Asset Condition Evaluation Techniques for Improved Infrastructure Reporting

Purdue University, West Lafayette IN

Investigators

Abstract

This project develops an innovative framework that incorporates asset condition evaluation techniques for more effective infrastructure reporting. The research design includes the development of a life-cycle model for condition assessment of wastewater infrastructure, prioritization of the scheduling of maintenance and rehabilitation, including "demand" for such infrastructure, and developing and maintaining an up-to-date inventory of wastewater infrastructure. Traditionally, governmental agencies at the local and the state level have used cash accounting methods to report infrastructure assets (roads, bridges, water and sewer facilities, etc.) In this method of financial reporting of infrastructure, the value of existing physical assets does not appear on financial reports. The rapid rate of deterioration of municipal infrastructure assets is forcing owners to examine the state of their assets and plan for the future. With the issuance of the Governmental Accounting Standards Board's Statement 34 (GASB 34) in June 1999, local and state agencies are now required to report on the existing value of the agency's capital assets. This will entail developing consistent methodologies for condition assessment, deploying asset management systems, and preparing estimates of future demands and enhancements. The framework developed through this project will help municipalities take advantage of the GASB 34 modified approach to infrastructure reporting. It can contribute to improvements in the assessment and management of underground infrastructure systems since municipalities will be able to evaluate the cost-effectiveness of long-term rehabilitation of assets versus replacement of assets. There will also be a shift in focus from capital formation to an emphasis on rehabilitation. This project will be done in cooperation with the Department of Public Works, City of Indianapolis, Indiana. This collaboration will be an asset not only in providing access to data for the development of the comprehensive models, but also for testing the results and transferring them to state and local governments.