Maintaining high-quality infrastructure is essential to the economic vitality and quality of life of communities. After an asset has been acquired, it needs to be maintained the standard that will allow the government to deliver the level of service desired by the community.
- Inventory assets and ascertain physical condition. Knowing what assets a government has and the condition they are in is the first step towards a comprehensive asset maintenance strategy.
- Establish maintenance standards by asset class. Having standards allows the government to compare actual condition to the standard and, thereby, identify the biggest need for maintenance.
- Evaluate infrastructure and set priorities. With standards in place, the government can set priorities for asset maintenance.
- Develop maintenance funding policies. Policies establish the intent to fund maintenance and create actual funding mechanisms.
GFOA Best Practices
GFOA identified the following best practices related to capital planning and budgeting.
- Asset Maintenance and Replacement - GFOA recommends that governments establish a system for assessing their assets and then appropriately plan and budget for any capital maintenance and replacement needs.
- Role of the Finance Director in Capital Asset Management - GFOA urges government officials to extend the involvement of the finance director through all phases of asset management.
- Determining the Estimated Useful Lives of Capital Assets – Governments should accurately estimate the useful lives of assets.
- Technology in Capital Planning and Management. GFOA recommends that finance officers take an organizational-wide approach to using technology for capital program management.
- The Impact of Capital Projects on the Operating Budget. GFOA recommends that governments discuss and quantify the operating impact of capital projects in the budget document.
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Additional GFOA Resources
Other Links and Resources
GFOA Distinguished Budget Presentation Award winners (see “special recognition” column, filter for “capital”)