The documentation they have to create will enable governments to more cost-effectively manage their assets and to take credit for the results. The Modified Approach While GASB s guidelines are not detailed, they are specific about what is required for a government agency to follow the Modified Approach. The Modified Approach provides a strong incentive for taking steps to develop a full-fledged asset management system. To use this alternative approach, government agencies must use asset management systems with specific characteristics, and they must be able to document their maintenance efforts. Perform condition assessments of the infrastructure assets at least every three years, using a replicable basis of measurement and a measurement scale.
Consistency is the important thing here.
Summ arize the results, noting any factors that may influence trends as required for RSI, Required Supplemental Information. Estimate each year the annual amount required to maintain and preserve infrastructure assets at or above the target condition levels established by the agency. The condition level should be expressed in terms of categories or a condition index, i.e. good, fair, poor or 5,4,3, and should be established in a formal, documented manner via the appropriate administrative or executive policy or by legislative action. If an agency develops a thorough inventory and then regularly assesses the condition of infrastructure assets, using the same standards for each condition assessment, it will have completed most of the work involved in establishing an asset management system. You can include information like location, replacement cost, square footage, warranty and leasing information, and specific details that you define as important.