Primer: GASB 34 · Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments. 2 PRIMER: GASB 34 ACKNOWLEDGMENT The Office of Asset

PrimerGASB 34

PRIMER GASB 34 1

November 2000

Primer GASB 34

US Department of TransportationFederal Highway AdministrationOffice of Asset Management

An FHWA Primer on the Governmental Accounting Standards Boardrsquos Statement 34Basic Financial Statementsmdashand Managementrsquos Discussion and Analysismdashfor Stateand Local Governments

2 PRIMER GASB 34

ACKNOWLEDGMENT

The Office of Asset Management gratefully acknowledges the cooperation of the Gov-

ernmental Accounting Standards Board (GASB) for permission to reprint from its pub-

lications and for assistance during the development of the Primer We particularly thank

James R Fountain Assistant Director of Research and his staff who graciously pro-

vided valuable review and comments

NOTE TO THE READER

Appendices 1 and 2 contain sections from both GASB Statement No 34 ldquoBasic Finan-

cial Statementsmdashand Managementrsquos Discussion and Analysismdashfor State and Local Gov-

ernmentsrdquo and the GASB Implementation Guide for Statement No 34 copyright by

Governmental Accounting Standards Board 401 Merritt 7 Norwalk CT 06856 This

material is included by permission Complete copies of both GASB documents can be

obtained from the GASB

PRIMER GASB 34 3

TABLE OF CONTENTS

Note from the Director Office of Asset Management 5

Introduction 7History 7Overview of the New Governmental Reporting Model 8Significance 9

Statement 34 Infrastructure Requirements 12Infrastructure Will Be Included in the Asset Base 12Infrastructure Will Be Reported at Historical Cost 12Infrastructure Will Be Reported at the Network 12

Subsystem or Individual Asset LevelInfrastructure Will Be Depreciated or Reported 13

Using a Modified ApproachReporting Infrastructure Cost of Use 14

The Traditional Approach (Depreciation) 14The Modified Approach (Preservation) 14Implications 15

Implementation 20Timing 20Challenges 20Status 22

Asset Management and GASB Statement 34 23Asset Management Overview 23Driving Forces 23Implementing Asset Management 25Asset Management and GASB Implementation 27

Conclusion 29Glossary 30Other Resources 31Appendix 1 32Summary of Capital Asset and Infrastructure Requirements Excerptedfrom Statement No 34 of the Governmental Accounting StandardsBoard ldquoBasic Financial Statementsmdashand Managementrsquos Discussion andAnalysismdashfor State and Local GovernmentsrdquoAppendix 2 46Excerpts from ldquoGuide to Implementation of GASB Statement 34 onBasic Financial Statementsmdashand Managementrsquos Discussion and Analysismdashfor State and Local Governments Questions and Answersrdquo

4 PRIMER GASB 34

PRIMER GASB 34 5

NOTE FROM THE DIRECTOR

Iam pleased to offer this Primer on the Governmental Accounting Standards Board

(GASB) Statement 34 (GASB 34) ldquoBasic Financial Statementsmdashand Managementrsquos

Discussion and Analysismdashfor State and Local Governmentsrdquo which was promul-

gated by GASB on June 15 1999 Statement 34 calls for state local and municipal

governments to calculate the original cost of infrastructure constructed or improved

during the 20-year period prior to the Statementrsquos issuance date in their annual finan-

cial reports Governments may choose to report how much of the estimated original

cost has been ldquoused uprdquo (ie depreciated) in the intervening years or they can if they

meet certain requirements report as expense the cost to maintain and renew that infra-

structure on an annual basis All new infrastructure must also either be depreciated or

have its maintenance requirements accounted for

The changes spurred by GASB Statement 34 are not only significant for public ac-

counting and therefore the financial markets but are also important because they alter

the way state and local governments offer financial information to the public Finally

and importantly for the transportation community the Statement encourages a mecha-

nism by which the traveling public can be kept informed about the infrastructure issues

of concern to them

With GASBrsquos issuance of Statement 34 the Office of Asset Management has re-

ceived a myriad of questions regarding the new standard To fill this void in informa-

tion I determined that a primer on GASB 34 was in order A previous primer issued by

the Office the ldquoAsset Management Primerrdquo was received with enthusiasm and has

proved helpful in explaining Transportation Asset Management concepts to a wide au-

dience This Primer is the second of what is anticipated to be a comprehensive series of

documents exploring various issues related to Transportation Asset Management

Office of Asset Management Infrastructure Core Business UnitFederal Highway Administration

6 PRIMER GASB 34

Since Transportation Asset Management is a business approach that transportation agen-

cies are exploring and adopting as a way to make effective resource allocation decisions

this new Primer looks at Statement 34 from the perspective of transportation officials It is

intended to explain the Statement set out what is required for compliance with the infra-

structure provisions and delineate how Asset Management can be of assistance This Primer

also provides a discussion of what GASB 34 may provide in terms of benefits to transporta-

tion agencies and is timely because of upcoming implementation deadlines Large govern-

ments those with over $100 million in total annual revenues (which includes all states)

must prospectively report on new infrastructure assets starting in the fiscal year beginning

after June 15 2001 with reporting of previously acquired infrastructure assets 4 years

Clearly GASB Statement 34 presents transportation agencies with an unparalleled op-

portunity to make other government officials and citizens aware of the value of the signifi-

cant transportation assets that governments own and operate and the maintenance they

require Statement 34 will heighten awareness of the importance of investment in these

assets and pinpoint the need to preserve their condition State transportation officials there-

fore will continue to be interested in the Statement to the degree that it impacts their

accountability for these same transportation assets

Madeleine Bloom

Director Office of Asset Management

PRIMER GASB 34 7

In June 1999 the Governmental Accounting StandardsBoard (GASB) established new financial reportingstandards that will fundamentally change the way Stateand local governments report their financial results

Among other provisions GASB Statement 34 (GASB 34)ldquoBasic Financial Statementsmdashand Managementrsquos Discus-sion and Analysismdashfor State and Local Governmentsrdquorequires that major infrastructure assets acquired or hav-ing major additions or improvements in fiscal years be-ginning after June 15 1980 be capitalized in financialstatements In addition the cost of using the assets mustbe reflected

HISTORY

The GASB a private nonprofit organization was estab-lished in 1984 by the Financial Accounting FoundationThe Foundation oversees GASB provides funding andappoints the members of GASBrsquos board The Founda-tion has a similar relationship with GASBrsquos sister organi-zation the private-sector standard-setting Financial Ac-counting Standards Board

GASBrsquos span of influence covers over 84000 statecounty and other local governmental units Also impactedby GASBrsquos financial reporting standards are organizationssuch as public utilities municipal hospitals and state uni-versities GASB which does not impact the Federal gov-ernment establishes concepts and standards that guidethe preparation of external financial reports GASB es-tablishes generally accepted accounting principles that areutilized by auditors charged with evaluating state and localgovernment financial statements

INTRODUCTION

GASB has been working toward a revised governmen-tal reporting model since being organized in 1984 Thisinitiative responded to a belief that the financial reportsof state and local governments were not providing infor-mation sufficient to assess financial position and cost ofservices Fund information while useful did not meetmany user needs (see ldquoBasic Financial Statements sidebarrdquopages 10-11)

GASBrsquos approach to developing Statement 34 was char-acterized by a comprehensive outreach effort First thepermanent Governmental Accounting Standards Advi-sory Council contributed significant input as the stan-dard was being developed The Council is comprised ofindividuals representing financial statement users fromthe government the financial community public interestgroups accountants auditors preparers and others

In addition GASB established a special task force tofocus on Statement 34 The task force included amongothers infrastructure experts from the American Asso-ciation of State Highway and Transportation Officials(AASHTO) and the Federal Highway Administration(FHWA) Further the outreach and review process in-cluded comments from interested individuals and orga-nizations as well as GASB-sponsored public hearings andfocus groups

GASB listened to the input from its broad constitu-ency As a result the Board altered its initial position tobe more flexible on issues such as the magnitude of assetsto be retroactively reported procedures for capitaliza-tion the implementation schedule and the requirementthat smaller governments report their assets retroactivelyIn addition it is this dialogue that generated the ldquomodi-fied approachrdquo as an alternative to depreciation (Thealternative approach is discussed in detail beginning onpage 14)

8 PRIMER GASB 34

OVERVIEW OF THE NEW GOVERNMENTALREPORTING MODEL

GASB Statement 34 specifies that full accrual account-ing principles will be used for the government-widestatements In other words revenues and costs will beaccounted for as they occur costs may not be shifted to afuture year by delaying payment Therefore Statement34 calls for all long-lived capital assetsmdashincluding infra-structure such as roads and bridgesmdashto be reported instate and local government financial statements

Also important is the requirement for a ManagementrsquosDiscussion and Analysis (MDampA) section The MDampAis intended as a nontechnical presentationmdashsuitable fora knowledgeable lay audiencemdashof the governmentrsquos fi-nancial performance over the year including a compari-son with the previous yearrsquos performance The discus-sion will offer insights on the governmentrsquos overallfinancial standing provide an assessment of the changein financial position relative to the last reporting periodand identify current factors with the potential to influ-ence the governmentrsquos future financial position Thisrequirement follows the private-sector model which re-quires similar information for publicly traded companies

To meet the specifications of this new standard gov-ernments will need to determine the cost associated withtheir transportation infrastruc-ture assets This includes initialconstruction costs and the costof subsequent capital improve-ments as well as the associatedexpense of using the assets

In terms of determining thecost of using the assets GASBwill allow governments to re-port a depreciation expense orapply an alternative modifiedpreservation approach Gov-ernments may use the modified

approach in lieu of depreciating their assets if they have asystematic approach to managing those assets that at aminimum meets the following four requirements

bull Having a current inventory of eligible assetsbull Documenting the condition of those assets via a re-

producible assessment procedurebull Demonstrating that assets are being preserved at a level

predetermined by the governmentbull Estimating the actual cost to maintain and preserve

the assets

The new infrastructure-related reporting features inStatement 34 provide for snapshots of long- and short-term financial performance and condition For the firsttime governments will account for all of the capital re-sources they use in delivering services In other wordsthey will provide the full cost of serving the public Pre-viously only short-term resources were addressed andinfrastructure and associated usage costs were not con-sidered by governmental funds The governmental fundrsquosbalance sheets included only financial resources or basi-cally ldquocash on handrdquo Statement 34 more closely alignsgovernment financial reporting practices with those thatare presently used by proprietary funds and for corpo-rate-style accounting because governments are now re-quired to accrue costs in the same way businesses do

PRIMER GASB 34 9

SIGNIFICANCE

Statement 34 establishes methods for governments to bemore accountable to bond market analysts and under-writers citizens and other financial users The Statementprovides for a comprehensive understanding of agovernmentrsquos financial position making transparent theability to repay long-term debt and deal with infrastruc-ture maintenance obligations The implications for issu-ance of bonds appear highly significant

However the potential impact of GASB 34 extendsbeyond financial reporting statements and may influencethe manner in which infrastructure is thought of by citi-zens the media legislators and others interested in pub-lic finance and infrastructure performance State and lo-cal governments accounted for over $75 billion inexpenditures on highways and bridges in 1997 Theseexpenditures are significant by any standard and there isenormous concern regarding how this money is beingspent It is notable that literally trillions of dollars in publicinfrastructure have not until now been included in thefinancial statements of state and local governments

In a general sense implementation of Statement 34may highlight the fact that considerable resources arespent on transportation infrastructure assets and that thebenefits from these facilities extend many years beyondthe initial investment Infrastructure expenditures maybe viewed more as investments

For transportation agencies Statement 34 is an op-portunity to demonstrate that they are properly caringfor the assets with which they have been entrusted In-deed by making the total cost of providing infrastruc-

ture-based transportation services explicit an agencycould anticipate a heightened interest in transportationissues Specifically questions such as the following couldbe raised

bull Does the agency allocate its resources in an efficientmanner

bull Are citizen needs and wants being adequately ad-dressed

bull What is the prognosis for the future condition of thesystem

bull How does the performance of one transportationagency compare to other similar agencies

bull Are the governmentrsquos maintenance strategies result-ing in the renewal of infrastructure assets

Finally Statement 34 has the potential to reinforce atransportation agencyrsquos choice to preserve a given assetinstead of deferring maintenance Because an increasedemphasis is placed on reducing life-cycle costs the pres-ervation choice may be demonstrated as more reason-able than deferring maintenance Deferred maintenancemay result in prematurely replacing the asset potentiallyat higher cost

It is not an overstatement to say that Statement 34will shape the environment in which transportation deci-sions are made Asset Management while independentof this GASB Statement offers a means of enhancing thepositive implications of Statement 34 and also of estab-lishing more effective interactions with the public whoutilize or are impacted by the assets

10 PRIMER GASB 34

BASIC FINANCIAL STATEMENTS

With GASB Statement 34 the following statementsare required as part of the state and local financial re-ports and are audited

GOVERNMENT-WIDE FINANCIAL STATEMENTS

The government-wide statements are a new require-ment and include a statement of net assets and a state-ment of activities The subject statements focus on thegovernment as a whole and report all assets (includinginfrastructure) liabilities revenues and expenses of thegovernment These statements follow the flow of eco-nomic resources method (see the Financial versus Eco-nomic Measures sidebar page 11) using full accrualbasis accounting Accrual accounting means that trans-actions are recorded when they occur rather than whencash is disbursed or received

These methods are similar to those used in the pri-vate sector and for enterprise funds of State and localgovernments (for example tollways) GASB believesthat this approach will provide better information about(1) operating results (2) the governmentrsquos financialposition as a whole (3) how and when expenses to pro-vide government services are incurred and (4) how onegovernment compares to another

Statement of Net Assets

The statement of net assets accounts for the entityrsquosassets and liabilities at a given point in time Net assetsare simply the difference between assets and liabilitiesAll financial and capital resources are reported Infra-structure assets that are being or have been depreci-ated are reported at historical cost (or estimatedhistorical cost at transition) less accumulated depre-ciation Infrastructure assets that are reported using theldquomodified approachrdquo are presented separately capital-ized at historical cost Because preservation costs areexpensed there is no accumulated depreciation Ineither case additions and improvements to infrastruc-ture are capitalized at historical or estimated historicalcost

Statement of Activities

The statement of activities reports government oper-ating revenues and expenses Expenses are reported byfunction and program such as transportation and anyrevenue (except taxes) attributable to that function orprogram is reported with the function or program andnet expense or revenue presented A review of this state-ment will indicate which programs contribute to andwhich draw from general revenues Annual deprecia-tion expense is generally reported with each programor function For those assets reported via the modifiedapproach preservation expenditures are expensed nodepreciation expense is reported

FUND FINANCIAL STATEMENTS

Fund accounting is used only by governments A self-balancing set of accounts is maintained for various cat-egoriesmdashor fundsmdashfor the organization With GASB34 the presentation measurement focus and basis ofaccounting of funds did not change Fund accountingwill continue alongside the new government-widestatements Reconciliation of the fund statements withthe government-wide statements will be required

The funds reported by governments are organizedinto three categories governmental proprietary andfiduciary Each of these broad categories includes anumber of different funds The three broad categoriesare described below

Governmental Funds

The entityrsquos basic activities are reported in the ldquogov-ernmental fundrdquo statements These funds are preparedusing the current financial resources measurement fo-cus (see the Financial versus Economic Measuressidebar page 11) and a modified as opposed to fullaccrual basis of accounting This means that govern-mental funds do not report fixed assets and thereforedo not have depreciation expense Further they do notshow long-term debt

An example of a fund included in the broad govern-mental fund subdivision is the general fund Depart-ments generally funded with unrestricted income

PRIMER GASB 34 11

FINANCIAL VERSUS ECONOMICMEASURES

Within governmental financial reportingone of two different measurement focusesis employed The choice depends on ac-counting assumptions regarding what thetransaction represents in terms of how theresources will be used

The financial resources measurementfocus is similar to a cash basis and measuresoutlays in terms of cash expended (egshort-term payments) This means thateven disbursements to secure a capital in-vestment item are classified as expendi-tures

The economic resources measurementfocus accounts for all assets and liabilitiesThis is the focus used in proprietary fundsof governments government-wide finan-cial statements and for-profit accountingUnder this approach an expenditure for acapital asset is noted on the balance sheetas an asset the purchase is not reflectedon the operations statement The asset isdepreciated over its useful life with its costbeing allocated to the years for which it isused

sources (eg general sales tax) are reported in this areaAnother example of a governmental fund is the capi-tal-project fund which includes funds earmarked forbuilding andor acquiring major capital assets such asinfrastructure

Governmental funds will continue to be reportedon a flow of current financial resources measurementfocus and modified accrual basis of accounting Therequired financial statements are a balance sheet and astatement of revenues expenditures and changes infund balances

Proprietary Funds

Proprietary fund statements are used to report on ac-tivities financed and operated in a fashion similar tothe private sector Included in this major category areenterprise funds and internal service funds Enterprisefunds account for services where cost recovery is viauser fees Examples of enterprise fund activities includeelectrical and water utilities Internal service funds re-port on departments that provide services to othergovernmental activities (eg a motor pool)

Proprietary fund statements will continue to recordtransactions using the economic resources measure-ment focus and accrual basis of accounting (with de-preciation) Required proprietary fund statements areas follows statement of net assets a statement of rev-enues expenses and changes in fund net assets andcash flow statements

Fiduciary Funds

Fiduciary funds account for assets held and adminis-tered by a government for others In other words thegovernment is acting as the trustee and the funds maynot be used by the government to support its own pro-grams An example of such an activity is a pension trustfund Like proprietary fund statements fiduciary state-ments are prepared using the economic resources fo-cus and the accrual basis of accounting According toGASB required fiduciary fund statements include astatement of net assets and a statement of changes innet assets

STATEMENT 34 INFRASTRUCTURE REQUIREMENTS

The following discussion highlights the key infra-structure features of GASB Statement 34 A sum-mary of the actual Statement from the transpor-tation communityrsquos perspective is included at

The reader is referred to Appendix 2 for

INFRASTRUCTURE WILL BE REPORTED AT THENETWORK SUBSYSTEM OR INDIVIDUALASSET LEVEL

Statement 34 provides entities with the option of report-

Appendix 1

12 PRIMER GASB 34

GASBrsquos answers to commonly asked questions

INFRASTRUCTURE WILL BE INCLUDEDIN THE ASSET BASE

The asset base will include all long-lived capital assetsthat are employed in a governmentrsquos operations The termldquolong-livedrdquo refers to assets that have initial useful livesthat go beyond one reporting period Examples of suchassets include land improvements to land buildingsequipment and infrastructure

Infrastructure assets such as roads bridges and tun-nels represent a somewhat special case among capital as-sets in that they are stationary and can generally be pre-served for an indefinite period of time

INFRASTRUCTURE WILL BE REPORTED ATHISTORICAL COST

GASB 34 calls for capital assets to be capitalized at his-torical cost To ldquocapitalizerdquo means to record the amountexpended to acquire a capital resource as an asset ratherthan as an expense The capitalized amount includes allcharges for establishing the subject asset in a conditionand location where it is available for its intended use

GASBrsquos preference is that the initial capitalizationamount represent historical cost However if reportingentities have difficulty securing historical cost amountsat the time of transition to Statement 34 either prospec-tively or retrospectively the use of ldquoestimated historicalcostrdquo and ldquodeflated current replacement costrdquo methodswill be allowed for infrastructure assets

ing at the network subsystem or individual asset levelThis provision is particularly helpful in the case of infra-structure where it is less burdensome to report on a ma-jor subsystem such as the Interstate system rather thaneach numbered highway

GASB defines a ldquonetworkrdquo as a group of assets wherethe individual members either provide similar services orwork together to provide one service Thus a networkcan range from one asset that is made up of many com-ponents to a collection of assets that are roughly the sameFor example an entire roadway system including all typesof highways signages and rest areas can be considered atransportation network Similarly a ldquosubsystemrdquo is a partof a network of assets Components of the subsystem to-gether perform a unique function related to but distinctfrom the network For example a municipalityrsquos road sys-tem constitutes a network whereas residential streetscould be a considered a subsystem of the network

GASB has established the concept of major networksand major subsystems A government at a minimum mustidentify and report on major networks where accordingto Statement 34 ldquothe cost or estimated cost of the net-work is expected to be at least 10 percent of the total costof all general capital assets reported in the first fiscal yearafter June 15 1999rdquo or on subsystems where estimatedcosts are expected to be at least 5 percent of the entityrsquoscapital assets Governments organizing their assets in thismanner may choose not to report on non-major networksand still be consistent with the generally accepted account-ing standards under Statement 34

PRIMER GASB 34 13

INFRASTRUCTURE WILL BE DEPRECIATED ORREPORTED USING A MODIFIED APPROACH

To be in compliance with Statement 34 governmentsmust report capital assetsmdashincluding infrastructuremdashathistorical cost and then depreciate those assets over theiruseful lives However if infrastructure assets are main-tained so as to preserve remaining service potential theldquomodified approachrdquo may be employed instead of reportingdepreciation for the assets GASB recognizes that when as-sets are consistently maintained and renewed so as toensure essentially an indefinite life they are not beingldquoused uprdquo as is assumed under traditional depreciation rules

Under the modified approach governments must in-ventory and assess the condition of the assets comprisinga network (or subsystem) decide on a minimum level ofacceptable condition estimate the amount necessary tomaintain and renew the assets and then demonstrate thatinvestment has been sufficient to maintain the target con-dition level established by the government If these re-quirements are met the government may report as ex-pense the cost of maintaining and preserving or renewingthe asset network as opposed to reporting depreciation

The traditional and modified approaches are explainedin greater detail in the following sections

14 PRIMER GASB 34

THE TRADITIONAL APPROACH (DEPRECIATION)

The traditional accounting approach to reportingthe annual cost of using capital assets involves twocomponents (1) operating maintenance and re-pairs and (2) depreciation Depreciation is a

method of accounting for the ldquousing uprdquo of long-livedassets due to use or obsolescence It is not intended as ameasure of actual deterioration In fact deterioration maynot actually occur in any given year and further the ldquorealworldrdquo value of the asset may increase

For each year of the assetrsquos useful life expenses associ-ated with routine maintenance and repairs and deprecia-tion are reported in the statement of activities Capitalassets are reported net of accumulated depreciation ifany in the statement of assets (See Basic Financial State-ments sidebar pages 10-11)

Depreciation expense is the share of the net acquisi-tion cost of an asset allocated to the current period Tocalculate the net acquisition cost the initial cost of thecapital asset is determined and then adjusted to reflectthe salvage value or that portion of the initial cost thatwill remain when the asset is taken out of use To deter-mine depreciation expense the net acquisition cost is al-located to each year over the total years of its useful lifeusually by dividing net acquisition cost by the estimatedyears of useful life (eg straight line depreciation)

ldquoUseful liferdquo is an estimate of how long the asset willbe in use The useful life estimate assumes a given main-tenance and repair schedule Thus the costs associatedwith such maintenance and repair activities are reportedas expenses when incurred because they do not extendthe life of the asset For example maintenance only helpsensure that the asset will reach its useful life and provideacceptable service during that period

REPORTING INFRASTRUCTURE COST OF USE

Depreciation expense also includes an allocation of thecosts of any additions or improvements that occur afterinitial acquisition and that benefit more than one periodIn other words the ldquonet acquisition costrdquo (ie the amountthat is depreciated) will be adjusted over time if the assetis materially improved in terms of quantity or quality orif its service life is expected to increase beyond the priorreported estimate This is because the benefits associatedwith such improvements will be received over an extendedperiod Consistent with this approach the cost of preser-vationrenewal activities will be capitalized and assignedto future periods through depreciation Alternativelyamounts that benefit only the current period such as rou-tine operating maintenance and repair are shown in thefinancial statements as expenses and are not capitalized

There are many ways to allocate the net cost of depre-ciable assets In the case of Statement 34 any establisheddepreciation method may be used Further reportingentities may use composite methods

THE MODIFIED APPROACH (PRESERVATION)

The modified approach recognizes that transportationagencies typically strive to maintain their assets at a speci-fied level in perpetuity Transportation agencies are con-stantly renewing their assets and thereby extending theiruseful lives Therefore preservation costs may reason-ably be considered an appropriate measure for the cost ofuse because the expenditures necessary to preserve thesystem at its current condition are reported as period costsLike the cost of routine operating maintenancemdashwhichbenefits only one periodmdashpreservation costs would bereported as an expense in the financial statements Thereader will recall that in the case of depreciation preser-vationrenewal expenditures are capitalized and then overtime depreciated Similarly under the modified approachimprovements and additions that increase capacity orefficiency are capitalized however they are not depreci-ated

PRIMER GASB 34 15

A government using the modified approach will nothave to depreciate infrastructure assets as long as certainrequirements are met First the reporting entity mustestablish and make public condition goals for the sub-ject assets on which they are reporting Second the gov-ernment must estimate the spending levels necessary toachieve or maintain the condition target Third theamount required to maintain the pre-determined condi-tion level must be compared to actual spending Fourththe government must document that the assets are beingpreserved approximately at or above the condition goal itpre-selected

To comply with the requirements of the modified re-porting approach the government must have in place asystem of managing assets that will produce a current in-ventory assess the condition of that inventory calculatethe maintenance and preservation levels associated withalternative condition targets and estimate the spendinglevels necessary to achieve those targets This informa-tion will provide a basis from which to establish attain-able condition goals Further Statement 34 requires thatgovernments be able to demonstrate these capabilities

GASB also requires that governments address the fol-lowing questions for assets reported using the modifiedapproach in the ldquoRequired Supplementary Informationrdquosection of the financial statements

bull What is the ldquocurrentrdquo condition of the assets (Assess-ments are required at least every 3 years with the pastthree assessments being reported)

bull At what condition level does the government intendto maintain its assets

bull How is the government doing in terms of maintainingand preserving the assets relative to the governmentrsquosstated goal

bull How do actual maintenance and preservation expen-ditures compare with the amount estimated as beingrequired to approximately meet or exceed the targetcondition level

bull What is the basis for tracking condition (eg the In-ternational Roughness Index might be used for pave-ments)

bull Has the reporting entity done anything that mightimpact the reported trends (eg changes in the basisfor tracking and reporting condition)

If a government is not able to maintain the pre-speci-fied condition level for a given category of assets thenthe entity will no longer be eligible to report using themodified approach and will need to depreciate those as-sets alternatively the government may lower their pre-established condition level It is important to note thatthe condition target specified for Statement 34 purposesmay be less ambitious than the management target Forexample the management target could be that 85 per-cent of roads are in good or better condition while thetarget for GASB 34 compliance purposes could be that75 percent of roads are in good or better condition

IMPLICATIONS

In summary under the depreciation option infrastruc-ture assets are capitalized based on historical cost andreported (net of accumulated depreciation) in the state-ment of net assets Also capitalized are improvementsadditions and preservation activities Depreciation ex-pense is reported in the statement of activities

In the case of the modified approach infrastructureassets are capitalized based on historical cost These costsare recorded in the statement of net assets However theyare not depreciated Instead preservation costs are re-corded as expenses in the statement of activities As withdepreciation expenditures that materially improve thequantity or quality of the subject asset are to be capital-ized

Figure 1 Depreciation and Preservation on the Fi-nancial Statements pages 16-17 illustrates the treatmentof expenses associated with depreciation preservation im-provements and additions for the traditional and preser-vation approaches to reflecting the cost of use of capitalassets under Statement 34

16 PRIMER GASB 34

DEPRECIATION AND PRESERVATION ON THE FINANCIAL STATEMENTS

Depreciation and Modified ApproachesThe reader should note that examples of completed statements provided as schematics in this figure may be found in Appendix 1

Statement of Net AssetsPrimary Government

Governmental Business-type ComponentActivities (1) Activities (2) Total Units (3)

ASSETSCash and cash equivalentsInvestmentsReceivables (net)Internal balancesInventoriesCapital assets netTotal Assets

LIABILITIESAccounts payableDeferred revenueNoncurrent liabilitiesTotal Liabilities

NET ASSETSInvested in capital assets

net of related debtRestricted for (4)

Capital projectsDebt serviceCommunity development projectsOther purposes

Unrestricted (deficit)Total Net Assets

(1) Examples Public safety health and sanitation transportation(2) Examples Water sewer(3) Examples Landfill public schools(4) Assets whose use is constrained by law or externally

Note See also Question No 57 Appendix 2

Preservation capitalized(if depreciation approach)

Capitalized infrastructureassets net of past depreciation(if depreciation approach) orat original cost (if modifiedapproach)

Depreciation expense (if depreciation approach)orPreservation expense (if modified approach)

FIGURE 1 Depreciation and Preservation on the Financial Statements

ImprovementsAdditionscapitalized (depreciationand modified approaches)

PRIMER GASB 34 17

General revenuesTaxes

PropertyFranchisePublic service

Investment EarningsMiscellaneous

Special ItemsTransfers

Changes in net assetsNet assets ndash beginningNet assets ndash ending

Depreciation and Modified Approaches (continued)

Statement of Activities Net Revenue andChanges in Net Assets

Primary ComponentExpenses Program Revenues Government Units

FunctionsPrograms

Primary GovernmentGovernmental activities

General governmentPublic safetyPublic worksEngineering servicesHealth and sanitationCemeteryCulture and recreationCommunity developmentEducationInterest on long-term debtTotal governmental activities

Business-type activitiesWaterSewerParking facilitiesTotal business-type activities

Total primary governmentComponent units

LandfillPublic school system

Total component units

Maintenance and depreciation expensesare recorded as expenses if the depreciationapproach is usedorMaintenance and preservationrenewal expensesare recorded as expenses if the modifiedapproach is used

FIGURE 1 Depreciation and Preservation on the Financial Statements continued

18 PRIMER GASB 34

Technical Application

There are significant technical hurdles to overcome inapplying depreciation to long-lived transportation infra-structure assets First transportation agencies attempt tomaintain such assets at a constant condition level indefi-nitely This makes it difficult to estimate the number ofyears constituting useful life In fact depreciation expensewould be marginal if the estimated useful life of an assetreflected the agencyrsquos efforts to continually renew theassetrsquos life Nonetheless agencies implementing the de-preciation approach will have to determine useful lifegiven a set of assumptions regarding the level of futurepreservation and maintenance activity Such assumptionswill need to be documented and validated for the audi-tors of the financial reports

Another issue that arises is determining which expen-ditures should be capitalized and depreciated and whichshould be expended Also it is difficult to ascertain whenremaining useful life should be revised given changes in

maintenance and preservation activities or in the use ofthe asset relative to assumptions made when useful lifewas initially determined As an illustration if a govern-ment does not perform maintenance and preservationactivities as plannedmdashor if wear and tear on the road in-creases to the point where it is expected to reduce usefullife useful service life should be reduced thereby increas-ing the depreciation expense

There are difficulties with the modified approach aswell One is that it may be viewed as subjective since de-cisions regarding condition targets and assessments aremade by individuals with the potential to be directly im-pacted by the outcome Further some believe it is diffi-cult for accountants to audit the processes and proceduresused by the transportation agency in complying with therequirements of the modified approach It should benoted however that accounting involves estimation andapplication of judgment whether the modified or the de-preciation approach is used

PRIMER GASB 34 19

Public Interpretation

Depreciation is a systematic allocation of the cost of anasset over its estimated useful life it is not meant to indi-cate the cost of actually using the asset in any particulartime frame Further the net cost ofan asset as reported in the state-ment of assets reports theundepreciated or remaining cost ofthe asset not its physical conditionor its replacement cost As a resultthe depreciation approach does notprovide information to the publicregarding the actual cost of use ofinfrastructure assets

Further depreciation expensecould be viewed by the public asevidence that the asset is being al-lowed to deteriorate over timewhen most agencies continuouslymaintain these assets to a givenlevel of condition In fact thesesame agencies would view a declinein condition as a problem to be cor-rected Finally the depreciation ap-proach does not capture the effectof preservation or renewal effortsand therefore does not provide in-formation for assessing deferredmaintenance

In contrast the modified approach provides a venueto document asset management efforts in general andpreservation or renewal activities in particular Govern-ments will have a platform from which to discuss themerits of highway preservation compared to deferredmaintenance

Another potential advantage of the modified approachis its requirement for documentation which may pro-vide trend information indicating changes in conditionover time This material may be a useful avenue for trans-portation agencies to outline the effectiveness of theirstewardship activities and to demonstrate the requirementfor and use of future resources

20 PRIMER GASB 34

TIMING

In the fiscal year beginning after June 15 2001 largegovernments with annual revenues of $100 millionor more must prospectively report all major infra-structure assets built restored or improved after the

effective date of GASB Statement 34 And they mustreport on those assets in subsequent years using eitherthe depreciation or the modified approach Medium andsmall size governments have later effective dates (seeTimeline sidebar below)

While all governments are encouraged to report allinfrastructure assets as of the effective date of Statement34 large governments are only required to begin report-ing all major infrastructure acquired renovated or im-proved in terms of quantity or quality after June 30 1980for years following June 15 2005 Medium governmentshave until 2006 before they must satisfy the retroactivereporting requirements This requirement is optional forsmall governments

IMPLEMENTATION

Statement 34 allows for transition to the new require-ment For example governments may begin using themodified approach as long as at least one condition as-sessment has been completed and the results of the as-sessment show that the infrastructure assets are beingpreserved at approximately the condition level selectedby the government Eventually the prior three conditionassessments will be required to be disclosed

CHALLENGES

State and local governments are grappling with questionssuch as those listed in the sidebar on page 21 The an-swers will determine the cost difficulty and time frameof complying with GASBrsquos Statement 34 For example tothe extent that transportation agencies are able to build onexisting information and capabilities cost will be minimizedDifficulty will be determined by how easy or hard it is tosecure the necessary information And the time frame thata government requires for compliance will depend on howlong it takes to set up the necessary mechanisms

TIMELINE Phase 1Governments

Annual Revenuesgt= $100 million

in FY99

Phase 2Governments

Annual Revenues$10 million up to

$100 millionin FY99

Phase 3Governments

Annual Revenueslt $10 million

in FY99

PROSPECTIVE REPORTINGReport on all infrastructure built orimproved after the effective date ofGASB

RETROACTIVE REPORTINGReport on all infrastructure built orimproved on or after June 15 1980

Fiscal yearbeginning afterJune 15 2001

Optional

PRIMER GASB 34 21

IMPLEMENTATION QUESTIONS

How concerned should we be about our reportingpractices being consistent with those of other gov-ernmental units

What method should we use to arrive at the histori-cal cost of our infrastructure especially if our his-torical records are inadequate

How should we define ldquomaintenancerdquo versus ldquopres-ervationrdquo versus ldquoadditionsrdquo versus ldquoimprove-mentsrdquo for reporting purposes Depending on theassumptions these activities will be capitalized anddepreciated or expensed

If we choose to implement the depreciation approachwhat method will we use Also what should be de-preciated what should be the useful life of the as-set and what should be the capitalization dollarthreshold

Do we have a sufficient understanding of GASB State-ment 34 to effectively communicate with ourComptrollerrsquos Office

Do we have the ability to explain to external groupshow we arrived at our spendinginvestment deci-sions

Do we have available the information necessary to pro-vide for an informed resource allocation process asit takes place outside our agency as well as at thehighest levels within our organizations For ex-ample can we demonstrate the merits of preserv-ing assets as opposed to deferring maintenance

As state and local transportation agencies begin toinvestigate the requirements for complying withGASB Statement 34 they will need to address ques-tions such as those presented below

How will we define our networkssubsystems for re-porting purposes For example the highway in-frastructure could be reported in its entirety as anetwork Alternatively it could be broken downinto subsystems such as pavements and bridgesor it could be reported by functional class Howshould asset classes such as signs be treated

Is it better to depreciate or apply the modified ap-proach How concerned should we be about theinformation we provide to readers of the financialstatements How much effort will one approachrequire versus the other What will be the rela-tive cost

Do we have management systems in place that willsupport the modified approach

bull Do we know our inventory

bull Are we able to assess the current condition ofour inventory Are we using a reproducibleapproach

bull Do we have the ability to set minimum condi-tion targets that we can defend and achieve

bull Can we estimate future system condition givenalternative investment levels

bull Can we estimate investment requirements toachieve a given system condition level

bull Can we determine the level of funding associ-ated with a particular network or subsystem

22 PRIMER GASB 34

However governments choose to respond to Statement34 they will want to be sensitive to the issue of citizenconcerns From a public perspective the new financialstatements will be similar to a report card that can beused to assess government performance with regard tothe effect of infrastructure decisions on financial posi-tion and cost of services

STATUS

As this Primer went to publication it was not totally clearhow states would initially respond to Statement 34 Thatis would they report their infrastructure assets using thedepreciation or modified approach Preliminary evidencesuggested that perhaps a majority of states would use de-preciation however a significant number it appeared

would use the modified approach In many states thecomptroller will make the decision and may be particu-larly concerned with the technical application issues forthe modified approach Also it is noted that state comp-trollers must consider infrastructure assets other thanthose related to transportation and they may have con-cerns with consistency

It is important to remember that states may changetheir reporting approach at any time in the future iethey could move from depreciation to the modified ap-proach Of course if a state is not able to meet its condi-tion targets it will have to depreciate the assets or lowerits acceptable condition target What was clear as the firstimplementation date approached was that virtually allstates planned to comply with Statement 34

PRIMER GASB 34 23

ASSET MANAGEMENT OVERVIEW

Asset Management is a framework for makingcost-effective resource allocation decisions Thedecisions are strategic rather than tactical Thatis they are based on a wide systems view of all

the assets under the transportation agencyrsquos umbrella andthey reflect an extended time horizon An Asset Manage-ment approach has at its foundation technical fact-basedinformation for decision-making and is driven by goalspolicies and budgets

The technical information supporting the frameworkis derived from engineering economic performance andbehavioral models Raw data such as inventory statisticsare also required to make Asset Management work Theability to gather timely and useful technical informationcritical to Asset Management has been made possible bythe technological revolution that has brought about fasterand more capable computers

Obtaining the necessary information and appropriatelyapplying the tools require horizontal and vertical com-munication Vertical communication means that every-one involved in the processmdashfrom elected officials tofront-line practitionersmdashhas access to reliableoverarching information Successful Asset Managementalso requires information that flows horizontally acrossfunctions asset classes and modes

Customer-based performance targets and organiza-tional goals policies and budget levels establish the guid-ing principles for making decisions using an Asset Man-agement framework Knowing these factors is criticalwhen applying the analytical tools Performance goalsreflect input from citizens legislators and policy mak-ers and they provide a focal point from which transpor-tation officials may explain their programs and perfor-mance to the public In addition they assist transportationexecutives in identifying and focusing on critical systemrequirements

Implementing an Asset Management framework pro-vides not only the means to identify optimal investmentstrategies but also a way to articulate them These capa-bilities arise from the transportation agency having theability to weigh one alternative over anothermdashin otherwords to conduct ldquowhat ifrdquo analysis For example anagency faced with the possibility of a decrease in fundingcan readily demonstrate the resulting impact on systemcondition and performance

Figure 2 includes a flow diagram characterizing a ge-neric Asset Management framework and an overview ofthe process It should be noted that in application AssetManagement will vary significantly from organization toorganization

DRIVING FORCES

Those charged with managing highway assets are facedwith a mature system that is experiencing high and grow-ing demand as well as the ongoing deterioration associ-ated with an aging asset At the same time system usersexpect high quality service

Transportation officials are being asked to deal withthis challenge in an era of increasingly constrained fund-ing The transportation sector faces difficult competitionfrom other components of a Statersquos budget In additionlegislative provisions directing transportation funds toactivities other than traditional infrastructure projectshave become more common

Further complicating the new transportation environ-ment is the changing transportation agency workplaceFirst staffing is down as the result of the recentdownsizing initiatives associated with government re-invention as well as a robust economy that has made itdifficult to attract and retain capable staff Second a dra-matic increase in outsourcing and a move toward publicprivate ventures has brought more players into the pro-cess of managing the system

ASSET MANAGEMENT AND GASB STATEMENT 34

24 PRIMER GASB 34

First performance expectations consistent

with goals available budgets and organiza-

tion policies are established and used to guide

the analytical processes as well as the deci-

sion-making framework Second inventory

and performance information are collected

and analyzed This information provides in-

put on future system requirements (also called

ldquoneedsrdquo) Third the use of analytical tools and

reproducible methods produces viable cost-

effective strategies for allocating budgets to

satisfy agency needs and user requirements

using performance expectations as critical in-

puts Alternative choices are then evaluated

consistent with long-range plans policies and

goals Fourth projects are selected and pro-

grams are implemented The entire process is

periodically evaluated through performance

monitoring and systematic processes

Goals and Policies (Reflects Customer Input)

Performance Monitoring(Feedback)

Condition Assessmentand Performance

Modeling

Alternatives Evaluation and ProgramOptimization

Short- and Long- Range Plans

(Project Selection)

Program Implementation

Asset Inventory

Budget

Allocations

FIGURE 2 Generic Asset Management System Components and Overview

SYSTEM COMPONENTS OVERVIEW

A GENERIC ASSET MANAGEMENT FRAMEWORK

Source Adapted from Asset Management Primer Federal Highway Administration 1999

PRIMER GASB 34 25

Just a few decades ago ldquoaccountabilityrdquo was a relativelyunfamiliar term in the transportation community Thishas changed dramatically Now these agencies understandthat citizens expect them to be responsible stewards oftheir investment Therefore transportation agencies areincreasingly sensitive to the probability that they will becalled upon to communicate and explain their manage-ment approach and results

Because GASB Statement 34 will make public the im-pact of transportation decisions public demands for ac-countability are likely to intensify Statement 34 willclearly help to move Asset Management forward How-ever even if Statement 34 had never been formalizedAsset Management would still be viewed as a valuableway of doing business In fact in response to the aboveindicated driving forces the interest in TransportationAsset Management was here well before Statement 34

IMPLEMENTING ASSET MANAGEMENT

For decades all transportation agencies have activelymanaged their assets In response to the driving forcesdiscussed above some have explored sophisticated engi-neering economic data integration and business prac-tices These practices have made it possible to begin themove from decision-making styles that result in tacticalsolutions to ones that provide morestrategic options

In the past many transportationagencies made investment andmaintenance decisions based on thecounsel of high-level staff Theseindividuals typically had extensiveexperience and a broad knowledgebase However both the experienceand the knowledge were often spe-cialized and decisions tended to bebased on information pertaining toa specific asset class such as pave-ments In fact the managementsystems supporting the decision-making process were developedalong the silo pattern with for ex-ample separate systems for bridgesand pavements

Not surprisingly program development decisions werebased more on historical spending patterns political con-siderations and intuition Success was measured as theextent to which backlog was reduced and decisions wereoften made using ldquoworst firstrdquo criteria

Transportation agencies are interested in moving fromasset management (eg managing their assets individu-ally) to Asset Management (with a capital ldquoArdquo and a capi-tal ldquoMrdquo that is managing their assets under a compre-hensive framework) To assist in this process AASHTOand FHWA have underway initiatives to develop and en-hance the building blocks of Asset Management In addi-tion a number of transportation agencies have contractedwith subject-matter experts to evaluate their particularsituations and recommend future action

In 1999 FHWA established the Office of Asset Man-agement Its research agenda is intended to bring state-of-the-art management system technology and best prac-tice to state and local practitioners Work is ongoing toenhance and encourage the application of existing man-agement systems and to integrate these systems Newmanagement systems such as for tunnels and roadwayhardware are under development or are being explored

26 PRIMER GASB 34

HIGHWAY ECONOMIC REQUIREMENTS SYSTEM

A major new initiative being sponsored by FHWArsquos Office of Asset Manage-ment is a program to provide an economicengineering programming toolcalled the Highway Economic Requirements System (HERS) model to in-terested states HERS is currently used by FHWA at the national level toidentify the costs benefits and national economic implications associatedwith highway investment options

FHWA believes that HERS may also be useful for state-level highwayinvestment planning A pilot program is planned where a number of stateswill evaluate the applicability of the model for their use If the model isfound to be appropriate FHWA is committed to bringing the HERS capa-bility to all interested states

HERS uses incremental benefits-versus-cost analysis to optimize high-way investment The model addresses highway deficiencies by quantifyingthe agency and user costs of various types and combinations of improve-ments each subjected to a rigorous benefits-versus-cost analysis that con-siders travel time safety and vehicle operating and emissions costs

Within the HERS process state travel forecasts are analyzed using a setof user-defined standards based on accepted engineering practice to predictfuture pavement and capacity deficiencies HERS selects the ldquobestrdquo set ofhighway improvements to satisfy economically sound highway performanceobjectives When funding is not available to achieve ldquooptimalrdquo spendinglevels HERS prioritizes economically worthwhile potential improvementoptions according to relative merit (that is benefit-to-cost ratios) and se-lects the ldquobestrdquo set of projects Given funding constraints or user-specifiedperformance objectives HERS minimizes the expenditure of public fundswhile simultaneously maximizing highway user benefits

The state version of HERS (HERSST) has the potential to help state-level policy makers address resource allocation questions because it is ableto perform ldquowhat ifrdquo analyses For example HERSST would allow users toexamine the economic and system impacts of a 20 percent reduction in in-vestment levels In this way HERS could provide an objective platform fromwhich state DOTs could communicate with other state officials In additionHERSST may assist state DOTs in meeting the new Governmental Ac-counting Standards Board provisions

Source Asset Management Primer Federal Highway Administration 1999

PRIMER GASB 34 27

The Office also provides technical assistance to trans-portation agencies interested in developing or improv-ing maintenance and construction and system preserva-tion programs Recent activities have focused on thedevelopment of training courses and a national specifica-tions database

Developing recommending and advancing engineer-ingeconomic analysis (EEA) tools for use by state trans-portation agencies is another Office priority area Activi-ties are currently focused on development of a genericlife cycle cost analysis (LCCA) model to support pave-ment design decisions and evaluating the applicability atthe state level of the Highway Economic RequirementsSystem (HERS) (see sidebar page 26) The HERS is ableto predict future investment requirements necessary tocorrect pavement andor capacity deficiencies given spe-cific performance goals Alternatively HERS can predictfuture user cost as well as system condition and perfor-mance levels given alternative investment levels Thismodel may be of use for states reporting the cost of in-frastructure use using GASB 34rsquos modified approach

Integrated data systems are an essential component ofan Asset Management framework The Office is devel-oping a Data Integration Primer that will present state-of-the art data integration procedures and provide infor-mation on best practices

AASHTO through the National Cooperative High-way Research Program is sponsoring development of afirst generation Guide to Asset Management This docu-ment will provide the states with assistance guidance andtools as they incorporate Asset Management principlesand procedures into their organizations

ASSET MANAGEMENT AND GASB IMPLEMENTATION

Regardless of which approachmdashdepreciation or modi-fiedmdashis selected to report on the use of capital assets overtime an Asset Management framework can be helpful inresponding to Statement 34 requirements as well as inexplaining to the public the transportation material in-cluded in financial reports In addition an Asset Man-agement framework that operates as presented in Figure3 page 28 will assist transportation agencies in comply-ing with the requirements of the modified approach

Also Asset Management will result in better morecost-effective decisionsmdashthereby improving a statersquos abil-ity to set system condition and performance targets andto meet them through effective decisions

It should be noted that Statement 34 in its presenta-tion of the modified approach calls for ldquoan asset man-agement systemrdquo to be in place However the require-ment is not so much for an Asset Management framework(with a capital ldquoArdquo and capital ldquoMrdquo) but rather any com-prehensive fully employed management system such asa pavement or bridge management system

28 PRIMER GASB 34

bull Condition Goals

bull Inventory Information

bull Investment Level Required to Achievethe Condition Goals

bull Current Condition Levels

bull Budget Information (Actual versusRequired to Achieve Condition Goals)

Modeling

(Project Selection)

Asset Inventory

Budget

Allocations

FIGURE 3 Asset Management and the Modified Approach

GENERIC ASSET MANAGEMENTFRAMEWORK

THE ASSET MANAGEMENT FRAMEWORK AND THE MODIFIED APPROACH

INFORMATION REQUIRED FORTHE MODIFIED APPROACH

PRIMER GASB 34 29

Clearly GASB Statement 34 is a major step toward greater accountability to the

public regarding transportation services By keeping track of transportation

assets and efforts to preserve them governments will be able to demonstrate

prudent stewardship of their infrastructure Also the Statementrsquos provisions help to

highlight the significance of infrastructure as an investment and the importance of main-

tenance activities

It appears that an Asset Management decision-making framework will not only help

transportation agencies comply with Statement 34 but will also assist them in realizing

its potential benefits The Statement is one more reason why transportation agencies

are becoming more enthusiastic about moving from managing assets to Asset Manage-

mentmdashthat is with a capital ldquoArdquo and a capital ldquoMrdquo

CONCLUSION

30 PRIMER GASB 34

Accrual Basis of AccountingRevenue expenses and other changes in the financialcondition of an organization are accounted for when theyoccur without consideration of the timing of actual cashreceived or expenditures made

Capital AssetA long-term productive asset such as a building or a road

CapitalizeTo record an expenditure as capital asset (long-term)rather than an expense If the benefits from an expendi-ture will be realized over several future periods the ex-penditure is capitalized and the cost is allocated to futureperiods through depreciation that is if it has a definitelife and the modified approach is not used

Composite Depreciation ExpenseRefers to grouping similar assets or dissimilar assets withinthe same class together for the purpose of computing asingle depreciation rate to be applied to all assets in thegroup (Source GASB)

DepreciationA systematic allocation to current operating cost overthe assetrsquos estimated useful life of the original cost of theasset (See useful life)

ExpenseTo record an expenditure as an expense to current opera-tions (as opposed to capitalizing the expenditure) (Seecapitalize)

Fund AccountingA system of accounting used by governments that pre-sents an array of self-balancing accounts representinggovernmental categories or funds

Generally Accepted Accounting Principles(GAAP)The standards and conventions recognized by certifiedpublic accountants as required in the preparation of fi-nancial statements

GLOSSARY

Governmental Accounting Standards Board(GASB)An organization established in 1984 to establish gener-ally accepted accounting standards for state and local gov-ernments GASB operates with oversight from the Fi-nancial Accounting Foundation

Infrastructure Assets (GASB Statement 34Context)Infrastructure assets are long-lived capital assets that nor-mally can be preserved for a significantly greater numberof years than most capital assets and that normally arestationary in nature Examples of infrastructure assetsinclude roads bridges tunnels drainage systems waterand sewer systems dams and lighting systems Buildingsexcept those that are an ancillary part of a network ofinfrastructure assets are not considered infrastructureassets (Source GASB)

Modified Approach (GASB Statement 34Context)An alternative to depreciating infrastructure assets Themodified approach recognizes that such assets are rou-tinely preserved (or renewed) so as to indefinitely extenduseful life Under this approach preservation (or renewal)expenditures are expensed rather than being capitalizedand the original cost and improvements and additions tothe asset are not depreciated (See capitalize expense)

Prospective Reporting (GASB Statement 34Context)Reporting on long-lived capital assets that were acquiredor materially improved after Statement 34rsquos effective date

Retroactive Reporting (GASB Statement 34Context)Reporting on long-lived capital assets that were acquiredor materially improved after June 15 1980

Useful LifeAn estimate of how long the asset will be in use assuminga given maintenance and repair schedule

PRIMER GASB 34 31

American Institute of Certified Public AccountshttpwwwaicpaorgAICPA is currently working on new audit guidance for Audits of State and Local Governments

Federal Highway AdministrationOffice of Asset ManagementEconomic Evaluation and Investment TeamhttpwwwfhwadotgovinfrastructureasstmgmtProvides miscellaneous information on Transportation Asset Management and GASB Statement 34

FinanceNethttpfinancenetgovProvides general information

Governmental Accounting Standards BoardhttpgasborgProvides the latest on GASB Statement 34 implementation

Government Finance Officers AssociationhttpwwwgfoaorgProvides a forum for GASB Statement 34 questions and answers

National Association of State ComptrollershttpssoorgnasactnasacthtmSponsors a web site and educational materials directed at GASB Statement 34 implementation

OTHER RESOURCES

32 PRIMER GASB 34

Statement 34 establishes new requirements for the annualfinancial reports of state and local governments Financial state-ments for the funds are similar to current requirements Theprincipal change to fund statements is that only major fundsand non-major funds in aggregate are required to be reportedThe greatest changes are to the government-wide financialstatements The focus of these statements is on the govern-ment as a whole with governmental and business-type activi-ties presented separately The government-wide statementsconsisting of a statement of net assets and a statement of activitiesthat presents revenues and expenses by function or program ina net expense format use the economic resources measurementfocus and accrual basis of accounting for both governmentaland business-type activities The change in measurement focusand basis of accounting for governmental activities requires thatall capital assets including infrastructure be recorded and de-preciated Additionally managementrsquos discussion and analysisthat gives readers an objective and easily readable analysis ofthe governmentrsquos financial performance for the year should bepresented as required supplementary information

Capital Assets Include Infrastructure

All capital assets are required to be reported at historical cost andshould be depreciated over their estimated useful lives unless theyare either inexhaustible or are infrastructure assets reported usingthe modified approach Infrastructure assets are included as capi-tal assets in the statement of net assets (para 18 19 21)

Required Note Disclosures about Capital Assets

The notes to the financial statements should provide the fol-lowing detail for historical cost and accumulated depreciationfor each major class of capital asset

1 Beginning- and end-of-year balances2 Capital acquisitions3 Sales or other dispositions4 Depreciation expense

Capital assets that are not being depreciated should be disclosedseparately from those that are being depreciated Additionallythe amounts of depreciation charged to each of the functionsin the statement of activities should be disclosed (para 117)

Modified Approach for Infrastructure

Infrastructure assets are not required to be depreciated if theassets are1 Managed using an asset management system2 Preserved at an established condition level

The asset management system should include an inventory ofinfrastructure assets perform condition assessments of the in-frastructure and estimate the annual level established by thegovernment (para 23)

The government should perform condition assessments atleast every three years and the results of the three most recentassessments should show that the infrastructure assets are beingpreserved at or above the established condition level (para 24)

Disclosures for Modified Approach for ReportingInfrastructure

For infrastructure assets reported using the modified approachthe following disclosures should be presented as required supple-mentary information

1 The assessed condition from the three most recent condi-tion assessments

2 Annual maintenance and preservation cost both estimatedand actual for the past five years

3 The basis and scale for the condition measurement4 The condition level established by the government as

acceptable5 Factors that significantly affect trends in the information in

1 and 2 (para 132 133)

Effective Date and Transition

The provisions of Statement 34 except for retroactive recordingof infrastructure are effective for fiscal years beginning after

1 June 15 2001 for governments with revenues of $100 mil-lion and greater

2 June 15 2002 for governments with revenues between $10and $100 million

3 June 15 2003 for governments with revenues less than $10million (para 143)

Depreciation of capital assets and prospective capitalization ofinfrastructure assets are two of the requirements that must beadopted according to the schedule above

APPENDIX 1SUMMARY OF CAPITAL ASSET AND INFRASTRUCTURE REQUIREMENTS GASB STATEMENT NO 34 BASIC FINANCIALSTATEMENTSmdashAND MANAGEMENTrsquoS DISCUSSION AND ANALYSISmdashFOR STATE AND LOCAL GOVERNMENTS

This is an incomplete document The material in this appendix is excerptedfrom Governmental Accounting Standards Series Statement No 34 Basic Fi-nancial Statementsmdashand Managementrsquos Discussion and Analysismdashfor State andLocal Governments June 1999 copyright by Governmental Accounting Stan-dards Board 401 Merritt 7 Norwalk Connecticut 06856 Reprinted by per-mission The complete document should be read for a full understanding ofinfrastructure issues including the Boardrsquos Basis for Conclusions For informa-tion see wwwrutgerseduAccountingrawgasbgasb34html

Endnotes appear on page 43

Specific paragraphs mentioned refer to the Governmental Accounting Stan-dards Series Statement No 34 Basic Financial Statementsmdashand ManagementrsquosDiscussion and Analysismdashfor State and Local Governments June 1999

PRIMER GASB 34 33

Reporting General Infrastructure Assets at Transition

The requirement for retroactive recording of general infrastruc-ture is effective for fiscal years beginning after

For governments with revenues less than $10 million retroac-tive recording of infrastructure is not required (para 148)

Modified Approach for Reporting Infrastructure Assetsat Transition

Governments may begin using the modified approach as longas at least one condition assessment has been completed andthe results of the assessment show that the infrastructure assetsare being preserved at the established condition level (para 152)

Initial Capitalization of General Infrastructure Assets

Only major general infrastructure assets that were acquired infiscal years ending after June 30 1980 are required to be capi-talized The threshold for a major asset is set at a percentage ofthe cost of all general capital assets reported for the year endedJune 30 1999 If the asset to be capitalized is a subsystem thethreshold is 5 of capital assets if the asset is a network thethreshold is 10 (para 156)

The initial capitalization amount should be based upon his-torical cost or estimated historical cost One method of esti-mating historical cost is deflating the current replacement costof a similar asset using price-level indexes to the acquisitionyear Bond documents capital outlay expenditures in prior fi-nancial statements or engineering document may also be usedfor estimating historical cost (para 158 160)

Methods for Calculating Depreciation

Any established depreciation method may be used Deprecia-tion may be calculated for a class of assets a network of assetsa subsystem of a network or individual assets (para 161)

Governments may use composite methods to calculate de-preciation expense Composite methods refer to grouping simi-lar assets or dissimilar assets within the same class together forthe purpose of computing a single depreciation rate to be ap-plied to all assets in the group (para 163)

INFRASTRUCTURE OUTTAKES

Reporting Capital Assets

18 Capital assets should be reported at historical cost Thecost of a capital asset should include capitalized interestand ancillary charges necessary to place the asset into itsintended location and condition for use Ancillary chargesinclude costs that are directly attributable to asset acquisi-tionmdashsuch as freight and transportation charges sitepreparation costs and professional fees Donated capitalassets should be reported at their estimated fair value atthe time of acquisition plus ancillary charges if any

19 As used in this Statement the term capital assets includesland improvements to land easements buildings build-ing improvements vehicles machinery equipment worksof art and historical treasures infrastructure and all othertangible or intangible assets that are used in operationsand that have initial useful lives extending beyond a singlereporting period Infrastructure assets are long-lived capi-tal assets that normally are stationary in nature and nor-mally can be preserved for a significantly greater numberof years than most capital assets Examples of infrastruc-ture assets include roads bridges tunnels drainage sys-tems water and sewer systems dams and lighting systemsBuildings except those that are an ancillary part of a net-work of infrastructure assets should not be considered in-frastructure assets for purposes of this Statement

20 Capital assets that are being or have been depreciated (para-graph 22) should be reported net of accumulated depre-ciation in the statement of net assets (Accumulated de-preciation may be reported on the face of the statement ordisclosed in the notes) Capital assets that are not beingdepreciated such as land or infrastructure assets reportedusing the modified approach (paragraphs 23 through 25)should be reported separately if the government has a sig-nificant amount of these assets Capital assets also may bereported in greater detail such as by major class of asset(for example infrastructure buildings and improvementsvehicles machinery and equipment) Required disclosuresare discussed in paragraphs 116 and 117

21 Capital assets should be depreciated over their estimateduseful lives unless they are either inexhaustible or are in-

34 PRIMER GASB 34

frastructure assets reported using the modified approachin paragraphs 23 through 25 Inexhaustible capital assetssuch as land and land improvements should not be depre-ciated

22 Depreciation expense should be reported in the statementof activities as discussed in paragraphs 44 and 45 Depre-ciation expense should be measured by allocating the netcost of depreciable assets (historical cost less estimated sal-vage value) over their estimated useful lives in a system-atic and rational matter It may be calculated for (a) a classof assets (b) a network of assets1 (c) a subsystem of a net-work2 or (d) individual assets (Composite methods maybe used to calculate depreciation expense See paragraphs161 through 166 for a more complete discussion of depre-ciation)

Modified approach

23 Infrastructure assets that are part of a network or subsystemof a network3 (hereafter eligible infrastructure assets) arenot required to be depreciated as long as two requirementsare met First the government manages the eligible infra-structure assets using an asset management system that hasthe characteristics set forth below second the governmentdocuments that the eligible infrastructure assets are beingpreserved approximately at (or above) a condition level es-tablished and disclosed by the government4 To meet thefirst requirement the asset management system should

a Have an up-to-date inventory of eligible infrastruc-ture assets

b Perform condition assessments5 of the eligibleinfrastructure assets and summarize the results usinga measurement scale

c Estimate each year the annual amount to maintainand preserve the eligible infrastructure assets at thecondition level established and disclosed by thegovernment

24 Determining what constitutes adequate documentary evi-dence to meet the second requirement in paragraph 23 forusing the modified approach requires professional judg-ment because of variations among governmentsrsquo asset man-agement systems and condition assessment methods Thesefactors also may vary within governments for different eli-gible infrastructure assets However governments shoulddocument that

a Complete condition assessments of eligible infra-structure assets are performed in a consistent mannerat least every three years6

b The results of the three most recent completecondition assessments provide reasonable assurancethat the eligible infrastructure assets are beingpreserved approximately at (or above) the conditionlevel7 established and disclosed by the government

25 If eligible infrastructure assets meet the requirements ofparagraphs 23 and 24 and are not depreciated all expen-ditures made for those assets (except for additions and im-provements) should be expensed in the period incurredAdditions and improvements to eligible infrastructure as-sets should be capitalized Additions or improvements in-crease the capacity or efficiency of infrastructure assetsrather than preserve the useful life of the assets

26 If the requirements of paragraphs 23 and 24 are no longermet the depreciation requirements of paragraphs 21 and22 should be applied for subsequent reporting periods8

[SECTION ON Reporting works of art and historicaltreasures (paragraphs 27 28 29) OMITTED HERE]

Required Financial StatementsmdashStatement of NetAssets

30 The statement of net assets should report all financial andcapital resources Governments are encouraged to presentthe statement in a format that displays assets less liabilitiesequal net assets although the traditional balance sheet for-mat (assets equal liabilities plus net assets) may be usedRegardless of the format used however the statement ofnet assets should report the difference between assets andliabilities as net assets not fund balances or equity

31 Governments are encouraged to present assets and liabili-ties in order of their relative liquidity10 An assetrsquos liquidityshould be determined by how readily it is expected to beconverted to cash and whether restrictions limit thegovernmentrsquos ability to use the resources A liabilityrsquos li-quidity is based on its maturity or when cash is expectedto be used to liquidate it The liquidity of an asset or li-ability may be determined by assessing the average liquid-ity of the class of assets or liabilities to which it belongseven though individual balances may be significantly moreor less liquid than others in the same class and some itemsmay have both current and long-term elements Liabili-ties whose average maturities are greater than one yearshould be reported in two componentsmdashthe amount duewithin one year and the amount due in more than one yearAdditional disclosures concerning long-term liabilities arediscussed in paragraph 119

PRIMER GASB 34 35

32 The difference between a governmentrsquos assets and its li-abilities is its net assets Net assets should be displayed inthree componentsmdashinvested in capital assets net of relateddebt restricted (distinguishing between major categories ofrestrictions) and unrestricted

Invested in Capital Assets Net of Related Debt

33 This component of net assets consists of capital assets (seeparagraph 19) including restricted capital assets net of ac-cumulated depreciation and reduced by the outstandingbalances of any bonds mortgages notes or other borrow-ings that are attributable to the acquisition constructionor improvement of those assets If there are significant un-spent related debt proceeds at year-end the portion of thedebt attributable to the unspent proceeds should not beincluded in the calculation of invested in capital assets net ofrelated debt Rather that portion of the debt should be in-cluded in the same net assets component as the unspentproceedsmdashfor example restricted for capital projects

Required Note Disclosures about Capital Assetsand Long-term Liabilities

116 Governments should provide detail in the notes to the fi-nancial statements about capital assets and long-term li-abilities of the primary government reported in the state-ment of net assets The information disclosed should bedivided into major classes of capital assets and long-termliabilities as well as between those associated with govern-mental activities and those associated with business-typeactivities Capital assets that are not being depreciatedshould be disclosed separately from those that are beingdepreciated (See paragraph 20)

117 Information presented about major classes of capital as-sets should include

a Beginning- and end-of-year balances (regardless ofwhether beginning-of-year balances are presented onthe face of the government-wide financial state-ments) with accumulated depreciation presentedseparately from historical cost

b Capital acquisitionsc Sales or other dispositionsd Current-period depreciation expense with disclosure

of the amounts charged to each of the functions inthe statement of activities

118 For collections not capitalized (see paragraphs 27-29) dis-closures should provide a description of the collection andthe reasons these assets are not capitalized For collectionsthat are capitalized governments should make the disclo-sures required by paragraphs 116 and 117

119 Information about long-term liabilities should include bothlong-term debt (such as bonds notes loans and leases pay-able) and other long-term liabilities11 (such as compen-sated absences and claims and judgments) Informationpresented about long-term liabilities should include

a Beginning- and end-of-year balances (regardless ofwhether prior-year data are presented on the face ofthe government-wide financial statements)

b Increases and decreases (separately presented)c The portions of each item that are due within one

year of the statement dated Which governmental funds typically have been used

to liquidate other long-term liabilities (such ascompensated absences and pension liabilities) in prioryears

120 Determining whether to provide similar disclosures aboutcapital assets and long-term liabilities of discretely pre-sented component units is a matter of professional judg-ment The decision to disclose should be based on the in-dividual component units significance to the total of alldiscretely presented component units and that componentunitrsquos relationship with the primary government

Modified Approach for Reporting Infrastructure

132 Governments should present the following schedules de-rived from asset management systems as RSI for all eli-gible infrastructure assets12 that are reported using themodified approach

a The assessed condition performed at least everythree years for at least the three most recentcomplete condition assessments indicating the datesof the assessments

b The estimated annual amount calculated at thebeginning of the fiscal year to maintain and preserveat (or above) the condition level established anddisclosed by the government compared with theamounts actually expensed (as discussed in paragraph25) for each of the past five reporting periods

36 PRIMER GASB 34

133 The following disclosures13 should accompany the sched-ules required by paragraph 132

a The basis for the condition measurement and themeasurement scale used to assess and report condi-tion For example a basis for condition measurementcould be distresses found in pavement surfaces A scaleused to assess and report condition could range fromzero for a failed pavement to 100 for a pavement inperfect condition

b The condition level at which the government intendsto preserve its eligible infrastructure assets reportedusing the modified approach

c Factors that significantly affect trends in the informa-tion reported in the required schedules including anychanges in the measurement scale the basis for thecondition measurement or the condition assessmentmethods used during the periods covered by theschedules If there is a change in the condition levelat which the government intends to preserve eligibleinfrastructure assets an estimate of the effect of thechange on the estimated annual amount to maintainand preserve those assets for the current period alsoshould be disclosed

EFFECTIVE DATE AND TRANSITION

142 The requirements of this Statement are effective in threephases based on total annual revenues as discussed in para-graph 143 below Earlier application is encouraged Gov-ernments that elect early implementation of this Statementfor periods beginning before June 15 2000 also shouldimplement Statement 33 at the same time If a primarygovernment chooses early implementation of this State-ment all of its component units also should implementthis standard early to provide the financial informationrequired for the government-wide financial statements

143 The requirements of this Statement are effective in threephases based on a governmentrsquos total annual revenues inthe first fiscal year ending after June 15 1999

bull Phase 1 governmentsmdashwith total annual revenues of$100 million or moremdashshould apply the require-ments of this Statement in financial statements forperiods beginning after June 15 2001

bull Phase 2 governmentsmdashwith total annual revenues of$10 million or more but less than $100 millionmdashshould apply the requirements of this Statement infinancial statements for periods beginning after June15 2002

bull Phase 3 governmentsmdashwith total annual revenues ofless than $10 millionmdashshould apply the requirementsof this Statement in financial statements for periodsbeginning after June 15 2003

For purposes of identifying the appropriate implementa-tion phase revenues includes all revenues (not other financ-ing sources) of the primary governmentrsquos governmentaland enterprise funds except for extraordinary items as de-fined in paragraph 55 Special-purpose governments en-gaged only in fiduciary activities should use total annualadditions rather than revenues to determine the appropri-ate implementation phase All component units shouldimplement the requirements of this Statement no later thanthe same year as their primary government regardless ofthe amount of each component unitrsquos total revenues Para-graphs 148 through 153 provide additional phase-in pro-visions for reporting general infrastructure assets

144 Adjustments to governmental proprietary and fiduciaryfunds resulting from a change to comply with this State-ment should be treated as adjustments of prior periodsand financial statements presented for the periods affectedshould be restated If restatement of the financial state-ments for prior periods is not practical the cumulative ef-fect of applying this Statement should be reported as arestatement of beginning fund balance or fund net assetsas appropriate for the earliest period restated (generallythe current period) In the first period that this Statementis applied the financial statements should disclose the na-ture of the restatement and its effect

145 In the first period that this Statement is applied govern-ments are not required to restate prior periods for pur-poses of providing the comparative data for MDampA as re-quired in paragraph 11 However governments areencouraged to provide comparative analyses of key ele-ments of total governmental funds and total enterprisefunds in MDampA for that period Also in the first year ofimplementation MDampA should include a statement thatin future years when prior-year information is available acomparative analysis of government-wide data will be pre-sented

146 The requirements of APB Opinions No 12 Omnibus Opin-ionmdash1967 and No 21 Interest on Receivables and Payablesas amended require deferral and amortization of debt is-sue premium or discount These Opinions may be appliedprospectively to governmental activities in the statementof net assets and the statement of activities except for gov-ernmental activity debt that is deep-discount or zero-coupon debt14 Similarly FASB Statement No 34 Capi-talization of Interest Cost as amended which requires capi-talization of interest cost as a component of the historical

PRIMER GASB 34 37

cost of capital assets also may be applied prospectively bygovernmental activities Finally Statement 23 which re-quires deferral and amortization of the difference betweenthe reacquisition price and the net carrying amount of olddebt in debt-refunding transactions may be applied pro-spectively by governmental activities The retroactiveeffect of applying those standards is not required to beconsidered in determining beginning net assets for gov-ernmental activities

Governmental Entities That Use the AICPANot-for-Profit Model

147 Governmental entities that report as of the date of thisStatement using the AICPA Not-for-Profit model as de-fined in Statement 29 but that do not meet the criteria inparagraph 67 may use enterprise fund accounting and fi-nancial reporting

Reporting General Infrastructure Assets atTransition

148 Prospective reporting of general infrastructure assets inthe statement of net assets is required beginning at theeffective dates of this Statement Retroactive reporting ofall major general infrastructure assets15 is encouraged atthat date Phase 1 governments as described in paragraph143 should retroactively report all major general infrastruc-ture assets for fiscal years beginning after June 15 2005Phase 2 governments should retroactively report all majorgeneral infrastructure assets for fiscal years beginning af-ter June 15 2006 Phase 3 governments are encouragedbut are not required to report major general infrastruc-ture assets retroactively

149 If determining the actual historical cost of general infra-structure assets is not practical because of inadequaterecords governments should report the estimated histori-cal cost for major general infrastructure assets that wereacquired or significantly reconstructed or that receivedsignificant improvements in fiscal years ending after June30 1980 (See paragraphs 155 through 166 for a more com-plete discussion of methods of estimating the cost of in-frastructure assets and if appropriate accumulated depre-ciation on infrastructure assets)

150 If during the transition period information is not avail-able for all networks of infrastructure assets those net-works for which information is available may be reported

151 While governments are applying the transition provisionsthey should make these disclosures

a A description of the infrastructure assets beingreported and of those that are not

b A description of any eligible infrastructure assets thatthe government has decided to report using themodified approach (paragraphs 23-25)

Modified Approach for Reporting InfrastructureAssets

152 Governments may begin to use the modified approach forreporting eligible infrastructure assets (as described in para-graphs 23-25) as long as at least one complete conditionassessment is available and the government documents thatthe eligible infrastructure assets are being preserved ap-proximately at (or above) the condition level the govern-ment has established and disclosed

153 The three most recent complete condition assessments andthe estimated and actual amounts to maintain and preservethe infrastructure assets for the previous five reportingperiods required by paragraph 132 may not be availableinitially In these cases the information required by thatparagraph should be presented for as many complete con-dition assessments and years of estimated and actual ex-penses as are available

INITIAL CAPITALIZATION OFGENERAL INFRASTRUCTURE ASSETS

Determining Major General Infrastructure Assets

154 At the applicable general infrastructure transition datephase 1 and 2 governments are required to capitalize andreport major general infrastructure assets that were ac-quired (purchased constructed or donated)16 in fiscal yearsending after June 30 1980 or that received major renova-tions restorations or improvements during that period

155 The approaches in paragraphs 158 though 160 may be usedto estimate the costs of existing general infrastructure assetswhen actual historical cost data are not available Theseapproaches are examples only governments may use anyapproach that complies with the intent of this Statement Gen-eral infrastructure assets acquired after the effective dates ofthis Statement should be reported using historical costs

38 PRIMER GASB 34

156 The determination of major general infrastructure assetsshould be at the network or subsystem level and should bebased on these criteria

a The cost or estimated cost of the subsystem isexpected to be at least 5 percent of the total cost of allgeneral capital assets reported in the first fiscal yearending after June 15 1999 or

b The cost or estimated cost of the network is expectedto be at least 10 percent of the total cost of all generalcapital assets reported in the first fiscal year endingafter June 15 1999

Reporting of nonmajor networks is encouraged but notrequired

Establishing Capitalization at Transition

157 The initial capitalization amount should be based on his-torical cost If determining historical cost is not practicalbecause of inadequate records estimated historical costmay be used

Estimated Historical CostmdashCurrent Replacement Cost

158 A government may estimate the historical cost of generalinfrastructure assets by calculating the current replacementcost of a similar asset and deflating this cost through theuse of price-level indexes to the acquisition year (or esti-mated acquisition year if the actual year is unknown) Thereare a number of price-level indexes that may be used bothprivate- and public-sector to remove the effects of price-level changes from current prices Accumulated deprecia-tion would be calculated based on the deflated amountexcept for general infrastructure assets reported accord-ing to the modified approach

159 The following example illustrates the calculation of esti-mated historical cost In 1998 a government has sixty-fivelane-miles of roads in a secondary road subsystem andthe current construction cost of similar roads is $1 millionper lane-mile The estimated total current replacement costof the secondary road subsystem of a highway networktherefore is $65 million ($1 million x 65) The roads havean estimated weighted-average age of fifteen years there-fore 1983 is considered to be the acquisition year Basedon the US Department of Transportation Federal High-way Administrationrsquos Price Trend Information for Federal-Aid Highway Construction (publication number FHWA-IF-99-001) for 1983 and 1998 1983 construction costs were6903 percent of 1998 costs The estimated historical costof the subsystem therefore is $44869500 ($65 million x06903) In 1998 the government would have reported the

subsystem in its financial statements at an estimated his-torical cost of $44869500 less accumulated depreciationfor fifteen years based on that deflated amount

Estimated Historical Cost from ExistingInformation

160 Other information may provide sufficient support for es-tablishing initial capitalization This information includesbond documents used to obtain financing for construc-tion or acquisition of infrastructure assets expendituresreported in capital project funds or capital outlays in gov-ernmental funds and engineering documents

161 Governments may use any established depreciationmethod Depreciation may be based on the estimated use-ful life of a class of assets a network of assets a subsystemof a network or individual assets For estimated useful livesgovernments can use (a) general guidelines obtained fromprofessional or industry organizations (b) information forcomparable assets of other governments or (c) internalinformation In determining estimated useful life a gov-ernment also should consider an assetrsquos present conditionand how long it is expected to meet service demands

162 Continuing the example from paragraph 159 assume thatin 1998 the road subsystem had a total estimated usefullife of twenty-five years from 1983 and therefore has anestimated remaining useful life of ten years Assuming noresidual value at the end of that time straight-line depre-ciation expense would be $1794780 per year($4486950025) and accumulated depreciation in 1998would be $26921700 ($1794780 x 15)

Composite Methods

163 Governments also may use composite methods to calcu-late depreciation expense Composite methods refer to de-preciating a grouping of similar assets (for example inter-state highways in a state) or dissimilar assets of the sameclass (for example all the roads and bridges of a state) us-ing the same depreciation rate Initially a depreciation ratefor the composite is determined Annually the determinedrate is multiplied by the cost of the grouping of assets tocalculate depreciation expense

164 A composite depreciation rate can be calculated in differ-ent ways The rate could be calculated based on a weightedaverage or on an unweighted-average estimate of usefullives of assets in the composite For example the compos-

PRIMER GASB 34 39

ite depreciation rate of three interstate highways withestimated remaining useful lives of sixteen twenty andtwenty-four years could be calculated using an unweightedaverage estimated as follows

A composite depreciation rate may also be calculated basedon an assessment of the useful lives of the grouping of as-sets This assessment could be based on condition assess-ments or experience with the useful lives of the groupingof assets For example based on experience engineers maydetermine that interstate highways generally have esti-mated remaining useful lives of approximately twenty yearsIn this case the annual depreciation rate would be 5 percent

165 The composite depreciation rate is generally used through-out the life of the grouping of assets However it shouldbe recalculated if the composition of the assets or the esti-mate of average useful lives changes significantly The av-erage useful lives of assets may change as assets are capi-talized or taken out of service

166 The annual depreciation expense is calculated by multi-plying the annual depreciation rate by the cost of the as-sets For example if the interstate highway subsystem cost$100 million and the annual depreciation rate was 10 per-cent then the annual depreciation charge would be $10million Accumulated depreciation should not exceed thereported cost of the assets

(16 + 20 +24)3= 5 annual depreciation rate

40 PRIMER GASB 34

MANAGEMENTrsquoS DISCUSSION AND ANALYSIS

Our discussion and analysis of Sample Cityrsquos financial performance provides an overview of the Cityrsquos financial activities for thefiscal year ended December 31 2002 Please read it in conjunction with the transmittal letter on pages 38-42 and the Cityrsquosfinancial statements which begin on page XXX (Note The preparer would cite the page numbers of the transmittal letter if oneis provided)

CAPITAL ASSETS

At the end of 2002 the City had $321 million invested in a broad range of capital assets including police and fire equipmentbuildings park facilities roads bridges and water and sewer lines (See Table 4 below) This amount represents a net increase(including additions and deductions) of just under $12 million or 38 percent over last year

TABLE 4

Capital Assets at Year-end(Net of Depreciation in Millions)

Governmental Activities Business-type Activities Totals

2002 2001 2002 2001 2002 2001Land $271 $294 $38 $37 $309 $331Buildings and improvements 302 305 1155 1136 1457 1441Equipment 212 229 12 10 224 239Infrastructure 915 793 309 293 1224 1086Totals $1700 $1621 $1514 $1476 $3214 $3097

This yearrsquos major additions included (in millions)

bull Route 7 reconstruction project paid for with proceeds of general $113obligation bonds issued last year

bull Replacement of older segments of the wastewater collection system 32and treatment facilities paid for with proceeds from a revenuenote issued last year

bull Redevelopment housing construction paid for with revenue bonds 22issued this year

bull Land acquired through the Cityrsquos power of eminent domain paid for 20with General Fund resources

bull Water distribution mains hydrants and meters paid for with water 16and sewer revenue bonds issued this year

The Cityrsquos fiscal-year 2003 capital budget calls for it to spend another $16 million for capital projects principally for the comple-tion of its Route 7 reconstruction project and to create housing units in the Cityrsquos new community redevelopment housingprogram The City has no plans to issue additional debt to finance these projects Rather we will use bond proceeds from thecommunity redevelopment bonds issued this year and resources on hand in the Cityrsquos Gas Tax Fund More detailed informationabout the Cityrsquos capital assets is presented in Note 1 to the financial statements

ILLUSTRATIONS

PRIMER GASB 34 41

STATEMENT OF NET ASSETS

Primary Government

Governmental Business-type ComponentActivities Activities Total Units

ASSETSCash and cash equivalents $ 13597899 $ 10279143 $ 23877042 $ 303935Investments 27365221 ndash 27365221 7428952Receivables (net) 12833132 3609615 16442747 4042290Internal balances 175000 (175000) ndash ndashInventories 322149 126674 448823 83697Capital assets net (Note 1) 170022760 151388751 321411511 37744786

Total assets 224316161 165229183 389545344 49603660LIABILITIESAccounts payable 6783310 751430 7534740 1803332Deferred revenue 1435599 ndash 1435599 38911Noncurrent liabilities (Note 2)

Due within one year 9236000 4426286 13662286 1426639Due in more than one year 83302378 74482273 157784651 27106151

Total liabilities 100757287 79659989 180417276 30375033NET ASSETSInvested in capital assets net of related debt 103711386 73088574 176799960 15906392Restricted for

Capital projects 11705864 ndash 11705864 492445Debt service 3020708 1451996 4472704 ndashCommunity development projects 4811043 ndash 4811043 ndashOther purposes 3214302 ndash 3214302 ndash

Unrestricted (deficit) (2904429) 11028624 8124195 2829790Total net assets $123558874 $ 85569194 $ 209128068 $ 19228627

ILLUSTRATIONS CONTINUED

42 PRIMER GASB 34

STATEMENT OF CHANGES IN NET ASSETS

Net (Expense) RevenueProgram Revenues and Changes in Net Assets

Operating Capital Primary GovernmentCharges for Grants and Grants and Governmental Business-type Component

FunctionsProgram Expenses Service Contributions Contributions Activities Activities Total UnitsPrimary governmentGovernmental activities

General government $ 9571410 $ 3146915 $ 843617 $ ndash $ (5580878) $ ndash $ (5580878) $ ndashPublic safety 34844749 1198855 1307693 62300 (32275901) ndash (32275901) ndashPublic works 10128538 850000 ndash 2252615 (7025923) ndash (7025923) ndashEngineering services 1299645 704793 ndash ndash (594852) ndash (594852) ndashHealth and sanitation 6738672 5612267 575000 ndash (551405) ndash (551405) ndashCemetery 735866 212496 ndash ndash (523370) ndash (523370) ndashCulture and recreation 11532350 3995199 2450000 ndash (5087151) ndash (5087151) ndashCommunity development 2994389 ndash ndash 2580000 (414389) ndash (414389) ndashEducation 21893273 ndash ndash ndash (21893273) ndash (21893273) ndash(payment to school district)Interest on long-term debt 6068121 ndash ndash ndash (6068121) ndash (6068121) ndash

Total governmental activities 105807103 15720525 5176310 4894915 (80015263) ndash (80015263) ndashBusiness-type activities

Water 3595733 4159350 ndash 1159909 ndash 1723526 1723526 ndashSewer 4912853 7170533 ndash 486010 ndash 2743690 2743690 ndashParking facilities 2796283 1344087 ndash ndash ndash (1452196) (1452196) ndash

Total business-type activities 11304869 12673970 ndash 1645919 ndash 3015020 3015020 ndashTotal primary government $117111882 $28394495 $ 5176310 $ 6540834 (80015263 3015020 (77000243) ndashComponent units

Landfill $ 3382157 $ 3857858 $ ndash $ 11397 ndash ndash ndash 487098Public school system 31186498 705765 3937083 ndash ndash ndash ndash (26543650)

Total component units $ 34568655 $ 4563623 $ 3937083 $ 11397 ndash ndash ndash (26056552)

51693573 ndash 51693573 ndash4726244 ndash 4726244 ndash4055505 ndash 4055505 ndash8969887 ndash 8969887 ndash

ndash ndash ndash 218932731457820 ndash 1457820 64617081958144 601349 2559493 881763

884907 104925 989832 224642653488 ndash 2653488 ndash

501409 (501409) ndash ndash76900977 204865 77105842 29259208(3114286) 3219885 105599 3202656

126673160 82349309 209022469 16025971$ 123558874 $85569194 $209128068 $19228627

Property taxes levied for general purposesProperty taxes levied for debt serviceFranchise taxesPublic service taxes

Payment from Sample CityGrants and contributions not restricted to specific programsInvestment earningsMiscellaneous

Special item ndash gain on sale of park landTransfers

Total general revenues special items and transfersChange in net assets

Net assetsmdashbeginningNet assetsmdashending

PRIMER GASB 34 43

CAPITAL ASSETS NOTE DISCLOSURES

Note 1mdashIllustrative Disclosure of Information about Capital Assets

Capital asset activity for the year ended December 31 2002 was as follow (in thousands)

Primary Government

Beginning EndingBalance Additions Retirements Balance

Governmental activitiesLand $ 29484 $ 2020 $ (4358) $ 27146Buildings and improvements 40861 334 ndash 41195Equipment 32110 1544 (1514) 32140Infrastructure 94575 13220 ndash 107795

Totals at historical cost 197030 17118 (5872) 208276Less accumulated depreciation for

Buildings and improvements (10358) (691) ndash (11049)Equipment (9247) (2676) 1040 (10883)Infrastructure (15301) (1020) ndash (16321)Total accumulated depreciation for (34906) (4387) 1040 (38253)

Governmental activities capital assets net $162124 $ 12731 $ (4832) $170023

Business-type activitiesLand $ 3691 $ 145 $ ndash $ 3836Distribution and collection systems 36977 2527 ndash 39504Buildings and equipment 126370 2827 (32) 129165

Distribution and collection systems (7654) (897) ndash (8551)Buildings and equipment (11789) (808) 32 (12565)

Business-type activities capital assets net $147595 $ 3794 $ 0 $151389

Depreciation expense was charged to governmental functions as follows

General government $ 275Public safety 330Public works which includes the depreciation

of general infrastructure assets 1315Health and sanitation 625Cemetery 29Culture and recreation 65Community development 40In addition depreciation on capital assets

held by the Cityrsquos internal service funds(see D-3) is charged to the variousfunctions based on their usage of the assets 1708

Total depreciation expense $ 4387

44 PRIMER GASB 34

REQUIRED SUPPLEMENTARY INFORMATION FOR GOVERNMENTS USING THE MODIFIED APPROACH

Comparison of Needed-to-Actual MaintenancePreservation(in Thousands)

2002 2001 2000 1999 1998

Main arterialNeeded $ 2476 $ 2342 $ 2558 $ 2401 $ 2145Actual 2601 2552 2432 2279 2271

ArterialNeeded 1485 1405 1535 1441 1287Actual 1560 1531 1459 1367 1362

SecondaryNeeded 990 937 1023 960 858Actual 1040 1021 972 911 908

Overall systemNeeded 4951 4684 5116 4802 4290Actual 5201 5104 4863 4557 4541

Difference 250 420 (253) (245) 251

Note The condition of road pavement is measured using the XYZ pavement management system which is based on a weighted average of sixdistress factors found in pavement surfaces The XYZ pavement management system uses a measurement scale that is based on a condition indexranging from zero for a failed pavement to 100 for a pavement in perfect condition The condition index is used to classify roads in good or bettercondition (70-100) fair condition (50-69) and substandard condition (less than 50) It is the Cityrsquos policy to maintain at least 85 percent of itsstreet system at a good or better condition level No more than 10 percent should be in a substandard condition Condition assessments aredetermined every year

Condition Rating of the Cityrsquos Street System

Percentage of Lane-Miles in Good or Better Condition

2002 2001 2000

Main arterial 932 915 920Arterial 852 816 843Secondary 872 845 868Overall system 870 855 873

Percentage of Lane-Miles in Substandard Condition

2002 2001 2000

PRIMER GASB 34 45

ENDNOTES TO APPENDIX 1

1 A network of assets is composed of all assets that provide aparticular type of service for a government A network ofinfrastructure assets may be only one infrastructure assetthat is composed of many components For example a net-work of infrastructure assets may be a dam composed of aconcrete dam a concrete spillway and a series of locks

2 A subsystem of a network of assets is composed of all as-sets that make up a similar portion or segment of a net-work of assets For example all the roads of a governmentcould be considered a network of infrastructure assets In-terstate highways state highways and rural roads couldeach be considered a subsystem of that network

3 If a government chooses not to depreciate a subsystem ofinfrastructure assets based on the provisions of this para-graph the characteristics of the asset management systemrequired by this paragraph and the documentary evidencerequired by paragraph 24 should be for that subsystem ofinfrastructure assets

4 The condition level should be established and documentedby administrative or executive policy or by legislative ac-tion

5 Condition assessments should be documented in such amanner that they can be replicated Replicable conditionassessments are those that are based on sufficiently under-standable and complete measurement methods such thatdifferent measurers using the same methods would reachsubstantially similar results Condition assessments maybe performed by the government itself or by contract

6 Condition assessments may be performed using statisticalsamples that are representative of the eligible infrastruc-ture assets being preserved Governments may choose toassess their eligible infrastructure assets on a cyclical ba-sis For example one-third may be assessed each year If acyclical basis is used a condition assessment is consideredcomplete for a network or subsystem only when conditionassessments have been performed for all (or statisticalsamples of) eligible infrastructure assets in that networkor subsystem

7 For example condition could be measured either by a con-dition index or as the percentage of a network of infra-structure assets in good or poor condition

8 This change should be reported as a change in accountingestimate

[Footnote 9 intentionally omitted]

10 Use of a classified statement of net assets which distin-guishes between all current and long-term assets and li-abilities is also acceptable (Paragraphs 97 through 99 pro-vide guidance on presenting classified balance sheetsincluding reporting on restricted assets)

11 Information about net pension obligations should be re-ported in a separate pension note as required by State-ment 27

12 If a government applies the provisions of paragraphs 23and 24 to a subsystem of infrastructure assets (for exampleinterstate highways) then the RSI disclosures required bythis paragraph should be for that subsystem

13 Governments with asset management systems for infra-structure assets that gather the information required byparagraphs 132 and 133 and that do not use the modifiedapproach are encouraged to provide the information assupplementary information

14 For purposes of this Statement deep-discount debt is debtthat is sold at a discount of 20 percent or more from itsface or par value at the time it is issued Zero-coupon debtis originally sold at far below par value and pays no inter-est until it matures

15 Major general infrastructure assets are assets that (a) meetthe definition of a major asset as described in paragraph156 (b) are associated with and generally arise from gov-ernmental activities and (c) are long-lived capital assetsthat normally are stationary in nature and normally can bepreserved for a significantly greater number of years than mostcapital assets as described in paragraph 19 The transitionperiod does not apply to proprietary funds and specialndashpurpose governments engaged in business-type activities

16 For purposes of this Statement governments that have theprimary responsibility for managing an infrastructure as-set should report the asset A government should reportan asset even if it has contracted with a third party to main-tain the asset

46 PRIMER GASB 34

Selected Questions and Answers

29 QmdashDoes Statement 34 prescribe a minimum levelfor the capitalization of assets

AmdashNo However subparagraph 115e requires disclo-sure of the capitalization policymdashthe dollar value abovewhich asset acquisitions are added to the capital asset ac-counts Different types of assets subsystems or networksmay have different capitalization policies Additionallydifferent thresholds may be set for management controlpurposes or for compliance with laws and regulations [p 8]

53 QmdashWhat is the modified approach for reportinginfrastructure assets

AmdashThe modified approach is an alternative to deprecia-tion that may be applied for eligible infrastructure capitalassets (see Q54) that meet two requirements First theassets should be managed using an asset management sys-tem that meets the criteria in paragraph 23 Second thegovernment should document that the assets are beingpreserved at or above a condition level established by thegovernment as required by paragraph 24 Under the modi-fied approach depreciation expense is not recorded forthese assets Rather costs for both maintenance and pres-ervation of these assets should be expensed in the periodincurred Additions and improvements on the other handare capitalized (See Exhibit 14 in Appendix 3 for an illus-tration of the information required to be presented as RSIfor eligible infrastructure assets reported using the modi-fied approach) [p 13]

57 QmdashUnder the modified approach costs for bothmaintenance and preservation of an asset shouldbe expensed in the period incurred Is thistreatment different from traditional depreciation

AmdashYes Maintenance costs allow an asset to continue tobe used during its originally established useful life Main-tenance costs are expensed in the period incurred regard-less of the method of accounting for the asset Preserva-tion costs extend the useful life of an asset beyond itspreviously established useful life Preservation costs arecapitalized and depreciated if the asset is accounted for

using traditional depreciation but are expensed in the pe-riod incurred if the asset is accounted for using the modi-fied approach [p 14]

ModifiedApproach Depreciation

Maintenance costs Expense Expense

Preservation costs(see Q58) Expense Capitalize

Additions andimprovements Capitalize Capitalize

58 QmdashWhat are ldquopreservationrdquo costs

AmdashAlthough the term is not defined in Statement 34ldquopreservationrdquo costs generally are considered to be thoseoutlays that extend the useful life of an asset beyond itsoriginal estimated useful life but do not increase the ca-pacity or efficiency of the asset (See Q57 for discussion ofaccounting for preservation costs) [p 14]

61 QmdashWhat constitutes a change in capacity orefficiency

AmdashA change in capacity increases the level of service pro-vided by an asset For example additional lanes could beadded to a road or the weight capacity could be increasedA change in efficiency maintains the same service levelbut at a lower cost For example an electric generatingplant could be reengineered so that it produces the samemegawatts per day using less fuel [p 14]

APPENDIX 2SELECTED QUESTIONS AND ANSWERS FROM

GUIDE TO IMPLEMENTATION OF GASB STATEMENT 34 ON BASIC FINANCIAL STATEMENTSmdashAND MANAGEMENTrsquoSDISCUSSION AND ANALYSISmdashFOR STATE AND LOCAL GOVERNMENTS

The material in this appendix is excerpted from Guide to Implementation ofGASB Statement 34 on Basic Financial Statementsmdashand Managementrsquos Dis-cussion and Analysismdashfor State and Local Governments copyright by Govern-mental Accounting Standards Board 401 Merritt 7 Norwalk Connecticut 06856Reprinted by permission All rights reserved Information on how to order acopy of the guide is available at wwwrutgerseduAccountingrawgasb34QAhtmlSpecific paragraphs mentioned in the questions and answers refer to the Gov-ernmental Accounting Standards Series Statement No 34 Basic FinancialStatementsmdashand Managementrsquos Discussion and Analysismdashfor State and LocalGovernments June 1999 (See Appendix 1)

PRIMER GASB 34 47

62 QmdashWhen is a government no longer permitted touse the modified approach for its infrastructureassets

AmdashThe determination of whether the modified approachmay be used is made on a network-by-network or sub-system-by-subsystem basis A government may no longeruse the modified approach for the eligible infrastructureasset if it fails to meet the requirements of paragraphs 23and 24 for that asset Reasons could include failure to per-form a replicable condition assessment at least every threeyears failure to document the condition assessment a con-dition assessment that demonstrates that the asset was notmaintained approximately at or above the condition levelestablished by the government and failure to estimate theannual amount needed to maintain and preserve the asset[p 15]

63 QmdashIf a government is not permitted to continue touse the modified approach because theinfrastructure assets no longer meet therequirements of paragraphs 23 and 24 in whatyear is the change to the traditional depreciationapproach reported How is the change reported

AmdashDepreciation of the infrastructure assets would beginin the year subsequent to the year that the requirementsto use the modified approach are not met This changewould be accounted for prospectively as a change in ac-counting estimate as provided for in footnote 21 to para-graph 26 Application of the modified approach essentiallyequates to the estimation of a useful life of such lengththat the amount of annual depreciation is insignificantTherefore a change in the estimated useful life from al-most infinite to a shorter finite life over which deprecia-tion will be recorded should be reported as a change inestimate The useful life and residual value of the assetwould be estimated and a depreciation method selected atthe conversion date The historical cost of the asset wouldbe depreciated over the period from the cessation of themodified approach through the end of the remaining lifeof the asset [p 15]

64 QmdashA government performs condition assessmentson a three-year cyclical basis and the conditionassessment from the second year shows that thecondition is significantly below the levelestablished by the government Is the governmentrequired to stop reporting based on the modifiedapproach and begin depreciating the assets

AmdashNo The determination of whether the requirementsto use the modified approach have been met is made at theconclusion of a condition assessment cycle (footnote 19)[p 15]

67 QmdashAn asset management system should includean up-to-date inventory Would that require eachroad sign light pole and traffic signal to betagged and inventoried annually

AmdashNo The level of detail in the asset management sys-tem is determined by the capitalization policies selectedand implemented by the government (See also Q29 aboutcapitalization policies) Capital assets may be recorded atthe class network subsystem or individual asset level Thefollowing possibilities describe some of the alternatives

bull All of the roads of a government could be capitalizedcollectively as the road network

bull A government could record its roads at the subsystemlevel by considering interstate highways statehighways and rural roads each as separate sub-systems

bull Roads could be recorded as subsystems consisting ofdifferent geographic regions

bull Roads could be recorded as subsystems consisting ofthe major components of a roadmdashfor exampleroadbed overlay curbs and gutters lighting trafficsignals signage

bull A government may capitalize one type of infrastruc-ture asset at the network level and capitalize otherinfrastructure assets at the subsystem or even theindividual asset level

bull If a government decided that a greater level of detailwas needed for internal management purposes itcould select a lower capitalization threshold formanagement control which would not be reflected inthe financial statements [p 16]

70 QmdashIs there a minimum condition level at which agovernment should preserve its infrastructureassets in order to apply the modified approach

AmdashStatement 34 does not establish a minimum conditionlevel However this level should be established in a for-mal documented manner through appropriate adminis-trative or executive policy or by legislative action Thislevel and any subsequent changes to the established levelshould be disclosed annually in the notes to RSI [p 17]

71 QmdashWho establishes the condition level of aninfrastructure asset

AmdashThe government reporting the subsystem or networkof infrastructure assets sets the condition level This deci-sion should be documented by administrative or executivepolicy or by legislative action and be disclosed in the notesto RSI For example a capital budget prepared by the ex-ecutive branch and approved by the legislative branch couldbe used to document the established condition level [p 17]

48 PRIMER GASB 34

For further information and additional copies ofthis document contact

Office of Asset ManagementFederal Highway AdministrationUS Department of Transportation400 7th Street SW HIAM-1Washington DC 20590

Telephone 202-366-1130Fax 202-366-9981

FHWA-IF-00-010

Acknowledgment and Note to the Reader

Table of Contents

Note from the Director Office of Asset Management

Introduction

History

Basic Financial Statements

Basic Financial Statements continued

Overview of the New Governmental Reporting Model

Significance

Statement 34 Infrastructure Requirements

Infrastructure Will Be Included in the Asset Base

Infrastructure Will Be Reported at the Network Subsystem or Individual Asset Level

Infrastructure Will Be Depreciated or Reported Using a Modified Approach

Reporting Infrastructure Cost of Use

The Traditional Approach (Depreciation)

The Modified Approach (Preservation)

Figure 1 Depreciation and Preservation on the Financial Statements

Figure 1 continued

Implications



Implementation

Timing

Challenges

Status

Asset Management and GASB Statement 34

Asset Management Overview

Figure 2 Generic Asset Management System Components and Overview

Driving Forces

Implementing Asset Management

Highway Economic Requirements System

Asset Management and GASB Implementation

Figure 3 The Asset Management Framework and the Modified Approach

Conclusion

Glossary

Other Resources

Appendix 1 (Summary of Capital Asset and Infrastructure Requirements

Appendix 2 (Excerpts from Guide to Implemention

For further information and copies

PRIMER GASB 34 1

November 2000

Primer GASB 34

US Department of TransportationFederal Highway AdministrationOffice of Asset Management

An FHWA Primer on the Governmental Accounting Standards Boardrsquos Statement 34Basic Financial Statementsmdashand Managementrsquos Discussion and Analysismdashfor Stateand Local Governments

2 PRIMER GASB 34

ACKNOWLEDGMENT

NOTE TO THE READER

PRIMER GASB 34 3

TABLE OF CONTENTS

4 PRIMER GASB 34

PRIMER GASB 34 5

of concern to them

6 PRIMER GASB 34

Madeleine Bloom

PRIMER GASB 34 7

HISTORY

INTRODUCTION

8 PRIMER GASB 34

the assets

PRIMER GASB 34 9

SIGNIFICANCE

10 PRIMER GASB 34

Governmental Funds

PRIMER GASB 34 11

Proprietary Funds

Fiduciary Funds

Appendix 1

12 PRIMER GASB 34

PRIMER GASB 34 13

14 PRIMER GASB 34

PRIMER GASB 34 15

IMPLICATIONS

16 PRIMER GASB 34

PRIMER GASB 34 17

FunctionsPrograms

18 PRIMER GASB 34

PRIMER GASB 34 19

20 PRIMER GASB 34

TIMING

IMPLEMENTATION

CHALLENGES

in FY99

Phase 2Governments

$100 millionin FY99

Phase 3Governments

in FY99

Optional

PRIMER GASB 34 21

22 PRIMER GASB 34

STATUS

PRIMER GASB 34 23

DRIVING FORCES

24 PRIMER GASB 34

Modeling

(Project Selection)

Asset Inventory

Budget

Allocations

PRIMER GASB 34 25

26 PRIMER GASB 34

PRIMER GASB 34 27

28 PRIMER GASB 34

Modeling

(Project Selection)

Asset Inventory

Budget

Allocations

PRIMER GASB 34 29

tenance activities

CONCLUSION

30 PRIMER GASB 34

GLOSSARY

PRIMER GASB 34 31

OTHER RESOURCES

32 PRIMER GASB 34

1 and 2 (para 132 133)

PRIMER GASB 34 33

34 PRIMER GASB 34

Modified approach

PRIMER GASB 34 35

36 PRIMER GASB 34

PRIMER GASB 34 37

38 PRIMER GASB 34

Composite Methods

PRIMER GASB 34 39

40 PRIMER GASB 34

CAPITAL ASSETS

TABLE 4

ILLUSTRATIONS

PRIMER GASB 34 41

Primary Government

42 PRIMER GASB 34

884907 104925 989832 224642653488 ndash 2653488 ndash

501409 (501409) ndash ndash76900977 204865 77105842 29259208(3114286) 3219885 105599 3202656

126673160 82349309 209022469 16025971$ 123558874 $85569194 $209128068 $19228627

PRIMER GASB 34 43

Primary Government

44 PRIMER GASB 34

2002 2001 2000 1999 1998

Difference 250 420 (253) (245) 251

2002 2001 2000

PRIMER GASB 34 45

46 PRIMER GASB 34

PRIMER GASB 34 47

48 PRIMER GASB 34

Telephone 202-366-1130Fax 202-366-9981

FHWA-IF-00-010

Table of Contents

Introduction

History




Significance









Figure 1 continued

Implications



Implementation

Timing

Challenges

Status




Driving Forces





Conclusion

Glossary

Other Resources




2 PRIMER GASB 34

ACKNOWLEDGMENT

NOTE TO THE READER

PRIMER GASB 34 3

TABLE OF CONTENTS

4 PRIMER GASB 34

PRIMER GASB 34 5

of concern to them

6 PRIMER GASB 34

Madeleine Bloom

PRIMER GASB 34 7

HISTORY

INTRODUCTION

8 PRIMER GASB 34

the assets

PRIMER GASB 34 9

SIGNIFICANCE

10 PRIMER GASB 34

Governmental Funds

PRIMER GASB 34 11

Proprietary Funds

Fiduciary Funds

Appendix 1

12 PRIMER GASB 34

PRIMER GASB 34 13

14 PRIMER GASB 34

PRIMER GASB 34 15

IMPLICATIONS

16 PRIMER GASB 34

PRIMER GASB 34 17

FunctionsPrograms

18 PRIMER GASB 34

PRIMER GASB 34 19

20 PRIMER GASB 34

TIMING

IMPLEMENTATION

CHALLENGES

in FY99

Phase 2Governments

$100 millionin FY99

Phase 3Governments

in FY99

Optional

PRIMER GASB 34 21

22 PRIMER GASB 34

STATUS

PRIMER GASB 34 23

DRIVING FORCES

24 PRIMER GASB 34

Modeling

(Project Selection)

Asset Inventory

Budget

Allocations

PRIMER GASB 34 25

26 PRIMER GASB 34

PRIMER GASB 34 27

28 PRIMER GASB 34

Modeling

(Project Selection)

Asset Inventory

Budget

Allocations

PRIMER GASB 34 29

tenance activities

CONCLUSION

30 PRIMER GASB 34

GLOSSARY

PRIMER GASB 34 31

OTHER RESOURCES

32 PRIMER GASB 34

1 and 2 (para 132 133)

PRIMER GASB 34 33

34 PRIMER GASB 34

Modified approach

PRIMER GASB 34 35

36 PRIMER GASB 34

PRIMER GASB 34 37

38 PRIMER GASB 34

Composite Methods

PRIMER GASB 34 39

40 PRIMER GASB 34

CAPITAL ASSETS

TABLE 4

ILLUSTRATIONS

PRIMER GASB 34 41

Primary Government

42 PRIMER GASB 34

884907 104925 989832 224642653488 ndash 2653488 ndash

501409 (501409) ndash ndash76900977 204865 77105842 29259208(3114286) 3219885 105599 3202656

126673160 82349309 209022469 16025971$ 123558874 $85569194 $209128068 $19228627

PRIMER GASB 34 43

Primary Government

44 PRIMER GASB 34

2002 2001 2000 1999 1998

Difference 250 420 (253) (245) 251

2002 2001 2000

PRIMER GASB 34 45

46 PRIMER GASB 34

PRIMER GASB 34 47

48 PRIMER GASB 34

Telephone 202-366-1130Fax 202-366-9981

FHWA-IF-00-010

Table of Contents

Introduction

History




Significance









Figure 1 continued

Implications



Implementation

Timing

Challenges

Status




Driving Forces





Conclusion

Glossary

Other Resources




PRIMER GASB 34 3

TABLE OF CONTENTS

4 PRIMER GASB 34

PRIMER GASB 34 5

of concern to them

6 PRIMER GASB 34

Madeleine Bloom

PRIMER GASB 34 7

HISTORY

INTRODUCTION

8 PRIMER GASB 34

the assets

PRIMER GASB 34 9

SIGNIFICANCE

10 PRIMER GASB 34

Governmental Funds

PRIMER GASB 34 11

Proprietary Funds

Fiduciary Funds

Appendix 1

12 PRIMER GASB 34

PRIMER GASB 34 13

14 PRIMER GASB 34

PRIMER GASB 34 15

IMPLICATIONS

16 PRIMER GASB 34

PRIMER GASB 34 17

FunctionsPrograms

18 PRIMER GASB 34

PRIMER GASB 34 19

20 PRIMER GASB 34

TIMING

IMPLEMENTATION

CHALLENGES

in FY99

Phase 2Governments

$100 millionin FY99

Phase 3Governments

in FY99

Optional

PRIMER GASB 34 21

22 PRIMER GASB 34

STATUS

PRIMER GASB 34 23

DRIVING FORCES

24 PRIMER GASB 34

Modeling

(Project Selection)

Asset Inventory

Budget

Allocations

PRIMER GASB 34 25

26 PRIMER GASB 34

PRIMER GASB 34 27

28 PRIMER GASB 34

Modeling

(Project Selection)

Asset Inventory

Budget

Allocations

PRIMER GASB 34 29

tenance activities

CONCLUSION

30 PRIMER GASB 34

GLOSSARY

PRIMER GASB 34 31

OTHER RESOURCES

32 PRIMER GASB 34

1 and 2 (para 132 133)

PRIMER GASB 34 33

34 PRIMER GASB 34

Modified approach

PRIMER GASB 34 35

36 PRIMER GASB 34

PRIMER GASB 34 37

38 PRIMER GASB 34

Composite Methods

PRIMER GASB 34 39

40 PRIMER GASB 34

CAPITAL ASSETS

TABLE 4

ILLUSTRATIONS

PRIMER GASB 34 41

Primary Government

42 PRIMER GASB 34

884907 104925 989832 224642653488 ndash 2653488 ndash

501409 (501409) ndash ndash76900977 204865 77105842 29259208(3114286) 3219885 105599 3202656

126673160 82349309 209022469 16025971$ 123558874 $85569194 $209128068 $19228627

PRIMER GASB 34 43

Primary Government

44 PRIMER GASB 34

2002 2001 2000 1999 1998

Difference 250 420 (253) (245) 251

2002 2001 2000

PRIMER GASB 34 45

46 PRIMER GASB 34

PRIMER GASB 34 47

48 PRIMER GASB 34

Telephone 202-366-1130Fax 202-366-9981

FHWA-IF-00-010

Table of Contents

Introduction

History




Significance









Figure 1 continued

Implications



Implementation

Timing

Challenges

Status




Driving Forces





Conclusion

Glossary

Other Resources




4 PRIMER GASB 34

PRIMER GASB 34 5

of concern to them

6 PRIMER GASB 34

Madeleine Bloom

PRIMER GASB 34 7

HISTORY

INTRODUCTION

8 PRIMER GASB 34

the assets

PRIMER GASB 34 9

SIGNIFICANCE

10 PRIMER GASB 34

Governmental Funds

PRIMER GASB 34 11

Proprietary Funds

Fiduciary Funds

Appendix 1

12 PRIMER GASB 34

PRIMER GASB 34 13

14 PRIMER GASB 34

PRIMER GASB 34 15

IMPLICATIONS

16 PRIMER GASB 34

PRIMER GASB 34 17

FunctionsPrograms

18 PRIMER GASB 34

PRIMER GASB 34 19

20 PRIMER GASB 34

TIMING

IMPLEMENTATION

CHALLENGES

in FY99

Phase 2Governments

$100 millionin FY99

Phase 3Governments

in FY99

Optional

PRIMER GASB 34 21

22 PRIMER GASB 34

STATUS

PRIMER GASB 34 23

DRIVING FORCES

24 PRIMER GASB 34

Modeling

(Project Selection)

Asset Inventory

Budget

Allocations

PRIMER GASB 34 25

26 PRIMER GASB 34

PRIMER GASB 34 27

28 PRIMER GASB 34

Modeling

(Project Selection)

Asset Inventory

Budget

Allocations

PRIMER GASB 34 29

tenance activities

CONCLUSION

30 PRIMER GASB 34

GLOSSARY

PRIMER GASB 34 31

OTHER RESOURCES

32 PRIMER GASB 34

1 and 2 (para 132 133)

PRIMER GASB 34 33

34 PRIMER GASB 34

Modified approach

PRIMER GASB 34 35

36 PRIMER GASB 34

PRIMER GASB 34 37

38 PRIMER GASB 34

Composite Methods

PRIMER GASB 34 39

40 PRIMER GASB 34

CAPITAL ASSETS

TABLE 4

ILLUSTRATIONS

PRIMER GASB 34 41

Primary Government

42 PRIMER GASB 34

884907 104925 989832 224642653488 ndash 2653488 ndash

501409 (501409) ndash ndash76900977 204865 77105842 29259208(3114286) 3219885 105599 3202656

126673160 82349309 209022469 16025971$ 123558874 $85569194 $209128068 $19228627

PRIMER GASB 34 43

Primary Government

44 PRIMER GASB 34

2002 2001 2000 1999 1998

Difference 250 420 (253) (245) 251

2002 2001 2000

PRIMER GASB 34 45

46 PRIMER GASB 34

PRIMER GASB 34 47

48 PRIMER GASB 34

Telephone 202-366-1130Fax 202-366-9981

FHWA-IF-00-010

Table of Contents

Introduction

History




Significance









Figure 1 continued

Implications



Implementation

Timing

Challenges

Status




Driving Forces





Conclusion

Glossary

Other Resources




PRIMER GASB 34 5

of concern to them

6 PRIMER GASB 34

Madeleine Bloom

PRIMER GASB 34 7

HISTORY

INTRODUCTION

8 PRIMER GASB 34

the assets

PRIMER GASB 34 9

SIGNIFICANCE

10 PRIMER GASB 34

Governmental Funds

PRIMER GASB 34 11

Proprietary Funds

Fiduciary Funds

Appendix 1

12 PRIMER GASB 34

PRIMER GASB 34 13

14 PRIMER GASB 34

PRIMER GASB 34 15

IMPLICATIONS

16 PRIMER GASB 34

PRIMER GASB 34 17

FunctionsPrograms

18 PRIMER GASB 34

PRIMER GASB 34 19

20 PRIMER GASB 34

TIMING

IMPLEMENTATION

CHALLENGES

in FY99

Phase 2Governments

$100 millionin FY99

Phase 3Governments

in FY99

Optional

PRIMER GASB 34 21

22 PRIMER GASB 34

STATUS

PRIMER GASB 34 23

DRIVING FORCES

24 PRIMER GASB 34

Modeling

(Project Selection)

Asset Inventory

Budget

Allocations

PRIMER GASB 34 25

26 PRIMER GASB 34

PRIMER GASB 34 27

28 PRIMER GASB 34

Modeling

(Project Selection)

Asset Inventory

Budget

Allocations

PRIMER GASB 34 29

tenance activities

CONCLUSION

30 PRIMER GASB 34

GLOSSARY

PRIMER GASB 34 31

OTHER RESOURCES

32 PRIMER GASB 34

1 and 2 (para 132 133)

PRIMER GASB 34 33

34 PRIMER GASB 34

Modified approach

PRIMER GASB 34 35

36 PRIMER GASB 34

PRIMER GASB 34 37

38 PRIMER GASB 34

Composite Methods

PRIMER GASB 34 39

40 PRIMER GASB 34

CAPITAL ASSETS

TABLE 4

ILLUSTRATIONS

PRIMER GASB 34 41

Primary Government

42 PRIMER GASB 34

884907 104925 989832 224642653488 ndash 2653488 ndash

501409 (501409) ndash ndash76900977 204865 77105842 29259208(3114286) 3219885 105599 3202656

126673160 82349309 209022469 16025971$ 123558874 $85569194 $209128068 $19228627

PRIMER GASB 34 43

Primary Government

44 PRIMER GASB 34

2002 2001 2000 1999 1998

Difference 250 420 (253) (245) 251

2002 2001 2000

PRIMER GASB 34 45

46 PRIMER GASB 34

PRIMER GASB 34 47

48 PRIMER GASB 34

Telephone 202-366-1130Fax 202-366-9981

FHWA-IF-00-010

Table of Contents

Introduction

History




Significance









Figure 1 continued

Implications



Implementation

Timing

Challenges

Status




Driving Forces





Conclusion

Glossary

Other Resources




6 PRIMER GASB 34

Madeleine Bloom

PRIMER GASB 34 7

HISTORY

INTRODUCTION

8 PRIMER GASB 34

the assets

PRIMER GASB 34 9

SIGNIFICANCE

10 PRIMER GASB 34

Governmental Funds

PRIMER GASB 34 11

Proprietary Funds

Fiduciary Funds

Appendix 1

12 PRIMER GASB 34

PRIMER GASB 34 13

14 PRIMER GASB 34

PRIMER GASB 34 15

IMPLICATIONS

16 PRIMER GASB 34

PRIMER GASB 34 17

FunctionsPrograms

18 PRIMER GASB 34

PRIMER GASB 34 19

20 PRIMER GASB 34

TIMING

IMPLEMENTATION

CHALLENGES

in FY99

Phase 2Governments

$100 millionin FY99

Phase 3Governments

in FY99

Optional

PRIMER GASB 34 21

22 PRIMER GASB 34

STATUS

PRIMER GASB 34 23

DRIVING FORCES

24 PRIMER GASB 34

Modeling

(Project Selection)

Asset Inventory

Budget

Allocations

PRIMER GASB 34 25

26 PRIMER GASB 34

PRIMER GASB 34 27

28 PRIMER GASB 34

Modeling

(Project Selection)

Asset Inventory

Budget

Allocations

PRIMER GASB 34 29

tenance activities

CONCLUSION

30 PRIMER GASB 34

GLOSSARY

PRIMER GASB 34 31

OTHER RESOURCES

32 PRIMER GASB 34

1 and 2 (para 132 133)

PRIMER GASB 34 33

34 PRIMER GASB 34

Modified approach

PRIMER GASB 34 35

36 PRIMER GASB 34

PRIMER GASB 34 37

38 PRIMER GASB 34

Composite Methods

PRIMER GASB 34 39

40 PRIMER GASB 34

CAPITAL ASSETS

TABLE 4

ILLUSTRATIONS

PRIMER GASB 34 41

Primary Government

42 PRIMER GASB 34

884907 104925 989832 224642653488 ndash 2653488 ndash

501409 (501409) ndash ndash76900977 204865 77105842 29259208(3114286) 3219885 105599 3202656

126673160 82349309 209022469 16025971$ 123558874 $85569194 $209128068 $19228627

PRIMER GASB 34 43

Primary Government

44 PRIMER GASB 34

2002 2001 2000 1999 1998

Difference 250 420 (253) (245) 251

2002 2001 2000

PRIMER GASB 34 45

46 PRIMER GASB 34

PRIMER GASB 34 47

48 PRIMER GASB 34

Telephone 202-366-1130Fax 202-366-9981

FHWA-IF-00-010

Table of Contents

Introduction

History




Significance









Figure 1 continued

Implications



Implementation

Timing

Challenges

Status




Driving Forces





Conclusion

Glossary

Other Resources




PRIMER GASB 34 7

HISTORY

INTRODUCTION

8 PRIMER GASB 34

the assets

PRIMER GASB 34 9

SIGNIFICANCE

10 PRIMER GASB 34

Governmental Funds

PRIMER GASB 34 11

Proprietary Funds

Fiduciary Funds

Appendix 1

12 PRIMER GASB 34

PRIMER GASB 34 13

14 PRIMER GASB 34

PRIMER GASB 34 15

IMPLICATIONS

16 PRIMER GASB 34

PRIMER GASB 34 17

FunctionsPrograms

18 PRIMER GASB 34

PRIMER GASB 34 19

20 PRIMER GASB 34

TIMING

IMPLEMENTATION

CHALLENGES

in FY99

Phase 2Governments

$100 millionin FY99

Phase 3Governments

in FY99

Optional

PRIMER GASB 34 21

22 PRIMER GASB 34

STATUS

PRIMER GASB 34 23

DRIVING FORCES

24 PRIMER GASB 34

Modeling

(Project Selection)

Asset Inventory

Budget

Allocations

PRIMER GASB 34 25

26 PRIMER GASB 34

PRIMER GASB 34 27

28 PRIMER GASB 34

Modeling

(Project Selection)

Asset Inventory

Budget

Allocations

PRIMER GASB 34 29

tenance activities

CONCLUSION

30 PRIMER GASB 34

GLOSSARY

PRIMER GASB 34 31

OTHER RESOURCES

32 PRIMER GASB 34

1 and 2 (para 132 133)

PRIMER GASB 34 33

34 PRIMER GASB 34

Modified approach

PRIMER GASB 34 35

36 PRIMER GASB 34

PRIMER GASB 34 37

38 PRIMER GASB 34

Composite Methods

PRIMER GASB 34 39

40 PRIMER GASB 34

CAPITAL ASSETS

TABLE 4

ILLUSTRATIONS

PRIMER GASB 34 41

Primary Government

42 PRIMER GASB 34

884907 104925 989832 224642653488 ndash 2653488 ndash

501409 (501409) ndash ndash76900977 204865 77105842 29259208(3114286) 3219885 105599 3202656

126673160 82349309 209022469 16025971$ 123558874 $85569194 $209128068 $19228627

PRIMER GASB 34 43

Primary Government

44 PRIMER GASB 34

2002 2001 2000 1999 1998

Difference 250 420 (253) (245) 251

2002 2001 2000

PRIMER GASB 34 45

46 PRIMER GASB 34

PRIMER GASB 34 47

48 PRIMER GASB 34

Telephone 202-366-1130Fax 202-366-9981

FHWA-IF-00-010

Table of Contents

Introduction

History




Significance









Figure 1 continued

Implications



Implementation

Timing

Challenges

Status




Driving Forces





Conclusion

Glossary

Other Resources




8 PRIMER GASB 34

the assets

PRIMER GASB 34 9

SIGNIFICANCE

10 PRIMER GASB 34

Governmental Funds

PRIMER GASB 34 11

Proprietary Funds

Fiduciary Funds

Appendix 1

12 PRIMER GASB 34

PRIMER GASB 34 13

14 PRIMER GASB 34

PRIMER GASB 34 15

IMPLICATIONS

16 PRIMER GASB 34

PRIMER GASB 34 17

FunctionsPrograms

18 PRIMER GASB 34

PRIMER GASB 34 19

20 PRIMER GASB 34

TIMING

IMPLEMENTATION

CHALLENGES

in FY99

Phase 2Governments

$100 millionin FY99

Phase 3Governments

in FY99

Optional

PRIMER GASB 34 21

22 PRIMER GASB 34

STATUS

PRIMER GASB 34 23

DRIVING FORCES

24 PRIMER GASB 34

Modeling

(Project Selection)

Asset Inventory

Budget

Allocations

PRIMER GASB 34 25

26 PRIMER GASB 34

PRIMER GASB 34 27

28 PRIMER GASB 34

Modeling

(Project Selection)

Asset Inventory

Budget

Allocations

PRIMER GASB 34 29

tenance activities

CONCLUSION

30 PRIMER GASB 34

GLOSSARY

PRIMER GASB 34 31

OTHER RESOURCES

32 PRIMER GASB 34

1 and 2 (para 132 133)

PRIMER GASB 34 33

34 PRIMER GASB 34

Modified approach

PRIMER GASB 34 35

36 PRIMER GASB 34

PRIMER GASB 34 37

38 PRIMER GASB 34

Composite Methods

PRIMER GASB 34 39

40 PRIMER GASB 34

CAPITAL ASSETS

TABLE 4

ILLUSTRATIONS

PRIMER GASB 34 41

Primary Government

42 PRIMER GASB 34

884907 104925 989832 224642653488 ndash 2653488 ndash

501409 (501409) ndash ndash76900977 204865 77105842 29259208(3114286) 3219885 105599 3202656

126673160 82349309 209022469 16025971$ 123558874 $85569194 $209128068 $19228627

PRIMER GASB 34 43

Primary Government

44 PRIMER GASB 34

2002 2001 2000 1999 1998

Difference 250 420 (253) (245) 251

2002 2001 2000

PRIMER GASB 34 45

46 PRIMER GASB 34

PRIMER GASB 34 47

48 PRIMER GASB 34

Telephone 202-366-1130Fax 202-366-9981

FHWA-IF-00-010

Table of Contents

Introduction

History




Significance









Figure 1 continued

Implications



Implementation

Timing

Challenges

Status




Driving Forces





Conclusion

Glossary

Other Resources




PRIMER GASB 34 9

SIGNIFICANCE

10 PRIMER GASB 34

Governmental Funds

PRIMER GASB 34 11

Proprietary Funds

Fiduciary Funds

Appendix 1

12 PRIMER GASB 34

PRIMER GASB 34 13

14 PRIMER GASB 34

PRIMER GASB 34 15

IMPLICATIONS

16 PRIMER GASB 34

PRIMER GASB 34 17

FunctionsPrograms

18 PRIMER GASB 34

PRIMER GASB 34 19

20 PRIMER GASB 34

TIMING

IMPLEMENTATION

CHALLENGES

in FY99

Phase 2Governments

$100 millionin FY99

Phase 3Governments

in FY99

Optional

PRIMER GASB 34 21

22 PRIMER GASB 34

STATUS

PRIMER GASB 34 23

DRIVING FORCES

24 PRIMER GASB 34

Modeling

(Project Selection)

Asset Inventory

Budget

Allocations

PRIMER GASB 34 25

26 PRIMER GASB 34

PRIMER GASB 34 27

28 PRIMER GASB 34

Modeling

(Project Selection)

Asset Inventory

Budget

Allocations

PRIMER GASB 34 29

tenance activities

CONCLUSION

30 PRIMER GASB 34

GLOSSARY

PRIMER GASB 34 31

OTHER RESOURCES

32 PRIMER GASB 34

1 and 2 (para 132 133)

PRIMER GASB 34 33

34 PRIMER GASB 34

Modified approach

PRIMER GASB 34 35

36 PRIMER GASB 34

PRIMER GASB 34 37

38 PRIMER GASB 34

Composite Methods

PRIMER GASB 34 39

40 PRIMER GASB 34

CAPITAL ASSETS

TABLE 4

ILLUSTRATIONS

PRIMER GASB 34 41

Primary Government

42 PRIMER GASB 34

884907 104925 989832 224642653488 ndash 2653488 ndash

501409 (501409) ndash ndash76900977 204865 77105842 29259208(3114286) 3219885 105599 3202656

126673160 82349309 209022469 16025971$ 123558874 $85569194 $209128068 $19228627

PRIMER GASB 34 43

Primary Government

44 PRIMER GASB 34

2002 2001 2000 1999 1998

Difference 250 420 (253) (245) 251

2002 2001 2000

PRIMER GASB 34 45

46 PRIMER GASB 34

PRIMER GASB 34 47

48 PRIMER GASB 34

Telephone 202-366-1130Fax 202-366-9981

FHWA-IF-00-010

Table of Contents

Introduction

History




Significance









Figure 1 continued

Implications



Implementation

Timing

Challenges

Status




Driving Forces





Conclusion

Glossary

Other Resources




10 PRIMER GASB 34

Governmental Funds

PRIMER GASB 34 11

Proprietary Funds

Fiduciary Funds

Appendix 1

12 PRIMER GASB 34

PRIMER GASB 34 13

14 PRIMER GASB 34

PRIMER GASB 34 15

IMPLICATIONS

16 PRIMER GASB 34

PRIMER GASB 34 17

FunctionsPrograms

18 PRIMER GASB 34

PRIMER GASB 34 19

20 PRIMER GASB 34

TIMING

IMPLEMENTATION

CHALLENGES

in FY99

Phase 2Governments

$100 millionin FY99

Phase 3Governments

in FY99

Optional

PRIMER GASB 34 21

22 PRIMER GASB 34

STATUS

PRIMER GASB 34 23

DRIVING FORCES

24 PRIMER GASB 34

Modeling

(Project Selection)

Asset Inventory

Budget

Allocations

PRIMER GASB 34 25

26 PRIMER GASB 34

PRIMER GASB 34 27

28 PRIMER GASB 34

Modeling

(Project Selection)

Asset Inventory

Budget

Allocations

PRIMER GASB 34 29

tenance activities

CONCLUSION

30 PRIMER GASB 34

GLOSSARY

PRIMER GASB 34 31

OTHER RESOURCES

32 PRIMER GASB 34

1 and 2 (para 132 133)

PRIMER GASB 34 33

34 PRIMER GASB 34

Modified approach

PRIMER GASB 34 35

36 PRIMER GASB 34

PRIMER GASB 34 37

38 PRIMER GASB 34

Composite Methods

PRIMER GASB 34 39

40 PRIMER GASB 34

CAPITAL ASSETS

TABLE 4

ILLUSTRATIONS

PRIMER GASB 34 41

Primary Government

42 PRIMER GASB 34

884907 104925 989832 224642653488 ndash 2653488 ndash

501409 (501409) ndash ndash76900977 204865 77105842 29259208(3114286) 3219885 105599 3202656

126673160 82349309 209022469 16025971$ 123558874 $85569194 $209128068 $19228627

PRIMER GASB 34 43

Primary Government

44 PRIMER GASB 34

2002 2001 2000 1999 1998

Difference 250 420 (253) (245) 251

2002 2001 2000

PRIMER GASB 34 45

46 PRIMER GASB 34

PRIMER GASB 34 47

48 PRIMER GASB 34

Telephone 202-366-1130Fax 202-366-9981

FHWA-IF-00-010

Table of Contents

Introduction

History




Significance









Figure 1 continued

Implications



Implementation

Timing

Challenges

Status




Driving Forces





Conclusion

Glossary

Other Resources




PRIMER GASB 34 11

Proprietary Funds

Fiduciary Funds

Appendix 1

12 PRIMER GASB 34

PRIMER GASB 34 13

14 PRIMER GASB 34

PRIMER GASB 34 15

IMPLICATIONS

16 PRIMER GASB 34

PRIMER GASB 34 17

FunctionsPrograms

18 PRIMER GASB 34

PRIMER GASB 34 19

20 PRIMER GASB 34

TIMING

IMPLEMENTATION

CHALLENGES

in FY99

Phase 2Governments

$100 millionin FY99

Phase 3Governments

in FY99

Optional

PRIMER GASB 34 21

22 PRIMER GASB 34

STATUS

PRIMER GASB 34 23

DRIVING FORCES

24 PRIMER GASB 34

Modeling

(Project Selection)

Asset Inventory

Budget

Allocations

PRIMER GASB 34 25

26 PRIMER GASB 34

PRIMER GASB 34 27

28 PRIMER GASB 34

Modeling

(Project Selection)

Asset Inventory

Budget

Allocations

PRIMER GASB 34 29

tenance activities

CONCLUSION

30 PRIMER GASB 34

GLOSSARY

PRIMER GASB 34 31

OTHER RESOURCES

32 PRIMER GASB 34

1 and 2 (para 132 133)

PRIMER GASB 34 33

34 PRIMER GASB 34

Modified approach

PRIMER GASB 34 35

36 PRIMER GASB 34

PRIMER GASB 34 37

38 PRIMER GASB 34

Composite Methods

PRIMER GASB 34 39

40 PRIMER GASB 34

CAPITAL ASSETS

TABLE 4

ILLUSTRATIONS

PRIMER GASB 34 41

Primary Government

42 PRIMER GASB 34

884907 104925 989832 224642653488 ndash 2653488 ndash

501409 (501409) ndash ndash76900977 204865 77105842 29259208(3114286) 3219885 105599 3202656

126673160 82349309 209022469 16025971$ 123558874 $85569194 $209128068 $19228627

PRIMER GASB 34 43

Primary Government

44 PRIMER GASB 34

2002 2001 2000 1999 1998

Difference 250 420 (253) (245) 251

2002 2001 2000

PRIMER GASB 34 45

46 PRIMER GASB 34

PRIMER GASB 34 47

48 PRIMER GASB 34

Telephone 202-366-1130Fax 202-366-9981

FHWA-IF-00-010

Table of Contents

Introduction

History




Significance









Figure 1 continued

Implications



Implementation

Timing

Challenges

Status




Driving Forces





Conclusion

Glossary

Other Resources




Appendix 1

12 PRIMER GASB 34

PRIMER GASB 34 13

14 PRIMER GASB 34

PRIMER GASB 34 15

IMPLICATIONS

16 PRIMER GASB 34

PRIMER GASB 34 17

FunctionsPrograms

18 PRIMER GASB 34

PRIMER GASB 34 19

20 PRIMER GASB 34

TIMING

IMPLEMENTATION

CHALLENGES

in FY99

Phase 2Governments

$100 millionin FY99

Phase 3Governments

in FY99

Optional

PRIMER GASB 34 21

22 PRIMER GASB 34

STATUS

PRIMER GASB 34 23

DRIVING FORCES

24 PRIMER GASB 34

Modeling

(Project Selection)

Asset Inventory

Budget

Allocations

PRIMER GASB 34 25

26 PRIMER GASB 34

PRIMER GASB 34 27

28 PRIMER GASB 34

Modeling

(Project Selection)

Asset Inventory

Budget

Allocations

PRIMER GASB 34 29

tenance activities

CONCLUSION

30 PRIMER GASB 34

GLOSSARY

PRIMER GASB 34 31

OTHER RESOURCES

32 PRIMER GASB 34

1 and 2 (para 132 133)

PRIMER GASB 34 33

34 PRIMER GASB 34

Modified approach

PRIMER GASB 34 35

36 PRIMER GASB 34

PRIMER GASB 34 37

38 PRIMER GASB 34

Composite Methods

PRIMER GASB 34 39

40 PRIMER GASB 34

CAPITAL ASSETS

TABLE 4

ILLUSTRATIONS

PRIMER GASB 34 41

Primary Government

42 PRIMER GASB 34

884907 104925 989832 224642653488 ndash 2653488 ndash

501409 (501409) ndash ndash76900977 204865 77105842 29259208(3114286) 3219885 105599 3202656

126673160 82349309 209022469 16025971$ 123558874 $85569194 $209128068 $19228627

PRIMER GASB 34 43

Primary Government

44 PRIMER GASB 34

2002 2001 2000 1999 1998

Difference 250 420 (253) (245) 251

2002 2001 2000

PRIMER GASB 34 45

46 PRIMER GASB 34

PRIMER GASB 34 47

48 PRIMER GASB 34

Telephone 202-366-1130Fax 202-366-9981

FHWA-IF-00-010

Table of Contents

Introduction

History




Significance









Figure 1 continued

Implications



Implementation

Timing

Challenges

Status




Driving Forces





Conclusion

Glossary

Other Resources




PRIMER GASB 34 13

14 PRIMER GASB 34

PRIMER GASB 34 15

IMPLICATIONS

16 PRIMER GASB 34

PRIMER GASB 34 17

FunctionsPrograms

18 PRIMER GASB 34

PRIMER GASB 34 19

20 PRIMER GASB 34

TIMING

IMPLEMENTATION

CHALLENGES

in FY99

Phase 2Governments

$100 millionin FY99

Phase 3Governments

in FY99

Optional

PRIMER GASB 34 21

22 PRIMER GASB 34

STATUS

PRIMER GASB 34 23

DRIVING FORCES

24 PRIMER GASB 34

Modeling

(Project Selection)

Asset Inventory

Budget

Allocations

PRIMER GASB 34 25

26 PRIMER GASB 34

PRIMER GASB 34 27

28 PRIMER GASB 34

Modeling

(Project Selection)

Asset Inventory

Budget

Allocations

PRIMER GASB 34 29

tenance activities

CONCLUSION

30 PRIMER GASB 34

GLOSSARY

PRIMER GASB 34 31

OTHER RESOURCES

32 PRIMER GASB 34

1 and 2 (para 132 133)

PRIMER GASB 34 33

34 PRIMER GASB 34

Modified approach

PRIMER GASB 34 35

36 PRIMER GASB 34

PRIMER GASB 34 37

38 PRIMER GASB 34

Composite Methods

PRIMER GASB 34 39

40 PRIMER GASB 34

CAPITAL ASSETS

TABLE 4

ILLUSTRATIONS

PRIMER GASB 34 41

Primary Government

42 PRIMER GASB 34

884907 104925 989832 224642653488 ndash 2653488 ndash

501409 (501409) ndash ndash76900977 204865 77105842 29259208(3114286) 3219885 105599 3202656

126673160 82349309 209022469 16025971$ 123558874 $85569194 $209128068 $19228627

PRIMER GASB 34 43

Primary Government

44 PRIMER GASB 34

2002 2001 2000 1999 1998

Difference 250 420 (253) (245) 251

2002 2001 2000

PRIMER GASB 34 45

46 PRIMER GASB 34

PRIMER GASB 34 47

48 PRIMER GASB 34

Telephone 202-366-1130Fax 202-366-9981

FHWA-IF-00-010

Table of Contents

Introduction

History




Significance









Figure 1 continued

Implications



Implementation

Timing

Challenges

Status




Driving Forces





Conclusion

Glossary

Other Resources




14 PRIMER GASB 34

PRIMER GASB 34 15

IMPLICATIONS

16 PRIMER GASB 34

PRIMER GASB 34 17

FunctionsPrograms

18 PRIMER GASB 34

PRIMER GASB 34 19

20 PRIMER GASB 34

TIMING

IMPLEMENTATION

CHALLENGES

in FY99

Phase 2Governments

$100 millionin FY99

Phase 3Governments

in FY99

Optional

PRIMER GASB 34 21

22 PRIMER GASB 34

STATUS

PRIMER GASB 34 23

DRIVING FORCES

24 PRIMER GASB 34

Modeling

(Project Selection)

Asset Inventory

Budget

Allocations

PRIMER GASB 34 25

26 PRIMER GASB 34

PRIMER GASB 34 27

28 PRIMER GASB 34

Modeling

(Project Selection)

Asset Inventory

Budget

Allocations

PRIMER GASB 34 29

tenance activities

CONCLUSION

30 PRIMER GASB 34

GLOSSARY

PRIMER GASB 34 31

OTHER RESOURCES

32 PRIMER GASB 34

1 and 2 (para 132 133)

PRIMER GASB 34 33

34 PRIMER GASB 34

Modified approach

PRIMER GASB 34 35

36 PRIMER GASB 34

PRIMER GASB 34 37

38 PRIMER GASB 34

Composite Methods

PRIMER GASB 34 39

40 PRIMER GASB 34

CAPITAL ASSETS

TABLE 4

ILLUSTRATIONS

PRIMER GASB 34 41

Primary Government

42 PRIMER GASB 34

884907 104925 989832 224642653488 ndash 2653488 ndash

501409 (501409) ndash ndash76900977 204865 77105842 29259208(3114286) 3219885 105599 3202656

126673160 82349309 209022469 16025971$ 123558874 $85569194 $209128068 $19228627

PRIMER GASB 34 43

Primary Government

44 PRIMER GASB 34

2002 2001 2000 1999 1998

Difference 250 420 (253) (245) 251

2002 2001 2000

PRIMER GASB 34 45

46 PRIMER GASB 34

PRIMER GASB 34 47

48 PRIMER GASB 34

Telephone 202-366-1130Fax 202-366-9981

FHWA-IF-00-010

Table of Contents

Introduction

History




Significance









Figure 1 continued

Implications



Implementation

Timing

Challenges

Status




Driving Forces





Conclusion

Glossary

Other Resources




PRIMER GASB 34 15

IMPLICATIONS

16 PRIMER GASB 34

PRIMER GASB 34 17

FunctionsPrograms

18 PRIMER GASB 34

PRIMER GASB 34 19

20 PRIMER GASB 34

TIMING

IMPLEMENTATION

CHALLENGES

in FY99

Phase 2Governments

$100 millionin FY99

Phase 3Governments

in FY99

Optional

PRIMER GASB 34 21

22 PRIMER GASB 34

STATUS

PRIMER GASB 34 23

DRIVING FORCES

24 PRIMER GASB 34

Modeling

(Project Selection)

Asset Inventory

Budget

Allocations

PRIMER GASB 34 25

26 PRIMER GASB 34

PRIMER GASB 34 27

28 PRIMER GASB 34

Modeling

(Project Selection)

Asset Inventory

Budget

Allocations

PRIMER GASB 34 29

tenance activities

CONCLUSION

30 PRIMER GASB 34

GLOSSARY

PRIMER GASB 34 31

OTHER RESOURCES

32 PRIMER GASB 34

1 and 2 (para 132 133)

PRIMER GASB 34 33

34 PRIMER GASB 34

Modified approach

PRIMER GASB 34 35

36 PRIMER GASB 34

PRIMER GASB 34 37

38 PRIMER GASB 34

Composite Methods

PRIMER GASB 34 39

40 PRIMER GASB 34

CAPITAL ASSETS

TABLE 4

ILLUSTRATIONS

PRIMER GASB 34 41

Primary Government

42 PRIMER GASB 34

884907 104925 989832 224642653488 ndash 2653488 ndash

501409 (501409) ndash ndash76900977 204865 77105842 29259208(3114286) 3219885 105599 3202656

126673160 82349309 209022469 16025971$ 123558874 $85569194 $209128068 $19228627

PRIMER GASB 34 43

Primary Government

44 PRIMER GASB 34

2002 2001 2000 1999 1998

Difference 250 420 (253) (245) 251

2002 2001 2000

PRIMER GASB 34 45

46 PRIMER GASB 34

PRIMER GASB 34 47

48 PRIMER GASB 34

Telephone 202-366-1130Fax 202-366-9981

FHWA-IF-00-010

Table of Contents

Introduction

History




Significance









Figure 1 continued

Implications



Implementation

Timing

Challenges

Status




Driving Forces





Conclusion

Glossary

Other Resources




16 PRIMER GASB 34

PRIMER GASB 34 17

FunctionsPrograms

18 PRIMER GASB 34

PRIMER GASB 34 19

20 PRIMER GASB 34

TIMING

IMPLEMENTATION

CHALLENGES

in FY99

Phase 2Governments

$100 millionin FY99

Phase 3Governments

in FY99

Optional

PRIMER GASB 34 21

22 PRIMER GASB 34

STATUS

PRIMER GASB 34 23

DRIVING FORCES

24 PRIMER GASB 34

Modeling

(Project Selection)

Asset Inventory

Budget

Allocations

PRIMER GASB 34 25

26 PRIMER GASB 34

PRIMER GASB 34 27

28 PRIMER GASB 34

Modeling

(Project Selection)

Asset Inventory

Budget

Allocations

PRIMER GASB 34 29

tenance activities

CONCLUSION

30 PRIMER GASB 34

GLOSSARY

PRIMER GASB 34 31

OTHER RESOURCES

32 PRIMER GASB 34

1 and 2 (para 132 133)

PRIMER GASB 34 33

34 PRIMER GASB 34

Modified approach

PRIMER GASB 34 35

36 PRIMER GASB 34

PRIMER GASB 34 37

38 PRIMER GASB 34

Composite Methods

PRIMER GASB 34 39

40 PRIMER GASB 34

CAPITAL ASSETS

TABLE 4

ILLUSTRATIONS

PRIMER GASB 34 41

Primary Government

42 PRIMER GASB 34

884907 104925 989832 224642653488 ndash 2653488 ndash

501409 (501409) ndash ndash76900977 204865 77105842 29259208(3114286) 3219885 105599 3202656

126673160 82349309 209022469 16025971$ 123558874 $85569194 $209128068 $19228627

PRIMER GASB 34 43

Primary Government

44 PRIMER GASB 34

2002 2001 2000 1999 1998

Difference 250 420 (253) (245) 251

2002 2001 2000

PRIMER GASB 34 45

46 PRIMER GASB 34

PRIMER GASB 34 47

48 PRIMER GASB 34

Telephone 202-366-1130Fax 202-366-9981

FHWA-IF-00-010

Table of Contents

Introduction

History




Significance









Figure 1 continued

Implications



Implementation

Timing

Challenges

Status




Driving Forces





Conclusion

Glossary

Other Resources




PRIMER GASB 34 17

FunctionsPrograms

18 PRIMER GASB 34

PRIMER GASB 34 19

20 PRIMER GASB 34

TIMING

IMPLEMENTATION

CHALLENGES

in FY99

Phase 2Governments

$100 millionin FY99

Phase 3Governments

in FY99

Optional

PRIMER GASB 34 21

22 PRIMER GASB 34

STATUS

PRIMER GASB 34 23

DRIVING FORCES

24 PRIMER GASB 34

Modeling

(Project Selection)

Asset Inventory

Budget

Allocations

PRIMER GASB 34 25

26 PRIMER GASB 34

PRIMER GASB 34 27

28 PRIMER GASB 34

Modeling

(Project Selection)

Asset Inventory

Budget

Allocations

PRIMER GASB 34 29

tenance activities

CONCLUSION

30 PRIMER GASB 34

GLOSSARY

PRIMER GASB 34 31

OTHER RESOURCES

32 PRIMER GASB 34

1 and 2 (para 132 133)

PRIMER GASB 34 33

34 PRIMER GASB 34

Modified approach

PRIMER GASB 34 35

36 PRIMER GASB 34

PRIMER GASB 34 37

38 PRIMER GASB 34

Composite Methods

PRIMER GASB 34 39

40 PRIMER GASB 34

CAPITAL ASSETS

TABLE 4

ILLUSTRATIONS

PRIMER GASB 34 41

Primary Government

42 PRIMER GASB 34

884907 104925 989832 224642653488 ndash 2653488 ndash

501409 (501409) ndash ndash76900977 204865 77105842 29259208(3114286) 3219885 105599 3202656

126673160 82349309 209022469 16025971$ 123558874 $85569194 $209128068 $19228627

PRIMER GASB 34 43

Primary Government

44 PRIMER GASB 34

2002 2001 2000 1999 1998

Difference 250 420 (253) (245) 251

2002 2001 2000

PRIMER GASB 34 45

46 PRIMER GASB 34

PRIMER GASB 34 47

48 PRIMER GASB 34

Telephone 202-366-1130Fax 202-366-9981

FHWA-IF-00-010

Table of Contents

Introduction

History




Significance









Figure 1 continued

Implications



Implementation

Timing

Challenges

Status




Driving Forces





Conclusion

Glossary

Other Resources




18 PRIMER GASB 34

PRIMER GASB 34 19

20 PRIMER GASB 34

TIMING

IMPLEMENTATION

CHALLENGES

in FY99

Phase 2Governments

$100 millionin FY99

Phase 3Governments

in FY99

Optional

PRIMER GASB 34 21

22 PRIMER GASB 34

STATUS

PRIMER GASB 34 23

DRIVING FORCES

24 PRIMER GASB 34

Modeling

(Project Selection)

Asset Inventory

Budget

Allocations

PRIMER GASB 34 25

26 PRIMER GASB 34

PRIMER GASB 34 27

28 PRIMER GASB 34

Modeling

(Project Selection)

Asset Inventory

Budget

Allocations

PRIMER GASB 34 29

tenance activities

CONCLUSION

30 PRIMER GASB 34

GLOSSARY

PRIMER GASB 34 31

OTHER RESOURCES

32 PRIMER GASB 34

1 and 2 (para 132 133)

PRIMER GASB 34 33

34 PRIMER GASB 34

Modified approach

PRIMER GASB 34 35

36 PRIMER GASB 34

PRIMER GASB 34 37

38 PRIMER GASB 34

Composite Methods

PRIMER GASB 34 39

40 PRIMER GASB 34

CAPITAL ASSETS

TABLE 4

ILLUSTRATIONS

PRIMER GASB 34 41

Primary Government

42 PRIMER GASB 34

884907 104925 989832 224642653488 ndash 2653488 ndash

501409 (501409) ndash ndash76900977 204865 77105842 29259208(3114286) 3219885 105599 3202656

126673160 82349309 209022469 16025971$ 123558874 $85569194 $209128068 $19228627

PRIMER GASB 34 43

Primary Government

44 PRIMER GASB 34

2002 2001 2000 1999 1998

Difference 250 420 (253) (245) 251

2002 2001 2000

PRIMER GASB 34 45

46 PRIMER GASB 34

PRIMER GASB 34 47

48 PRIMER GASB 34

Telephone 202-366-1130Fax 202-366-9981

FHWA-IF-00-010

Table of Contents

Introduction

History




Significance









Figure 1 continued

Implications



Implementation

Timing

Challenges

Status




Driving Forces





Conclusion

Glossary

Other Resources




PRIMER GASB 34 19

20 PRIMER GASB 34

TIMING

IMPLEMENTATION

CHALLENGES

in FY99

Phase 2Governments

$100 millionin FY99

Phase 3Governments

in FY99

Optional

PRIMER GASB 34 21

22 PRIMER GASB 34

STATUS

PRIMER GASB 34 23

DRIVING FORCES

24 PRIMER GASB 34

Modeling

(Project Selection)

Asset Inventory

Budget

Allocations

PRIMER GASB 34 25

26 PRIMER GASB 34

PRIMER GASB 34 27

28 PRIMER GASB 34

Modeling

(Project Selection)

Asset Inventory

Budget

Allocations

PRIMER GASB 34 29

tenance activities

CONCLUSION

30 PRIMER GASB 34

GLOSSARY

PRIMER GASB 34 31

OTHER RESOURCES

32 PRIMER GASB 34

1 and 2 (para 132 133)

PRIMER GASB 34 33

34 PRIMER GASB 34

Modified approach

PRIMER GASB 34 35

36 PRIMER GASB 34

PRIMER GASB 34 37

38 PRIMER GASB 34

Composite Methods

PRIMER GASB 34 39

40 PRIMER GASB 34

CAPITAL ASSETS

TABLE 4

ILLUSTRATIONS

PRIMER GASB 34 41

Primary Government

42 PRIMER GASB 34

884907 104925 989832 224642653488 ndash 2653488 ndash

501409 (501409) ndash ndash76900977 204865 77105842 29259208(3114286) 3219885 105599 3202656

126673160 82349309 209022469 16025971$ 123558874 $85569194 $209128068 $19228627

PRIMER GASB 34 43

Primary Government

44 PRIMER GASB 34

2002 2001 2000 1999 1998

Difference 250 420 (253) (245) 251

2002 2001 2000

PRIMER GASB 34 45

46 PRIMER GASB 34

PRIMER GASB 34 47

48 PRIMER GASB 34

Telephone 202-366-1130Fax 202-366-9981

FHWA-IF-00-010

Table of Contents

Introduction

History




Significance









Figure 1 continued

Implications



Implementation

Timing

Challenges

Status




Driving Forces





Conclusion

Glossary

Other Resources




20 PRIMER GASB 34

TIMING

IMPLEMENTATION

CHALLENGES

in FY99

Phase 2Governments

$100 millionin FY99

Phase 3Governments

in FY99

Optional

PRIMER GASB 34 21

22 PRIMER GASB 34

STATUS

PRIMER GASB 34 23

DRIVING FORCES

24 PRIMER GASB 34

Modeling

(Project Selection)

Asset Inventory

Budget

Allocations

PRIMER GASB 34 25

26 PRIMER GASB 34

PRIMER GASB 34 27

28 PRIMER GASB 34

Modeling

(Project Selection)

Asset Inventory

Budget

Allocations

PRIMER GASB 34 29

tenance activities

CONCLUSION

30 PRIMER GASB 34

GLOSSARY

PRIMER GASB 34 31

OTHER RESOURCES

32 PRIMER GASB 34

1 and 2 (para 132 133)

PRIMER GASB 34 33

34 PRIMER GASB 34

Modified approach

PRIMER GASB 34 35

36 PRIMER GASB 34

PRIMER GASB 34 37

38 PRIMER GASB 34

Composite Methods

PRIMER GASB 34 39

40 PRIMER GASB 34

CAPITAL ASSETS

TABLE 4

ILLUSTRATIONS

PRIMER GASB 34 41

Primary Government

42 PRIMER GASB 34

884907 104925 989832 224642653488 ndash 2653488 ndash

501409 (501409) ndash ndash76900977 204865 77105842 29259208(3114286) 3219885 105599 3202656

126673160 82349309 209022469 16025971$ 123558874 $85569194 $209128068 $19228627

PRIMER GASB 34 43

Primary Government

44 PRIMER GASB 34

2002 2001 2000 1999 1998

Difference 250 420 (253) (245) 251

2002 2001 2000

PRIMER GASB 34 45

46 PRIMER GASB 34

PRIMER GASB 34 47

48 PRIMER GASB 34

Telephone 202-366-1130Fax 202-366-9981

FHWA-IF-00-010

Table of Contents

Introduction

History




Significance









Figure 1 continued

Implications



Implementation

Timing

Challenges

Status




Driving Forces





Conclusion

Glossary

Other Resources




PRIMER GASB 34 21

22 PRIMER GASB 34

STATUS

PRIMER GASB 34 23

DRIVING FORCES

24 PRIMER GASB 34

Modeling

(Project Selection)

Asset Inventory

Budget

Allocations

PRIMER GASB 34 25

26 PRIMER GASB 34

PRIMER GASB 34 27

28 PRIMER GASB 34

Modeling

(Project Selection)

Asset Inventory

Budget

Allocations

PRIMER GASB 34 29

tenance activities

CONCLUSION

30 PRIMER GASB 34

GLOSSARY

PRIMER GASB 34 31

OTHER RESOURCES

32 PRIMER GASB 34

1 and 2 (para 132 133)

PRIMER GASB 34 33

34 PRIMER GASB 34

Modified approach

PRIMER GASB 34 35

36 PRIMER GASB 34

PRIMER GASB 34 37

38 PRIMER GASB 34

Composite Methods

PRIMER GASB 34 39

40 PRIMER GASB 34

CAPITAL ASSETS

TABLE 4

ILLUSTRATIONS

PRIMER GASB 34 41

Primary Government

42 PRIMER GASB 34

884907 104925 989832 224642653488 ndash 2653488 ndash

501409 (501409) ndash ndash76900977 204865 77105842 29259208(3114286) 3219885 105599 3202656

126673160 82349309 209022469 16025971$ 123558874 $85569194 $209128068 $19228627

PRIMER GASB 34 43

Primary Government

44 PRIMER GASB 34

2002 2001 2000 1999 1998

Difference 250 420 (253) (245) 251

2002 2001 2000

PRIMER GASB 34 45

46 PRIMER GASB 34

PRIMER GASB 34 47

48 PRIMER GASB 34

Telephone 202-366-1130Fax 202-366-9981

FHWA-IF-00-010

Table of Contents

Introduction

History




Significance









Figure 1 continued

Implications



Implementation

Timing

Challenges

Status




Driving Forces





Conclusion

Glossary

Other Resources




22 PRIMER GASB 34

STATUS

PRIMER GASB 34 23

DRIVING FORCES

24 PRIMER GASB 34

Modeling

(Project Selection)

Asset Inventory

Budget

Allocations

PRIMER GASB 34 25

26 PRIMER GASB 34

PRIMER GASB 34 27

28 PRIMER GASB 34

Modeling

(Project Selection)

Asset Inventory

Budget

Allocations

PRIMER GASB 34 29

tenance activities

CONCLUSION

30 PRIMER GASB 34

GLOSSARY

PRIMER GASB 34 31

OTHER RESOURCES

32 PRIMER GASB 34

1 and 2 (para 132 133)

PRIMER GASB 34 33

34 PRIMER GASB 34

Modified approach

PRIMER GASB 34 35

36 PRIMER GASB 34

PRIMER GASB 34 37

38 PRIMER GASB 34

Composite Methods

PRIMER GASB 34 39

40 PRIMER GASB 34

CAPITAL ASSETS

TABLE 4

ILLUSTRATIONS

PRIMER GASB 34 41

Primary Government

42 PRIMER GASB 34

884907 104925 989832 224642653488 ndash 2653488 ndash

501409 (501409) ndash ndash76900977 204865 77105842 29259208(3114286) 3219885 105599 3202656

126673160 82349309 209022469 16025971$ 123558874 $85569194 $209128068 $19228627

PRIMER GASB 34 43

Primary Government

44 PRIMER GASB 34

2002 2001 2000 1999 1998

Difference 250 420 (253) (245) 251

2002 2001 2000

PRIMER GASB 34 45

46 PRIMER GASB 34

PRIMER GASB 34 47

48 PRIMER GASB 34

Telephone 202-366-1130Fax 202-366-9981

FHWA-IF-00-010

Table of Contents

Introduction

History




Significance









Figure 1 continued

Implications



Implementation

Timing

Challenges

Status




Driving Forces





Conclusion

Glossary

Other Resources




PRIMER GASB 34 23

DRIVING FORCES

24 PRIMER GASB 34

Modeling

(Project Selection)

Asset Inventory

Budget

Allocations

PRIMER GASB 34 25

26 PRIMER GASB 34

PRIMER GASB 34 27

28 PRIMER GASB 34

Modeling

(Project Selection)

Asset Inventory

Budget

Allocations

PRIMER GASB 34 29

tenance activities

CONCLUSION

30 PRIMER GASB 34

GLOSSARY

PRIMER GASB 34 31

OTHER RESOURCES

32 PRIMER GASB 34

1 and 2 (para 132 133)

PRIMER GASB 34 33

34 PRIMER GASB 34

Modified approach

PRIMER GASB 34 35

36 PRIMER GASB 34

PRIMER GASB 34 37

38 PRIMER GASB 34

Composite Methods

PRIMER GASB 34 39

40 PRIMER GASB 34

CAPITAL ASSETS

TABLE 4

ILLUSTRATIONS

PRIMER GASB 34 41

Primary Government

42 PRIMER GASB 34

884907 104925 989832 224642653488 ndash 2653488 ndash

501409 (501409) ndash ndash76900977 204865 77105842 29259208(3114286) 3219885 105599 3202656

126673160 82349309 209022469 16025971$ 123558874 $85569194 $209128068 $19228627

PRIMER GASB 34 43

Primary Government

44 PRIMER GASB 34

2002 2001 2000 1999 1998

Difference 250 420 (253) (245) 251

2002 2001 2000

PRIMER GASB 34 45

46 PRIMER GASB 34

PRIMER GASB 34 47

48 PRIMER GASB 34

Telephone 202-366-1130Fax 202-366-9981

FHWA-IF-00-010

Table of Contents

Introduction

History




Significance









Figure 1 continued

Implications



Implementation

Timing

Challenges

Status




Driving Forces





Conclusion

Glossary

Other Resources




24 PRIMER GASB 34

Modeling

(Project Selection)

Asset Inventory

Budget

Allocations

PRIMER GASB 34 25

26 PRIMER GASB 34

PRIMER GASB 34 27

28 PRIMER GASB 34

Modeling

(Project Selection)

Asset Inventory

Budget

Allocations

PRIMER GASB 34 29

tenance activities

CONCLUSION

30 PRIMER GASB 34

GLOSSARY

PRIMER GASB 34 31

OTHER RESOURCES

32 PRIMER GASB 34

1 and 2 (para 132 133)

PRIMER GASB 34 33

34 PRIMER GASB 34

Modified approach

PRIMER GASB 34 35

36 PRIMER GASB 34

PRIMER GASB 34 37

38 PRIMER GASB 34

Composite Methods

PRIMER GASB 34 39

40 PRIMER GASB 34

CAPITAL ASSETS

TABLE 4

ILLUSTRATIONS

PRIMER GASB 34 41

Primary Government

42 PRIMER GASB 34

884907 104925 989832 224642653488 ndash 2653488 ndash

501409 (501409) ndash ndash76900977 204865 77105842 29259208(3114286) 3219885 105599 3202656

126673160 82349309 209022469 16025971$ 123558874 $85569194 $209128068 $19228627

PRIMER GASB 34 43

Primary Government

44 PRIMER GASB 34

2002 2001 2000 1999 1998

Difference 250 420 (253) (245) 251

2002 2001 2000

PRIMER GASB 34 45

46 PRIMER GASB 34

PRIMER GASB 34 47

48 PRIMER GASB 34

Telephone 202-366-1130Fax 202-366-9981

FHWA-IF-00-010

Table of Contents

Introduction

History




Significance









Figure 1 continued

Implications



Implementation

Timing

Challenges

Status




Driving Forces





Conclusion

Glossary

Other Resources




PRIMER GASB 34 25

26 PRIMER GASB 34

PRIMER GASB 34 27

28 PRIMER GASB 34

Modeling

(Project Selection)

Asset Inventory

Budget

Allocations

PRIMER GASB 34 29

tenance activities

CONCLUSION

30 PRIMER GASB 34

GLOSSARY

PRIMER GASB 34 31

OTHER RESOURCES

32 PRIMER GASB 34

1 and 2 (para 132 133)

PRIMER GASB 34 33

34 PRIMER GASB 34

Modified approach

PRIMER GASB 34 35

36 PRIMER GASB 34

PRIMER GASB 34 37

38 PRIMER GASB 34

Composite Methods

PRIMER GASB 34 39

40 PRIMER GASB 34

CAPITAL ASSETS

TABLE 4

ILLUSTRATIONS

PRIMER GASB 34 41

Primary Government

42 PRIMER GASB 34

884907 104925 989832 224642653488 ndash 2653488 ndash

501409 (501409) ndash ndash76900977 204865 77105842 29259208(3114286) 3219885 105599 3202656

126673160 82349309 209022469 16025971$ 123558874 $85569194 $209128068 $19228627

PRIMER GASB 34 43

Primary Government

44 PRIMER GASB 34

2002 2001 2000 1999 1998

Difference 250 420 (253) (245) 251

2002 2001 2000

PRIMER GASB 34 45

46 PRIMER GASB 34

PRIMER GASB 34 47

48 PRIMER GASB 34

Telephone 202-366-1130Fax 202-366-9981

FHWA-IF-00-010

Table of Contents

Introduction

History




Significance









Figure 1 continued

Implications



Implementation

Timing

Challenges

Status




Driving Forces





Conclusion

Glossary

Other Resources




26 PRIMER GASB 34

PRIMER GASB 34 27

28 PRIMER GASB 34

Modeling

(Project Selection)

Asset Inventory

Budget

Allocations

PRIMER GASB 34 29

tenance activities

CONCLUSION

30 PRIMER GASB 34

GLOSSARY

PRIMER GASB 34 31

OTHER RESOURCES

32 PRIMER GASB 34

1 and 2 (para 132 133)

PRIMER GASB 34 33

34 PRIMER GASB 34

Modified approach

PRIMER GASB 34 35

36 PRIMER GASB 34

PRIMER GASB 34 37

38 PRIMER GASB 34

Composite Methods

PRIMER GASB 34 39

40 PRIMER GASB 34

CAPITAL ASSETS

TABLE 4

ILLUSTRATIONS

PRIMER GASB 34 41

Primary Government

42 PRIMER GASB 34

884907 104925 989832 224642653488 ndash 2653488 ndash

501409 (501409) ndash ndash76900977 204865 77105842 29259208(3114286) 3219885 105599 3202656

126673160 82349309 209022469 16025971$ 123558874 $85569194 $209128068 $19228627

PRIMER GASB 34 43

Primary Government

44 PRIMER GASB 34

2002 2001 2000 1999 1998

Difference 250 420 (253) (245) 251

2002 2001 2000

PRIMER GASB 34 45

46 PRIMER GASB 34

PRIMER GASB 34 47

48 PRIMER GASB 34

Telephone 202-366-1130Fax 202-366-9981

FHWA-IF-00-010

Table of Contents

Introduction

History




Significance









Figure 1 continued

Implications



Implementation

Timing

Challenges

Status




Driving Forces





Conclusion

Glossary

Other Resources




PRIMER GASB 34 27

28 PRIMER GASB 34

Modeling

(Project Selection)

Asset Inventory

Budget

Allocations

PRIMER GASB 34 29

tenance activities

CONCLUSION

30 PRIMER GASB 34

GLOSSARY

PRIMER GASB 34 31

OTHER RESOURCES

32 PRIMER GASB 34

1 and 2 (para 132 133)

PRIMER GASB 34 33

34 PRIMER GASB 34

Modified approach

PRIMER GASB 34 35

36 PRIMER GASB 34

PRIMER GASB 34 37

38 PRIMER GASB 34

Composite Methods

PRIMER GASB 34 39

40 PRIMER GASB 34

CAPITAL ASSETS

TABLE 4

ILLUSTRATIONS

PRIMER GASB 34 41

Primary Government

42 PRIMER GASB 34

884907 104925 989832 224642653488 ndash 2653488 ndash

501409 (501409) ndash ndash76900977 204865 77105842 29259208(3114286) 3219885 105599 3202656

126673160 82349309 209022469 16025971$ 123558874 $85569194 $209128068 $19228627

PRIMER GASB 34 43

Primary Government

44 PRIMER GASB 34

2002 2001 2000 1999 1998

Difference 250 420 (253) (245) 251

2002 2001 2000

PRIMER GASB 34 45

46 PRIMER GASB 34

PRIMER GASB 34 47

48 PRIMER GASB 34

Telephone 202-366-1130Fax 202-366-9981

FHWA-IF-00-010

Table of Contents

Introduction

History




Significance









Figure 1 continued

Implications



Implementation

Timing

Challenges

Status




Driving Forces





Conclusion

Glossary

Other Resources




28 PRIMER GASB 34

Modeling

(Project Selection)

Asset Inventory

Budget

Allocations

PRIMER GASB 34 29

tenance activities

CONCLUSION

30 PRIMER GASB 34

GLOSSARY

PRIMER GASB 34 31

OTHER RESOURCES

32 PRIMER GASB 34

1 and 2 (para 132 133)

PRIMER GASB 34 33

34 PRIMER GASB 34

Modified approach

PRIMER GASB 34 35

36 PRIMER GASB 34

PRIMER GASB 34 37

38 PRIMER GASB 34

Composite Methods

PRIMER GASB 34 39

40 PRIMER GASB 34

CAPITAL ASSETS

TABLE 4

ILLUSTRATIONS

PRIMER GASB 34 41

Primary Government

42 PRIMER GASB 34

884907 104925 989832 224642653488 ndash 2653488 ndash

501409 (501409) ndash ndash76900977 204865 77105842 29259208(3114286) 3219885 105599 3202656

126673160 82349309 209022469 16025971$ 123558874 $85569194 $209128068 $19228627

PRIMER GASB 34 43

Primary Government

44 PRIMER GASB 34

2002 2001 2000 1999 1998

Difference 250 420 (253) (245) 251

2002 2001 2000

PRIMER GASB 34 45

46 PRIMER GASB 34

PRIMER GASB 34 47

48 PRIMER GASB 34

Telephone 202-366-1130Fax 202-366-9981

FHWA-IF-00-010

Table of Contents

Introduction

History




Significance









Figure 1 continued

Implications



Implementation

Timing

Challenges

Status




Driving Forces





Conclusion

Glossary

Other Resources




PRIMER GASB 34 29

tenance activities

CONCLUSION

30 PRIMER GASB 34

GLOSSARY

PRIMER GASB 34 31

OTHER RESOURCES

32 PRIMER GASB 34

1 and 2 (para 132 133)

PRIMER GASB 34 33

34 PRIMER GASB 34

Modified approach

PRIMER GASB 34 35

36 PRIMER GASB 34

PRIMER GASB 34 37

38 PRIMER GASB 34

Composite Methods

PRIMER GASB 34 39

40 PRIMER GASB 34

CAPITAL ASSETS

TABLE 4

ILLUSTRATIONS

PRIMER GASB 34 41

Primary Government

42 PRIMER GASB 34

884907 104925 989832 224642653488 ndash 2653488 ndash

501409 (501409) ndash ndash76900977 204865 77105842 29259208(3114286) 3219885 105599 3202656

126673160 82349309 209022469 16025971$ 123558874 $85569194 $209128068 $19228627

PRIMER GASB 34 43

Primary Government

44 PRIMER GASB 34

2002 2001 2000 1999 1998

Difference 250 420 (253) (245) 251

2002 2001 2000

PRIMER GASB 34 45

46 PRIMER GASB 34

PRIMER GASB 34 47

48 PRIMER GASB 34

Telephone 202-366-1130Fax 202-366-9981

FHWA-IF-00-010

Table of Contents

Introduction

History




Significance









Figure 1 continued

Implications



Implementation

Timing

Challenges

Status




Driving Forces





Conclusion

Glossary

Other Resources




30 PRIMER GASB 34

GLOSSARY

PRIMER GASB 34 31

OTHER RESOURCES

32 PRIMER GASB 34

1 and 2 (para 132 133)

PRIMER GASB 34 33

34 PRIMER GASB 34

Modified approach

PRIMER GASB 34 35

36 PRIMER GASB 34

PRIMER GASB 34 37

38 PRIMER GASB 34

Composite Methods

PRIMER GASB 34 39

40 PRIMER GASB 34

CAPITAL ASSETS

TABLE 4

ILLUSTRATIONS

PRIMER GASB 34 41

Primary Government

42 PRIMER GASB 34

884907 104925 989832 224642653488 ndash 2653488 ndash

501409 (501409) ndash ndash76900977 204865 77105842 29259208(3114286) 3219885 105599 3202656

126673160 82349309 209022469 16025971$ 123558874 $85569194 $209128068 $19228627

PRIMER GASB 34 43

Primary Government

44 PRIMER GASB 34

2002 2001 2000 1999 1998

Difference 250 420 (253) (245) 251

2002 2001 2000

PRIMER GASB 34 45

46 PRIMER GASB 34

PRIMER GASB 34 47

48 PRIMER GASB 34

Telephone 202-366-1130Fax 202-366-9981

FHWA-IF-00-010

Table of Contents

Introduction

History




Significance









Figure 1 continued

Implications



Implementation

Timing

Challenges

Status




Driving Forces





Conclusion

Glossary

Other Resources




PRIMER GASB 34 31

OTHER RESOURCES

32 PRIMER GASB 34

1 and 2 (para 132 133)

PRIMER GASB 34 33

34 PRIMER GASB 34

Modified approach

PRIMER GASB 34 35

36 PRIMER GASB 34

PRIMER GASB 34 37

38 PRIMER GASB 34

Composite Methods

PRIMER GASB 34 39

40 PRIMER GASB 34

CAPITAL ASSETS

TABLE 4

ILLUSTRATIONS

PRIMER GASB 34 41

Primary Government

42 PRIMER GASB 34

884907 104925 989832 224642653488 ndash 2653488 ndash

501409 (501409) ndash ndash76900977 204865 77105842 29259208(3114286) 3219885 105599 3202656

126673160 82349309 209022469 16025971$ 123558874 $85569194 $209128068 $19228627

PRIMER GASB 34 43

Primary Government

44 PRIMER GASB 34

2002 2001 2000 1999 1998

Difference 250 420 (253) (245) 251

2002 2001 2000

PRIMER GASB 34 45

46 PRIMER GASB 34

PRIMER GASB 34 47

48 PRIMER GASB 34

Telephone 202-366-1130Fax 202-366-9981

FHWA-IF-00-010

Table of Contents

Introduction

History




Significance









Figure 1 continued

Implications



Implementation

Timing

Challenges

Status




Driving Forces





Conclusion

Glossary

Other Resources




32 PRIMER GASB 34

1 and 2 (para 132 133)

PRIMER GASB 34 33

34 PRIMER GASB 34

Modified approach

PRIMER GASB 34 35

36 PRIMER GASB 34

PRIMER GASB 34 37

38 PRIMER GASB 34

Composite Methods

PRIMER GASB 34 39

40 PRIMER GASB 34

CAPITAL ASSETS

TABLE 4

ILLUSTRATIONS

PRIMER GASB 34 41

Primary Government

42 PRIMER GASB 34

884907 104925 989832 224642653488 ndash 2653488 ndash

501409 (501409) ndash ndash76900977 204865 77105842 29259208(3114286) 3219885 105599 3202656

126673160 82349309 209022469 16025971$ 123558874 $85569194 $209128068 $19228627

PRIMER GASB 34 43

Primary Government

44 PRIMER GASB 34

2002 2001 2000 1999 1998

Difference 250 420 (253) (245) 251

2002 2001 2000

PRIMER GASB 34 45

46 PRIMER GASB 34

PRIMER GASB 34 47

48 PRIMER GASB 34

Telephone 202-366-1130Fax 202-366-9981

FHWA-IF-00-010

Table of Contents

Introduction

History




Significance









Figure 1 continued

Implications



Implementation

Timing

Challenges

Status




Driving Forces





Conclusion

Glossary

Other Resources




PRIMER GASB 34 33

34 PRIMER GASB 34

Modified approach

PRIMER GASB 34 35

36 PRIMER GASB 34

PRIMER GASB 34 37

38 PRIMER GASB 34

Composite Methods

PRIMER GASB 34 39

40 PRIMER GASB 34

CAPITAL ASSETS

TABLE 4

ILLUSTRATIONS

PRIMER GASB 34 41

Primary Government

42 PRIMER GASB 34

884907 104925 989832 224642653488 ndash 2653488 ndash

501409 (501409) ndash ndash76900977 204865 77105842 29259208(3114286) 3219885 105599 3202656

126673160 82349309 209022469 16025971$ 123558874 $85569194 $209128068 $19228627

PRIMER GASB 34 43

Primary Government

44 PRIMER GASB 34

2002 2001 2000 1999 1998

Difference 250 420 (253) (245) 251

2002 2001 2000

PRIMER GASB 34 45

46 PRIMER GASB 34

PRIMER GASB 34 47

48 PRIMER GASB 34

Telephone 202-366-1130Fax 202-366-9981

FHWA-IF-00-010

Table of Contents

Introduction

History




Significance









Figure 1 continued

Implications



Implementation

Timing

Challenges

Status




Driving Forces





Conclusion

Glossary

Other Resources




34 PRIMER GASB 34

Modified approach

PRIMER GASB 34 35

36 PRIMER GASB 34

PRIMER GASB 34 37

38 PRIMER GASB 34

Composite Methods

PRIMER GASB 34 39

40 PRIMER GASB 34

CAPITAL ASSETS

TABLE 4

ILLUSTRATIONS

PRIMER GASB 34 41

Primary Government

42 PRIMER GASB 34

884907 104925 989832 224642653488 ndash 2653488 ndash

501409 (501409) ndash ndash76900977 204865 77105842 29259208(3114286) 3219885 105599 3202656

126673160 82349309 209022469 16025971$ 123558874 $85569194 $209128068 $19228627

PRIMER GASB 34 43

Primary Government

44 PRIMER GASB 34

2002 2001 2000 1999 1998

Difference 250 420 (253) (245) 251

2002 2001 2000

PRIMER GASB 34 45

46 PRIMER GASB 34

PRIMER GASB 34 47

48 PRIMER GASB 34

Telephone 202-366-1130Fax 202-366-9981

FHWA-IF-00-010

Table of Contents

Introduction

History




Significance









Figure 1 continued

Implications



Implementation

Timing

Challenges

Status




Driving Forces





Conclusion

Glossary

Other Resources




PRIMER GASB 34 35

36 PRIMER GASB 34

PRIMER GASB 34 37

38 PRIMER GASB 34

Composite Methods

PRIMER GASB 34 39

40 PRIMER GASB 34

CAPITAL ASSETS

TABLE 4

ILLUSTRATIONS

PRIMER GASB 34 41

Primary Government

42 PRIMER GASB 34

884907 104925 989832 224642653488 ndash 2653488 ndash

501409 (501409) ndash ndash76900977 204865 77105842 29259208(3114286) 3219885 105599 3202656

126673160 82349309 209022469 16025971$ 123558874 $85569194 $209128068 $19228627

PRIMER GASB 34 43

Primary Government

44 PRIMER GASB 34

2002 2001 2000 1999 1998

Difference 250 420 (253) (245) 251

2002 2001 2000

PRIMER GASB 34 45

46 PRIMER GASB 34

PRIMER GASB 34 47

48 PRIMER GASB 34

Telephone 202-366-1130Fax 202-366-9981

FHWA-IF-00-010

Table of Contents

Introduction

History




Significance









Figure 1 continued

Implications



Implementation

Timing

Challenges

Status




Driving Forces





Conclusion

Glossary

Other Resources




36 PRIMER GASB 34

PRIMER GASB 34 37

38 PRIMER GASB 34

Composite Methods

PRIMER GASB 34 39

40 PRIMER GASB 34

CAPITAL ASSETS

TABLE 4

ILLUSTRATIONS

PRIMER GASB 34 41

Primary Government

42 PRIMER GASB 34

884907 104925 989832 224642653488 ndash 2653488 ndash

501409 (501409) ndash ndash76900977 204865 77105842 29259208(3114286) 3219885 105599 3202656

126673160 82349309 209022469 16025971$ 123558874 $85569194 $209128068 $19228627

PRIMER GASB 34 43

Primary Government

44 PRIMER GASB 34

2002 2001 2000 1999 1998

Difference 250 420 (253) (245) 251

2002 2001 2000

PRIMER GASB 34 45

46 PRIMER GASB 34

PRIMER GASB 34 47

48 PRIMER GASB 34

Telephone 202-366-1130Fax 202-366-9981

FHWA-IF-00-010

Table of Contents

Introduction

History




Significance









Figure 1 continued

Implications



Implementation

Timing

Challenges

Status




Driving Forces





Conclusion

Glossary

Other Resources




PRIMER GASB 34 37

38 PRIMER GASB 34

Composite Methods

PRIMER GASB 34 39

40 PRIMER GASB 34

CAPITAL ASSETS

TABLE 4

ILLUSTRATIONS

PRIMER GASB 34 41

Primary Government

42 PRIMER GASB 34

884907 104925 989832 224642653488 ndash 2653488 ndash

501409 (501409) ndash ndash76900977 204865 77105842 29259208(3114286) 3219885 105599 3202656

126673160 82349309 209022469 16025971$ 123558874 $85569194 $209128068 $19228627

PRIMER GASB 34 43

Primary Government

44 PRIMER GASB 34

2002 2001 2000 1999 1998

Difference 250 420 (253) (245) 251

2002 2001 2000

PRIMER GASB 34 45

46 PRIMER GASB 34

PRIMER GASB 34 47

48 PRIMER GASB 34

Telephone 202-366-1130Fax 202-366-9981

FHWA-IF-00-010

Table of Contents

Introduction

History




Significance









Figure 1 continued

Implications



Implementation

Timing

Challenges

Status




Driving Forces





Conclusion

Glossary

Other Resources




38 PRIMER GASB 34

Composite Methods

PRIMER GASB 34 39

40 PRIMER GASB 34

CAPITAL ASSETS

TABLE 4

ILLUSTRATIONS

PRIMER GASB 34 41

Primary Government

42 PRIMER GASB 34

884907 104925 989832 224642653488 ndash 2653488 ndash

501409 (501409) ndash ndash76900977 204865 77105842 29259208(3114286) 3219885 105599 3202656

126673160 82349309 209022469 16025971$ 123558874 $85569194 $209128068 $19228627

PRIMER GASB 34 43

Primary Government

44 PRIMER GASB 34

2002 2001 2000 1999 1998

Difference 250 420 (253) (245) 251

2002 2001 2000

PRIMER GASB 34 45

46 PRIMER GASB 34

PRIMER GASB 34 47

48 PRIMER GASB 34

Telephone 202-366-1130Fax 202-366-9981

FHWA-IF-00-010

Table of Contents

Introduction

History




Significance









Figure 1 continued

Implications



Implementation

Timing

Challenges

Status




Driving Forces





Conclusion

Glossary

Other Resources




PRIMER GASB 34 39

40 PRIMER GASB 34

CAPITAL ASSETS

TABLE 4

ILLUSTRATIONS

PRIMER GASB 34 41

Primary Government

42 PRIMER GASB 34

884907 104925 989832 224642653488 ndash 2653488 ndash

501409 (501409) ndash ndash76900977 204865 77105842 29259208(3114286) 3219885 105599 3202656

126673160 82349309 209022469 16025971$ 123558874 $85569194 $209128068 $19228627

PRIMER GASB 34 43

Primary Government

44 PRIMER GASB 34

2002 2001 2000 1999 1998

Difference 250 420 (253) (245) 251

2002 2001 2000

PRIMER GASB 34 45

46 PRIMER GASB 34

PRIMER GASB 34 47

48 PRIMER GASB 34

Telephone 202-366-1130Fax 202-366-9981

FHWA-IF-00-010

Table of Contents

Introduction

History




Significance









Figure 1 continued

Implications



Implementation

Timing

Challenges

Status




Driving Forces





Conclusion

Glossary

Other Resources




40 PRIMER GASB 34

CAPITAL ASSETS

TABLE 4

ILLUSTRATIONS

PRIMER GASB 34 41

Primary Government

42 PRIMER GASB 34

884907 104925 989832 224642653488 ndash 2653488 ndash

501409 (501409) ndash ndash76900977 204865 77105842 29259208(3114286) 3219885 105599 3202656

126673160 82349309 209022469 16025971$ 123558874 $85569194 $209128068 $19228627

PRIMER GASB 34 43

Primary Government

44 PRIMER GASB 34

2002 2001 2000 1999 1998

Difference 250 420 (253) (245) 251

2002 2001 2000

PRIMER GASB 34 45

46 PRIMER GASB 34

PRIMER GASB 34 47

48 PRIMER GASB 34

Telephone 202-366-1130Fax 202-366-9981

FHWA-IF-00-010

Table of Contents

Introduction

History




Significance









Figure 1 continued

Implications



Implementation

Timing

Challenges

Status




Driving Forces





Conclusion

Glossary

Other Resources




PRIMER GASB 34 41

Primary Government

42 PRIMER GASB 34

884907 104925 989832 224642653488 ndash 2653488 ndash

501409 (501409) ndash ndash76900977 204865 77105842 29259208(3114286) 3219885 105599 3202656

126673160 82349309 209022469 16025971$ 123558874 $85569194 $209128068 $19228627

PRIMER GASB 34 43

Primary Government

44 PRIMER GASB 34

2002 2001 2000 1999 1998

Difference 250 420 (253) (245) 251

2002 2001 2000

PRIMER GASB 34 45

46 PRIMER GASB 34

PRIMER GASB 34 47

48 PRIMER GASB 34

Telephone 202-366-1130Fax 202-366-9981

FHWA-IF-00-010

Table of Contents

Introduction

History




Significance









Figure 1 continued

Implications



Implementation

Timing

Challenges

Status




Driving Forces





Conclusion

Glossary

Other Resources




42 PRIMER GASB 34

884907 104925 989832 224642653488 ndash 2653488 ndash

501409 (501409) ndash ndash76900977 204865 77105842 29259208(3114286) 3219885 105599 3202656

126673160 82349309 209022469 16025971$ 123558874 $85569194 $209128068 $19228627

PRIMER GASB 34 43

Primary Government

44 PRIMER GASB 34

2002 2001 2000 1999 1998

Difference 250 420 (253) (245) 251

2002 2001 2000

PRIMER GASB 34 45

46 PRIMER GASB 34

PRIMER GASB 34 47

48 PRIMER GASB 34

Telephone 202-366-1130Fax 202-366-9981

FHWA-IF-00-010

Table of Contents

Introduction

History




Significance









Figure 1 continued

Implications



Implementation

Timing

Challenges

Status




Driving Forces





Conclusion

Glossary

Other Resources




PRIMER GASB 34 43

Primary Government

44 PRIMER GASB 34

2002 2001 2000 1999 1998

Difference 250 420 (253) (245) 251

2002 2001 2000

PRIMER GASB 34 45

46 PRIMER GASB 34

PRIMER GASB 34 47

48 PRIMER GASB 34

Telephone 202-366-1130Fax 202-366-9981

FHWA-IF-00-010

Table of Contents

Introduction

History




Significance









Figure 1 continued

Implications



Implementation

Timing

Challenges

Status




Driving Forces





Conclusion

Glossary

Other Resources




44 PRIMER GASB 34

2002 2001 2000 1999 1998

Difference 250 420 (253) (245) 251

2002 2001 2000

PRIMER GASB 34 45

46 PRIMER GASB 34

PRIMER GASB 34 47

48 PRIMER GASB 34

Telephone 202-366-1130Fax 202-366-9981

FHWA-IF-00-010

Table of Contents

Introduction

History




Significance









Figure 1 continued

Implications



Implementation

Timing

Challenges

Status




Driving Forces





Conclusion

Glossary

Other Resources




PRIMER GASB 34 45

46 PRIMER GASB 34

PRIMER GASB 34 47

48 PRIMER GASB 34

Telephone 202-366-1130Fax 202-366-9981

FHWA-IF-00-010

Table of Contents

Introduction

History




Significance









Figure 1 continued

Implications



Implementation

Timing

Challenges

Status




Driving Forces





Conclusion

Glossary

Other Resources




46 PRIMER GASB 34

PRIMER GASB 34 47

48 PRIMER GASB 34

Telephone 202-366-1130Fax 202-366-9981

FHWA-IF-00-010

Table of Contents

Introduction

History




Significance









Figure 1 continued

Implications



Implementation

Timing

Challenges

Status




Driving Forces





Conclusion

Glossary

Other Resources




PRIMER GASB 34 47

48 PRIMER GASB 34

Telephone 202-366-1130Fax 202-366-9981

FHWA-IF-00-010

Table of Contents

Introduction

History




Significance









Figure 1 continued

Implications



Implementation

Timing

Challenges

Status




Driving Forces





Conclusion

Glossary

Other Resources




48 PRIMER GASB 34

Telephone 202-366-1130Fax 202-366-9981

FHWA-IF-00-010

Table of Contents

Introduction

History




Significance









Figure 1 continued

Implications



Implementation

Timing

Challenges

Status




Driving Forces





Conclusion

Glossary

Other Resources




FHWA-IF-00-010

Table of Contents

Introduction

History




Significance









Figure 1 continued

Implications



Implementation

Timing

Challenges

Status




Driving Forces





Conclusion

Glossary

Other Resources




Documents

Primer: GASB 34 · Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments. 2 PRIMER: GASB 34 ACKNOWLEDGMENT The Office of Asset