6509.11k_50
Page 1 of 25
FOREST SERVICE HANDBOOK
ALASKA REGION (REGION 10)
JUNEAU, ALASKA
FSH 6509.11K – SERVICE-WIDE FINANCE AND ACCOUNTING HANDBOOK
CHAPTER 50 – ACCOUNTING
Supplement No.: R-10 6509.11k-2006-5
Effective Date: June 23, 2006
Duration: This supplement is effective until superseded or removed.
Approved: /s/ Mary Anne Young (for)
DENNIS E. BSCHOR
Regional Forester
Date Approved: 06/01/2006
Posting Instructions: Supplements are numbered consecutively by Handbook number and
calendar year. Post by document; remove the entire document and replace it with this
supplement. Retain this transmittal as the first page(s) of this document. The last R-10
Supplement to this Handbook was 6509.11k-2006-4 to chapter 70.
New Document
6509.11k_50
25 Pages
Superseded Document(s) by
Issuance Number and
Effective Date
6509.11k,53-54 (6509.11k-96-2, 4/12/96)
6509.11k,55-56.1 (6509.11k-98-2, 7/31/98)
6509.11k, 56.3-57 (6509.11k-94-2, 3/18/94)
2 Pages
1 Page
24 Pages
Digest:
This supplement converts the format and style to the approved FSH template using the agency’s
current word processing software.
Although some minor typographical and technical errors have been corrected, this supplement
contains no changes to substantive direction.
Where chapters were previously organized into more than one document, they are now merged
into one chapter document whenever possible.
R-10 SUPPLEMENT 6509.11K-2006-5
EFFECTIVE DATE: 06/23/2006
DURATION: This supplement is effective until superseded or removed.
6509.11k_50
Page 2 of 25
FSH 6509.11K – SERVICE-WIDE FINANCE AND ACCOUNTING HANDBOOK
CHAPTER 50 - ACCOUNTING
53.22a - Report FS-6500-EM, Schedule 220.9, Report on Accounts and Loans
Receivable Due from the Public
Report FS-6500-EM is due to the Regional Office one work week after the end of each quarter.
As indicated below, the following reports must be included with each Schedule 220.9 report.
Quarterly
Reconciliation to Schedule 220.9
X
Supplemental Information
X
Certification
FY End
X
56.3 - Real Property Accounting
The objective of R-10's real property accounting procedures shall be to maintain records in such
a way that they display the representative values and related statistics for all the fixed assets (real
property) that exist on each National Forest and their related administrative sites. The
information that is recorded shall be summarized and reconciled annually. The results of this
information are then sent through the Regional Office (RO) to the General Services
Administration (GSA) on the GSA Form 1166 Report. In addition, the records shall be available
for the use of the Regional and Forest property management officers. Additional requirements to
be served by the keeping of real property records are at the discretion of each individual Forest.
Real property includes land, regardless of how it was acquired, buildings permanently attached
to the land, other improvements fixed to the land that maintain their physical existence for a
useful life of at least 2 years, and easements which entitle the Forest Service to use or restrict the
use of private land.
Costs related to nonstructural improvements do not generally meet these criteria and therefore
are not capitalized.
Real property accounting involves the recording of transaction data with coding that identifies
property (project) numbers and asset class codes, maintenance of records by general ledger
account, and periodic reporting of data on the items included in the above definition with
standardized coding required for the GSA Form 1166. 56.3 - Exhibit 01 provides a crosswalk
showing the general ledger code, asset class code, GSA type and usage codes, and a suggested
project number series for each type of real property improvement. Efficient real property
R-10 SUPPLEMENT 6509.11K-2006-5
EFFECTIVE DATE: 06/23/2006
DURATION: This supplement is effective until superseded or removed.
6509.11k_50
Page 3 of 25
FSH 6509.11K – SERVICE-WIDE FINANCE AND ACCOUNTING HANDBOOK
CHAPTER 50 - ACCOUNTING
accounting requires uniform application of asset definitions, coding, site and descriptive
information, capitalization principles, and procedures to account for acquisition, modification,
removal, and writing off of assets no longer usable. In addition, it serves as a basis to conduct
property management surveys, inventories, and other functions that provide a basis for
determining, on a broad scale, the proper utilization and economy of the government's assets.
Accrued expenditures shall be identified so that the Forest Service Central Accounting System
(CAS) outputs can be utilized effectively when units post their property records. All units will
use certain codes and fields when establishing their management codes in CAS to accomplish the
above.
Use the following guidelines when establishing real property related management codes:
1. Region, Unit, Subunit. Data in these fields provide most of the site information
needed for the GSA Form 1166 Report. The only exception is when an improvement is located
on a separately identified administrative site. In this case, the administrative site could be
identified with a unique number in the account or fifth and sixth positions of the other field or by
management code name.
2. FY, Fund Code, MY, and Work Activity. Data in these fields show the funding
source, resource subcomponent, and year the improvement work was done.
Use Work Activity LF22 when doing construction, improvements, or betterment, regardless of
the value of improvements, for all buildings, including those that are financed out of benefiting
funds (for example, minor construction projects of less than $100,000). Also use LF22 when
construction is funded from the Construction Appropriation for other than roads and trails.
Use the benefiting improvement Work Activity (other than LF22) when doing betterment or
improvements to structures that support their resource programs, such as fish passes, wildlife
guzzlers, and helipads that are not funded out of the Construction Appropriation.
3. Other. Data from this field provides project identification and asset classification
coding needed for the GSA Form 1166 Report. Coding requirements for the first six digits of the
field are shown in section 55.6 and for the last two digits in section 56.32 below.
National Finance Center's (NFC) Table 15 lists valid Forest Service fund code/work activity
combinations. If Table 15 shows a required entry in the "other" field, but the work being done
with the management code does not meet the definition of a real property item, show 99 in the
last two positions of the "other" field. This will allow the management code to pass the Table 15
edits, but identify the expenditures so that they will not be posted to the real property records.
R-10 SUPPLEMENT 6509.11K-2006-5
EFFECTIVE DATE: 06/23/2006
DURATION: This supplement is effective until superseded or removed.
6509.11k_50
Page 4 of 25
FSH 6509.11K – SERVICE-WIDE FINANCE AND ACCOUNTING HANDBOOK
CHAPTER 50 - ACCOUNTING
56.31 - Accounting Basis for Real Property
56.31b - Value to Be Capitalized
Improvements meeting the definition of real property will only be capitalized if the acquisition
cost or value on the date of acquisition is $1,000 or more. An exception may be made for
projects whose overall cost is over $1,000 but which are accomplished in annual increments of
less than $1,000. Include the value of improvements constructed on leased land as well as Forest
Service-owned land. The value recorded on the Forest's real property records may be actual
dollars or rounded to the nearest $1,000 per annual transaction per asset.
Use the following examples as guidelines to determine the value to be capitalized:
1. A forest expended $1,200 on a cabin for 5-consecutive years. If rounded values are
used, the real property records would reflect a $5,000 value for this improvement, even though
the actual accumulative value of expenditures for the cabin would be $6,000.
2. A forest expended $455 on a Stream Improvement Project each year for 10consecutive years. If this were identified as a continuing project, the real property records would
reflect the actual value of $4,550 or rounded value of $5,000. If the $1,000 criteria were applied
each year, nothing would be posted to the property records. However, when the improvement
was identified on an inventory, a journal voucher should be prepared so the property records
could be updated to reflect its value.
3. A forest expended $157,555 on a building. If the cost was rounded, the real property
records would reflect a value of $158,000.
4. A forest expended $900 on a wildlife structure. The real property records would
reflect zero value, since the cost was less than $1,000.
In addition, any journal voucher prepared to capture nonfunded values should be rounded to the
nearest $1,000 per item. For example, if a forest had to capitalize an item that was donated to
them, and the appraised value of the property was $24,500, the forest would prepare a journal
voucher for $25,000 and reflect the same amount in real property records. The total value of a
capitalized asset in the real property records reflects the rounding of each year's actual costs as
recorded in the accounting records. Values posted to the real property records may be shown in
either whole dollars or thousands of dollars. For example, $1,489,254 of accumulated asset
values could be shown as $1,489 on the forest's records, if desired. If rounded to the nearest
thousand, state so on all forms.
There are often instances where a distinction must be made between personal and real property.
To be considered real property, a building must be fixed to the land. Therefore, mobile homes
shall not be considered real property unless they are placed on foundations and have permanently
R-10 SUPPLEMENT 6509.11K-2006-5
EFFECTIVE DATE: 06/23/2006
DURATION: This supplement is effective until superseded or removed.
6509.11k_50
Page 5 of 25
FSH 6509.11K – SERVICE-WIDE FINANCE AND ACCOUNTING HANDBOOK
CHAPTER 50 - ACCOUNTING
installed utility connections. Computer systems, even when they cost hundreds of thousands of
dollars, are considered to be personal property since they are generally not permanently fixed to
a building.
Asset values are recorded at the end of the Fiscal Year in which the asset began its physical
existence. Values that are to be captured originate from two major sources of transactions:
1. Funded Transactions. These are expenditures and obligations recorded in the CAS
which are charged to a management code established with entries in the "other" field to identify
asset class codes and project numbers for real property accounting.
To ensure that the CAS identifies real property values, Forests should establish a process to
review work plans and the resultant management codes used to ensure the proper identification
of real property related work. During the year, Forests should periodically review financial
statements to ensure that proper coding has been entered since the data entry edits do not reject
all invalid entries. For example, a management code could be established showing work activity
JL24, land acquisition, with a class code 02 in the "other" field indicating housing construction.
In addition, funded transactions coded to object class 3200, that do not have proper real property
coding in the "other" field are treated by NFC as unidentified real property costs. The RO has
furnished each unit with a FOCUS macro that can be used to review data related to real property
accounting so that the erroneous coding may be identified and corrected.
The value of any addition to or betterment of an improvement costing at least $1,000, which
either increases its value or extends its useful life, shall be capitalized. However, normal planned
maintenance, damage repair, and upkeep costs, no matter how expensive, do not generally
increase the value of the asset nor extend its useful life and are therefore not capitalized.
Determining if a cost associated with an improvement is a maintenance expense or a capitalized
betterment is often a difficult decision which must be made on the basis of the facts in each case.
Always remember that betterment is defined as a replacement or major renovation of an existing
asset or component thereof by an improved or superior asset or unit, the effect of which is to
improve the efficiency of the primary asset. Below are examples which illustrate the difference
between maintenance and betterment:
a. The worn out composition roof of a building is replaced by a similar roof at a cost
of $6,000. The $6,000 cost of the new roof should not be capitalized since the new
roof is not significantly better than the old roof.
b. The roof in the above example is replaced by a shake roof at a cost of $9,000.
Since a shake roof is superior to a composition roof, the cost of the new roof should
be capitalized. In addition, the cost of the original roof must be removed from the
property records. To calculate the amount of this adjustment, if the actual cost is not
R-10 SUPPLEMENT 6509.11K-2006-5
EFFECTIVE DATE: 06/23/2006
DURATION: This supplement is effective until superseded or removed.
6509.11k_50
Page 6 of 25
FSH 6509.11K – SERVICE-WIDE FINANCE AND ACCOUNTING HANDBOOK
CHAPTER 50 - ACCOUNTING
known, discount the present $6,000 cost of a new composition roof back to the year
the old roof was installed using the Gross National Product Price Deflator Index for
that year. For example, if the new roof installed in 1992 (GNPI 119.23) replaces a
1975 roof (GNPI 48.28), a journal voucher removing $2,430 from the capitalized
value of the building should be prepared ($6,000 x 48.28:- 119.23). A table of GNP
Implicit Price Deflator values from 1975 to the present is maintained on the Data
General and can be obtained from PPB in the Regional Office. If you need price
deflators for years prior to 1975 contact the Accounting Operations Group in the
Regional Office.
c. The wind damaged shake roof of a building is repaired at a cost of $2,000. Since
this repair merely restores the roof to its existing condition, it should not be
capitalized.
d. The oil furnace in a 30 year old residence is replaced by a modern, high-efficiency
furnace at a cost of $1,200. This cost should be capitalized since the new furnace is
superior to the old one. To calculate the amount to be removed from the property
records for the old furnace, multiply $1,200 by 26.8 (1963 GNPI) divided by 119.23
(1992 GDPI). Since the result, $270, is less than the minimum for posting to the
property records, a journal entry adjustment is not required.
e. The electric motor in the elevator of an office is replaced at a cost of $1,500. This
should be considered maintenance cost since it is no better than the motor it replaces
and does not increase the value of the building or increase its life.
2. Nonfunded Transactions. These are transactions affecting the value of real property
improvements which have not been captured in the Forest Service's accounting system.
Examples of these transactions are donations or contributions of fixed assets that cost the
government nothing (do not appear as expenditures or delivered obligations in the CAS, but do
constitute a real property improvement under the definition in section 56.31a.). Nonfunded
transactions also include items that should have been coded to a valid "other" field symbol
through the accounting system, but were not because the management code was not set up
properly. In addition, these transactions include the deletion of assets that have been destroyed
or transferred to another agency.
An example that would involve both funded and nonfunded transactions would be a trail bridge
that was constructed using materials paid for by the Forest Service but with labor provided by
volunteers. The cost of materials would be captured in the Forest’s expenditure records (funded
transaction) but the cost of labor would have to be calculated (since it did not appear in the
accounting records). Use estimated construction time and average hourly wage rates or obtain an
engineer's estimate. Add the estimated labor costs to the cost of materials to determine the value
that should be carried in the property records.
R-10 SUPPLEMENT 6509.11K-2006-5
EFFECTIVE DATE: 06/23/2006
DURATION: This supplement is effective until superseded or removed.
6509.11k_50
Page 7 of 25
FSH 6509.11K – SERVICE-WIDE FINANCE AND ACCOUNTING HANDBOOK
CHAPTER 50 - ACCOUNTING
All nonfunded transactions require the capturing of values on a journal voucher. Standard Form
1017-G, journal voucher, or a locally prepared form containing the same information may be
used. Nonfunded transactions must be listed on a journal voucher before being posted to the
Forest/Areas real property records (See section 56.33c for posting procedures).
Paragraphs 1 through 10 of the parent text (56.31b) describe how to determine the value of
specific types of assets to be capitalized. In addition, in R-10, the following nonfunded
transactions must also be reported at least annually:
11. Adjust the original value of roads or other improvements that have been
reconstructed. See section 56.33e for instructions on how to compute this adjustment.
12. Capitalize roads constructed under the provisions of Road Right-of-Way
Construction and Use Agreements. Include only the value that the cooperator has constructed
that has not been offset by payments from the Forest Service.
13. The value of roads and trails previously recorded in the real property records that are
subsequently abandoned must be recorded on a journal voucher. To be considered abandoned,
the road or trail must be physically obliterated or otherwise made unusable. Determine the value
of the road or trail when built using engineering estimates if the actual cost cannot be identified
in the records.
14. Assets previously recorded in the real property records that are abandoned,
destroyed, or dilapidated to the point where no longer usable must be recorded on a journal
voucher. Such entries should be supported by an approved Form AD-112, Report of
Unserviceable, Lost, or Damaged Property. Do not remove items still in existence even if their
useful life has expired as long they can still be inventoried.
15. Trails and other improvements constructed by other than Forest Service personnel
such as volunteers and cooperators should be recorded on a journal voucher at appraised value.
16. Additions to Forest Service-owned improvements that are made by permittees should
be recorded on a journal voucher using cost data furnished by the permittee. Do not include
maintenance or repair costs, but, only additions that increase the value of the improvement or
extend its useful life.
17. Additions to Forest Service-owned improvements that are made by other Federal
agencies on Forest Service lands should be recorded on a journal voucher at the agency's cost of
construction, materials, supplies, and labor used in the project.
R-10 SUPPLEMENT 6509.11K-2006-5
EFFECTIVE DATE: 06/23/2006
DURATION: This supplement is effective until superseded or removed.
6509.11k_50
Page 8 of 25
FSH 6509.11K – SERVICE-WIDE FINANCE AND ACCOUNTING HANDBOOK
CHAPTER 50 - ACCOUNTING
56.31c – Inventories
Refer to FSM 6446 for direction on frequency and method for doing formal physical inventories,
as well as the responsibilities for maintaining management and control over real property items.
Inventorying is an essential part of maintaining a correct set of records as its objective is to allow
for the verification and existence of new, obsolete, or destroyed items. As a minimum, Units
should annually have each subunit location review the current list of capitalized items, primarily
in Classes 01-08, 10, and 11 that the Unit is carrying in its ledger records so that they have an
opportunity to make corrections to the listing. Also provide subunits with the opportunity to
report on abandonment or donation of assets. See 56.31c - Exhibit 01 for a sample form that can
be used.
Based on the feedback from the subunit regarding the results of their formal or informal
inventory, Units will reconcile their ledgers with the inventory and prepare the necessary journal
vouchers to bring the records into agreement. The journal vouchers used for this documentation
shall be posted to the real property records.
56.32 - Real Property Accounts
The capitalized value of all Forest Service real property is maintained by NFC in four general
ledger accounts for each region. NFC updates these general ledger accounts when expenditures
and obligations are recorded to management codes with real property asset code numbers in the
last two positions of the Other field. Cost data for these asset codes is also used at the end of
each year to post Forest property records and update the GSA Form 1166 Report.
The real property asset class codes and their related general ledger account numbers are as
follows:
Land (General Ledger Account 150)
12--Land Acquisition and Related Costs
Buildings (General Ledger Account 152)
01--Construction of Office Buildings
02--Construction of Employee Housing
03--Construction of Storage Buildings
04--Construction of Service Buildings
05--Construction of Research and Development Buildings
06--Construction of Other Types of Buildings
R-10 SUPPLEMENT 6509.11K-2006-5
EFFECTIVE DATE: 06/23/2006
DURATION: This supplement is effective until superseded or removed.
6509.11k_50
Page 9 of 25
FSH 6509.11K – SERVICE-WIDE FINANCE AND ACCOUNTING HANDBOOK
CHAPTER 50 - ACCOUNTING
Other Structures and Improvements (General Ledger Account 154)
07--Utility Systems and Improvements
08--Communication Systems Improvements (Radio and Telephone)
09--Construction and Reconstruction of Roads, Bridges, and Trails
10--Construction and Improvement of Other Facilities (not covered by any other item
shown here). Unit records in this category must be maintained by resource type.
19--Construction of Roads and Bridges (financed by contribution or supplementation)
29--Reconstruction of Roads and Bridges (financed by contribution or supplementation)
Leasehold Improvements (General Ledger Account 159)
11--All Leasehold Improvements (improvements and additions made to buildings being
leased by the Forest Service) and Easements (easements which entitle the Forest Service to use
or restrict the use of private land)
Following is a detailed description of these asset class codes:
Class 01, Offices. Buildings used as offices, such as Ranger District or Supervisor Office
buildings, research project offices, zone engineering offices, or special project offices and so
forth.
Class 02, Housing. Buildings used to lodge individuals, such as guard cabins, compound
residences, headquarter dwellings, bunkhouses, barracks, and lodges. Garages attached to
housing are included as part of the house.
Class 03, Storage Buildings. Buildings used to store items in order to protect or preserve them
for subsequent use, such as warehouses, open storage sheds, garages for storage of vehicles or
other equipment (when not attached to a dwelling), cold-storage sheds for nursery stock, conestorage buildings, oil houses, and dynamite cache buildings.
Class 04, Service Buildings. Buildings that support service activities, such as motor-vehicle
repair shops, nursery seed-extraction buildings, and mess halls.
Class 05, Research and Development Buildings. Buildings used that support the research and
development efforts, such as greenhouses, laboratories, and special project buildings being used
for development of new technologies.
Class 06, Other Types of Buildings. Buildings not classified elsewhere, such as lookout towers,
bathhouses, toilets, wood sheds, recreation cabins, shelters, and warming huts. Any of these
types of buildings that are constructed as an integral part of a larger improvement, such as those
constructed on recreation sites, should be included with the main asset class (code 10 in the case
mentioned).
R-10 SUPPLEMENT 6509.11K-2006-5
EFFECTIVE DATE: 06/23/2006
DURATION: This supplement is effective until superseded or removed.
6509.11k_50
Page 10 of 25
FSH 6509.11K – SERVICE-WIDE FINANCE AND ACCOUNTING HANDBOOK
CHAPTER 50 - ACCOUNTING
Class 07, Utility Improvements. Heating, cooling, sewage, water, and electrical systems owned
by the Government, where they are separate and distinct systems and have not been included as
part of the capitalization costs of the building. Charge costs of utility systems that support any
Class 10, Other Facilities, to the Class 10. For example, a sewage treatment plant constructed for
a campground should be capitalized as part of the cost of the campground.
Class 08, Communication Improvements. Physical improvements for radio communication
systems such as radio towers, site protection fences, and access roads not on the transportation
system. Buildings used primarily to house radio communications will be coded to Class 06.
Also includes physical improvements, such as poles, cross arms and wire, microwave towers,
and satellite dishes.
Class 09, 19, 29, Road and Bridge Construction and Reconstruction. All direct expenditures for
the construction or reconstruction of roads and bridges, including log transfer facilities.
For road and bridge construction/reconstruction always use Class 09, unless the funding for the
project meets the following criteria, in which case the Class code will be 19 or 29:
For road and bridge construction financed with supplemental or contributed funds by timber
purchasers (augmentation), identify as Class 19 (rather than 09).
For road and bridge reconstruction financed with supplemental or contributed funds by timber
purchasers (augmentation), identify as Class 29 (rather than 09).
Class 09, Trails. Construction, reconstruction, and betterment of all trails, stock driveways,
portages, and nonvehicular travel routes (including bridges), including cost of right-of-way,
provided they are on the formal trail system. Do not include expenditures for temporary work
trails (should be expensed) or nonsystem trails (would be capitalized under Class 10). It is
recommended that each unit identify through the other field of each management code with this
class code whether the costs are accruing to road or trail construction. The reason for this
suggestion is that the costs for both road construction and trail construction are accrued in
General Ledger Account 154, Asset Code 09 in CAS, but must be reported separately on the
GSA-1166. Federal Property Management Regulations (FPMR) Amendment A-47 defines
construction of roads and bridges as Record Type 40 (Other Structures and Facilities) Usage
Code 76 (Roads and Bridges) and trail construction as Record Type 40, Usage Code 80 (All
Other).
Class 10, Other Improvements, Timber. Construction of improvements primarily for the timber
resource, such as fences for protection and access roads not on the transportation system.
Improvements such as reforestation and timber stand improvement costs are not to be
capitalized.
R-10 SUPPLEMENT 6509.11K-2006-5
EFFECTIVE DATE: 06/23/2006
DURATION: This supplement is effective until superseded or removed.
6509.11k_50
Page 11 of 25
FSH 6509.11K – SERVICE-WIDE FINANCE AND ACCOUNTING HANDBOOK
CHAPTER 50 - ACCOUNTING
Class 10, Other Improvements, Wildlife. Construction or improvement of assets which maintain,
protect, or improve wildlife and its habitat, such as wildlife water developments, fish rearing
ponds, fish passes, spawning beds, spring developments and guzzlers, and wildlife fences.
Class 10, Other Improvements, Watershed. Construction or improvement to enhance watershed
protection, stability, erosion control, flood prevention, and restoration and rehabilitation of
deteriorated watersheds. Includes such improvements as check dams, gabions, stream and
channel stabilization, water and sediment storage and control, and other related measures.
Class 10, Other Improvements, Fire Control. Items that were constructed or improved to serve
primarily as direct support to fire control measures, such as concrete or metal aprons constructed
to catch and transport rain, cisterns, storage tanks, holding ponds, wells and pumping stations.
Assets such as these that were initially constructed primarily for other purposes, but that may
also benefit fire control efforts, such as a dam, should be coded to the appropriate Class code
other than fire control. Also include fences and access roads (not in the transportation system)
that are constructed for fire control purposes.
Class 10, Other Improvements, Recreation, Developed Sites. Construction and improvements on
sites such as campgrounds, picnic areas, organization camps, lodges, resorts, swimming areas,
summer home areas, and interpretive sites that are primarily for recreation purposes. Includes
items such as utility systems, toilets, stoves, fireplaces, tables and benches attached to the land,
shelters, water impoundments, barriers and parking spurs, playgrounds, signs, launching ramps,
service buildings, and other structures that are an integral part of the developed site.
Class 10, Other Improvements, Recreation, Dispersed Areas. Construction and improvements
that occur on sites that have minimal development, such as in wilderness areas, along roads,
parking lots, streams, lakes, oceans, and trails. Includes items such as toilets, garbage pits, water
impoundments, barriers, signs, unloading ramps, and other structures that are an integral part of
the site. Does not include recreation cabins which are in Class 06, Other Types of Buildings.
Class 10, Landing Fields. Construction and improvement of aircraft landing fields and heliports.
Include expenditures for grading, drainage, surfacing of runways, seeding, landing circle, wind
indicator, lighting systems, and other facilities forming an integral part of the landing field. Do
not charge costs of landing fields constructed for temporary use, such as for a fire suppression
operation to this classification as they are to be considered general operating expenditures.
Class 10, Other Types of Improvements. Construction and improvements which are not
otherwise classified and which are not tied to a specific resource improvement, such as fences,
gates, cattle guards or paving at an administrative site (if not part of road system), landscaping,
and flagpoles.
Class 11, Leasehold Improvements and Easements. Show this asset code when direct charges
are for leasehold reconstruction, improvement, and betterment or cover the costs of obtaining
R-10 SUPPLEMENT 6509.11K-2006-5
EFFECTIVE DATE: 06/23/2006
DURATION: This supplement is effective until superseded or removed.
6509.11k_50
Page 12 of 25
FSH 6509.11K – SERVICE-WIDE FINANCE AND ACCOUNTING HANDBOOK
CHAPTER 50 - ACCOUNTING
easements other than those needed for construction purposes. Maintain separate records for
leasehold improvements, continuing easements, and term easements. When assets are
constructed by the Government on leased land, include these costs in the appropriate building or
other improvement class codes rather than as leasehold improvements.
Class 11, Continuing Easements. Involves the actual purchase of a continuing easement which
provides the Forest Service with a right or privilege to use, or restricts use on privately-owned
land. For example, the Forest Service purchases a scenic easement in a special management area
to restrict certain kinds of improvements and activities in that area. Continuing easements are
those which will run with the property forever unless changed by an outside influence such as a
public law.
Class 12, Land. Acquisition by exchange, purchase, transfers of any land that comes under
control of the Forest Service. Includes administrative sites.
56.33b - Unit Procedures
Records of real property improvements must be identified as being located on a designated
administrative site or the Forest at large. The record may be maintained using form FS-6500-53,
Real Property Ledger, or similar locally prepared subsidiary record. All such records except for
roads must show when the asset was acquired, its property identification number, and
description. Records may also be maintained by the Ranger District if desired.
Always record donations and work in progress costs as separate entries in the subsidiary records
and summarize them on the summary forms.
1. General Ledger Account 150 - Land. Maintain a record showing the number of acres
and value of acquired land for each administrative site plus the National Forest as a whole.
2. General Ledger Account 152 - Buildings. Maintain a record showing the number,
square footage, and value of each building by type on each administrative site plus the National
Forest as a whole.
3. General Ledger Account 154 - Other Structures and Improvements. Maintain a record
showing the value of each type of improvement on each administrative site plus the National
Forest as a whole.
Record Class 10 assets by their subcomponent identification (Wildlife, Timber, Watershed, Fire
Control, Recreation Developed, Recreation Dispersed, and Other) so that each category is
identifiable in the ledgers separately. Statistical information as to the number and type of
improvements within these subcomponents, such as wells, fences, or ponds, is not required
provided an acceptable statistical inventory system is in existence to provide quantitative
R-10 SUPPLEMENT 6509.11K-2006-5
EFFECTIVE DATE: 06/23/2006
DURATION: This supplement is effective until superseded or removed.
6509.11k_50
Page 13 of 25
FSH 6509.11K – SERVICE-WIDE FINANCE AND ACCOUNTING HANDBOOK
CHAPTER 50 - ACCOUNTING
information on the types of improvements being made. If no such statistical system exists then
record the related information on the reverse side of the FS-6500-53 for each subcomponent.
4. General Ledger Account 159 - Leasehold Improvements. Maintain a record showing
the value of each leasehold improvement made to Forest Service leased land or buildings by
name on each administrative site plus the National Forest as a whole. This information is not
included in the GSA 1166 Report.
Property managers of most capitalized assets are normally at the Subunit level. As such,
Subunits shall maintain a listing of the items that exist on their Subunits that are identified
separately in the Unit's records, such as buildings, campgrounds, and recreation cabins. This can
be done by having the Unit provide a copy of the latest 6500-53's or something similar. Subunits
shall make notes of non-CAS changes to any of the items on the list as well as any new items not
on the list as they become aware of them.
56.33c - Posting Procedures
For a unit to be able to determine if an asset should be properly capitalized in the real property
records they will need the following information:
1. Site. What is the location of the asset? Include Region, Unit, Subunit, Administrative
Site, and description of site that provides adequate location information for the GSA Form 1166
and other upward and external reporting needs.
2. Type of Improvement. What is the specific improvement? Describe the actual
improvement, such as building, fence, water system, toilet, road, or cabin.
3. Class of Improvement. Into what major category of assets does this improvement
belong? Describe the class that the asset is part of.
4. Funding Source. What funds were used to pay the costs of the improvement, or was it
acquired at no direct cost? Identify how the item was funded, such as Fund Code, Work
Activity, Treasury Symbol, or outside source.
5. Resource Subcomponent. Identify the primary resource that the improvement
benefits.
6. Date of Improvement or Removal. Identify when the improvement was constructed or
removal was accomplished.
7. General Ledger Account Number. For each building or type of improvement, identify
the general ledger account used by NFC to report real property activity for each accounting
center to Treasury.
R-10 SUPPLEMENT 6509.11K-2006-5
EFFECTIVE DATE: 06/23/2006
DURATION: This supplement is effective until superseded or removed.
6509.11k_50
Page 14 of 25
FSH 6509.11K – SERVICE-WIDE FINANCE AND ACCOUNTING HANDBOOK
CHAPTER 50 - ACCOUNTING
8. Work In Progress. Identify the accrued costs where the facility has not yet been
completed on a separate FS-6500-53 for work in progress. Do not post to the facility's ledger
and add to the GSA Form 1166 until the facility is completed.
All postings may be done in thousands of dollars. For example, post $1,000 as $1, $400 as $0,
and $51,099 as $51. If this method is used, footnote the record to indicate that values are
expressed in dollars rounded to the nearest thousand.
As a minimum, posting shall be done annually. Post funded transactions from a FOCUS report
of year to date accruals for capitalizing assets run from the NFC yearend data file using the 4Y1
Delivered Orders column. This report should match the BUDG4Y-1 report exactly. A sample of
such a report is shown in 56.33c - Exhibit 01. Post unfunded transactions from other property
documents prepared to capture real property improvements, additions, and deletions such as
journal vouchers and reports of unserviceable, lost, or damaged property. Journal vouchers
should be prepared as changes to real property values occur. However, they need be posted to
the records only annually, in conjunction with the preparation of the GSA 1166 Report. A
sample journal voucher is shown in 56.33c Exhibit 02.
56.33e - Adjustments to Form FS-6500-53 Real Property Ledger
Each year, an estimate must be prepared showing the value of reconstructed roads to be removed
from the property records because the total cost of the reconstructed road is entered into the
property records. To determine the value to write off, obtain from Engineering the number of
miles of roads that were reconstructed by either Forest Service appropriated funds or timber
purchasers, the average cost of roads constructed on the Forest, and the estimated residual value
of roads being reconstructed expressed as a percentage. Calculate the amount to be written off
by taking the number of miles of roads reconstructed times the average cost per mile times the
difference between the residual value percentage and 100. For example, if a Forest/Area
reconstructed 18 miles of road with an average construction cost of $175,000 per mile and
residual value of 70 percent, the amount to be written off would be $945,000 (18 x 175,000 x 30
percent). Prepare a journal voucher with $945,000 in the credit column for Asset Code 152-09,
Roads for posting to the property records.
When there is a major renovation to an improvement or it is rebuilt, it will generally be
considered a betterment and be capitalized. Ensure that the cost or discounted value of the
original improvement is entered on a journal voucher so that it may be removed from the
property records.
During the year, the Regional Office incurs certain planning, design, and preconstruction costs
that should be capitalized in the real property records. Upon receipt of the final NFC yearend
data file, Performance and Budget Accountability (P&BA) shall identify these costs, prepare
journal vouchers for all delivered obligations, and send one to each Forest for posting to the
property records.
R-10 SUPPLEMENT 6509.11K-2006-5
EFFECTIVE DATE: 06/23/2006
DURATION: This supplement is effective until superseded or removed.
6509.11k_50
Page 15 of 25
FSH 6509.11K – SERVICE-WIDE FINANCE AND ACCOUNTING HANDBOOK
CHAPTER 50 - ACCOUNTING
56.34 - Real Property Reports
The following two reports shall be prepared annually by each Forest. Send the reports to the
Regional Director of P&BA by the date prescribed in the year-end closing letter.
1. Summary Real Property Journal Voucher. This is a worksheet that summarizes all
property transactions that have taken place since the last reporting cycle (56.34 - Exhibit 01). It
starts with last year's ending property balances, adds current year accruals (funded transactions)
and journal voucher adjustments (nonfunded transactions), and shows the current period balance.
The worksheet should be done at the same time current year transactions are posted to the
property records.
Prepare the Summary Journal Voucher in accordance with the following guidelines:
Column 1 - Enter all journal vouchers prepared during the year documenting non-funded real
property transactions and show the net amount of debits and credits in column 1 for each general
ledger symbol.
Column 2 - Enter the ending balances from last year's Summary Journal Voucher. The amounts
shown must equal what was shown in column 5 from the prior Fiscal Year's Report.
Column 3 - Enter funded transactions which are shown as accrued expenditures in the FOCUS
Accrued Real Property Unit Summary for the unit. Use the amount in the "YTD ACCRUALS"
column for all valid asset codes.
Column 4 - Enter net amounts from column 1.
Column 5 - Enter the sum of columns 2, 3, and 4. The total must equal the amounts reported on
the GSA 1166.
Send the Summary Journal Voucher to the Regional Office, F&AS by the prescribed due date.
Make sure to include copies of each journal voucher referred to in column 1.
2. General Services Administration Form 1166, Annual Report of Real Property Owned
or Leased by the United States. The Regional Office will send each Forest/Area a copy of the
GSA 1166 printout from the previous year when furnished by the Washington Office. Data for
each Forest is displayed by installation number. The Forest, at large, is an installation plus there
are distinct installation numbers for administrative sites. For the Tongass NF, there are
administrative sites in Juneau for Juneau Ranger District Compound, Duck Creek Administrative
Site, and Auke Lake Administrative Site; in Sitka for White House, SMC and Monastery Sites,
Cascade Creek Administrative Site, and Sitka Duplexes; in Hoonah for Hoonah Duplexes,
Hoonah Crew Quarters, and Hoonah Warehouse Site; in Petersburg for Warehouse Site No. 1,
R-10 SUPPLEMENT 6509.11K-2006-5
EFFECTIVE DATE: 06/23/2006
DURATION: This supplement is effective until superseded or removed.
6509.11k_50
Page 16 of 25
FSH 6509.11K – SERVICE-WIDE FINANCE AND ACCOUNTING HANDBOOK
CHAPTER 50 - ACCOUNTING
Scow Bay Warehouse, Petersburg Dwelling, Peters Duplex, and SO Land; in Wrangell for
Wrangell Dwelling, Wrangell Administration Site 3, Wrangell Duplex, Wrangell Garage Site,
Wrangell Marine Facility, and Wrangell Office Complex; in Ketchikan for Ketchikan
Administrative Site; in Craig for Craig Administrative Site; in Thorne Bay for Thorne Bay
Administrative Site, and in Coffman Cove for Coffman Cove Site. In addition, Tongass NF units
will be sent a spreadsheet which breaks out data for each type of improvement by area.
Administrative sites for the Chugach NF include Seward Townsite and Seward Dwelling Site in
Seward, Kodiak Administrative Site in Kodiak, Whittier Townsite in Whittier, Cordova
Administrative Site and Cordova Residence Site in Cordova, and Glacier Administrative Site in
Anchorage.
After all data from funded and nonfunded transactions has been posted to the real property
records, update the appropriate lines of the GSA 1166 printout to reflect the revised totals. Do
this by circling the amount to be corrected and writing the corrected amount in red ink beside it.
If not maintained with the real property records, verify statistical information with the
appropriate resource staff and correct as necessary. The total cost shown for the Forest/Area plus
all administrative sites should equal the revised total shown on the Summary Journal Voucher
less the cost of Leasehold Improvements, General Ledger Account 159 and work in progress
costs which are excluded from the GSA Form 1166.
The Land Area Reporting System (LARS) does not break out Tongass acres between
administrative units. Therefore, the Regional Office will be responsible for reconciling the
acreage data from LARS with the GSA Form 1166 Data. If a Tongass NF unit is aware of any
additions or deletions of land, they should provide information on the change by footnote when
the GSA 1166 is sent to the Regional Office. The Chugach NF should reconcile their acreage
with the latest LARS Report prepared by the Lands and Minerals Staff.
Mail the updated GSA 1166 data to the Regional Office, P&BA by the specified due date. The
Regional Office will update the master GSA 1166 and mail it to the Washington Office. Data
from the Summary Journal Vouchers will be used to update the Regional Real Property Records.
R-10 SUPPLEMENT 6509.11K-2006-5
EFFECTIVE DATE: 06/23/2006
DURATION: This supplement is effective until superseded or removed.
6509.11k_50
Page 17 of 25
FSH 6509.11K – SERVICE-WIDE FINANCE AND ACCOUNTING HANDBOOK
CHAPTER 50 - ACCOUNTING
56.3 - Exhibit 01
Real Property Accounting Crosswalk
Item Description
Office Buildings
Housing
Storage Buildings
Service Buildings
Research & Development Buildings
Other Buildings (incl. Rec. Cabins)
Utility Systems
Communication Systems
Roads, Bridges, & Trails
Roads & Bridges, Const. Augment.
Roads & Bridges, Reconst. Augment.
Other Improvements
Fire Control
Recreation
Timber
Fish & Wildlife
Watershed
Other
Airfields
Leasehold Improvements & Easements
Land (acquired)
General
Ledger
Code
Asset
Class
Code
GSA Type
& Usage
Codes
Project
Number
Series
152
152
152
152
152
152
154
154
154
154
154
01
02
03
04
05
06
07
08
09
19
29
30 10
30 30
30 40
30 60
30 70
30 80
40 71
40 72
40 76
40 76
40 76
1700-1799
1000-1399
2000-2199
1800-1999
N/A
2200-2499
1400-1699
2500-2799
N/A
N/A
N/A
154
154
154
154
154
154
154
159
150
10
10
10
10
10
10
10
11
12
40 80
40 80
40 80
40 80
40 80
40 80
40 12
N/A
20 72
2899-2899
3000-3199
3200-3399
3400-3599
3600-3699
2900-2999
3700-3799
N/A
0001-0999
R-10 SUPPLEMENT 6509.11K-2006-5
EFFECTIVE DATE: 06/23/2006
DURATION: This supplement is effective until superseded or removed.
6509.11k_50
Page 18 of 25
FSH 6509.11K – SERVICE-WIDE FINANCE AND ACCOUNTING HANDBOOK
CHAPTER 50 - ACCOUNTING
56.31c - Exhibit 01
Sample Real Property Verification Transmittal
Verification of Real Property as of 9/30/92
Forest/Lab: Tongass National Forest
Subunit: Yakutat District
Please verify the attached listing of capitalized assets that are currently being carried in our real
property system as residing on your district/site. Put a check mark by those that are still in
existence. Circle those that no longer exist. Make notes in the margin if you don't know what
the item is. In addition, if you are aware of additional items of a real property nature that exist
within your subunit, please provide a brief explanation of such below, remembering that only
assets in excess of $1,000 in value are to be capitalized on our records.
Type of Improvement: Recreation Cabin
Location:
Dolly Lake
Project Name:
Dolly Lake Cabin #4848
Was the item donated to the Forest Service?
Yes
Resource ID (e.g., range, rec. timber, fire, wildlife, watershed, etc.)
Estimated appraised value (or actual cost if known)
$12,500
Year in which FS took possession of the improvement:
Other Comments:
Recreation
1991
Built by Alaska Wilderness Club
/s/ John Munoz
Subunit Property Manager
Date
R-10 SUPPLEMENT 6509.11K-2006-5
EFFECTIVE DATE: 06/23/2006
DURATION: This supplement is effective until superseded or removed.
6509.11k_50
Page 19 of 25
FSH 6509.11K – SERVICE-WIDE FINANCE AND ACCOUNTING HANDBOOK
CHAPTER 50 - ACCOUNTING
56.33 - Exhibit 01
Sample of FOCUS Report Displaying Accrued Expenditure Values
RUN DATE: 04/07/93
PERIOD ENDING: 9/30/92
REGION: 10 UNIT: 01
UN
1166
CODE
OTHER
01
USDA FOREST SERVICE
REAL PROPERTY STATEMENT
SUMMARY OF 4Y1 RECORDS BY 1166 CODE
FUND
CODE
2NFNF3
WORK
ACTIVITY
TS11
ACCNT
002
003
SU 4Y1 OBLIGATIONS
99
99
*TOTAL ASSET
01
1712 01 2CNFC
LF214
11
3382 06 2NFRM3
09
2CNGP
2CNRN
2CNTM
2NFLA3
2RMTR
2TTTT
10
10
CNFC
.00
44,225.85
88,952.51
44,225.85
29,541.53
29,541.53
29,541.53
29,541.53
10
11
99
11
11
11
11
11
11
11
11
11
04
04
99
99
99
99
2,786.45
2,603.96
-42.00
497.83
776.11
165.84
25,321.20
453.84
6,672.29
3,745.70
20,502.25
5,657.64
4,557.79
-29,790.00
-219.90
.00
.00
163.18
2,724.85
2,603.96
-42.00
497.83
776.11
165.84
25,321.20
453.84
6,672.29
3,745.70
20,502.25
5,657.64
4,546.81
-29,790.00
-219.90
.00
.00
163.18
*TOTAL ASSETS 09
43,852.18
43,779.60
AN22
11
*TOTAL ASSETS 06
09
.00
88,952.51
*TOTAL ASSETS 01
06
.00
.00
4Y1 DELIVERED
ORDERS
.00
.00
LT123
LT21411
LT22111
LT22121
LT21411
LT21421
LT21414
LT21422
LT21423
LT21424
LT22111
LT22121
JL263
AT22
LT21411
LT22111
LT22121
TS425
AN22
10
803.05
785.14
*TOTAL ASSETS 10
*TOTAL UNIT 01
803.05
163,149.27
785.14
118,332.12
R-10 SUPPLEMENT 6509.11K-2006-5
EFFECTIVE DATE: 06/23/2006
DURATION: This supplement is effective until superseded or removed.
6509.11k_50
Page 20 of 25
FSH 6509.11K – SERVICE-WIDE FINANCE AND ACCOUNTING HANDBOOK
CHAPTER 50 - ACCOUNTING
56.33c - Exhibit 02
Sample Facsimile journal voucher
JV # 12-54-92
Date
October 11, 1992
Reference
151-02 Employee
Housing
Explanation
New Job Corp Dormitory #1392 from
VST Report (Angell)
152-10 Recreation
Improvements
Remove assets that do not
meet new capitalization rules
(see attached listing)
Lone Pine Winter Resort Ski Area,
Warning Shelter constructed and
donated to Forest Service by Wanabee
Snowmobile Club (400 Sq. ft.)
152-10 Recreation
Improvements
152-09 Roads
Increase
$518,501
Decrease
$85,000
$20,498
Cost Share Roads Donated from Annual
Cost Share Report (see attached).
Timber Related.
Total
$1,068,079
Prepared by: Betty Boop
Signature
Property Accounting Technician
Title
Approved by:
Property Management Officer
Title
Elliott Mess
Signature
$85,000
R-10 SUPPLEMENT 6509.11K-2006-5
EFFECTIVE DATE: 06/23/2006
DURATION: This supplement is effective until superseded or removed.
6509.11k_50
Page 21 of 25
FSH 6509.11K – SERVICE-WIDE FINANCE AND ACCOUNTING HANDBOOK
CHAPTER 50 - ACCOUNTING
56.34 - Exhibit 01
Summary Real Property Journal Voucher
ANNUAL STATUS REPORT OF REAL PROPERTY CONTROL TOTALS
FOR PERIOD ENDING 9/30/92
Unit:
Journal Voucher Transactions
(Column 1)
General Ledger
Debit or Credit
Symbol
JV’s Included
02-92-1
150
479 cr
02-92-2
152
749 cr
02-92-3
154
1,601,622
159
Total
General Ledger
Acct., Title,
& 'Other' Code
150
152
154
159
Land
(12)
Buildings
(01-06)
Other Struct. &
Improvements
(07-10)
Leasehold
Improvements
(11)
TOTAL
(Column 2)
Amount Prior
Fiscal Year
1,600,394
(Column 3)
Accrued
Expenditures
(Column 4)
J. V.
Adjustments
(Column 5)
YTD
Amount
$152,457
$479
$479 cr
$152,457
$4,305,186
$33,445
$749 cr
$4,337,882
$97,927,500
$3,450,956
$1,250,829
$103,635,972
/s/ Dianne Michael
Signed: Property Mgmt. Officer
$
$1,601,622
$102,980,078
$
$3,484,880
$1,250,829
$1,600,394
$108,721,246
9/28/92
Date
R-10 SUPPLEMENT 6509.11K-2006-5
EFFECTIVE DATE: 06/23/2006
DURATION: This supplement is effective until superseded or removed.
6509.11k_50
Page 22 of 25
FSH 6509.11K – SERVICE-WIDE FINANCE AND ACCOUNTING HANDBOOK
CHAPTER 50 - ACCOUNTING
Start by entering last year's ending property balances in Column 2, add current year accurals
from FOCUS report in Column 3, adjust for non-funded transactions as reflected in journal
vouchers from Column 1 in Column 4, and show the new ending control totals in Column 5.
Prepare this concurrently with annual postings being performed. Column 5, exclusive of
Account 159 and work in progress values, should agree with the totals on the GSA Form 1166.
56.4 - Assessments
Cooperative work in Region 10 is generally done under the authority of one of the following
acts. Assess Cooperative Work, Forest Service (CWFS) Funds (other than K-V) for indirect
expenses subject to the following:
1. The Cooperative Funds Act of June 30, 1914 (16 U.S.C. 498), states that contributions
are authorized for forest investigations, protection or improvement. They need not be assessed
for indirect expenses if the contributor is unwilling to accept such charges.
2. The Granger-Thye Act of April 24, 1950 (16 U.S.C. 572), authorizes deposits to be
used for administration, protection, improvement, reforestation and other kinds of work as the
Forest Service is authorized to do on lands of the United States.
3. Cooperative work is also done under Forest Road Agreements based on the authority
of 16 U.S.C. 537. Examples are road maintenance and construction.
4. Cooperative Funds and Deposits Act of December 12, 1975, which is the authorizing
legislation for Participating Agreements.
5. Public Law 102-154, otherwise known as the Challenge Cost Share Authority.
6. Economy Act of 1932, which is the authority for Interagency Agreements.
All funds collected for the performance of work under an agreement must be assessed a
proportionate share of indirect expenses under procedures in this section. The only exception to
the assessment for indirect expenses is for the Cooperative Funds Act of June 30, 1914, and this
exception only applies if the contributor is unwilling to pay for indirect expenses. Agreements
for these types of work do not require specific mention of indirect expenses because the enabling
legislation requires the depositor to pay the full cost of the work, including indirect costs.
1. Management Codes for CWFS Accounts. All transactions in CWFS must be
identified by account number so that funds may be tied to a particular cooperator or type of
work. Unobligated balances in CWFS are brought forward from prior Fiscal Years by account
number. Management code data entry programs also contain
R-10 SUPPLEMENT 6509.11K-2006-5
EFFECTIVE DATE: 06/23/2006
DURATION: This supplement is effective until superseded or removed.
6509.11k_50
Page 23 of 25
FSH 6509.11K – SERVICE-WIDE FINANCE AND ACCOUNTING HANDBOOK
CHAPTER 50 - ACCOUNTING
edits that require an entry in the account number field when establishing CWFS management
codes. Currently, when an operating plan is established in a CWFS management code, the contra
entry in Subunit 98 contains the same account number. However, operating plan transfers
between units and the Regional Contingent (Unit 98) processed on Form AD-739 does not
contain account numbers.
Combined collection and expenditure managements codes are acceptable for CWFS accounts,
but the following is recommended for all CWFS accounts, especially Granger-Thye cabin
accounts:
a. Collections (Y-CWFS-AAAAA-WWWW-SS). Establish one Management Code
for each individual account (AAAAA). Identify these management codes as
"collection only" management codes. Three digits of the account field should be used
for cooperator identity or pooled fund information. When a combined
collection/expenditure Management Code is used, do not identify the Management
Code as "collection only" and do not establish the Management Code in Subunit 98.
b. Project Expenditures (Y-CWFS-AAAAA-WWWW-SS). Establish one
Management Code for each account where direct project charges will be made. For
pooled accounts, establish one Management Code for each Subunit. Indicate account
numbers in the same manner as collection management codes. Project expenditure
management codes should not be established in Subunit 98.
c. Indirect - Charge (Y-CWFS-96900-TG3(4)-SS). Establish at least one
Management Code in a Supervisor's Office subunit. This management code will be
used by the Supervisor's Office for expenditure of the indirect assessment and by the
Regional Office to withdraw its portion of the indirect assessment rate.
d. Refunds (Y-CWFS-AAAAA-TS416-SS). Establish one Management Code for
each active account from which refunds will be made. For pooled accounts such as
those for cabin receipts where frequent refunds are made, you may show TS416 in the
work activity for the collection Management Code and avoid the need for a separate
refund Management Code.
2. Assessment Procedures. Two different methods shall be used to account for CWFS
assessments, depending on the type of work being performed. An assessment shall be made for
Granger-Thye cabin collections based on the net amount of the prior year’s collections, before
September of each Fiscal Year. All other types of CWFS collections that are to be assessed shall
be assessed at the time of collection. Indirect assessment rates are determined on the basis of the
Forest indirect expense percentage plus the current RO indirect expense percentage as published
in R-10 Supplement to FSH 1909.13. The following procedures are to be followed to make the
assessments:
R-10 SUPPLEMENT 6509.11K-2006-5
EFFECTIVE DATE: 06/23/2006
DURATION: This supplement is effective until superseded or removed.
6509.11k_50
Page 24 of 25
FSH 6509.11K – SERVICE-WIDE FINANCE AND ACCOUNTING HANDBOOK
CHAPTER 50 - ACCOUNTING
a. Granger-Thye cabin CWFS collection account(s).
(1) Determine the total amount collected in the Granger-Thye cabin permit CWFS
account during the prior Fiscal Year, less any refunds as identified by expenditures in
work activity TS416 using the Final Unit Financial Statement for the previous Fiscal
Year.
(2) Calculate the total collection assessment rate as follows:
Forest Indirect Rate + RO Indirect Rate
1 + Forest Indirect Rate + RO Indirect Rate
(3) Multiply the net collections determined in step (1) by the collection assessment
rate calculated in step (2).
Forest Indirect Rate + RO Indirect Rate x Net Prior Year Collections
1 + Forest Indirect Rate + RO Indirect Rate (Collections Less Refunds
(4) Prepare an AD-742, Type 81-R, to adjust these amounts by crediting the regular
Granger-Thye cabin permit collection management code and debiting the indirect
charge management code.
b. All other CWFS collections.
(1) Collections for all other agreements within CWFS for which an indirect expense
assessment is required are to be assessed when the project funds are collected.
Determine the amount of the assessment using the formula described in (2) above.
This will require that the Bill-for-Collection have two management codes on it, one
for the collection of project funds and the other for the indirect charges portion. This
method will collect the indirect assessment up front and the project account will never
need to be assessed for indirect charges.
c. Withdrawal of Regional Office share.
Forests will furnish to the RO their CWFS indirect charge management code and the
RO indirect assessment amount by September of each Fiscal Year. The RO will
process an adjustment document, AD-742, Type 81-R withdrawing these amounts
from each Forest and placing them in a corresponding Regional Office indirect
expense account. The remaining balance in the indirect charge account shall be used
for Forest indirect expenses.
R-10 SUPPLEMENT 6509.11K-2006-5
EFFECTIVE DATE: 06/23/2006
DURATION: This supplement is effective until superseded or removed.
6509.11k_50
Page 25 of 25
FSH 6509.11K – SERVICE-WIDE FINANCE AND ACCOUNTING HANDBOOK
CHAPTER 50 - ACCOUNTING
(1) Calculate the RO indirect assessment amount as follows:
RO Indirect Rate
1 + Forest Indirect Rate + RO Indirect Rate
X
Net Prior Year Collections
(2) Calculate the Forest's indirect assessment amount as follows:
Forest Indirect Rate
1 + Forest Indirect Rate
X
Net Prior Year Collections
Less RO Indirect Assessment