New Indiana SRF asset management program requirements

A few years ago, the Indiana Finance Authority’s (IFA) State Revolving Fund (SRF) Loan Program implemented an asset management program (AMP) for water and wastewater utilities as a requirement for all financing issued through the SRF program. When the AMP was first implemented, the preliminary engineering report (PER) was required to have a section identifying the development status of a participant’s AMP discussing whether it was already completed or currently under development. For an AMP currently under development, SRF would hold the final disbursement to finish a project until the AMP was complete. 

Important changes 

The requirements have changed in response to Indiana Senate Bill 272. Effective July 1, 2023, all PERs submitted to the IFA’s SRF programs must include a completed AMP. The due date for PERs received by the SRF for funding in state fiscal year 2024 is April 1, 2023. Therefore, all PERs must include an AMP certification by that date to be ranked on the project priority list (PPL).  If a PER is currently on the PPL and has not closed, it will still be scored; however, in order to be ranked, the PER must include an AMP certification.  

If you plan to finance a utility project with grants or loans from the Infrastructure, Investment and Jobs Act (IIJA or Infrastructure Bill) administered through the SRF program, it’s imperative to get started on your AMP now to make sure you meet the due date. 

About the IRA SRF’s AMP requirement 

 For Indiana water and wastewater utilities looking for a refresher, the AMP is designed to: 

1. Support asset management and related decisions by developing an asset management plan to guide long-term management of utility assets and cost effective, proactive decisions from creation, acquisition, operation and maintenance, and replacement or upgrade. 
2. Ensure long‐term sustainability of utility assets by treating the AMP as a living document regularly referenced, revised, expanded and implemented. It serves as an integral part of utility operations and management. 
3. Provide a structural framework to help utility stakeholders determine when it is most appropriate to repair, replace or rehabilitate a particular asset as well as determine a long‐term funding strategy to ensure sufficient funds will be available to implement the improvements. 
4. Provide documentation demonstrating the utility has the technical, managerial, legal and financial capability to operate and maintain its water and/or wastewater system. 

Documentation for the AMP includes, but is not limited to, these sections: 

• Technical 
• Managerial 
• Financial 

The AMP should include, at a minimum, this information: 

• System map 
• Inventory and assessment of system assets 
• Development of an infrastructure inspection, repair and maintenance plan, including a plan for funding such activities 
• Evaluation and implementation of water and energy conservation efforts 
• Analysis of the customer rates necessary to support the AMP 
• Audit performed at least every two years 
• Demonstration the participant has the technical, managerial, legal and financial capability of operating and maintaining its water and/or wastewater system 

Based on the recommended sections and minimum information to be included, Indiana water and wastewater utilities will need input from consulting engineers and municipal advisors to complete the AMP. 

For more information or to learn how Baker Tilly's municipal utility specialists can help your organization, contact our team.