Appendix

 

Detailed Summaries of

Organizations Surveyed



Organizations Surveyed:

 

 

Professional Organizations & Agencies

 

American Association of State Highway and Transportation Officials (AASHTO)

American Concrete Pavement Association (ACPA)

American Public Transportation Association (APTA) & Federal Transit Administration (FTA)

American Public Works Association (APWA)

American Road and Transportation Builders Association (ARTBA)

American Society of Civil Engineers (ASCE) & Civil Engineering Research Foundation (CERF)

Federal Highway Administration (FHWA)

Foundation for Pavement Preservation (FP2)

Governmental Accounting Standards Board (GASB)

National Association of County Engineers (NACE)

Transportation Research Board (TRB)

 

Educational Organizations

 

Local Technical Assistance Program  (LTAP)

Midwest Transportation Consortium (MTC) & Center for Transportation Research in Engineering (CTRE) - Iowa State University, Ames, Iowa

Midwest Regional University Transportation Center (MRUTC) – University of Wisconsin, Madison, Wisconsin

Urban Transportation Center (UTC) – University of Illinois – Chicago, Chicago, Illinois

University Transportation Research Center (UTRC) & the Rudin Center for Transportation Policy and Management – City College of New York, New York City, New York

 

International Organizations

 

Canadian Programs:

·   Federation of Canadian Municipalities (FCM)

·   National Research Council of Canada (NRCC)

International Road Federation (IRF)

Organization for Economic and Cooperative Development (OECD)

World Road Federation (PIARC)

 



 

 

 

 

 

 

 

Professional Organizations

Working in Asset Management


American Association of State Highway and Transportation Officials (AASHTO):

(http://www.transportation.org)

 

 

Significant Past Efforts:

 

1st Executive Seminar on Asset Management:  (September 1996 – Washington DC) – 23 states attended.  One of the first conferences to bring public, private, and quasi-governmental sectors together to discuss the theory of Asset Management.

 

2nd Executive Seminar on Asset Management:  (October 1997 – Rensselaer Polytechnic Institute, Troy, NY) – Organized to evaluate current practices and develop a cooperative strategy to move forward with Asset Management. 

 

Asset Management Peer Exchange:  (December 1999 - Scottsdale, AZ) – 33 states attended.  The Exchange “provided important insights into the work that is still needed to assist the states in guiding their ongoing transportation Asset Management programs.” (AASHTO 2001 Strategic Plan Introduction)  The states of New York, Minnesota, Virginia, Montana, and Michigan were present to share past experience and gain knowledge on how to further implement Asset Management strategies.

 

GASB 34 Training:  Workshop in April 2001 to discuss the implications of GASB 34 to AASHTO member states.  Sponsored by the Tennessee Department of Transportation.

 

Current AASHTO Efforts:

 

Task Force on Transportation Asset Management:  Incorporated by the Board of Directors in 1998, current efforts by the Task Force include the following:

 

 

NCHRP Project 20-24 (11) Asset Management Guidance for Transportation Agencies:  One recommendation from the Strategic Plan is to develop an AASHTO Asset Management Guide.  The main product of this research will be a detailed framework that allows agencies to use existing knowledge and tools to start implementing Asset Management systems.  Auxiliary products will include a research agenda and a summary of best practices in states as well as national and international organizations.  A target of August 2002 has been set as the final date for issuance of this report.

 

Asset Management Communities Website:  This site is in the initial stages of development.  When fully developed, it will ideally contain a discussion forum and links to research and organizations involved in Asset Management.  The concept is to develop a portal through the web to facilitate information sharing and education. (http://assetmanagement.transportation.org/tam/aashto.nsf/home)

 

AASHTO Perspectives: 

 

Key Challenges in Asset Management:  (Taken from a presentation by Tony Kane at the 4th National Transportation Asset Management Workshop, hosted by the Midwest Regional University Transportation Center, September 2001)

 

 

Partial List of AASHTO Publications:

 

2000-2010 AASHTO Task Force on Transportation Asset Management Strategic Plan

 

Asset Management Peer Exchange, Using Past Experiences to Shape Future Practice – Executive Summary

 

Asset Management:  Advancing the State of the Art into the 21st Century through Public-Private Dialogue – Executive Summary

 

Periodic articles in the AASHTO Quarterly and AASHTO Journal

 

Suggested Contacts:

Jim McDonnell, PE

Associate Program Director for Engineering

AASHTO
444 North Capitol Street, NW
Suite 249

Washington D.C., 20001

202-624-5448

202-624-5469 (fax)

jimm@aashto.org

Other Contacts:

On the AASHTO Task Force on Transportation Asset Management:

Lou Lambert – MI DOT
Gary Hoffman – PA DOT

David Ekern – MN DOT
Tim Gilchrist – NY DOT
Sandra Straehl – MT DOT

 

Lance Newman – Cambridge Systematics

 


 

American Concrete Pavement Association (ACPA)

(http://www.pavement.com/)

 

 

Significant Past Efforts:

 

“Asset Management of Streets and Local Roads”: A technical paper and presentation describing Asset Management and how local municipalities can start integrating this concept into decision-making.  Describes why Asset Management is needed, the life cycle cost analysis methodology, and supports a conclusion that improved transportation management will include a “mix of fixes” where a variety of pavement preservation technologies will be necessary to maintain infrastructure at the desired level of service. 

 

Current ACPA Efforts:

 

Remaining Service Life Model:  The ACPA anticipates completing a model in 2002 that will be readily available for local governments to forecast remaining service life based on their inventory of current roadway conditions.  With this condition data, the model will predict when to maintenance certain segments of the system to achieve ultimate overall benefit. 

 

Life Cycle Cost Analysis:  The ACPA is also pursuing development of refined life cycle costing methodologies and are working closely with the Michigan DOT to develop such models.  ACPA also has a life cycle costing model available in their WinPAS pavement design software, which is available for purchase through the internet.  

 

Suggested Contacts:

Lon Hawbaker, PE

Director – Streets & Local Roads

American Concrete Pavement Association

5420 Old Orchard Road, Suite A100

Skokie, IL 60077

847-966-2272

847-966-9970 (fax)

lhawbaker@pavement.com

 


 

American Public Transportation Association (APTA) & Federal Transit Administration (FTA):

(http://www.apta.org)

(www.fta.dot.gov)

 

 

Current Efforts:

 

APTA:  Financial Management Committee:  This Committee considers several areas in financial management relevant to transit operators.  One recent interest is GASB 34 and its implications for transit authorities.  APTA brought together consultants and interested transit agencies to discuss the Statement more.  In the future, APTA will facilitate more of these discussions.  

 

FTA:  National Transit Database:  Accumulation of operation and financial information on nationwide transit providers. 

 

FTA/FHWA:  Tunnel Management Guide:  Phase 1 is complete – an inventory of highway and rail tunnels.  Phase 2 will be a guide on standards for operation and maintenance as well as management techniques for tunnel systems.

 

APTA Perspectives: 

 

The organization does not have an Asset Management effort underway, but is aware of the concept and facilitating dialogue between its members and partner organizations such as FHWA.  The FHWA Primers on GASB 34 and Asset Management have been helpful to APTA in distributing information to form an initial understanding of the concepts. 

 

FTA Perspectives:

 

FTA is in the process of forming initial partnerships in Asset Management with the Office of Asset Management at FHWA.  They developed the National Transit Database as a first step in compiling the data needed for a management system.  Rich Steinmann has led some effort to assimilate fleet management with Asset Management principles.  Also, Ed Thomas has given several presentations on emerging trends and reasons to adopt Asset Management concepts.  These are mainly awareness building efforts by upper-level management staff at FTA.

 

 

Suggested Contacts:   

Sam Kerns (APTA)

Finance and Administration Department

1666 K Street, N.W., Suite 1100,

Washington, DC 20006

202-496-4843

 

Mary Louise Anderson (FTA)

Office of Research, Demonstration, and Innovation – TRI 20

400 7th Street, SW

Room 9407 – D

Washington, DC 20590

202-366-0222

202-366-3765 (fax)

Mary.Anderson@fta.dot.gov

 


American Public Works Association (APWA)

(http://www.pubworks.org/)

 

 

Significant Past Efforts:

 

Asset Management Task Force:  (disbanded August 31, 1998) – Developed paper entitled “Asset Management for the Public Works Manager – Challenges and Strategies.”  This report was the first concentrated effort by APWA to define Asset Management and recognize potential benefits and issues.  The discussion centered on the following areas:

 

Current APWA Efforts: 

 

Leadership and Management Committee:  This Committee has taken concepts from the Task Force study and incorporated it into their 2001 Business Plan in the following strategic goals:

 

·        Goal A1:  To influence government and private sector organizations to develop programs, systems, procedures, systems and tools that can be effectively used by public works agencies for efficient Asset Management.

·        Goal A2:  To provide information on Asset Management principles and practices as useful tools for improving public works management.

·        Goal A3:  To influence implementation of GASB Statement 34 by identifying and encouraging adoption of practical policies and tools for public works infrastructure performance monitoring and management.

 

GASB 34: Much of APWA’s recent efforts have concentrated on development of guidance for GASB 34.  APWA was involved in developing GASB 34 with the Governmental Accounting Services Board.  They have several published guidebooks and videos in addition to regular training courses.

 

Visioning:  As the industry tries to define the meaning of Asset Management, APWA is working with mainly local government to build consensus around a common definition.

 

2001 Congress:  APWA held several sessions on Asset Management at their 2001 Congress.  Several experts in the field gave presentations, including Dennis Shea, Kent Lande, Bevis Greay, and Dana Vanier.  Many of these individuals are international representatives from Australia, New Zealand, and Canada. 

 

2002 Urban Transportation Forum: The Forum will feature a day-long session on Asset Management and the state of development in local governments.  The meeting will especially emphasize efforts to adopt GASB 34 and the development of pavement management and other planning systems.

 

Perspective: (A summary from an interview with Dennis Ross, Director of Professional Development, APWA)

 

Largest challenges in developing and implementing Asset Management:  There are several key challenges the transportation community has to overcome in implementing Asset Management.  These challenges are:

·            Coalition building:  Organizations such as APWA need to reach a common goal on the mission of Asset Management.  Currently Asset Management has a different meaning to different agencies.

·            Life Cycle Costing:  Related to GASB 34, more agencies will be refining life cycle costing techniques.  Future collaboration should be encouraged to standardize these techniques.

·            The “un-funded mandate”:  Many local agencies perceive Asset Management theories and rhetoric to be a top-down mandate from state and federal agencies.  These groups must develop common goals and strategies.

 

Partial List of APWA Publications:

 

Asset Management for the Public Works Manager – Challenges and Strategies

 

GASB 34 Statement & Implementation Guide

 

APWA Reporter: Monthly magazine periodically focusing on GASB 34 and other Asset Management related topics.

 

Related APWA Activities:

 

Rebuild America Coalition:  Founded in 1987 by APWA to create public and political awareness of the need for significant infrastructure investment.

 

Suggested Contact:

Dennis Ross

Director of Professional Development

APWA

2345 Grand Boulevard, Suite 500

Kansas City, MO 64108

(816) 472-6100

dross@apwa.net


ARTBA (American Road & Transportation Builders Association)

(http://www.artba.org/)

 

 

Current Efforts:

 

The organization has not dedicated resources specifically to Asset Management, but their literature frequently emphasizes managing, maintaining, and preserving highway assets better. 

 

“America’s Roadway Operations:  Improving Capacity and Efficiency”:  ARTBA prepared this paper for the National Summit on Transportation Operations on October 16, 2001.  They acknowledge a need for better operations management and outline several recommendations to achieve better efficiency.  These recommendations include strategies for federal roles, funding, and resolving institutional barriers in planning and operations.   

 

Professional Development Sections:  As a form of outreach, ARTBA has a Professional Development Section listserv to encourage dialogue about management activities in several areas of transportation.  This program has been most successful in the safety management and international management areas.  These forums might be very useful in the future to share experiences and knowledge about Asset Management.

 

ARTBA Perspectives:  (A summary from an interview with Brad Sant, Vice President of Safety and Education, ARTBA)

 

ARTBA realizes there is a growing need to shift from policies in construction to management and preservation.  ARTBA is helping facilitate the knowledge of this shift, but believes Asset Management research and development should not precede needed funding for the construction industry.  The focus of ARTBA and construction industry is changing, and therefore the organization is changing as well.

 

Partial List of ARTBA Publications

 

PRIDE In Transportation Construction Newsletter:  The PRIDE effort concentrates on building public and political support for capital improvement to federal and state transportation infrastructure.  The Newsletter summarizes these efforts as well as acknowledges best practice efforts in design and planning.

 

Suggested Contact:

 

Brad Sant

Vice President of Safety & Education

ARTBA
1010 Massachusetts Avenue, N.W.
Washington, DC, 20001

(202) 289-4434.

bsant@artba.org

 


American Society of Civil Engineers (ASCE) & Civil Engineering Research Foundation (CERF)

(http://www.asce.org/)

(http://www.cerf.org/)

 

 

Significant Past Efforts:

 

CERF - Partnership for the Advancement of Infrastructure and Its Renewal Through Innovative Products and Processes (PAIR) (March 1998 – Washington DC).  CERF president Harvey M. Bernstein introduced the PAIR Initiative, a partnership between industry and government to research and restore the nation’s infrastructure.  The effort focuses on R&D and especially technology transfer to state and local governments.

 

CERF - Partnership for the Advancement of Infrastructure and Its Renewal Through Innovative Products and Processes – the Transportation Component (PAIR-T) (April 1998 – Washington DC).  The result of collaboration between President Clinton’s National Science and Technology Committee on Technology and the Department of Transportation.  PAIR-T promoted, “the increased use of innovation, particularly advanced materials and processes in new construction, repair retrofit, and maintenance of the transportation infrastructure”.  However, since the PAIR-T initiative was developed, no other agencies have collaborated with CERF to further investigate these concepts.

 

Current ASCE and CERF Efforts:

 

CERF - Managing Infrastructure Assets Conference:  (Spring 2001) – A collaborative effort sponsored by the National Science and Technology Committee on Technology, Research and Special Programs Administration (RSPA) of the U.S. Department of Transportation and the Naval Facilities Engineering Command (NAVFAC) convened to discuss the new concepts of Asset Management.  The Conference’s purpose was to gather insight from each of the above organizations, encourage further understanding, and heighten awareness by developing partnerships and increasing dialogue.  No specific tasks or partnerships resulted from the Conference and CERF has not taken a role specifically in Asset Management since. 

 

ASCE - 2001 Civil Engineering Conference and Exposition:  A session met entitled “New Developments in Asset Management for Civil Infrastructure” dealing with economic and operations theories behind Asset Management.  Speakers from the FHWA, Office of Asset Management, Virginia DOT, and various consulting groups were present to describe successful efforts in federal, state, and local government programs in the roadway and transit fields. 

 

ASCE Report Card on America’s Infrastructure:  The Report Card is an initiative by ASCE to raise public awareness of the condition of America’s infrastructure.  Powerfully presented over the web, the Report Card calls for proactive management of all infrastructure assets.  Several strategies related to Asset Management are supported by ASCE, including improved life cycle cost analyses, increasing funding for long term highway management research, and multi-year budgeting for state and federal capital projects.

 

CERF Highway Innovative Technology Evaluation Center (HITEC) Innovation Center:  One of CERF’s most successful innovation centers is the Highway Innovative Technology Evaluation Center (HITEC).  Based on a fee-for-service approach, the Center conducts performance evaluations on high and low-tech highway technology innovations.  These innovations can be in any aspect of the highway community including design, construction, operation, or maintenance.  While this Center is not directly involved in promoting Asset Management, some of the innovations it tests, such as Bridge Management System software, are examples of technologies that could be used in Asset Management systems in the future.

 

CERF Perspectives:  (A summary from an interview with Peter Kissinger, Director of the Highway Innovative Technology Evaluation Center (HITEC) Innovation Center)

 

CERF’s role in Asset Management is really as a facilitator of testing and marketing new technologies for use in highway design, construction, operation, or maintenance. CERF supports the concept of Asset Management and is willing to participate as projects develop.

 

Partial List of ASCE Publications:

 

ASCE Journals: Topics related to management of transportation systems are frequently discussed in ASCE journals, especially the Journal of Management in Engineering.  There are several other examples such as the Journal of Infrastructure Systems and Leadership and Management in Engineering.  Since the mid-1980’s articles have appeared on subjects of Asset Management, especially in managing and integrate data.  A recent article in the January 2001 Journal of Computing in Civil Engineering by D.J. “Dana” Vanier focuses on why municipal infrastructure planning needs Asset Management tools. 

 

Civil Engineering:  A monthly publication, articles are frequently published on management system related to design, construction, operation and maintenance of transportation assets. 

 

Partial List of CERF Publications:

 

The PAIR Implementation Plan: A Partnership for the Advancement of Infrastructure and its Renewal through Innovative Products and Practices

 

Partnership for the Advancement of Infrastructure and Its Renewal through Innovative Products and Processes (PAIR) White Paper

 

Partnership for the Advancement of Infrastructure and Its Renewal through Innovative Products and Processes Transportation Component (PAIR-T) White Paper

 

Suggested Contacts:

Peter Kissinger (CERF)

Highway Innovative Technology Evaluation Center (HITEC)
2131 K Street NW
Suite 700
Washington, DC 20037

202-785-6467


Federal Highway Administration (FHWA)

(http://www.fhwa.dot.gov/infrastructure/asstmgmt/)

 

 

Current Efforts:

 

Office of Asset Management:  The Office of Asset Management is one of four offices within the FHWA Infrastructure Core Business Unit (CBU). The Office was established in February 1999 with a broad scope to provide leadership and expertise in the management of highway infrastructure assets.  To approach this mission, the office contains three areas to help develop policy, provide leadership and pursue public/private partnerships:

 

1.       System Management and Monitoring Team:  This team develops management systems for different types of infrastructure assets, most specifically pavement and bridge programs.  However, this division is also looking at management approaches to other assets where tools to monitor performance currently do not exist, such as with tunnels and road hardware.  The team is split into two groups:

·        Bridge Management Group:  This group is responsible for developing bridge management systems, and is currently involved in developing software.  In a partnership with AASHTO, the Group distributes and offers technical assistance in POINTIS and AASHTOWARE to take regular maintenance data on bridge systems and predict the optimal long-term life of the structures, with and without preventative maintenance.  Versions of these programs are available through the FHWA website.

·        Pavement Management Group:  This group is developing multiyear prioritization methods and technical applications that use pavement management data to monitor roadway quality.  The group is involved with several other research efforts in AASHTO, TRB, and ASCE.

 

2.       Construction and System Preservation Team: This team provides leadership to promote national quality initiatives to improve pavement quality and management.  Like the other teams, they also collaborate with states and national efforts, such as AASHTO, to inform a broad audience on methods to improve roadway quality.  A result of this effort is the National Quality Initiative (NQI), a partnership with AASHTO and related industry to provide greater visibility of highway quality improvement initiatives on local, state, or federal scales.  This team has also concentrated on disseminating new specifications on highway construction and maintenance standards.  They are in the process of developing a website to serve as an electronic link to efforts in the 50 states as well as guidance from the Asset Management Guide (NCHRP Project SP20-24[11]) on quality construction and management. 

 

3.       Evaluation and Economic Investment Team:  This team is devoted to developing a number of tools to help evaluate transportation investments from an economic standpoint, with a focus on Asset Management.  This includes developing guidance on the economic requirements for developing and maintaining state highway system (referred to as the “HERS/ST” program), life cycle cost analyses, data integration, and GASB 34.  The types of guidance and assistance the team provides are in narrative form (such as “fact sheets” or “primers”, which are quick guides to what a subject is how it is important), holding workshops and meetings, and developing software.  

 

Partial List of FHWA Publications:

 

Primers: These pamphlets introduce Asset Management and why the concept is important.  Because the field of Asset Management is still relatively new for most organizations, these publications are providing initial leadership to define the issues most relevant to interested parties and foster dialogue on the subject.  The following is a list of current Primers distributed by the Office:

 

Primer on Asset Management

Primer on GASB 34

Primer on Data Integration

Primer on Pavement Management

 

FOCUS: A monthly periodical from FHWA with frequent stories on Asset Management.   

 

Annual Report 2000:  Office of Asset Management: This report summarizes the activities of the Office from 1999-2000, specifically detailing the accomplishments of the three Teams.  As well, the report gives an update on broader efforts the Office in involved with, such as the Asset Management Guide (NCHRP Project SP20-24{11}).

 

Asset Management Folder:  The Primers, Annual Report, and other general pamphlets describing efforts in Asset Management are available in one folder that the Office regularly distributes by request or at workshops.  The folders are a good idea to consolidate the many articles the Office has produced to create a “one stop” approach.

 

Conferences & Workshops:

 

FHWA has been involved in many of the workshops to date on Asset Management.  These meetings are essential in facilitating idea sharing and raising awareness about Asset Management.  Commonly, the Office is a partner in funding the effort as well as supplying expertise and/or leadership.  The interests of these meetings can be on the broader policy implications of Asset Management or specific technical questions, such as pavement data management or GASB 34.  A partial list of the conferences/workshops held to date is:

 

Suggested Contacts:   

Frank Botelho

Roemer Alfelor

David Winter

Regina McElroy

Office of Asset Management

Federal Highway Administration

400 Seventh Street, SW, Room 3211

Washington, DC 20590

202-366-0392

202-366-9981 (fax)


Foundation for Pavement Preservation (FP2)

(http://www.fp2.org)

 

Background:

 

The Foundation for Pavement Preservation (FP2), established in 1992, provides resources to advance knowledge for managing and preserving pavements.  FP2 supports research to educate government and industry professionals in the economical, safety, and performance advantages of pavement preservation.  The Foundation encourages education, research, international education and public-private partnering.

 

One of the primary efforts of the Foundation is to reinforce the theme of “Applying the Right Treatment, for the Right Pavement, at the Right Time.”  This approach is reliant upon the adoption of strategies that focus on movement from a “worst first” strategy for applying pavement treatments.  FP2 aggressively markets the idea of applying treatments to pavements while they remain in good condition.

 

Another guiding principle of the Foundation’s efforts is that pavement preservation is more than a list of techniques or a series of options.  The movement towards a collective pavement management and Asset Management system is a new way of doing business.

 

Current Efforts:

 

2nd National Conference on Pavement Preservation: The Foundation was the host of the 2nd National Conference on Pavement Preservation in November 2001 entitled, “Protecting our Investment.”  This workshop brought together mostly members of the industry and state Departments of Transportation in the Western United States to discuss the current status quo regarding pavement preservation technologies.  Sessions emphasized the importance of data collection and management for implementation in pavement management systems and strategies for compliance with GASB Statement 34.  These sessions focused on the current state of the practice, including the management and data systems used in California and Colorado. 

 

Toolboxes: Assembled jointly through the FHWA and FP2, these “toolboxes” contain videos, CD-ROMs, reports, brochures, manuals, and other materials on the state of the practice for pavement preservation.  The materials included incorporate

 

Research Agenda: FP2 has also adopted a formal research agenda in pavement preservation topics ranging across six strategic areas: construction practices, materials selection and mix design, treatment and selection strategy, performance, training, and policy options.  These areas include 22 specific topics that the Foundation has prioritized for research execution.  This effort was also coordinated through FHWA.

 

Development of NHI Courses

With the assistance of FHWA, FP2 is developing a series of training courses administered through the National Highway Institute. NHI No. 131504 on Pavement Preservation: The Preventative Maintenance Concept (introduced in late 2000).  In the fall of 2001, NHI No. 131058 was introduced: Selecting Pavements for Preventative Maintenance.  These courses focus on the selection of the right treatment, for the right pavement, at the right time.  NHI No. 131056 is in development on the technical aspects of specific preventative maintenance techniques.   In-field videos will be the key element of this course.  FP2 is also supporting the development of a long-term pavement maintenance course.  The course is under development at the University of Illinois-Urbana Champaign through Dr. Sam Carpenter who is a member of the FP2 Board of Directors.

 

Partial List of FP2 Publications

 

Pavement Preservation Today:  A quarterly publication focusing on pavement preservation activities nationwide.  The Foundation often focuses on AASHTO, FHWA, and state DOT efforts.  The 2001 publications mention several national research efforts and conferences in Asset Management.

 

Suggested Contacts:

Bill Ballou, President (785) 823-7645

Steve Hersey, Program Manager (703) 610-9036

8201 Greensboro Drive, Suite 300

McLean, VA 22102

Fax: (703) 610-9005


Governmental Accounting Standards Board (GASB)

(http://www.gasb.org/repmodel/index.html)

 

 

Background:

 

GASB: An independent financial reporting group:

GASB is independent of any state or federal agency and is not a professional association.  It is the successor to the National Council on Governmental Accounting and is under the wing of the Financial Accounting Foundation.  The Foundation contributes charitable, educational, scientific, and literary knowledge to the finance industry and the public.  GASB’s primary purpose is to establish standards of financial accounting and reporting for all entities of government.  Because GASB exposes the government to review and requires justification for all expenditures, the organization had to evolve independently to be effective.

 

The Statement 34 standards were issued in July 1999.  The Government Accounting Standards Advisory Council (GASAC), composed of government, financial, public interest, accountant, and auditor groups, was the main group that developed the Statement.  The Council’s responsibility today lies in consulting with GASB on Statement 34 issues and concerns.  The Council also developed a task force (comprised of officials from AASHTO, FHWA, APWA, etc) to approach specific issues with implementation of GASB 34.  As well, the GASB organization developed the Management Discussion and Analysis Section (MD&A), which is a section of the report that consolidates financial information on government assets (modeled after private companies that do the same in Annual Reports).  This was to ensure the public could easily interpret Statement 34 reports.

 

Theory behind Statement 34:

 

Specifically related to transportation, GASB is important because if governments choose the preservation reporting approach, it requires calculation of the original value of infrastructure.  The report includes all elements constructed or improved from 1980 to 1999. 

 

Depreciation or Preservation Approach:  Governments can opt to either apply depreciation to measure the financial value of assets over time, or a preservation approach, which accounts for expenditures on operation and maintenance of the asset.  The preservation approach is the most desirable because it shows the public how much Departments of Transportation are spending to maintain built systems.  The depreciation approach does not show this diversity and leaves the public less informed about large expenditures, possibly concluding there are no efforts in maintenance or preservation.

 

However, agencies can quality for using the preservation approach only they have: 

  1. A current inventory of eligible assets. 
  2. Documentation of the asset’s condition. 
  3. Demonstrated preservation efforts. 
  4. An estimate of the funds needed for preservation and maintenance. 

These four areas advocate for an Asset Management system approach to managing infrastructure. 

As this list shows, government will be required to provide the “full cost of servicing the public”.  Before this time the reports only detailed short term assets and “cash on hand”.  Now the long term, even “indefinite” – like roadway infrastructure – assets are considered.

 

Organizations of varying size will be phased in at different periods.  The largest (100+ million) first, which is by June 15, 2001.  2002 and 2003 are the next years for progressively smaller organizations.

 

Motivation behind GASB 34:

 

Public perception and its effect on municipal bond ratings is the main motivation for agencies to adopt GASB 34 and develop Asset Management systems.  Through the Statement, the public will achieve a deeper understanding of agency expenditures.  If a DOT is shown as not complying with GASB or some erroneous expenditures are reported, the bond rating for the agency could be affected.  However, the Statement could also be an opportunity for agencies that have comprehensive management systems to justify the efficiency of their programs and expenditures.  Overall, the policy is a tool to foster awareness of the need to maintain the built environment in the agency and the public.

 

GASB Outreach Efforts:

 

The GASB Website is well organized to inform public on the purpose of Statement 34 through best-case examples, technical documentation, and other forms of outreach.  As well, the organization collects and distributes many articles to increase awareness of what the program means and/or specific items of interest.  The GASB organization has several training courses as well as guidance publications for sale on implementation. 

 

Suggested Contact: 

James Fountain

Assistant Director of Research

Governmental Accounting Standards Board

401 Merritt 7
P.O. Box 5116
Norwalk, Connecticut 06856-5116

(203) 847-0700

jrfountain@gasb.org

 


NACE (National Association of County Engineers)

(http://www.naco.org/affils/nace/index.htm)

 

                       

Significant Past Efforts:

 

“County Perspective on Pavement Preservation” (October 1998 speech by past Director, Duane Blanck). A non-technical perspective on benefits of pavement preservation, the article emphasized the importance of “keeping all roads in full service with minimum expense and the least inconvenience to traffic.”  Most relevant was his discussion of preservation issues such as development of a pavement management program with condition rating schemes, ability to weigh alternatives, and establishment long-term programs.  Other issues approached are choice in the type of preservation activity and the quality of preservation work.  He also outlines several challenges, including level of service and cost of resources.

 

NACo/NACE GASB 34 Informational Website – A forum where recent lessons learned from GASB 34 are posted.  Some technical advice offered on developing the accounting standards as well as county best-practices documentation.

 

Current Efforts:

 

NACE 2002 Conference (March 2002):  This Conference featured a session entitled, “Asset Management and GASB 34 in Public Works” as part of the technical program track.  This focus serves to update county officials on the status of GASB 34 implementation across the nation and report on some best-case examples.

 

Partial List of NACE Publications

 

NACo/NACE Issue Brief:  Performance Measurement – A tool for managing county government (July 1999) In relation to Asset Management, this brief details guidance for performance budgeting and maintenance of county assets.  There are several best-case examples to demonstrate programs currently in use. 

 

Suggested Contacts:   

 

Anthony Giancola – Director

National Association of County Engineers

440 First St., N.W.

Washington, DC 20001-2028

(202) 393-5041

(202)393-2630 fax

agiancol@naco.org


TRB (Transportation Research Board)

(http://www.trb.org)

 

Background:

 

TRB is a research consortium mainly composed of committees that sponsor research and discuss many disciplines of transportation.  Transportation Asset Management is recognized by TRB as an important area of research, and there are several Committees that address Asset Management generally or are developing awareness and research on specific components of Asset Management, such as Pavement Management Syst