Methodology for achieving GASB 34 modified approach compliance using U.S. Navy "smart base" facility management practices

Abstract

Historically, local infrastructure assets have been overlooked and under-funded, viewed more often as sunk costs than as strategic assets. While the growth of enterprise software solutions for asset management has begun to change this, the high cost and complexity of such systems has primarily limited their implementation to large government agencies and major cities. With the creation of its Statement 34 requirements, the Government Accounting Standards Board (GASB) seeks to improve the tracking, management and reporting of infrastructure assets by smaller cities and towns. Due to phase in between 2001 and 2003, depending on annual revenue levels, GASB 34 has forced a renewed focus on infrastructure portfolios at the local level. This research develops a strategy and methodology for small local governments to create flexible, cost effective asset management systems. Faced with the management of a global infrastructure portfolio exceeding $130 billion in 2001, the U.S. Navy has invested heavily in the area of public works management. The Smart Base project at Naval Shipyard Portsmouth, an ongoing initiative to develop customized information technology solutions at the installation level, is examined as a model for small towns to emulate during the development of GASB 34 compliant asset management systems. The resultant methodology provides a simple, robust framework for the integration of inventory, condition and valuation data within the existing GIS system used by the town of Winchester, Massachusetts.