1501 Overview

This chapter establishes the Department of Veterans Affairs’ (VA) financial policies regarding the following types of real property agreements: revocable licenses, permits, enhanced sharing use of space agreements, outleases, easements, land acquisitions, quarters agreements, and historic outleases.

Key points covered in this chapter:

• VA will enter into real property agreements in accordance with applicable statutes, regulations, and other guidance as promulgated by authorized Federal authorities;
• VA will comply with Statement of Federal Financial Accounting Standards (SFFAS) 1 and 5 when recording expenses for real property agreements;
• VA will comply with SFFAS 7 when recording revenue collected for real property agreements;
• VA will comply with SFFAS 54 for applicable real property agreements that meet or exceed VA’s lease capitalization threshold;
• Real property agreements will be approved and executed in accordance with Office of Construction and Facilities Management (CFM) Office of Real Property (ORP) policy, with the exception of enhanced sharing use of space agreements;
• Enhanced sharing use of space agreements will be approved and executed in accordance with VHA Directive 1820;
• Office of General Counsel (OGC) concurrence is required on real property agreements prior to execution as required by CFM ORP policy;
• VA will comply with the National Environmental Policy Act (NEPA) and the National Historic Preservation Act (NHPA) before granting or receiving applicable real property agreements; and
• Administrations may approve and execute certain real property agreements in accordance with CFM ORP policy.

1502 Revisions

Section	Revision	Office	Reason for Change	Effective Date
All	New chapter	OFP	Create financial policy for real property agreements that are not covered in other Volume V chapters	July 2026

1503 Definitions

Accounting Classification Code (ACC) – A nine-digit character code defined in the Financial Management System (FMS) and established for each budget fiscal year. FMS contains information on standard ACCs used by more than one station and non-standard codes that are used by a single station. Users may identify the standard ACCs by an asterisk in the Station field.

Agreement Number – A unique identifier assigned in Capital Asset Inventory (CAI) to a license, permit, outlease or enhanced sharing use of space agreement as well as other agreement types. New agreement numbers are assigned by the Office of Asset and Enterprise Management (OAEM) within the CAI database. Legacy agreements using CAI Real Property Unique Identifier (CRPUID)/ACC identifiers have station assigned agreement numbers.

Capital Asset Inventory (CAI) – VA’s enterprise-wide repository of information on the Department’s real property assets, including leases, Enhanced-Use Leases (EULs), agreements, buildings, land, structures, facility condition assessment data, and other asset information. Information in CAI is used by OAEM and other Staff Offices to record and track VA’s capital assets including real property agreements.

CAI Real Property Unique Identifier (CRPUID) – A unique identifier, generated by OAEM, used to track real property agreements and their associated costs. The unique ID begins with the prefix ‘LG’ for leases and occupancy agreements. The CRPUID is recorded and stored in the CAI database as the accounting classification code (ACC).

Easement – An interest in real property that conveys to the grantee the right of use, but not ownership, of a portion of the grantor’s property.

Enhanced Sharing use of Space Agreement (ESS) – A contract or other form of agreement that provides for the sharing of health-care resources pursuant to 38 U.S.C. § 8153, which allows VA to plan for the mutual use, or exchange of use, of health-care resources between VA health-care facilities and any health-care provider, or other entity or individual. Refer to 38 U.S.C. Ch. 17.

Historic Outleases – An outlease (or exchange) of federally-owned historic properties to public or private entities under 54 U.S.C. §§ 306121-306122 for alternative uses after consultation with the Advisory Council on Historic Preservation (ACHP). Federal agencies may also enter into agreements with outside entities for the management of the historic buildings or property.

Land – Real estate exclusive of any buildings or other assets situated on the property. The owner may be awarded the right to use all natural resources on and under the land, which may include water rights, fishing rights, mining rights, and so forth.

Lease – Per SFFAS 54, a contract or agreement whereby one entity (lessor) conveys the right to control the use of property, plant, and equipment (PP&E) (the underlying asset) to another entity (lessee) for a period of time as specified in the contract or agreement in exchange for consideration. Leases include contracts or agreements for real property and equipment that meet the definition of a lease and for contracts or agreements that, although not explicitly identified as leases, meet the definition of a lease. A lease excludes contracts or agreements for services, except those contracts or agreements that contain both a lease component and a service component.

Lessee – The entity that enters into a lease contract to obtain the right to use an underlying asset for a period of time in exchange for consideration. A lessee is also known as a tenant.

Lessor – The entity that enters into a lease contract to provide the right to use an underlying asset for a period of time to a lessee in exchange for consideration. A lessor is also known as a landlord.

Licensee –The party or entity to whom a revocable license is granted.

Licensor –The party or entity granting a revocable license to someone else.

Market Value – Market value is the amount in cash, or on terms reasonably equivalent to cash, for which in all probability the property would have sold on the effective date of value, after a reasonable exposure time on the open competitive market, from a willing and reasonably knowledgeable seller to a willing and reasonably knowledgeable buyer, with neither acting under any compulsion to buy or sell, giving due consideration to all available economic uses of the property.

Outleases – Convey a leasehold interest in VA real property to a tenant pursuant to the terms of the agreement. Outleases issued to any public or nonprofit organization may provide for the maintenance, protection, or restoration of the leased property by the lessee as a part or all of the consideration for the lease.

Permit – A revocable license granted by one Federal agency to another. A permit may be issued to a Federal entity to use VA real property or issued to VA to use another Federal entity’s property. Allows a permit holder to use another Federal agency’s space or land without acquiring a real estate interest.

Permittee –The Federal agency to whom a permit is granted by another Federal Agency.

Permitter –The Federal Agency granting a permit to another Federal agency.

Quarters Agreements – Real property agreements that allow VA employees to be housed within designated quarters buildings on VA property.

Real Property – Land, buildings, facilities, or other structures, firmly attached, including integrated equipment (i.e., items permanently installed or attached that have become a part of the building or structure for the purpose of making the building habitable or usable). Executive Order 13327 defines Federal Real Property as any real property owned, leased, or otherwise managed by the Federal Government, including improvements on Federal lands irrespective of the property’s location.

Revenue Source Code – A standard agency-defined code which classifies revenue and receipt transactions by the type or source of revenue.

Revocable License – Allow the use of a licensor’s space without acquiring any real estate interest. Commonly referred to as a license. It may be issued for VA’s use of non-Federal property or for a non-Federal entity to use VA real property. Typically, a license is personal, non-assignable, and revocable. Duration is temporary with non-Federal entities.

Strategic Capital Investment Planning (SCIP) – A Department-wide annual process that integrates planning for major construction, minor construction, non-recurring maintenance (NRM) and leasing programs. The SCIP process results in two primary annual planning products: a comprehensive long-range action plan, consisting of specific capital investments necessary to address infrastructure performance gaps in safety, security, access, condition, utilization, and space to improve the quality, access, and cost-efficiency of the delivery of VA benefits and services over a 10-year period; and a prioritized list of projects used to create the fiscal year’s capital budget.

1504 Roles and Responsibilities

Office of Acquisition, Logistics and Construction (OALC) is responsible for the direction and oversight of construction and facilities management.

Office of Construction & Facilities Management (CFM), Office of Real Property (ORP) is an office within OALC. With respect to real property agreements, CFM is delegated authority to manage VA’s real property leasing through 38 U.S.C. § 312A. CFM is also the delegated office responsible for management and oversight of VA’s real property programs, including development of policies, providing oversight of real property services, and executing non-delegated land management activities.

Office of Asset and Enterprise Management (OAEM) is the CAI system owner tracking all existing real property agreements. OAEM is responsible for overseeing the SCIP process, managing VA’s capital asset portfolio, and assigning a CAI Real Property Unique Identifier (CRPUID) to every real property agreement in FMS.

Office of General Counsel (OGC) is responsible for review and concurrence of real property agreements to ensure legal requirements are met prior to execution.

Director, Veterans Affairs Medical Center (VAMC), Veterans Integrated Service Network (VISN), or independent VA outpatient clinic is responsible for overseeing real property agreements within their purview.

Facility Manager/Engineer, or designee is responsible for entering and maintaining real property agreement data in the CAI database, requesting an accounting classification code, revenue source code or CRPUID from OAEM, coordinating with the local finance office to ensure that agreement information is processed in VA’s accounting system, and certifying on an annual basis that real property data in CAI is up-to-date and accurate.

Local Finance Offices are responsible for selecting the appropriate revenue source codes or budget object codes for real property agreements, and for coordinating with local facilities management or engineering offices to update CAI for new and expiring real property agreements.

1505 Policies

150501 General Policies

1. VA may enter into various types of real property agreements, such as:
   • Revocable Licenses;
   • Permits;
   • Enhanced Sharing Use of Space Agreements (ESSs);
   • Outleases;
   • Easements;
   • Land Acquisitions;
   • Quarters Agreements; and
   • Historic Outleases.
2. In accordance with 38 U.S.C. § 8122, VA may procure and dispose of real property. For additional information, refer to Volume V, Chapter 7 – General Property, Plant, and Equipment.
3. VA will adhere to the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended for applicable real property agreements, which requires VA to ensure that real property acquired for Federal and federally assisted projects is treated fairly and consistently.
4. The Office of Real Property (ORP), within the Office of Construction and Facilities Management (CFM) and Administrations and Staff Offices may approve and execute certain real property agreements, such as revocable licenses and permits, in accordance with CFM ORP policy.
5. CFM ORP will serve as the sole approving and executing authority for all historic outleases and easements involving real property assets under VA’s jurisdiction. Exceptions to this are not permitted unless explicitly authorized in writing by the Executive Director, ORP, or a duly delegated authority. Delegations must be justified, documented in writing, and have legal concurrence.
6. In accordance with 42 U.S.C. § 4321 , VA will conduct an environmental assessment to achieve the fullest possible use of the property by avoiding or minimizing adverse environmental consequences.
7. In accordance with 54 U.S.C. § 300101, VA will identify and preserve historic properties before granting or receiving applicable real property agreements.
8. Office of General Counsel (OGC) review and concurrence must be obtained before execution of a real property agreement.
9. VA will comply with policy guidance contained in VA’s Strategic Capital Investment Planning (SCIP) Directive and Handbook 0011 for capital investment planning to reduce or close performance gaps in access, workload and utilization, safety, space, and facility condition over a 10-year period.
10. VA will adhere to provisions of applicable real property agreements when acting as the lessee, licensee, or permittee; this includes but is not limited to payment obligations, operational provisions, and license or permit requirements.

150502 Revocable Licenses

1. VA may enter into a revocable license agreement as either a licensee or licensor.
2. In accordance with CFM policy, VA cannot replace a real property lease with a revocable license.
3. VA may issue a non-assignable, revocable license to a non-Federal entity to use VA’s space or land without acquiring a real estate interest for a maximum of five years, which includes option years.
4. In accordance with 40 U.S.C. § 586, VA will charge for space utilized under a revocable license. Proceeds from revocable licenses will be deposited as miscellaneous receipts to the U.S. Treasury.
5. When VA is the licensor, rates approximating commercial charges for comparable space and services will be charged. Documentation illustrating how the rate was calculated must be retained for management and audit purposes.
6. Revokable licenses will be issued at no-cost/no-consideration when VA is the licensee. License agreements that are not revocable and/or involve reimbursement of any kind must be referred to a VA contracting office to establish a lease or service contract.
7. A license agreement is required to be completed and executed for a no-cost license.

150503 Permits

1. In accordance with 40 U.S.C. § 586, VA will charge for space utilized under a permit.
2. VA may issue a permit to another Federal entity or be issued a permit by another Federal entity that grants permission to use real property space and land. Proceeds from permits will be deposited as miscellaneous receipts to the U.S. Treasury.
3. Permits for the use of real property must serve some useful purpose or be beneficial to the Government.
4. Permits executed by Administrations will have a maximum term of five years, including all option years. Permits executed by CFM ORP may exceed five years without option years being required. Staff Offices do not have the authority to issue permits and must contact CFM ORP if needed.

150504 Enhanced Sharing Use of Space Agreements (ESS)

1. In accordance with 38 U.S.C. § 8111 and 38 U.S.C. § 8153, VA may make arrangements, by contract or other form of agreement for the mutual use, or exchange of use, of health-care resources between VA health-care facilities and any health-care provider, or other entity or individual. Under this authority VA may secure health-care resources in the form of ESS, which otherwise might not be feasibly available, or to effectively utilize certain other health-care resources when in the best interest of the prevailing standards of the VA medical care program. Refer to VHA directive 1660 for additional information.
2. In accordance with 38 U.S.C. § 8153(b), any proceeds received from an ESS agreement shall be credited to the applicable Department appropriation and to funds that have been allotted to the facility that furnished the resource(s) involved.
3. If an ESS contains or relates to a historic property, NHPA and NEPA clearance is required prior to execution.
4. Enhanced sharing use of space agreements will be approved and executed in accordance with VHA Directive 1820. Refer to VHA program office at sharinguseofspace@va.gov for additional review and recommendations.

150505 Outleases

1. NCA, VHA and VBA may utilize Outleases to enter into agreements to lease buildings and land, or portions of buildings or land parcels to non-VA entities. Outleases work best for rooftop antenna agreements, child-care services, office space for labor unions, space used by Veteran Service Organizations, agricultural use of vacant land, and NCA Lodge Leases. For outleases needed for child-care centers, questions should be directed to the National Child Care Program Office (NCCPO) at VHANCCP@va.gov. 
2. In accordance with 38 U.S.C. § 2412:
   • NCA Outleases may not exceed 10 years; and
   • NCA will recognize proceeds in the National Cemetery Administration Facilities Operation Fund (i.e.,036X5392).
3. In accordance with 38 U.S.C. § 8122:
   • VHA and VBA Outleases may not exceed three years; and
   • VHA and VBA will recognize proceeds from such Outleases, less expenses for maintenance, operation, and repair of buildings for living quarters as miscellaneous receipts to the U.S. Treasury.
4. In accordance with VHA Directive 1025.02, VA may enter into an outlease agreement that allows VA medical facilities to allot space for the provision of child-care services to enhance productivity through improved staff recruitment and retention, reduce employee absenteeism and build employee morale, thereby furthering VA’s health care mission and promoting VA employees’ work-life balance. VA may outlease existing renovated space or new construction to a non-profit or for-profit entity for the operation of a child-care program.
5. Prior to the execution of an outlease, VA must make public notice of the agreement in the community in which the land or building concerned is located.
6. CFM will provide additional guidance regarding specific scenarios or circumstances for outleases. Contact CFM ORP Policy and Programs for policy inquiries or CFM ORP Land Management Division at VACO003C7APolicyandProgramsTeam@va.gov for assistance.

150506 Easements

1. In accordance with 38 U.S.C. § 8124, VA may grant or acquire an easement or right-of-way. Easements may be granted with or without consideration, or with monetary or other consideration, including an interest in real property.
2. VA will submit easement requests to CFM ORP  at VACO003C7APolicyandProgramsTeam@va.gov for review and approval .
3. Proceeds from easements will be deposited as miscellaneous receipts to the U.S. Treasury.

150507 Land Acquisitions

1. Land Acquisitions are executed by CFM ORP  for fee simple ownership in support of a minor or major construction project, easement acquisition, transfer, donation, devises and bequests, and in-kind exchanges (38 U.S.C. §§ 115, 2406, 2407, 8103, 8104, 8108, 8109, 8115, 8118, and 8301-8305, and 40 U.S.C. § 1314).
2. Land acquisitions must be approved and executed in accordance with CFM ORP policy, which includes but is not limited to the following requirements:
   1. VA Project managers must obtain Client Administration approval or Congressional Authorization/Appropriation for associated land acquisition.
   2. VA will issue a Letter of Intent to Purchase.
   3. VA will complete due diligence investigations of the Property.

150508 Quarters Agreements

1. In accordance with 5 U.S.C. § 5911, VA will maintain a  Quarters Management Program.
2. VA will comply with VA Directive 7631, Quarters Management for quarters that are under the jurisdiction or control of the Department.
3. In accordance with OMB Circulars A-25 and A-45, VA will charge a rental fee that is at market value for Quarters Agreements between VA and VA employees.
4. VA will ensure rates approximating commercial charges for comparable space in the same area will be charged for government quarters. Documentation illustrating how the rate was calculated will be retained for management and audit purposes.
5. The amounts charged for rent will be deducted from an employee’s pay using the applicable appropriation or fund according to the employee’s duty station.
6. VA will ensure rents and charges collected for the use of quarters, will be deposited in a special fund, to remain available until expended, for the maintenance and operation of the applicable VA quarters.

150509 Historic Outleases

1. In accordance with 54 U.S.C. § 306121, VA will seek adaptive uses of historic properties under its jurisdiction or control that can no longer be used for agency purposes and will review these assets for outlease potential prior to considering demolition or removal. For additional information, see VA Directives 7545 and 7633.
2. VA may lease its historic properties to any person or organization, in whole or in part, if the lease will adequately ensure the preservation of the historic property. Examples include vacant land, parking, or office space.
3. VA will utilize the proceeds of a Historic Outlease to defray the costs of administration, maintenance, repair, and related expenses incurred by the agency related to its historic properties.
4. Any surplus proceeds will be deposited in the U.S. Treasury at the end of the second fiscal year following the fiscal year in which the proceeds are received.
5. VA may enter into a contract for the management of its historic property. The contract shall contain terms and conditions that VA considers necessary or appropriate to protect the interests of the United States and ensure adequate preservation of the historic property.
6. CFM ORP will manage VA’s Historic Reuse Program, provide screening of VA assets, and support the development of Historic Outleases for eligible VA assets.

150510 Accounting for Other Real Property Agreements

1. In accordance with SFFAS 7, VA will recognize and record revenue when real property agreements are established with Federal or non-Federal entities.
2. VA will adhere to SFFAS 54 for applicable real property agreements that meet VA’s lease capitalization threshold.
3. Fully executed VA real property agreements, except for quarters agreements, must be entered into CAI as a “proposed” agreement by the individual organization entering into the agreement.
4. Organizations will request OAEM to assign a CAI Real Property Unique Identifier (CRPUID) to each “proposed” real property agreement.
5. Once a CRPUID code is assigned the station will mark the agreement as “Operational” in CAI.
6. The CRPUID will be used to track the real property agreement and related data in CAI and in VA’s accounting systems (The Financial Management System (FMS) and the Integrated Financial and Acquisition Management System (iFAMS)). In FMS the CRPUID will be recorded in the Accounting Classification Code (ACC) field. In iFAMS the CRPUID will be recorded in the Lease Agreement Number field.
7. VA will use revenue source codes (RSCs) to record the revenue collected from real property agreements.
8. VA’s RSCs have a standardized and unique numbering scheme which is based upon the type of real property agreement. For revenue generated from:
   1. ESS agreements, RSCs will begin with an alpha character of “A” followed by three sequential numbers in FMS (e.g., A133) and followed by five alphanumeric characters in iFAMS (e.g., A00R05).
   2. Outleases, Permits, and Revocable Licenses, RSCs will begin with an alpha character of “U” followed by three sequential alphanumeric numbers in FMS (e.g., UL28) and followed by five alphanumeric characters in iFAMS (e.g., U00R03). For additional information, refer to Volume IX, Chapter 8 – VA’s Accounting Classification Structure.
9. VA will use Budget Object Class Codes when accounting for expenses incurred for real property agreements in accordance with OMB Circular A-11. For additional information, refer to Volume XIII, Chapter 2 – Budget Object Class Codes.
10. Obligations will be established for applicable real property agreements in accordance with 31 U.S.C. § 1341, Limitations on Expending and Obligating Amounts and Volume III, Chapter 2 – Obligations; Chapter 3 – Non-Contractual Obligations; and Chapter 4 – 1358 Obligations.

150511 Financial Reporting and Disclosure of Other Real Property Agreements

1. VA will report and disclose real property agreement transactions in accordance with OMB Circular A-136 and Federal Accounting Standards Advisory Board (FASAB) authoritative guidance in SFFAS 1, 4, 5, 6, 7, 54, and 59.
2. OAEM will provide the real property information required to be included in the financial statement disclosures  required by OMB Circular A-136. This includes but is not limited to the number of leases, cancellable and non-cancellable agreements, heritage and historical asset data; and other real property data that will change year-to-year.

1506 Authorities and References

• United States Code (U.S.C.)
  • 5 U.S.C. § 5911, Quarters and Facilities; Employees in the United States
  • 31 U.S.C. § 1341, Limitations on Expending and Obligating Amounts
  • 38 U.S.C. § 115, Acquisition of Real Property
  • 38 U.S.C. Ch. 17, Hospital, Nursing Home, Domiciliary, and Medical Care
  • 38 U.S.C. § 2406, Acquisition of Lands
  • 38 U.S.C. § 2407, Authority to Accept and Maintain Suitable Memorials
  • 38 U.S.C. § 2412, Lease of Land and Buildings
  • 38 U.S.C. § 312A, Director of Construction and Facilities Management
  • 38 U.S.C. § 8103, Authority to Construct and Alter, and to Acquire Sites for, Medical Facilities
  • 38 U.S.C. § 8104, Congressional Approval of Certain Medical Facility Acquisitions
  • 38 U.S.C. § 8108, Contributions to Local Authorities
  • 38 U.S.C. § 8109, Parking Facilities
  • 38 U.S.C. § 8111, Sharing of Department and Department of Defense Health-Care Resources
  • 38 U.S.C. § 8115, Acceptance of Certain Property
  • 38 U.S.C. § 8118, Authority for Transfer of Real Property; Department of Veterans Affairs Capital Asset Fund
  • 38 U.S.C. § 8122, Authority to Procure and Dispose of Property and to Negotiate for Common Services
  • 38 U.S.C. § 8124, Grant of Easements in Government-Owned Lands
  • 38 U.S.C. § 8153, Specialized Medical Resources
  • 38 U.S.C. §§ 8301 – 8305, Authority to Accept Gifts, Devises, and Bequests; Legal Proceedings; Restricted Gifts; Disposition of Property; Savings Provision
  • 40 U.S.C. § 586, Charges for Space and Services
  • 40 U.S.C. § 1314, Easements
  • 42 U.S.C. Ch. 55, National Environmental Policy
  • 42 U.S.C. Ch. 61, Uniform Relocation Assistance and Real Property Acquisition Policies for Federally Assisted Programs
  • 54 U.S.C. Subtitle III, National Preservation Programs
• A National Strategy for Reducing the Federal Government’s Real Estate Footprint
• Executive Order 13327
• Federal Accounting Standards Advisory Board (FASAB) Handbook by Chapter
  • SFFAS 1, Accounting for Selected Liabilities and Assets
  • SFFAS 4, Managerial Cost Accounting Standards and Concepts
  • SFFAS 5, Accounting for Liabilities of the Federal Government
  • SFFAS 6, Accounting for Property, Plant and Equipment
  • SFFAS 7, Accounting for Revenue and Other Financing Sources and Concepts for Reconciling Budgetary and Financial Accounting
  • SFFAS 54, Leases
  • SFFAS 59, Accounting and Reporting of Government Land
• Federal Acquisition Regulations
• Code of Federal Regulations (C.F.R.)
  • 38 C.F.R. Chapter 1 Part 26, Environmental Effects of the Department of Veterans Affairs
• OMB Circulars
  • OMB Circular A-11, Preparation, Submission, and Execution of the Budget
  • OMB Circular A-25, User Charges
  • OMB Circular A-45, Rental and Construction of Government Quarters
  • OMB Circular A-136, Financial Reporting Requirements
• OMB Memorandum No. 2015-01, Reduce the Footprint   
• VA Financial Policy Publications
  • Volume III, Chapter 2 – Obligations
  • Volume III, Chapter 3 – Non-Contractual Obligations
  • Volume III, Chapter 4 – 1358 Obligations
  • Volume V, Chapter 7 – General Property, Plant and Equipment
  • Volume IX, Chapter 8 – VA’s Accounting Classification Structure
  • Volume XIII, Chapter 2 – Budget Object Class Codes
  • Volume XV, Chapter 4 – Deductions
• VA Directive 0011, Strategic Capital Investment Planning Process
• VA Directive 7545, Cultural Resources Management at VA National Cemeteries
• VA Directive 7631, Quarters Management
• VA Directive 7633, Managing Underutilized Real Property Assets, including Options for Reuse and Disposal
• VHA Handbook 1025.02, Oversight of Childcare Services Operations
• VHA Handbook 1660, Department of Veterans Affairs – Department of Defense Health Care Resources Sharing Agreements
• VHA Directive 1820, Enhanced Sharing Use of Space Program
• VA CFM ORP Policies, Procedures and Regulations
• Office of Construction & Facilities Management Information Letter, Guidelines for Execution of Outleases, Licenses, and Permits
• CFM ORP SharePoint Site

1507 Rescissions

None.

Appendix A: Previous Policy Revisions

None.

Appendix B: Tracking Real Property Agreements in FMS

1. VA’s Financial Management System (FMS) uses CRPUID to track real property agreements. The following steps will be used to assign CRPUID to real property agreements:
   1. All new and existing real property agreements for Administrations using FMS must have a CRPUID which will remain the same throughout the life of the agreement term and any extensions.
   2. Each individual agreement is an asset and is tracked by OAEM within CAI.
   3. The local finance officer, budget officer or equivalent, of the real property agreement entity will submit applicable CRPUID request forms to OAEM.
   4. OAEM will review real property agreement CRPUID request forms and assign a unique CRPUID to each individual lease.
   5. Once a CRPUID code is established, the local finance office will coordinate with Facilities Management (or the engineer) who has the responsibility to input the remaining asset data into the Capital Asset Inventory (CAI) database.
2. Facilities Manager/Engineer or designee updates and maintains the real property agreement status by following the steps below:
   1. When a real property agreement is no longer active or operational the agreement’s status will have to be changed from “Operational” to “Inactive” in CAI.
   2. If there are any amendments, the amendments will be uploaded into CAI.
   3. A copy of the real property termination amendment will be provided to the local finance officer when a real property agreement is no longer active or operational.

Appendix C: Tracking Real Property Agreements in iFAMS

1. For Administrations using VA’s new accounting system, VA is responsible for monitoring and managing real property agreements by following the steps below:
   1. The Organization (i.e., station) will enter the real property agreement into CAI and ensure the terms are accurately captured in CAI.
   2. A CRPUID is generated within CAI once agreement has been fully executed.
   3. The Facilities Manager/Engineer or designee is not required to upload the Agreement in CAI.
   4. The agreement number/CRPUID will be provided to the local finance officer for entry into iFAMS.
   5. A copy of the fully executed agreement will be provided to the local finance officer.
2. Facilities Manager/Engineer or designee updates and maintains the real property agreement status by following the steps below:
   1. When a real property agreement is no longer active or operational the agreement’s status will have to be changed from “Operational” to “Inactive” in CAI.
   2. If there are any amendments, the amendments will be uploaded into CAI.
   3. A copy of the real property termination amendment will be provided to the local finance officer when a real property agreement is no longer active or operational.