing - Commercial Payments)
  3. Generate disbursement schedule (FFM.030.110 Payment Disbursement)
  4. Certify payment of disbursement schedule (FFM.030.110 Payment Disbursement)
  5. Receive confirmation of disbursement (FFM.030.120 Payment Confirmation)
  • Request for disbursement
  • Appropriate payable entry liquidated with reference to source information
  • Appropriate disbursement-in -transit entry created with reference to source information
  • Certified disbursement schedule
  • Disbursement confirmation information
  • Appropriate disbursement entry created with reference to source information
  • Vendor receives payment
19

Post appropriate budgetary, proprietary, and/or memorandum entries to the general ledger (GL) (FFM.090.020 General Ledger Posting)
  • GL entries
  • Appropriate GL accounts updated
20
  1. Adjusted cost for stewardship land information to reflect site preparation (PRM.010.050 Property Valuation)
  2. Request processing of stewardship land asset information (PRM.010.070 Property Acquisition and Control Reporting)
  • Stewardship land asset information
  • Current stewardship land property record
  • Site preparation costs
  • Stewardship land asset information
  • Adjustments to stewardship land asset description
  • Updated property record for stewardship land
  • Request to process updated stewardship land asset information
21

Receive and process updated stewardship land asset information (FFM.020.030 Financial Asset Information Processing - Heritage Assets and Stewardship Land)
  • Request to process updated stewardship land asset information
  • Appropriate entries for stewardship land asset information updated with reference to source information
22

Post appropriate budgetary, proprietary, and/or memorandum entries to the general ledger (GL) (FFM.090.020 General Ledger Posting)
  • GL entries
  • Appropriate GL accounts updated
23
  1. Determine capitalization of construction costs and government labor costs for construction management (PRM.010.050 Property Valuation)
  2. Determine asset value of work-in-progress construction asset for additional structure (PRM.010.050 Property Valuation)
  3. Establish property record for work-in-progress construction asset for additional structure (PRM.010.060 Property Control and Accountability)
  4. Request establishment of work-in-progress construction asset information for additional structure (PRM.010.070 Property Acquisition and Control Reporting)
  • Approved order or award for construction of additional structure
  • Estimated government labor costs for construction management
  • Capitalized construction costs and construction management labor costs for the additional structure
  • Asset value of work-in-progress construction asset for additional structure
  • Work-in-progress construction asset property record for additional structure
  • Request to establish work-in-progress construction asset information for additional structure
24

Receive and process request to establish work-in-progress construction asset information for additional structure (FFM.020.010 Financial Asset Information Processing - Property, Plant, and Equipment)
  • Request to establish work-in-progress construction asset information for additional structure
  • Appropriate entries for work-in-progress construction asset information for additional structure created with reference to source information
25

Post appropriate budgetary, proprietary and memorandum entries to the general ledger (FFM.090.020 General Ledger Posting)
  • GL entries
  • Appropriate GL accounts updated
26
  1. Receive monthly vendor invoice information for construction costs in an OMB-approved electronic invoicing solution
  2. Provide notification of monthly vendor invoice submission for review and acceptance of vendor invoice for construction costs (ACQ.040.020 Documentation of Delivery/Acceptance)
  • Monthly vendor invoice for construction costs
  • Receiving report, if used
  • Approved order or award for construction of additional structure
  • Notification of monthly vendor invoice submission
  • Accepted monthly vendor invoice for construction costs
27
  1. Receive accepted monthly vendor invoice for construction costs from OMB-approved electronic invoicing solution and perform a three-way match (FFM.030.070 Payment Processing - Commercial Payments)
  2. Revalue work-in-progress construction asset information (FFM.020.010 Financial Asset Information Processing - Property, Plant, and Equipment)
  • Accepted monthly vendor invoice for construction costs
  • Receiving report, if used
  • Approved order or award for construction of additional structure
  • Successful three-way match
  • Appropriate payable entry created with reference to source information
  • Appropriate work-in-progress construction asset information for additional structure entry created with reference to source information
  • Validated monthly vendor invoice for construction costs
28

Request funds availability check (ACQ.040.020 Documentation of Delivery/Acceptance)
  • Validated monthly vendor invoice for construction costs
  • Request for funds availability check
29

Receive and process request for funds availability check (FFM.010.020 Fund Allocation and Control)
  • Request for funds availability check
  • Funds availability response
30
  1. Approve monthly vendor invoice for construction costs
  2. Request for processing of approved vendor invoice (ACQ.040.020 Documentation of Delivery/Acceptance)
  • Funds availability response
  • Validated vendor invoice for construction costs
  • Approved monthly vendor invoice for construction costs
  • Request for processing of approved vendor invoice
31
  1. Receive and process approved vendor invoice (FFM.030.070 Payment Processing - Commercial Payments)
  2. Confirm difference between expenditure amount and obligation amount does not exceed tolerance percentage/amount (FFM.030.020 Obligation Management)
  3. Establish payable (FFM.030.070 Payment Processing – Commercial Payments)
  4. Liquidate obligation (FFM.030.020 Obligation Management)
  • Approved vendor invoice
  • Request for processing of approved vendor invoice
  • Appropriate payable entry created with reference to source information
  • Appropriate obligation liquidation entry created with reference to source information
  • Appropriate accrual reversal entry created with reference to source information
32

Request disbursement (ACQ.040.020 Documentation of Delivery/Acceptance)
  • Approved vendor invoice
  • Request for disbursement
33
  1. Receive and process disbursement request (FFM.030.070 Payment Processing – Commercial Payments)
  2. Initiate disbursement (FFM.030.070 Payment Processing - Commercial Payments)
  3. Generate disbursement schedule (FFM.030.110 Payment Disbursement)
  4. Certify payment of disbursement schedule (FFM.030.110 Payment Disbursement)
  5. Receive confirmation of disbursement (FFM.030.120 Payment Confirmation)
  • Request for disbursement
  • Appropriate payable entry liquidated with reference to source information
  • Appropriate disbursement-in -transit entry created with reference to source information
  • Certified disbursement schedule
  • Disbursement confirmation information
  • Appropriate disbursement-in -transit entry liquidated with reference to source information
  • Appropriate disbursement entry created with reference to source information
  • Vendor receives payment
34

Post appropriate budgetary, proprietary, and/or memorandum entries to the general ledger (GL) (FFM.090.020 General Ledger Posting)
  • GL entries
  • Appropriate GL accounts updated
35
  1. Hazardous substances are discovered on the property and a hazard substance report is prepared (PRM.010.070 Property Acquisition and Control Reporting)
  2. Modify contract to stop work due to hazardous materials (ACQ.040.030 Contract Modification)
  3. Request deobligation of remaining contract funds (ACQ.040.030 Contract Modification)
  4. Complete an asset impairment review (PRM.010.070 Property Acquisition and Control Reporting)
  • Discovery of hazardous materials on construction site
  • Hazard substances report
  • Stop work order contract modification
  • Request for deobligation of remaining contract funds
  • Asset impairment review
36

Receive and process request for deobligation of remaining contract funds (FFM.030.020 Obligation Management)
  • Request for deobligation of remaining contract funds
  • Appropriate deobligation entry created with reference to source information
37
  1. Request vendor submit final invoice (ACQ.040.030 Contract Modification)
  2. Receive final vendor invoice information in an OMB-approved electronic invoicing solution (ACQ.040.020 Documentation of Delivery/Acceptance)
  3. Provide notification of vendor final invoice submission for review and acceptance of final vendor invoice (ACQ.040.020 Documentation of Delivery/Acceptance)
  • Final vendor invoice
  • Receiving report, if used
  • Approved order or award for additional structure
  • Request for submission of final vendor invoice
  • Notification of vendor final invoice submission
  • Accepted final vendor invoice
38

Receive accepted final vendor invoice from OMB-approved electronic invoicing solution and perform a three-way match (FFM.030.070 Payment Processing - Commercial Payments)
  • Accepted final vendor invoice
  • Receiving report, if used
  • Approved modified order or award for additional structure
  • Successful three-way match
  • Appropriate payable entry created with reference to source information
  • Validated final vendor invoice
39

Request funds availability check (ACQ.040.020 Documentation of Delivery/Acceptance)
  • Validated final vendor invoice
  • Request for funds availability check
40

Receive and process request for funds availability check (FFM.010.020 Fund Allocation and Control)
  • Request for funds availability check
  • Funds availability response
41
  1. Approve final vendor invoice
  2. Request for processing of approved vendor invoice (ACQ.040.020 Documentation of Delivery/Acceptance)
  • Funds availability response
  • Validated final vendor invoice
  • Approved final vendor invoice
  • Request for processing approved vendor invoice
42
  1. Receive and process approved vendor invoice (FFM.030.070 Payment Processing - Commercial Payments)
  2. Confirm difference between expenditure amount and obligation amount does not exceed tolerance percentage/amount (FFM.030.020 Obligation Management)
  3. Establish payable (FFM.030.070 Payment Processing – Commercial Payments)
  4. Liquidate obligation (FFM.030.020 Obligation Management)
  • Approved vendor invoice
  • Request for processing of approved vendor invoice
  • Appropriate payable entry created with reference to source information
  • Appropriate obligation liquidation entry created with reference to source information
  • Appropriate accrual reversal entry created with reference to source information
43

Request disbursement (ACQ.040.020 Documentation of Delivery/Acceptance)
  • Approved vendor invoice
  • Request for disbursement
44
  1. Receive and process disbursement request (FFM.030.070 Payment Processing – Commercial Payments)
  2. Initiate disbursement (FFM.030.070 Payment Processing - Commercial Payments)
  3. Receive and Generate disbursement schedule (FFM.030.110 Payment Disbursement)
  4. Certify payment of disbursement schedule (FFM.030.110 Payment Disbursement)
  5. Receive confirmation of disbursement (FFM.030.120 Payment Confirmation)
  • Request for disbursement
  • Appropriate payable entry liquidated with reference to source information
  • Appropriate disbursement-in -transit entry created with reference to source information
  • Certified disbursement schedule
  • Disbursement confirmation information
  • Appropriate disbursement-in -transit entry liquidated with reference to source information
  • Appropriate disbursement entry created with reference to source information
  • Vendor receives payment
45

Post appropriate budgetary, proprietary, and/or memorandum entries to the general ledger (GL) (FFM.090.020 General Ledger Posting)
  • GL entries
  • Appropriate GL accounts updated
46
  1. Determine asset value for partially completed structure due to construction abeyance (PRM.010.050 Property Valuation)
  2. Update property record, if needed, for additional structure asset to reflect revaluation from partial completion (PRM.010.060 Property Control and Accountability)
  3. Request processing of revised asset information and write off of difference between prior and impaired asset value for additional structure, if a difference exists (PRM.010.070 Property Acquisition and Control Reporting)
  • Work-in-progress construction asset information
  • Current property record
  • Revised asset valuation for partially completed structure
  • Updated property record for additional structure asset to reflect revaluation from partial completion
  • Request to process revised asset information and write off of difference between prior and impaired asset value for additional structure
47

Receive and process revised asset information and write off of difference between prior and impaired asset value for additional structure (FFM.020.010 Financial Asset Information Processing - Property, Plant, and Equipment)
  • Request to process revised asset information and write off of difference between prior and impaired asset value for additional structure
  • Appropriate property asset entries updated with reference to source information
  • Appropriate loss entry created with reference to source information
48

Post appropriate budgetary, proprietary, and/or memorandum entries to the general ledger (GL) (FFM.090.020 General Ledger Posting)
  • GL entries
  • Appropriate GL accounts updated
49
  1. Update property records for stewardship land and heritage asset to reflect impairment of new construction (PRM.010.060 Property Control and Accountability)
  2. Request capture of updated stewardship land and heritage asset information (PRM.010.070 Property Acquisition and Control Reporting)
  • Property title
  • Asset impairment review
  • Stewardship land and heritage asset information
  • Current property record
  • Revised stewardship land and heritage asset description
  • Updated property records for stewardship land and heritage asset
  • Request to capture stewardship land and heritage asset information
50

Receive and process request to capture stewardship land and heritage asset information (FFM.020.030 Financial Asset Information Processing - Heritage Assets and Stewardship Land)
  • Request to capture stewardship land and heritage asset information
  • Appropriate entries for stewardship land and heritage asset information updated with reference to source information
51

Post appropriate budgetary, proprietary and/or memorandum entries to the general ledger (FFM.090.020 General Ledger Posting)
  • GL entries
  • Appropriate GL accounts updated

This page was last updated on November 17, 2022.