TENNESSEE Using the Modified Approach

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GASB 34 Peer Exchange
TENNESSEEUsing the Modified Approach
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• Implementation Team in Tennessee
• Right of Way Maintenance
• Mike Phillips Gerald Gregory
• Tim Weaver Chris Harris
• Structures Roadway Design
• Ed Wasserman Jeff Jones
• Hollis Tackitt Donald Reid
• Terry Leatherwood
• Finance
• Mike Shinn Janice Marston
• Neal Ham Laurie Clark
• Alan Little

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• A New Relationship Between Financial Staff and
  Our
• Operating Staff Managing the Infrastructure
• Cooperation and collaboration will be
  essential
• Everyone must be part of the solution
• Financial reporting on infrastructure
  supported by data from our asset management
  systems
• Full impact of infrastructure will be highly
  visible

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• The Modified Approach Requires
• An up-to-date inventory of assets
• Establishing historical value of infrastructure
• A method of tracking changes to infrastructure
• Performing condition assessments and
• summarizing the results
• Estimating the amount to maintain and preserve
• the assets at the established condition level

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• Panel Presentation
• Methodology for reporting infrastructure at
  June 30, 2001
• Tracking the changes to infrastructure
• Roadway System - Pavement Management
• Roadway System - Maintenance Rating Program
• Condition Assessment for Structures

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Source of Historical Information

• 1914 through 1964 - AASHO - The First Fifty Years
• 1965-Present - TDOT Financial Statements

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Tennessee Department of TransportationActual
Construction Costs
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ROW Land Value Estimates
Note Value is weighted for example,
agricultural vs. commercial
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Infrastructure AssetsBridges
Bridge Age Number Deck Area Bridge Value
(Years) of Bridges (Sq. Feet) 0 to 9
958 12,808,959 805,030,000.00 10 to 19
1,122 11,568,351 699,827,000.00 20 to 29
958 11,401,712 1,010,312,000.00 30 to
39 1,741 17,041,710 1,086,944,000.00 40
to 49 1,293 9,250,215 608,825,000.00
50 to 59 562 3,083,902
321,945,000.00 60 to 69 598
2,845,063 228,864,000.00 70 760
3,856,398 314,880,000.00 Total
7,992 71,856,310 5,076,627,000.00
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Infrastructure AssetsRoadway
Note Averages based on estimates for rolling
terrain
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Tennessee Department of TransportationSummary of
Infrastructure Costs
Estimated Current Costs are based upon the amount
that, as of June 2000, would be required to
replace the system. Actual Historical Costs are
from AASHTO, the 1st 50 Years (1914-1964) and
TDOT annual financial statements
(1965-2000). The Prorated Historical Cost Amount
is calculated by multiplying Actual Historical
Costs by the Asset Percentage.
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Tracking and Updating Changes to the
Infrastructure on an Annual Basis
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