Capital Asset Assessment, Maintenance and Replacement Policy (2007 and 2010)
Commentary on the GFOA Best Practices Part 2
Part 1 of our commentary focused on what information needs to be gathered to facilitate Capital Asset Assessment best practice. This week’s analysis focuses on recommendation number 2 covering condition measures and performance standards. These measures and standards define the meaning of information that is gathered in response to recommendation number 1. Together recommendation one and two create the lens thru which capital policy will be set.
- 2. Establishing condition/functional performance standards to be maintained for each type of capital assets. The condition measures and related standards should be understandable and reliable. Such standards may be dictated by mandated safety requirements, federal, state, or provincial funding requirements or applicable engineering and other professional standards,2 including available software models. Use these standards and a current condition assessment as a basis for multi-year capital planning and annual budget funding allocations for capital asset maintenance and replacement...
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