Fixed Asset Appraisal and Exposure Program

PDRMA's Board of Directors approved the establishment of a Fixed Asset Appraisal and Exposure Program that will be paid for by PDRMA in November, 2002. This program was designed to accomplish the following:

	Accurately determine values for property insurance purposes
	Assist members with their GASB 34 compliance Those members in non-compliance may receive an adverse audit opinion which could have a disastrous affect on the member's ability to issue bonds. Municipal bond underwriters, purchasers and bond counsel will look for compliance.
	Accurately determine the number and location of buildings, playgrounds, tennis courts, vehicles, etc. for liability insurance purposes
	Help PDRMA target its risk management and education and training services
	Avoid potential errors and omissions claims, fiduciary liability claims, allegations that public officials have failed to faithfully perform their duties, and other potential torts due to non-compliance with GASB 34.
	Gather and store all data electronically with the goal of significantly reducing or eliminating the annual renewal questionnaire which is time consuming for members and staff
	Make all the data available electronically which can then be synchronized with PDRMA's member management system
	Have secured web access to information for members, underwriters, actuaries and PDRMA staff

FAQs

Who is providing the appraisal services?
PDRMA contracted with Maximus, Inc. to provide the appraisal services. This company was selected from the two firms providing proposals, based on the quality of their program and particularly their web-based asset management system. Their system, ASSETMAXX is an on-line, real-time system that allows users to securely maintain, collect and retrieve data over the web.

When do appraisals have to be completed?
The sooner accurate appraised values are obtained for property insurance purposes the better. Since compliance with GASB 34 is based on revenue size, PDRMA members were sorted by size and by fiscal year end. Those with revenues over $10 million were to be appraised first. Those with revenues between $1 million and $10 million were to be addressed in order of the earliest fiscal year ends requiring compliance, followed by those with revenues under $1 million.

The implementation schedule is complicated by allowing extra time for retroactive reporting of infrastructure assets. To simplify, the following illustrates the earliest required implementation dates:

• An entity with total revenues from $10 million to $100 million must comply in its first fiscal year beginning after 7/1/02.
  • For example if a member's fiscal year is January 1, it must comply for the fiscal year beginning January 1, 2003 and ending December 31, 2003.
    
• An entity with total revenues less than $10 million must comply in its first fiscal year beginning after 7/1/03.
  • For example if a member's fiscal year is May 1, it must comply for the fiscal year beginning May 1, 2004 and ending April 30, 2005.

How is this being paid for?
The PDRMA Board of Directors agreed to fund the initial basic appraisal cost for each member as well as the annual ASSETMAXX software subscription cost for all members. Land research, on-going annual updates, individual inventory tagging, and any additional services requested by members are at their own expense.

How does the process get started?
A three page questionnaire was sent to each member to be completed and sent back to Maximus. The information requested will assist Maximus in planning the delivery of their services depending on circumstances at each PDRMA member.

Background Information

Description	Date	Word Document	Adobe PDF
Initial information, Memo to Program Council	July 30, 2002	(29 KB)	(91 KB)
Recommendation to Board of Directors	September 23, 2002	(41 KB)	(97 KB)
Announcement of Fixed Asset Appraisal & Exposure Program	November 8, 2002	(37 KB)	(66 KB)
See GASB 34 Compliance (behind password)	Click here
Landscaping Alert	August 26, 2004	(142 KB)	(91 KB)
Fixed Asset Appraisal Program - Update	May 27, 2005	(142 KB)	(79.5 KB)
Fixed Asset Appraisal Program - Update for members not started	May 31, 2005	(137 KB)	(76.0 KB)
GASB 34 Questionnaire & Consulting Proposal Request		(53.0 KB)	(40.2 KB)