Institutional Federal Compliance Report 2021

138 • Required Supplementary Information _______________________________________________________________________

INFRASTRUCTURE ASSETS USING THE MODIFIED APPROACH (unaudited)

In accordance with GAAP, the State has adopted an alternative method for recording depreciation expense for the State’s network of roads and bridges maintained by the Department of Transportation (DOT). Under this method, referred to as the modified approach, the State will not report depreciation expense for roads and bridges but will capitalize all costs that add to the capacity and efficiency of State-owned roads and bridges. Generally, all maintenance and preservation costs will be expensed and not capitalized. In order to adopt the modified approach, the State is required to meet the following criteria: 1. Maintain an asset management system that includes a current inventory of eligible infra- structure assets. 2. Conduct condition assessments of eligible assets and summarize the results using a mea- surement scale. 3. Estimate each year the annual amount nec- essary to maintain and preserve the eligible assets at the condition level established and disclosed by the State. 4. Document that the assets are being preserved approximately at, or above, the established condition level. Roads The DOT maintains the Pavement Management System (PMS), which supports a construction program that preserves the State’s investment in its roads. The PMS contains locational, operational and historical condition data. The PMS is used to determine the appropriate program for improving the condition of the roads and to determine future funding levels necessary to meet condition goals. The overall goal is for the State to provide a management system for the State’s infrastructure assets in order to provide long-term benefits to the State’s citizens. The State annually conducts an assessment of the pavement condition of the State’s road network. Trained technicians rate the condition of the pave- ment based on surface condition and dominant dis- tress (e.g., cracking, faulting) using a scale of 1 (very poor) to 10 (excellent) based on the prevalence of a surface-related pavement distress. A pavement con- dition rating (PCR) is assigned to each surface section. The State currently has 42,739 lane miles of roads.

It is the State’s intention to maintain the roads at an average PCR between 6.7 and 7.2. Bridges The DOT maintains the Bridge Management System (BMS), which supports a construction program that preserves the State’s investment in its bridges. The BMS is used in planning construction programs and estimating construction costs. The overall goal is for the State to provide a management system for the State’s infrastructure assets in order to provide long- term benefits to the State’s citizens. The State has 7,903 bridges in the inventory, of which 7,690 are highway bridges. The remainder include railroad and pedestrian structures. The State conducts biennial inspections of all bridges in the State. During each general inspection, various components or elements of each bridge span are rated by the inspector as to the extent of deteri- oration, as well as the component’s ability to function structurally relative to when it was newly designed and constructed. The State previously used a numer- ical inspection condition rating (CR) scale ranging from 1 (minimum) to 7 (maximum). Bridges with CR greater than 5.8 are in good condition, and gen- erally require preventive and corrective maintenance actions such as bridge washing, deck sealing and bearing lubrication. Bridges with CR between 4.9 (inclusive) and 5.8 (inclusive) are in fair-protective condition, and generally require relatively minor pre- ventive and corrective maintenance actions, such as bearing repairs, joint repairs, zone and spot painting and girder end repairs. Bridges with CR between 4.4 (inclusive) and 4.9 are in fair-corrective condition, and generally require moderate preventive and cor- rective maintenance actions, such as bearing replace- ment, deck replacement, and major substructure repairs. Bridges with CR less than 4.4 are considered to be in poor condition, and generally require major rehabilitation or replacement. Through 2015, using this rating scale, it was the State’s intention to maintain the bridges at an average condition rating level between 5.3 and 5.6. In 2016, the State transitioned to the AASHTO element-based rating system that utilizes a 1 (good) through 4 (severe) scale as mandated by the Federal Highway Administration (FHWA). The bridge goal is based on the percentage of Structurally Deficient (SD)