Asset Management

The public sector is the custodian of billions of dollars in essential assets: utility infrastructure, highways, hospitals, schools, ports, and more. These assets inevitably deteriorate, requiring maintenance and eventually replacement. Governments can use strategic asset management—a future-focused modeling methodology that is specific to long-life facilities and infrastructure assets—to figure out what to address and when.

Why Strategic Asset Management Matters

Finance officers are now increasingly asking important questions about long-term financial planning and how it relates to asset management.

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GFOA Best Practice

Local, state and provincial governments should establish a system for assessing their capital assets and then appropriately plan and budget for any capital maintenance and replacement needs.

Developing policies to guide capital asset management practices that are supported by both finance and operational/engineering expertise is essential for financial sustainability. To begin, GFOA recommends that governments:

  1. Develop an accurate and comprehensive asset inventory
  2. Establish condition/functional performance standards for each type of capital asset
  3. Evaluate existing capital assets to determine if they still provide the most appropriate method to deliver services
  4. Consider developing financial policies that identify and dedicate fees or other revenue sources to help maintain the expected service levels of capital assets
  5. Allocate sufficient funds in the multi-year capital plan
  6. Monitoring and communicating progress toward stated goals and the overall condition of its capital assets
  7. At least once every three years, providing a "plain language" report on capital assets

Role of the Finance Officer in Capital Asset Management

Governments should extend the involvement of the finance director through all phases of asset management. Finance officers should be involved by understanding and providing information to support decisions.

Capital Asset Management

Local, state and provincial governments should establish a system for assessing their capital assets and then appropriately plan and budget for any capital maintenance and replacement needs.

Case Studies

Capital Planning and the DC Government

The municipal government of the District of Columbia (the “District”) is a leader in asset management and infrastructure renewal planning. This research explains the District’s approach through the lens of Financial Foundations for Thriving Communities.

Capital Planning and the DC Government

On this Financial Foundations podcast, GFOA's Shayne Kavanagh talks with Darryl Street, David Clark, and Richard Dietz from DC Government about their leadership in asset management and infrastructure renewal planning.

Recent Publications

GFOA Strategic and Research Partners

Asset Management Competency Framework for Canadian Communities

Infrastructure asset management (AM) can help organizations navigate these challenges of an aging asset base, financial deficits, climate change, demographic changes, and more.

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American Public Works Association (APWA)

APWA offers many resources on asset management

View APWA Resources

The Institute of Public Works Engineering Australasia (IPWEA)

GFOA members can access training on asset management provided by IPWEA

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