Below are the first 10 and last 10 pages of uncorrected machine-read text (when available) of this chapter, followed by the top 30 algorithmically extracted key phrases from the chapter as a whole.
Intended to provide our own search engines and external engines with highly rich, chapter-representative searchable text on the opening pages of each chapter.
Because it is UNCORRECTED material, please consider the following text as a useful but insufficient proxy for the authoritative book pages.
Do not use for reproduction, copying, pasting, or reading; exclusively for search engines.
OCR for page R1
NATIONAL
NCHRP REPORT 522
COOPERATIVE
HIGHWAY
RESEARCH
PROGRAM
A Review of DOT Compliance
With GASB 34 Requirements
OCR for page R2
TRANSPORTATION RESEARCH BOARD EXECUTIVE COMMITTEE 2004 (Membership as of January 2004)
OFFICERS
Chair: Michael S. Townes, President and CEO, Hampton Roads Transit, Hampton, VA
Vice Chair: Joseph H. Boardman, Commissioner, New York State DOT
Executive Director: Robert E. Skinner, Jr., Transportation Research Board
MEMBERS
MICHAEL W. BEHRENS, Executive Director, Texas DOT
SARAH C. CAMPBELL, President, TransManagement, Inc., Washington, DC
E. DEAN CARLSON, Director, Carlson Associates, Topeka, KS
JOHN L. CRAIG, Director, Nebraska Department of Roads
DOUGLAS G. DUNCAN, President and CEO, FedEx Freight, Memphis, TN
GENEVIEVE GIULIANO, Director, Metrans Transportation Center and Professor, School of Policy, Planning, and Development, USC,
Los Angeles
BERNARD S. GROSECLOSE, JR., President and CEO, South Carolina State Ports Authority
SUSAN HANSON, Landry University Professor of Geography, Graduate School of Geography, Clark University
JAMES R. HERTWIG, President, Landstar Logistics, Inc., Jacksonville, FL
HENRY L. HUNGERBEELER, Director, Missouri DOT
ADIB K. KANAFANI, Cahill Professor of Civil Engineering, University of California, Berkeley
RONALD F. KIRBY, Director of Transportation Planning, Metropolitan Washington Council of Governments
HERBERT S. LEVINSON, Principal, Herbert S. Levinson Transportation Consultant, New Haven, CT
SUE MCNEIL, Director, Urban Transportation Center and Professor, College of Urban Planning and Public Affairs, University of
Illinois, Chicago
MICHAEL D. MEYER, Professor, School of Civil and Environmental Engineering, Georgia Institute of Technology
KAM MOVASSAGHI, Secretary of Transportation, Louisiana Department of Transportation and Development
CAROL A. MURRAY, Commissioner, New Hampshire DOT
JOHN E. NJORD, Executive Director, Utah DOT
DAVID PLAVIN, President, Airports Council International, Washington, DC
JOHN REBENSDORF, Vice President, Network and Service Planning, Union Pacific Railroad Co., Omaha, NE
PHILIP A. SHUCET, Commissioner, Virginia DOT
C. MICHAEL WALTON, Ernest H. Cockrell Centennial Chair in Engineering, University of Texas, Austin
LINDA S. WATSON, General Manager, Corpus Christi Regional Transportation Authority, Corpus Christi, TX
MARION C. BLAKEY, Federal Aviation Administrator, U.S.DOT (ex officio)
SAMUEL G. BONASSO, Acting Administrator, Research and Special Programs Administration, U.S.DOT (ex officio)
REBECCA M. BREWSTER, President and COO, American Transportation Research Institute, Smyrna, GA (ex officio)
GEORGE BUGLIARELLO, Chancellor, Polytechnic University and Foreign Secretary, National Academy of Engineering (ex officio)
THOMAS H. COLLINS (Adm., U.S. Coast Guard), Commandant, U.S. Coast Guard (ex officio)
JENNIFER L. DORN, Federal Transit Administrator, U.S.DOT (ex officio)
ROBERT B. FLOWERS (Lt. Gen., U.S. Army), Chief of Engineers and Commander, U.S. Army Corps of Engineers (ex officio)
EDWARD R. HAMBERGER, President and CEO, Association of American Railroads (ex officio)
JOHN C. HORSLEY, Executive Director, American Association of State Highway and Transportation Officials (ex officio)
RICK KOWALEWSKI, Deputy Director, Bureau of Transportation Statistics, U.S.DOT (ex officio)
WILLIAM W. MILLAR, President, American Public Transportation Association (ex officio)
MARY E. PETERS, Federal Highway Administrator, U.S.DOT (ex officio)
SUZANNE RUDZINSKI, Director, Transportation and Regional Programs, U.S. Environmental Protection Agency (ex officio)
JEFFREY W. RUNGE, National Highway Traffic Safety Administrator, U.S.DOT (ex officio)
ALLAN RUTTER, Federal Railroad Administrator, U.S.DOT (ex officio)
ANNETTE M. SANDBERG, Federal Motor Carrier Safety Administrator, U.S.DOT (ex officio)
WILLIAM G. SCHUBERT, Maritime Administrator, U.S.DOT (ex officio)
ROBERT A. VENEZIA, Program Manager of Public Health Applications, National Aeronautics and Space Administration (ex officio)
NATIONAL COOPERATIVE HIGHWAY RESEARCH PROGRAM
Transportation Research Board Executive Committee Subcommittee for NCHRP
MICHAEL S. TOWNES, Hampton Roads Transit, Hampton, VA JOHN C. HORSLEY, American Association of State Highway
(Chair) and Transportation Officials
JOSEPH H. BOARDMAN, New York State DOT MARY E. PETERS, Federal Highway Administration
GENEVIEVE GIULIANO, University of Southern California, ROBERT E. SKINNER, JR., Transportation Research Board
Los Angeles C. MICHAEL WALTON, University of Texas, Austin
OCR for page R3
NATIONAL COOPERATIVE HIGHWAY RESEARCH PROGRAM
NCHRP REPORT 522
A Review of DOT Compliance
With GASB 34 Requirements
PB CONSULT, INC.
New York, NY
WITH
PRICEWATERHOUSECOOPERS, LLP
Ridgewood, NJ
CAMBRIDGE SYSTEMATICS, INC.
Cambridge, MA
AND
NUSTATS, INC.
Austin, TX
S UBJECT A REAS
Planning and Administration
Research Sponsored by the American Association of State Highway and Transportation Officials
in Cooperation with the Federal Highway Administration
TRANSPORTATION RESEARCH BOARD
WASHINGTON, D.C.
2004
www.TRB.org
OCR for page R4
NATIONAL COOPERATIVE HIGHWAY RESEARCH NCHRP REPORT 522
PROGRAM
Systematic, well-designed research provides the most effective Project A19-4 FY'02
approach to the solution of many problems facing highway
administrators and engineers. Often, highway problems are of local ISSN 0077-5614
interest and can best be studied by highway departments ISBN 0-309-08794-5
individually or in cooperation with their state universities and
Library of Congress Control Number 2004106621
others. However, the accelerating growth of highway transportation
develops increasingly complex problems of wide interest to © 2004 Transportation Research Board
highway authorities. These problems are best studied through a
coordinated program of cooperative research. Price $19.00
In recognition of these needs, the highway administrators of the
American Association of State Highway and Transportation
Officials initiated in 1962 an objective national highway research
program employing modern scientific techniques. This program is
supported on a continuing basis by funds from participating
member states of the Association and it receives the full cooperation
and support of the Federal Highway Administration, United States NOTICE
Department of Transportation.
The project that is the subject of this report was a part of the National Cooperative
The Transportation Research Board of the National Academies
Highway Research Program conducted by the Transportation Research Board with the
was requested by the Association to administer the research
approval of the Governing Board of the National Research Council. Such approval
program because of the Board's recognized objectivity and reflects the Governing Board's judgment that the program concerned is of national
understanding of modern research practices. The Board is uniquely importance and appropriate with respect to both the purposes and resources of the
suited for this purpose as it maintains an extensive committee National Research Council.
structure from which authorities on any highway transportation
The members of the technical committee selected to monitor this project and to review
subject may be drawn; it possesses avenues of communications and
this report were chosen for recognized scholarly competence and with due
cooperation with federal, state and local governmental agencies, consideration for the balance of disciplines appropriate to the project. The opinions and
universities, and industry; its relationship to the National Research conclusions expressed or implied are those of the research agency that performed the
Council is an insurance of objectivity; it maintains a full-time research, and, while they have been accepted as appropriate by the technical committee,
research correlation staff of specialists in highway transportation they are not necessarily those of the Transportation Research Board, the National
matters to bring the findings of research directly to those who are in Research Council, the American Association of State Highway and Transportation
a position to use them. Officials, or the Federal Highway Administration, U.S. Department of Transportation.
The program is developed on the basis of research needs Each report is reviewed and accepted for publication by the technical committee
identified by chief administrators of the highway and transportation according to procedures established and monitored by the Transportation Research
departments and by committees of AASHTO. Each year, specific Board Executive Committee and the Governing Board of the National Research
areas of research needs to be included in the program are proposed Council.
to the National Research Council and the Board by the American
Association of State Highway and Transportation Officials.
Research projects to fulfill these needs are defined by the Board, and
qualified research agencies are selected from those that have
submitted proposals. Administration and surveillance of research
contracts are the responsibilities of the National Research Council
and the Transportation Research Board. Published reports of the
The needs for highway research are many, and the National
NATIONAL COOPERATIVE HIGHWAY RESEARCH PROGRAM
Cooperative Highway Research Program can make significant
contributions to the solution of highway transportation problems of are available from:
mutual concern to many responsible groups. The program,
however, is intended to complement rather than to substitute for or Transportation Research Board
duplicate other highway research programs. Business Office
500 Fifth Street, NW
Washington, DC 20001
and can be ordered through the Internet at:
Note: The Transportation Research Board of the National Academies, the
National Research Council, the Federal Highway Administration, the American
Association of State Highway and Transportation Officials, and the individual
http://www.national-academies.org/trb/bookstore
states participating in the National Cooperative Highway Research Program do
not endorse products or manufacturers. Trade or manufacturers' names appear
herein solely because they are considered essential to the object of this report. Printed in the United States of America
OCR for page R5
The National Academy of Sciences is a private, nonprofit, self-perpetuating society of distinguished schol-
ars engaged in scientific and engineering research, dedicated to the furtherance of science and technology
and to their use for the general welfare. On the authority of the charter granted to it by the Congress in
1863, the Academy has a mandate that requires it to advise the federal government on scientific and techni-
cal matters. Dr. Bruce M. Alberts is president of the National Academy of Sciences.
The National Academy of Engineering was established in 1964, under the charter of the National Acad-
emy of Sciences, as a parallel organization of outstanding engineers. It is autonomous in its administration
and in the selection of its members, sharing with the National Academy of Sciences the responsibility for
advising the federal government. The National Academy of Engineering also sponsors engineering programs
aimed at meeting national needs, encourages education and research, and recognizes the superior achieve-
ments of engineers. Dr. William A. Wulf is president of the National Academy of Engineering.
The Institute of Medicine was established in 1970 by the National Academy of Sciences to secure the
services of eminent members of appropriate professions in the examination of policy matters pertaining to
the health of the public. The Institute acts under the responsibility given to the National Academy of
Sciences by its congressional charter to be an adviser to the federal government and, on its own initiative,
to identify issues of medical care, research, and education. Dr. Harvey V. Fineberg is president of the
Institute of Medicine.
The National Research Council was organized by the National Academy of Sciences in 1916 to associate
the broad community of science and technology with the Academy's purposes of furthering knowledge and
advising the federal government. Functioning in accordance with general policies determined by the Acad-
emy, the Council has become the principal operating agency of both the National Academy of Sciences and
the National Academy of Engineering in providing services to the government, the public, and the scientific
and engineering communities. The Council is administered jointly by both the Academies and the Institute
of Medicine. Dr. Bruce M. Alberts and Dr. William A. Wulf are chair and vice chair, respectively, of the
National Research Council.
The Transportation Research Board is a division of the National Research Council, which serves the
National Academy of Sciences and the National Academy of Engineering. The Board's mission is to promote
innovation and progress in transportation through research. In an objective and interdisciplinary setting, the
Board facilitates the sharing of information on transportation practice and policy by researchers and
practitioners; stimulates research and offers research management services that promote technical
excellence; provides expert advice on transportation policy and programs; and disseminates research
results broadly and encourages their implementation. The Board's varied activities annually engage more
than 4,000 engineers, scientists, and other transportation researchers and practitioners from the public and
private sectors and academia, all of whom contribute their expertise in the public interest. The program is
supported by state transportation departments, federal agencies including the component administrations of
the U.S. Department of Transportation, and other organizations and individuals interested in the
development of transportation. www.TRB.org
www.national-academies.org
OCR for page R6
COOPERATIVE RESEARCH PROGRAMS STAFF FOR NCHRP REPORT 522
ROBERT J. REILLY, Director, Cooperative Research Programs
CRAWFORD F. JENCKS, Manager, NCHRP
GWEN CHISHOLM-SMITH, Senior Program Officer
EILEEN P. DELANEY, Managing Editor
HILARY FREER, Associate Editor II
BETH HATCH, Assistant Editor
NCHRP PROJECT A19-4 PANEL
Field of Administration--Area of Finance
MICHAEL R. SHINN, Tennessee DOT (Chair)
JAMES R. FOUNTAIN, General Accounting Standards Board
DAVID L. HUFT, South Dakota DOT
MICHAEL B. JOHNSON, P.E., California DOT
STEPHEN D. MARAMAN, Nebraska DOR
ROBIN NAITOVE, Florida DOT
J. MICHAEL PATTERSON, Oklahoma DOT
MICHAEL G. PAVLIDES, PBS&J, Beltsville, MD
PETER STEPHANOS, P.E., Maryland State Highway Administration
DUANE K. SULLIVAN, Texas DOT
REGINA MCELROY, FHWA Liaison Representative
CLAIRE FELBINGER, TRB Liaison Representative
AUTHOR ACKNOWLEDGMENTS
The research reported herein was performed under NCHRP Proj- at PB Consult, Inc., managed the analysis and reporting aspects of
ect 19-04 by PB Consult, Inc., as the prime contractor and Price- the project. Lucinda Eagle and Nick Amrhein of PB Consult, Inc.,
waterhouseCoopers LLP; Cambridge Systematics, Inc.; and NuStats, also made major contributions. Other contributors to this work were
Inc.; as subcontractors. Ed Chait of PricewaterhouseCoopers LLP and Mike Markow of
Frank Smith, Principal Consultant at PB Consult, Inc., was the Cambridge Systematics, Inc. Survey administration was managed
principal investigator while Wayne McDaniel, Principal Consultant by Stacy Bricka of NuStats, Inc.
OCR for page R7
NCHRP Report 522: A Review of DOT Compliance with GASB 34 Requirements
FOREWORD provides a comprehensive look at approaches taken by AASHTO member departments
By Gwen Chisholm-Smith to comply with the requirements of Governmental Accounting Standards Board
Staff Officer (GASB) Statement No. 34. GASB 34 is the accounting standard that requires general
Transportation Research infrastructure assets to be reported together with related depreciation or preservation
Board costs in the comprehensive financial statements of state and local governments. This
report documents how the requirements set by GASB 34 were met and catalogs the var-
ious approaches that were implemented in the first year.
This report will be helpful to professionals who work with state DOTs and local
governments in the areas of finance, auditing, asset management, and policy-making.
In June 1999, the Governmental Accounting Standards Board (GASB) unani-
mously approved Statement No. 34: Basic Financial Statements--and Management's
Discussion and Analysis--for State and Local Governments. Among its many new pro-
visions, GASB 34 requires that state and local governments begin to report on the cost
of their infrastructure assets, including roads and bridges. Given that many of the infra-
structure assets owned by the public sector in this country are built and maintained by
transportation agencies, DOTs are among the public agencies most affected by these
new requirements. Each jurisdiction is allowed to determine its own asset management
methodologies, systems, and standards. However, this flexibility results in divergent
approaches by the DOTs. This report (1) summarizes the approaches taken by DOTs
to comply with GASB 34 and (2) provides information gathered from AASHTO mem-
ber departments on policies and methodologies for reporting on infrastructure assets.
PB Consult, Inc.; in conjunction with PricewaterhouseCoopers, LLP; Cambridge
Systematics, Inc.; and NuStats, Inc.; conducted the research for NCHRP Project 19-04.
To achieve the project's objective of summarizing the approaches taken by AASHTO
member departments to comply with the requirements of GASB 34, the research team
performed a literature review, conducted a comprehensive survey, performed inter-
views, and conducted six case studies. The six case studies of DOTs (i.e., Michigan,
South Carolina, Tennessee, Texas, Vermont, and Washington) covered the range of
approaches used to meet the GASB 34 requirements.
The report focuses on the approaches DOTs have taken to comply with the
requirements of GASB 34 and why, how these approaches were implemented, prob-
lems encountered, resulting changes in practice, and lessons learned. The appendixes,
which include the consolidated survey and answers, have been published as NCHRP
Web Document 63, available at: www4.trb.org/trb/crp.nsf.
OCR for page R8
CONTENTS 1 SUMMARY
11 CHAPTER 1 Summary of Previous Surveys and Literature Review
Tennessee DOT Survey--June 2001, 11
National Association of State Auditors, Comptrollers, and Treasurers Survey, 11
Georgia DOT Survey, 11
NCHRP Survey, 11
13 CHAPTER 2 Process for Developing the Survey Instrument
Questionnaire Design, 13
Questionnaire Pretest, 13
Web-Survey Programming, 13
Survey Administration, 13
15 CHAPTER 3 Identification of Candidates for Case Study Analyses
16 CHAPTER 4 Case Study Overview
Procedures, 16
Overview, 16
Michigan, 17
South Carolina, 18
Tennessee, 18
Texas, 19
Vermont, 19
Washington, 20
21 CHAPTER 5 Case Study Interview Questions and Responses
Michigan, 22
South Carolina, 25
Tennessee, 29
Texas, 33
Vermont, 37
Washington, 41
46 CHAPTER 6 Information Gaps and Research Needs
Methods for Condition Assessments and Preservation, 46
Research Topics, 47
Research Methodology, 48
49 BIBLIOGRAPHY
