5.3.2 Preparing a TAM Financial Plan


Preparing a TAM Financial Plan

This checklist summarizes the basic steps involved in preparing a TAM financial plan. Note this guidance is based on NCHRP Report 898, and this resource has additional details on each of the steps described here.

Identify and Document Sources and Uses

  • Determine the scope of the TAM program
  • Establish sources of funding
  • Establish funding uses
  • Structure the list of sources and uses
  • Validate the list
  • Document constraints on uses of funding
  • Document assumptions concerning the allocation of fixed costs

Forecast Revenues and Expenditures

  • Establish roles and responsibilities for revenue forecasting
  • Review prior revenue forecasts
  • Forecast revenues
  • Forecast non-asset management uses
  • Determine available funding for asset management
  • Document key assumptions

Develop Investment Strategies and Scenarios

  • Define investment scenarios
  • Identify current and planned projects
  • Use management systems to predict future conditions
  • Perform initial budget allocation
  • Identify candidate projects
  • Select projects
  • Revise prediction of future conditions
  • Finalize funding levels by use
  • Perform gap assessment
  • Document assumptions and investment strategies

Calculate Asset Value

  • Obtain the value calculate for financial statements
  • Calculate depreciated replacement cost
  • Compare alternative methods for valuation
  • Document the calculation using the preferred method
  • Incorporate asset value into the financial plan