GASB 34: Asset Management and GIS Jarrod Gerbaud Hansen Information Technologies

Presentation will show... GASB 34 approaches GASB 34 approaches Ideas how to implement GASB Ideas how to implement GASB Necessity for asset and work management systems Necessity for asset and work management systems

GASB 34 GASB 34 for Dummies Sweeping revision of the current financial reporting model (in place since 1979). Depreciation for governmental activities The BIG One: Recording infrastructure as capital assets— and expensing them through depreciation

GASB 34 Federally mandated Federally mandated Additional administrative and operative costs with... Additional administrative and operative costs with... No federal funding No federal funding Increased accountability Increased accountability

GASB 34 Up-to-date Inventory of assets Up-to-date Inventory of assets Condition assessments of assets Condition assessments of assets Annual estimates of the amount needed to maintain and preserve the assets Annual estimates of the amount needed to maintain and preserve the assets Requires mapping and recording of infrastructure Requires a condition survey of the storm water system Maintaining of record keeping annual assessment of the effectiveness of maintenance schedules

Challenges of GASB 34 Infrastructure Reporting Depreciation Accounting Modified Approach (Toughest) Straight Depreciation (Easiest)

Infrastructure Reporting Inventory of all Assets, their condition, location, age and maintenance costs associated (Capital and Maintenance costs)

Approaches Modified Requires full Asset catalog of inventory Asset condition levels Defined inspection schedules Track maintenance costs to assets individually Comparisons between actual and estimated costs for the last 5 years

Approaches Depreciation Net Cost = Historical Value – Salvage Value Asset values Asset age

Answer: Streamline Efforts! Combine implementation within Public Works Combine implementation within Public Works –formally:project management –informally:cross-functional team I.e engineers & business managers (scared yet?) Involve other departments Involve other departments

Detailed Suggestions Inventory and evaluate assets Inventory and evaluate assets Report all activities against assets Report all activities against assets Establish periodic inspections and preventive maintenance schedules Establish periodic inspections and preventive maintenance schedules

Key elements of a good Asset Management System for GASB 34 Compliance Manages inventory systems Manages inventory systems Has the ability to perform conditions assessments on a measurable scale Has the ability to perform conditions assessments on a measurable scale Allows to run “what - if” projections Allows to run “what - if” projections Tracks routine maintenance against assets Tracks routine maintenance against assets Allows to integrate data easily to GIS Allows to integrate data easily to GIS