Presentation on theme: "GASB#34 Asset Management TEAM Transportation Fair Presentation by: Charles J. Nemmers, P.E. Charles J. Nemmers, P.E. October 8, 2004St. Louis, Missouri."— Presentation transcript:
GASB#34 Asset Management TEAM Transportation Fair Presentation by: Charles J. Nemmers, P.E. Charles J. Nemmers, P.E. October 8, 2004St. Louis, Missouri October 8, 2004St. Louis, Missouri
Today’s Presentation: Define: ”What is GASB#34 ? Why Should I Care?” Why is it important “Why Worst First Is Worst” Implement: “Asset Management”
GASB Government Accounting Standards Board NOT a government agency Sets standards for States and Local entities Basis of audit opinions
#34 “Basic Financial Statements and Management’s Discussion and Analysis for State and Local Governments” June 1999 Changed reporting from Optional to Required
GASB #34 Objective: To make government accounting more like private sector accounting Defined Infrastructure Assets –roads –bridges –water and sewer systems –drainage systems –dams, tunnels,...
Asset Valuation: GASB #34 Requirements: state and local agencies to include the value of physical assets in their financial statements value based on depreciated historical cost, or historical cost without depreciation if the agency can demonstrate that they: –inventory their assets –assess every 3 years –spend funds sufficient to maintain at an established condition.
Combined Reconstruct and Rehab Strategies (15, 20 & 25 Years Design Life)
Combined Reconstruct, Rehab, and Preventive Maintenance Strategies
Keys to Success (from MiDOT/GaDOT): Promote Preventive Maintenance Philosophy Fix pavements BEFORE they are broken-select good pavements for treatment Budget & fund Preventive maintenance Shorten the time between assessment and maintenance Build them excellent the first time
“Asset Management” to meeting GASB #34 using the Modified Approach “Asset Management” to meeting GASB #34 using the Modified Approach
Asset Management What is it? Improved way of doing business Draws from economics & engineering Focuses on benefit of investment Shows How, When & Why resources were committed Planning tool
Asset Management Inventory assets Condition assessment Value Assets Performance prediction Alternative / Decision analysis Monitor and feedback
Network Performance Objectives (Recommendations) State Network Interstate +12 Years5% or less +15 Years3% or less Percent Requiring Reconstruction Average RSL Arterials/Major Collectors (NHS and High Volume Roads) Major Collectors (Low Volume) and Minor Collectors + 10 Years5% or less No more than 5%10 Year(min.) Local Roads and Streets