• What are the most effective methods for condition assessments for GASB 34 reporting and asset management?
• How are the variability and the reliability of condition assessment methods used in estimating expenditures for GASB 34 reporting?
• What are the preferred methodologies used to develop minimum acceptable condition levels and how can differences between the levels set for GASB 34 reporting and asset management be reconciled?
• What effective methods are used to (1) estimate the expenditures required to meet the minimum acceptable condition level and (2) compare that estimate to actual expenditures in a manner that meets GASB 34 and asset management objectives?
• How do agencies define and track capitalization costs and preservation expenses? Are these methods meeting the intent of GASB 34 reporting?
• What are the effective approaches used to account for additions, retirements, and replacements of infrastructure assets in financial statements?
• How have bond ratings been affected and what factors are important in the bond rating agencies' review?
• What are the operational and financial impacts of reporting under GASB 34?

• How have DOTs used GASB 34 reporting requirements to improve asset management practices and optimize transportation infrastructure performance?

Examining the effective methodologies that integrate infrastructure inventory, condition assessments, minimum acceptable condition levels, and funding decisions with GASB 34 reporting requirements and assessing the operational and financial impacts of reporting under GASB 34 (1) can lead to improved practices on the integration of asset management data into the financial statement reporting process and (2) may help achieve better operational and financial results.

This information will be helpful to professionals who work with state DOTs and local governments in the areas of finance, auditing, asset management, and policy making.

OBJECTIVE

The objective of this research is to prepare a recommended practices guide that (1) identifies effective methodologies that integrate infrastructure inventory, condition assessments, minimum acceptable condition levels, and funding decisions with GASB 34 reporting requirements and (2) assesses the operational and financial impacts of reporting under GASB 34.

Accomplishment of the project objective will require at least the following tasks.

TASKS

Phase I (1.) Review relevant literature, practice, research findings, and other information, including research in progress related to the questions set out in the Background section of this project statement. (2.) Review the survey results found in NCHRP Report in 522: A Review of DOT Compliance with GASB 34 Requirements and NCHRP Web Document 63. (3.) Based on the findings of Tasks 1 and 2, identify candidate organizations for further analysis. Candidate organizations may include representative transportation agencies, local governments, professional associations, public works utilities, private industry, universities, and other organizations that use effective methodologies to integrate infrastructure inventory, condition assessments, minimum acceptable condition levels, and funding decisions with GASB 34 reporting requirements. Identify the selection criteria used to prepare the list of candidate organizations for further analysis. Prepare the list of recommended candidate organizations and any additions to the fundamental questions posed in the Background of this statement. (4.) Update and provide a more detailed work plan for Phase II that indicates how data will be collected at the candidate organizations and the specific methodology that will be pursued to answer the questions outlined in the Background section of this research project statement. Data collection techniques may include, but not necessarily be limited to, focus groups, surveys, and interviews. (5.) Prepare an interim report that documents the research efforts and findings of Tasks 1 through 4. The interim report shall be submitted within 4 months after contract execution. The Panel will meet with the research team to review and approve the candidate organizations and any revision to the work plan prior to proceeding to Task 6. The research plan shall provide a 2-month period for review and approval of the interim report.

Phase II (6.) Execute the approved work plan, analyze and evaluate the data, identify best practices and potential improvements, and compile results. (7.) Based on the results of Task 6, recommend practices to most effectively integrate infrastructure inventory, condition assessments, minimum acceptable condition levels, and funding decisions with GASB 34 reporting requirements. Assess the operational and financial impacts of reporting under GASB 34. (8.) Prepare the following deliverables: (1) a final report documenting the entire research effort; (2) a recommended practices guide that includes a glossary (3) an executive summary; and (4) a CD-ROM containing the final report, supporting documentation, executive summary, and a PowerPoint presentation summarizing the research findings.

Status: Product Availability: NCHRP Report 608.