Accounting Resource Center

 Best Practices & Advisories




Capital Assets

  • Capitalization Thresholds for Capital Assets - GFOA recommends that governments consider set guidelines in establishing capitalization thresholds.  Guidelines are described in the best practice document.
  • Control Over Items That Are Not Capitalized - GFOA recommends that every government undertake a systematic effort to identify all of its controlled capital-type items.
  • Estimated Useful Lives of Capital Assets - The best source of relevant information on the estimated useful lives of a government’s capital assets normally is its own past experience with similar assets.
  • Inventories of Tangible Capital Assets - GFOA recommends that every state and local government periodically inventory its tangible capital assets so that all such assets are accounted for, at least on a test basis, no less often than once every five years. 
  • Modified Approach for Infrastructure Reporting GFOA recommends that governments consider the following factors in the process of deciding whether to use depreciation accounting or the modified approach for a given network or subsystem of infrastructure assets, usefulness of data for managerial purposes, potential impact of prospective depreciation, Inherent capital bias, unmatched debt, reliance upon interested parties, and decreased comparability.




Disaster Recovery

  • Disaster Recovery for Technology - GFOA recommends that every government formally establish written policies and procedures for minimizing disruptions resulting from failures in computers or other advanced technologies following a disaster. These written policies and procedures should be evaluated annually and updated periodically, no less than once every three years.
  • Disaster Recovery Cost Documentation - GFOA urges state and local government financial managers to take all necessary steps to ensure that they will be able to collect and maintain adequate documentation of disaster-related costs to support maximum reimbursement from all levels of government that offer such assistance.



  • Grants Administration - GFOA recommends that governments establish processes to promote awareness throughout the government that grants normally come with significant requirements. 
  • OMB Uniform Guidance - GFOA recommends that governments take steps to ensure they fully comply with the provisions of the OMB’s Uniform Guidance.


Additional GFOA Resources




Best Practices