asset management strategy - tatiara.sa.gov.au · draft tatiara district council asset management...
TRANSCRIPT
Draft Tatiara District Council Asset Management Strategy - 2012
Tatiara District Council
ASSET MANAGEMENT
STRATEGY
Version 1
September 2012
AM4SRRC
Tatiara District Council Asset Management Strategy
Document Control
Document Control
NAMS.PLUS Asset Management for Small, Rural or
Remote Communities
www.ipwea.org.au/AM4SRRC
Document ID: Tatiara District Council Asset Management Strategy
Rev No Date Revision Details Author Reviewer Approver
1 24/09/2012 Initial Draft Aaron Hillier – Asset
Systems Coordinator
2 9/10/2012 Adopted by Council 9th
October
2012, res 206. Minor updates to
improvement plan
Aaron Hillier – Asset
Systems Coordinator
Asset Management for Small, Rural or Remote Communities Guidelines
The Institute of Public Works Engineering Australia.
www.ipwea.org.au/AM4SRRC
© Copyright 2011 – All rights reserved.
Draft Tatiara District Council Asset Management Strategy - 2012 Page i
Contents
Executive Summary ................................................................................................................................. 1
1. Introduction .................................................................................................................................... 3
1.1 Legislative reform ......................................................................................................................... 4
1.2 Asset Management Planning Process ........................................................................................... 5
2. What Assets do we have? ............................................................................................................... 5
3. Council’s Assets and their management? ....................................................................................... 6
3.1 State of the Assets .................................................................................................................. 6
3.2 Life Cycle Cost ......................................................................................................................... 8
3.3 Asset Management Structure ............................................................................................... 10
3.4 Corporate Asset Management Team .................................................................................... 10
3.5 Financial & Asset Management Core Competencies ............................................................ 11
3.6 Strategy Outlook ................................................................................................................... 12
4. Where do we want to be? ............................................................................................................ 13
4.1 Council’s Vision, Mission, Goals and Objectives ................................................................... 13
4.2 Asset Management Policy ..................................................................................................... 14
4.3 Asset Management Vision .................................................................................................... 14
5. How will we get there? ................................................................................................................. 15
6. Asset Management Improvement Plan .......................................................................................... 1
Appendix A Asset Management Maturity Assessment ........................................................................ 6
Appendix B Staff Roles & Responsibilities Matrix .............................................................................. 28
Tables
Table 1: Assets used for providing Services ............................................................................................ 5
Table 2: Financial Status of the Assets .................................................................................................... 6
Table 3: Life Cycle Cost for Council Services ........................................................................................... 8
Table 4: Life Cycle Expenditure for Council Services .............................................................................. 8
Table 5: Life Cycle Sustainability Indicators ............................................................................................ 9
Table 6: Goals and Objectives for Infrastructure Services .................................................................... 13
Table 7: Asset Management Strategies ................................................................................................ 15
Table 8: Asset Management Improvement Plan .................................................................................... 1
Figures
Figure 1: Asset Replacement Values ....................................................................................................... 6
Figure 2: State of the Assets ................................................................................................................... 7
Figure 3: Core Asset Management Maturity ........................................................................................ 12
Draft Tatiara District Council Asset Management Strategy - 2012 Page ii
This page is left intentionally blank
Draft Tatiara District Council Asset Management Strategy - 2012 Page 1
Executive Summary This asset management strategy is prepared using the tools and templates provided by the IPWEA
Asset Management for Small, Rural or Remote Communities program and it to assist council in
improving the way it delivers services from infrastructure including roads, bridges, footpaths,
stormwater drainage, parks and recreation, community waste water systems and buildings. These
infrastructure assets have a replacement value of $185,429,000.
The asset management strategy is to enable Council to show:
how its asset portfolio will meet the service delivery needs of its community into the future,
enable Council’s asset management policies to be achieved, and
ensure the integration of Council’s asset management with its long term strategic plan.
Adopting this asset management strategy will assist council in meeting the following:
requirements of national sustainability frameworks
section 122 of the SA Local Government Act 1999
provide services needed by the community in a financially sustainable manner
The asset management strategy is prepared following a review of the council’s service delivery
practices, financial sustainability indicators, asset management maturity and fit with council’s vision
for the future outlined in the Tatiara District Council’s Strategic Plan. The strategy outlines an asset
management improvement plan detailing a program of tasks to be completed and resources
required to bring council to a minimum ‘core’ level of asset maturity and competence.
Strategy outlook
1. Current information indicates Council is unable to maintain current service levels over the
next ten years at current funding levels.
2. Further clarification of the long term service level sustainability is required, and this strategy
discusses the organisational asset management maturity improvement required to attain a
high level of confidence in assessing the long term position.
3. Council’s current asset management maturity is below ‘core’ level and investment is needed
to improve information management, lifecycle management, service management and
accountability and direction.
Asset management strategies
No Strategy Desired Outcome
1 Move from Annual Budgeting to Long Term Financial
Planning
The long term implications of
Council services are considered
in annual budget deliberations
2 Develop and annually review Asset Management Plans
covering at least 10 years for all major asset classes (80% of
Identification of services
needed by the community and
Draft Tatiara District Council Asset Management Strategy - 2012 Page 2
asset value). required funding to optimise
‘whole of life’ costs
3 Develop Long Term Financial Plan covering 10 years
incorporating asset management plan expenditure
projections with a sustainable funding position outcome
Sustainable funding model to
provide Council services
4 Incorporate Year 1 of Long Term Financial Plan revenue and
expenditure projections into annual budgets
Long term financial planning
drives budget deliberations
5 Review and update asset management plans and long term
financial plans after adoption of annual budgets.
Communicate any consequence of funding decisions on
service levels and service risks
Council and the community are
aware of changes to service
levels and costs arising from
budget decisions
6 Report Council’s financial position at Fair Value in
accordance with Australian Accounting Standards, financial
sustainability and performance against strategic objectives
in Annual Reports
Financial sustainability
information is available for
Council and the community
7 Ensure Council’s decisions are made from accurate and
current information in asset registers, on service level
performance and costs and ’whole of life’ costs
Improved decision making and
greater value for money
8 Report on Council’s resources and operational capability to
deliver the services needed by the community in the Annual
Report
Services delivery is matched to
available resources and
operational capabilities
9 Ensure responsibilities for asset management are identified
and incorporated into staff position descriptions
Responsibility for asset
management is defined
10 Implement an Improvement Plan to realise ‘core’ maturity
for the financial and asset management competencies
within 2 years
Improved financial and asset
management capacity within
Council
11 Report six monthly to Council by Audit Committee/CEO on
development and implementation of Asset Management
Strategy, AM Plans and Long Term Financial Plans
Oversight of resource allocation
and performance
Asset management improvement plan
The program of tasks and resources required to achieve a minimum ‘core’ asset management
maturity was developed in the asset management strategy. The tasks and program are shown in
section 6 of this document.
Draft Tatiara District Council Asset Management Strategy - 2012 Page 3
1. Introduction Assets deliver important services to communities. A key issue facing local governments throughout
Australia is the management of ageing assets in need of renewal and replacement.
Infrastructure assets such as roads, drains, bridges, water and sewerage and public buildings present
particular challenges. Their condition and longevity can be difficult to determine. Financing needs
can be large, requiring planning for large peaks and troughs in expenditure for renewing and
replacing such assets. The demand for new and improved services adds to the planning and
financing complexity.1
The creation of new assets also presents challenges in funding the ongoing operating and
replacement costs necessary to provide the needed service over the assets’ full life cycle.2
The national frameworks on asset planning and management and financial planning and reporting
endorsed by the Local Government and Planning Ministers’ Council (LGPMC) require councils to
adopt a longer-term approach to service delivery and funding comprising:
A strategic longer-term plan covering, as a minimum, the term of office of the councillors
and:
o bringing together asset management and long term financial plans,
o demonstrating how council intends to resource the plan, and
o consulting with communities on the plan
Annual budget showing the connection to the strategic objectives, and
Annual report with:
o explanation to the community on variations between the budget and actual results ,
o any impact of such variances on the strategic longer-term plan,
o report of operations with review on the performance of the council against strategic
objectives.3
Framework 2 Asset Planning and Management has seven elements to assist in highlighting key
management issues , promote prudent, transparent and accountable management of local
government assets and introduce a strategic approach to meet current and emerging challenges.
Asset management policy,
Strategy and planning,
o asset management strategy,
o asset management plan,
Governance and management arrangements,
Defining levels of service,
Data and systems,
Skills and processes, and
Evaluation.4
1 LGPMC, 2009, Framework 2 Asset Planning and Management, p 2.
2 LGPMC, 2009, Framework 3 Financial Planning and Reporting, pp 2-3.
3 LGPMC, 2009, Framework 3 Financial Planning and Reporting, pp 4-5.
Draft Tatiara District Council Asset Management Strategy - 2012 Page 4
The asset management strategy is to enable Council to show:
how its asset portfolio will meet the service delivery needs of its community into the future,
to enable Council’s asset management policies to be achieved, and
to ensure the integration of Council’s asset management with its long term strategic plan.5
The goal of asset management is to ensure that services are provided:
in the most cost effective manner,
through the creation, acquisition, maintenance, operation, rehabilitation and disposal of
assets,
for present and future consumers.
The objective of the Asset Management Strategy is to establish a framework to guide the planning,
construction, maintenance and operation of the infrastructure essential for council to provide
services to the community.
1.1 Legislative reform
South Australian Local Government Act 1999 and LGASA Financial Sustainability Program. Section
122 of the South Australian Local Government Act 1999 states:
(1) A council must develop and adopt plans (which may take various forms) for the management of its area, to be called collectively the strategic management plans,
(1a) A council must, in conjunction with the plans required under subsection (1), develop and adopt—
(a) a long-term financial plan for a period of at least 10 years; and (b) an infrastructure and asset management plan, relating to the management and development of infrastructure and major assets by the council for a period of at least 10 years, (and these plans will also be taken to form part of the council's strategic management plans).
(4) A council may review its strategic management plans under this section at any time
but must— (a) undertake a review of—
(i) its long-term financial plan; and (ii) any other elements of its strategic management plans prescribed by the regulations for the purposes of this paragraph, as soon as practicable after adopting the council's annual business plan for a particular financial year; and
(b) in any event, undertake a comprehensive review of its strategic management plans within 2 years after each general election of the council.
(4a) A council must, for the purposes of a review under subsection (4), take into account—
(a) in relation to a review under subsection
4 LGPMC, 2009, Framework 2 Asset Planning and Management, p 4.
5 LGPMC, 2009, Framework 2 Asset Planning and Management, p 4.
Draft Tatiara District Council Asset Management Strategy - 2012 Page 5
(4)(a)(i)—a report from the chief executive officer on the sustainability of the council's long-term financial performance and position taking into
account the provisions of the council's annual business plan and strategic
management plans;
1.2 Asset Management Planning Process
Asset management planning is a
comprehensive process to ensure that
assets are managed and maintained in a
way that enables affordable services from
infrastructure to be provided in an
economically optimal way. In turn,
affordable service levels can only be
determined by assessing Council’s
financially sustainability under scenarios
with different proposed service levels.
Asset management planning commences
with defining stakeholder and legal
requirements and needs, incorporating
these needs into the organisation’s strategic
plan, developing an asset management
policy, strategy, asset management plan
and operational plans, linked to a long-term
financial plan with a funding plan.6
2. What Assets do we have? Council uses infrastructure assets to provide services to the community. The range of infrastructure
assets and the services provided from the assets is shown in Table 1.
Table 1: Assets used for providing Services
Asset Class Description Services Provided
Roads and Transport
Infrastructure
Includes roads, kerbing, signs, bridges,
footpaths, bridges, street lighting and street
furniture
Transportation access and
mobility
Community Waste
Water Systems
Pipe and pump network used for the transport
and disposal of waste water within townships
Disposal of waste water
Parks & Gardens Open spaces, play equipment, lighting,
gardens and furniture
Recreational and social
services
6 IPWEA, 2009, AIFMG, Quick Guide, Sec 4, p 5.
Asset Management Planning Process
Legal and Stakeholder Requirements
and Expectations
Organisational Strategic PlanVision, Mission, Goals & Objectives,
Levels of Service, Business Policies, Risk
ASSET MANAGEMENT POLICY
ASSET MANAGEMENT STRATEGY Objectives, level of service target and plans
Asset
Management
Philosophy &
Framework
Service
Delivery OPERATIONAL PLANSService delivery in accordance with asset
management plans
Asset solutions – operate, maintain, renew,
enhance, retire
Non-asset solutions – partnerships, demand
management, insurance, failure management
KNOWLEDGE MANAGEMENTAsset data and information systems
Knowledge
AS
SE
T M
AN
AG
EM
EN
T P
LA
NN
ING
Op
era
tio
na
l T
actica
l S
tra
teg
ic
Pla
nn
ing
P
lan
nin
g P
lan
nin
g
ASSET MANAGEMENT PLANS Services & service levels to be provided,
funds required to provide services
Draft Tatiara District Council Asset Management Strategy - 2012 Page 6
Buildings Council owned building including halls, civic
centres, libraries, swimming pools etc
Recreational and social
services
Stormwater Pipe and pumping network used for the
disposal of runoff water
Water drainage
3. Council’s Assets and their management?
3.1 State of the Assets
The financial status of Council’s assets is shown in Table 2.
Table 2: Financial Status of the Assets
Asset Class Replacement
Cost ($000)
Depreciated
Replacement Cost ($000)
Depreciation Expense
for current year ($000)
Roads and Transport $126,056 $79,500 $2,806
CWMS $15,468 $5,311 $269
Parks & Gardens $1,122 $459 $67
Stormwater $2,766 $1885 $46
Buildings $30,756 $15,081 $627
Plant & Machinery $6094 $3254 $625
Other $3348 $882 $142
Total $185,429 $106,371 $4,581
Figure 1 shows the replacement values of Council’s assets.
Figure 1: Asset Replacement Values
Draft Tatiara District Council Asset Management Strategy - 2012 Page 7
The asset consumption ratios of Council’s assets (average proportion of ‘as new’ condition left in
assets) are shown in Figure 2.
Figure 2: State of the Assets
As a general guide Council aims to maintain its asset consumption ratio in the range of 40-80% to
ensure it is not over funding or under funding asset renewal. At times this is not possible particularly
for long-lived assets that have similar acquisition dates such as Council’s CWMS schemes. It is likely
in these cases the asset consumption ratio will decline well below these levels before any major
expenditure is carried out. Council has established CWMS reserves to account for the large
replacement costs of these assets. The above graph indicates that Council is currently funding its
assets renewal in a sustainable manner ensuring the average age of major assets classes does not
decline causing major spikes in asset renewal funding.
Current condition data on Council’s assets is not available. As condition assessments are completed
this information will be updated.
Draft Tatiara District Council Asset Management Strategy - 2012 Page 8
3.2 Life Cycle Cost
Life cycle costs (or whole of life costs) are the average costs that are required to sustain the service
levels over the longest asset life. Life cycle costs include operating and maintenance expenditure
and asset consumption (depreciation expense). The life cycle cost for the services covered in this
asset management plan is shown in Table 3.
Table 3: Life Cycle Cost for Council Services
Service Previous Year
Expenditure
Previous Year Life Cycle Cost
($/yr)
Maintenance Depreciation Exp
Roads &
Transport
Infrastructure
$1,634,000 $2,806,000 $4,440,000
Community
Wastewater
Management
Systems
$310,000 $269,000 $579,000
Parks & Gardens $738,000 $67,000 $805,000
Buildings $159,000 $627,000 $786,000
Stormwater $131,000 $46,000 $177,000
TOTAL $2,972,000 $3,815,000 $6,787,000
Life cycle costs can be compared to life cycle expenditure to give an indicator of sustainability in
service provision. Life cycle expenditure includes operating, maintenance and capital renewal
expenditure in the previous year or preferably averaged over the past 3 years. Life cycle
expenditure will vary depending on the timing of asset renewal s. The life cycle expenditure at the
start of the plan is shown in Table 4.
Table 4: Life Cycle Expenditure for Council Services
Service Previous Year Expenditure Cap Renewal Exp Life Cycle Exp
($/yr) Operations
Maintenance
($/yr)
Roads & Transport
Infrastructure
$1,634,000
$1,412,000 $3,046,000
Community
Wastewater
Management
Systems
$310,000 $87,000 $397,000
Parks & Gardens $738,000 $14,000 $752,000
Buildings $159,000 $443,000 $602,000
Stormwater $131,000 $0 $131,000
All Services $2,972,000 $1,956,000 $4,928,000
Draft Tatiara District Council Asset Management Strategy - 2012 Page 9
The life cycle costs and life cycle expenditure comparison highlights any difference between present
outlays and the average cost of providing the service over the long term. If the life cycle expenditure
is less than the life cycle cost, it is most likely that outlays will need to be increased or cuts in
services made in the future.
Knowing the extent and timing of any required increase in outlays and the service consequences if
funding is not available will assist organisations in providing service to their communities in a
financially sustainable manner. This is the purpose of the AM Plans and long term financial plan.
A shortfall between life cycle cost and life cycle expenditure gives an indication of the life cycle gap
to be addressed in the asset management and long term financial plan.
The life cycle gap and sustainability indicator for services covered by this asset management plan is
summarised in Table 5.
Table 5: Life Cycle Sustainability Indicators
Service Life Cycle Cost
($/yr)
Life Cycle
Expenditure ($/yr)
Life Cycle Gap *
($/yr)
LC Sustainability
Index
Roads and
Transport
Infrastructure
$4,440,000 $3,046,000 -$1,394,000 69%
Community
Wastewater
Management
Systems
$579,000 $397,000 -$182,000 69%
Parks and
Gardens
$805,000 $752,000 -$53,000 93%
Buildings $786,000 $602,000 -$184,000 76%
Stormwater $177,000 $131,000 -$46,000 74%
All Services $6,787,000 $4,928,000 -$1,859,000 73%
Note: * A life cycle gap is reported as a negative value.
The current position of the life cycle sustainability index indicates that over the past three years
Council is underfunding its asset renewal which will eventually lead to a large backlog of asset
renewals requiring large spikes in funding and possibly unsustainable and unpopular rate increases
for the residents of the Tatiara. The above figures are based on data from the previous three years
and are not necessarily an indication of the long-term (10 year) lifecycle costs. Furthermore,
investigation into the methodology of the allocation of funding to upgrades/new or renewals has
identified likely inaccuracies in the figures used in Councils financial statements and it is expected a
change in methodology will improve data accuracy and improve Council’s life cycle sustainability
index.
Draft Tatiara District Council Asset Management Strategy - 2012 Page 10
3.3 Asset Management Structure
A corporate asset management team which includes staff from management, technical, finance and
operational areas will be established to monitor and implement the asset management
improvement program.
The Manager Technical Services is responsible for ensuring that accurate, timely and reliable asset
management plans are developed and maintained for roads, CWMS, stormwater and parks and
gardens. The Asset Systems Coordinator provides asset management planning services to the
Manager Technical Services. The Works Manager is responsible to the Manager Technical Service for
service delivery.
The Manager Development and Inspectoral Services is responsible for ensuring that an accurate,
timely and reliable asset management plan is developed for buildings and for service delivery.
The Manager Community and Corporate Services is responsible for ensuring various asset
management accounting and auditing requirements are complied with and preparation of Long-term
Financial Plans and Strategic Plans.
The Chief Executive Officer is responsible for reporting to Council on the sustainability of the
Council’s long-term financial performance and position taking into account the provisions of the
Council’s annual business plan and strategic management plan as per section 122 (4a) of the Local
Government Act 1999.
A matrix of asset management roles and responsibilities for key staff involved in Council’s asset
management processes is included in appendix B.
3.4 Corporate Asset Management Team
A ‘whole of organisation’ approach to asset management can be developed with a corporate asset
management team. The benefits of a corporate asset management team include:
demonstrate corporate support for sustainable asset management,
encourage corporate buy-in and responsibility,
coordinate strategic planning, information technology and asset management activities,
promote uniform asset management practices across the organisation,
information sharing across IT hardware and software,
pooling of corporate expertise
championing of asset management process,
wider accountability for achieving and reviewing sustainable asset management practices.
The role of the asset management team will evolve as the organisation maturity increases over
several phases.
Phase 1
strategy development and implementation of asset management improvement program,
Phase 2
asset management plan development and implementation,
reviews of data accuracy, levels of service and systems plan development,
Draft Tatiara District Council Asset Management Strategy - 2012 Page 11
Phase 3
asset management plan operation
evaluation and monitoring of asset management plan outputs
ongoing asset management plans review and continuous improvement.
Council is currently in the process of implementing a corporate asset management team.
3.5 Financial & Asset Management Core Competencies
The National Frameworks on Asset Planning and Management and Financial Planning and Reporting
define 10 elements. 11 core competencies have been developed from these elements7 to assess
‘core’ competency under the National Frameworks. The core competencies are:
Financial Planning and Reporting
Strategic Longer Term Plan
Annual Budget
Annual report
Asset Planning and Management
Asset Management Policy
Asset Management Strategy
Asset Management Plan
Governance & Management
Levels of Service
Data & Systems
Skills & processes
Evaluation
Council’s maturity assessment for the core competencies is detailed in Appendix A and summarised
in Figure 4. The current maturity level is shown by the blue bars. The maturity gap to be overcome
for Council to achieve a core financial and asset management competency is shown by the red bars.
7 Asset Planning and Management Element 2 Asset Management Strategy and Plans divided into Asset
Management Strategy and Asset Management Plans competencies.
Draft Tatiara District Council Asset Management Strategy - 2012 Page 12
Figure 3: Core Asset Management Maturity
3.6 Strategy Outlook
1. Current information indicates Council is unable to maintain current service levels over the
next ten years at current funding levels.
2. Further clarification of the long term service level sustainability is required, and this strategy
discusses the organisational asset management maturity improvement required to attain a
high level of confidence in assessing the long term position.
3. Council’s current asset management maturity is below ‘core’ level and investment is needed
to improve information management, lifecycle management, service management and
accountability and direction.
Draft Tatiara District Council Asset Management Strategy - 2012 Page 13
4. Where do we want to be?
4.1 Council’s Vision, Mission, Goals and Objectives
Council has adopted a Vision for the future in the Council Strategic Plan.
“We will be a progressive and well-managed Council that works closely with its various communities”
Council’s purpose or reason for existence is set out in the adopted mission statement,
“To make the Tatiara a better and safer place to live, work and visit.”
The Strategic Plan sets goals and objectives to be achieved in the planning period. The goals set out
where Council wants to be. The objectives are the steps needed to get there. Goals and objectives
relating to the delivery of services from infrastructure are shown in Table 6.
Table 6: Goals and Objectives for Infrastructure Services
Strategic Goal Objective
To maintain, upgrade and develop the Tatiara District Council’s physical assets to a high standard, to meet the growing needs of the community & increased levels of usage
2.1 Plan for and provide infrastructure appropriate to the community’s needs 2.3 Plan developments & public spaces that take into account community needs & desires while being practical & responsive to longer term needs 2.4 Ensure the amenity of public & built environments is attractive, safe and practical
To adopt sustainable practices that reduce our carbon footprint on the environment, reduce waste, energy & water use, & protect & enhance biodiversity
3.1 Protect & enhance natural landscape, urban treescapes & waterways
To maintain the Tatiara District Council’s position as a strong, financially sustainable Council, delivering high quality services, underpinned by principles of good governance, continuous improvement and transparency
6.4 Ensure adequate resources are provided to appropriately maintain & expand Council’s infrastructure
Council’s Asset Management Policy defines the council’s vision and service delivery objectives for
asset management in accordance with legislative requirements, community needs and affordability.
Draft Tatiara District Council Asset Management Strategy - 2012 Page 14
4.2 Asset Management Policy
Council’s Asset Management Policy defines the council’s vision and service delivery objectives for
asset management in accordance with the Strategic Plan and applicable legislation.
The asset management strategy is developed to support the asset management policy and is to
enable council to show:
how its asset portfolio will meet the affordable service delivery needs of the community into
the future,
enable Council’s asset management policies to be achieved, and
ensure the integration of Council’s asset management with its long term strategic plans.
4.3 Asset Management Vision
To ensure the long-term financial sustainability of Council, it is essential to balance the community’s
expectations for services with their ability to pay for the infrastructure assets used to provide the
services. Maintenance of service levels for infrastructure services requires appropriate investment
over the whole of the asset life cycle. To assist in achieving this balance, Council aspires to:
Develop and maintain asset management governance, skills, process, systems and data in order to
provide the level of service the community need at present and in the futures, in the most cost-
effective and fit for purpose manner.
In line with the vision, the objectives of the asset management strategy are to:
ensure that the Council’s infrastructure services are provided in an economically optimal
way, with the appropriate level of service to residents, visitors and the environment
determined by reference to Council’s financial sustainability,
safeguard Council’s assets including physical assets and employees by implementing
appropriate asset management strategies and appropriate financial resources for those
assets,
adopt the long term financial plan as the basis for all service and budget funding decisions,
meet legislative requirements for all Council’s operations,
ensure resources and operational capabilities are identified and responsibility for asset
management is allocated,
provide high level oversight of financial and asset management responsibilities through
Audit Committee/CEO reporting to council on development and implementation of Asset
Management Strategy, Asset Management Plan and Long Term Financial Plan.
Strategies to achieve this position are outlined in Section 5.
Draft Tatiara District Council Asset Management Strategy - 2012 Page 15
5. How will we get there? The Asset Management Strategy proposes strategies to enable the objectives of the Strategic Plan,
Asset Management Policy and Asset Management Vision to be achieved.
Table 7: Asset Management Strategies
No Strategy Desired Outcome
1 Move from Annual Budgeting to Long Term Financial
Planning
The long term implications of
Council services are considered
in annual budget deliberations
2 Develop and annually review Asset Management Plans
covering at least 10 years for all major asset classes (80% of
asset value).
Identification of services
needed by the community and
required funding to optimise
‘whole of life’ costs
3 Develop Long Term Financial Plan covering 10 years
incorporating asset management plan expenditure
projections with a sustainable funding position outcome
Sustainable funding model to
provide Council services
4 Incorporate Year 1 of Long Term Financial Plan revenue and
expenditure projections into annual budgets
Long term financial planning
drives budget deliberations
5 Review and update asset management plans and long term
financial plans after adoption of annual budgets.
Communicate any consequence of funding decisions on
service levels and service risks
Council and the community are
aware of changes to service
levels and costs arising from
budget decisions
6 Report Council’s financial position at Fair Value in
accordance with Australian Accounting Standards, financial
sustainability and performance against strategic objectives
in Annual Reports
Financial sustainability
information is available for
Council and the community
7 Ensure Council’s decisions are made from accurate and
current information in asset registers, on service level
performance and costs and ’whole of life’ costs
Improved decision making and
greater value for money
8 Report on Council’s resources and operational capability to
deliver the services needed by the community in the Annual
Report
Services delivery is matched to
available resources and
operational capabilities
9 Ensure responsibilities for asset management are identified
and incorporated into staff position descriptions
Responsibility for asset
management is defined
10 Implement an Improvement Plan to realise ‘core’ maturity
for the financial and asset management competencies
within 2 years
Improved financial and asset
management capacity within
Council
11 Report six monthly to Council by Audit Committee/CEO on
development and implementation of Asset Management
Strategy, AM Plans and Long Term Financial Plans
Oversight of resource allocation
and performance
Draft Tatiara District Council Asset Management Strategy - 2012 Page 1
6. Asset Management Improvement Plan The tasks required to achieve a ‘core’ financial and asset management maturity are shown in Table 8.
Table 8: Asset Management Improvement Plan
Task
No.
AM Improvement Action Accountable
Officer
Target Date Budget Status Comment
Asset Management Plans
1 Complete CWMS AMP MTS Sept 2012 Staff time Complete Plan adopted by Council
2 Complete Stormwater AMP MTS Sept 2013 $10,000, Staff
time
Not started Contract GIS position to collect
stormwater data
3 Review and update Roads AMP MTS March 2013 $25,000, Staff
time
In progress Engage consultant to collect and
report on bridge useful lives and
lifecycle costs
4 Review and update Parks & Gardens
AMP
MTS March 2013 Staff time In progress
5 Develop appropriate AMP’s for
remaining assets
MTS June 2014 Staff time Not started Includes assets such as
cemeteries, airfields, Wolseley
water supply etc
6 Develop all future AMPs based on
risk assessments
MTS 2012-2015 Staff time In progress Each AMP shall have an
accompanying Risk Assessment
Plan
Draft Tatiara District Council Asset Management Strategy - 2012 Page 2
Task
No.
AM Improvement Action Accountable
Officer
Target Date Budget Status Comment
7 Develop a 15 year condition
assessment and valuation program
for each asset class
MTS June 2013 Staff time In progress Preliminary program developed
by Ray Gilmartin. Need to review
and update
Annual Reporting
8 Develop and adopt Capitalisation
Policy
FM June 2013 Staff time In progress
9 Include in the annual report a review
of Councils performance against its
strategic objectives and explain
variations between budget and actual
results and how these variations
impact on the Strategic Plan
MCCS Sept 2013 Staff time Not started
10 Implement a financial reporting
scheme to identify Capital
expenditure as:
a. Renewal
b. New
ASC, MTS, FM June 2013 Staff time Not started This is to enable improved
reporting in annual financial
statements and financial
indicators
AM Policy
Draft Tatiara District Council Asset Management Strategy - 2012 Page 3
Task
No.
AM Improvement Action Accountable
Officer
Target Date Budget Status Comment
11 Update AM Policy to include a
process that identifies training needs
in infrastructure financial
management practices for
Councillors and staff
MCCS June 2013 Staff time Not started
Asset Management Strategy
12 Development and adopt an Asset
Management strategy that includes
an improvement program
ASC Oct 2012 Staff time Complete Will assist council in meeting core
competencies in asset
management maturity
assessment
13 Complete AM maturity assessment ASC Oct 2012 Staff time Complete
Governance and Management
14 Implement an AM steering
Committee with cross functional
representation
CEO Nov 2012 Staff time Not started Required to assist in entrenching
asset management in the culture
at Council
15 Document process for making capital
investment decisions
ASC, MTS &
MDIS
June 2014 Staff time In progress To be documented in all future
AM plans
16 Define asset management roles and
responsibilities in a matrix and
include in individual position
descriptions
CEO & Manex June 2014 Staff time In progress
Draft Tatiara District Council Asset Management Strategy - 2012 Page 4
Task
No.
AM Improvement Action Accountable
Officer
Target Date Budget Status Comment
Levels of Service
17 Investigate options to engage the
community in developing levels of
service
MTS, ASC June 2014 Staff time Not started Need to determine existing LOS
and cost associated with
increasing or reducing LOS before
seeking community engagement
Data & Systems
18 Document procedures for
determining asset replacement and
treatment unit rates
MTS, ASC June 2014 Staff time In progress Need a central repository on
Council’s system for AM data and
information
19 Develop a single corporate asset
register with a consistent format for
each asset class
ASC, FM,
MCCS
June 2014 Staff time In progress Preliminary planning discussions
have occurred and is likely the
Nams.plus asset register format
will be adopted
20 Develop and document appropriate
condition assessment methodologies
ASC, MTS June 2014 Staff time In progress Roads and footpath condition
assessment methodology has
been developed
21 Investigate options to implement a
fully integrated corporate asset
management system
ASC, MTS June 2014 Staff time &
cost for
software and
maintenance
Not started Need to develop consistent asset
register format
Skills and Processes
Draft Tatiara District Council Asset Management Strategy - 2012 Page 5
Task
No.
AM Improvement Action Accountable
Officer
Target Date Budget Status Comment
22 Complete audit of skills and
knowledge requirements
CEO, Manex Staff time Not started
23 Develop training programs for
Councillors, council management and
officers on key asset management
topics
CEO, Manex Staff time Not started
Evaluation
24 Complete Asset Management
Maturity assessment developed by
IPWEA and consider the new
National Assessment Framework
when it becomes available
ASC, Manex Oct 2012 Staff time In progress IPWEA Maturity assessment
complete
25 Develop measureable levels of
services as part of each asset
management plan
MTS, ASC,
MDIS
June 2014 Staff time In progress To be included in all new and
revised asset management plans
Draft Tatiara District Council Asset Management Strategy - 2012 Page 6
Appendix A Asset Management Maturity Assessment
Draft Tatiara District Council Asset Management Strategy - 2012 Page 7
Tatiara DC >> Maturity Assessment ID (239)
Draft Tatiara District Council Asset Management Strategy - 2012 Page 8
Framework Financial Planning & Reporting
Element Strategic Longer Term Plan
Practice Area Strategic Longer Term Plan Core Maturity Assessment Partially Meets
Requirements
Current Score 2.5 Core Target 3
Question: Does your council have an adopted strategic longer term plan?
Observations of Current Maturity Level
Council is meeting all legislative requirements for Strategic Planning, Long-term Financial Planning and financial indicators Existing Asset Management Plans are linked to
the Long-term Financial plan, however some inconsistencies are present with the linking methodology and plan formats. Asset management plans have not been
completed for all major asset classes possibly contributing to inaccurate financial forcasts
Implications of Current Maturity Level
Potential for inaccurate data causing inaccuracies in Councils long-term Financial Plan and financial indicators. Difficulty compiling information for input into Council Long-
term Financial Plan
Recommendations
Complete asset management plans for all asset classes and adopt the NamsPlus format for long term financial planning and reporting
Maturity Score Result Characteristic
3
Council has adopted a Strategic Plan (planning horizon of at least 5 years) that incorporates a vision, strategic outcomes, mission, values
and service outcomes that Council wants to achieve. The minimum timeframe may vary depending on relevant State/Territory
requirements.
Draft Tatiara District Council Asset Management Strategy - 2012 Page 9
3 The development of the Strategic Plan included elected member participation and was informed by community consultation and includes
strategic objectives that address social, environmental, economic and civic leadership issues identified by the community.
3 The Strategic Plan incorporates priorities and performance measures and indicates how they will be monitored and measured.
3 Council has a sustainable LTFP covering the period of the Strategic Plan (at least 5 year) supporting the implementation of its Strategic
Plan. The minimum timeframe may vary depending on relevant State/Territory requirements.
3 The Long Term Financial Plan (LTFP) has been prepared based on the resource requirements and strategic objectives detailed in Council’s
Strategic Plan and Asset Management Plans.
2 Plan covers 4 year term of council
2 Draft plan is advertised for public comment
2 Plan reflects needs of community for foreseeable period
2 Plan includes vision and strategic objectives
2 Plan details what council intends to do in period of plan
1 Plan covers 1 year period
Framework Financial Planning & Reporting
Element Annual Budget
Draft Tatiara District Council Asset Management Strategy - 2012 Page 10
Practice Area Annual Budget Core Maturity Assessment Meets Requirements
Current Score 3 Core Target 3
Question: Does your council prepare an annual budget?
Observations of Current Maturity Level
Councils annual budget process, documentation and alignment with strategic plans meets the core competencies of this assessment framework
Implications of Current Maturity Level
No major changes to existing processes
Recommendations
Maturity Score Result Characteristic
3
The Annual Budget contains estimates of revenue and expenditure with an explanation of the assumptions and methodologies
underpinning the estimates, an explanation of the financial performance and position of the Council and has been prepared based on the
resource requirements and strategic objectives detailed in Council’s Strategic Plan, AM Plans and LTFP.
3 The Annual Budget reflects the Council's strategic objectives and contains a statement of how Council will meet the goals and objectives
of its Strategic Plan.
3 The Annual Budget aligns with Year 1 of the LTFP and was adopted following community consultation.
3 Council’s Annual Budget includes resources to implement Strategic Plan strategies.
Draft Tatiara District Council Asset Management Strategy - 2012 Page 11
2 Budget is publically available and readily accessible to all interested readers
2 Budget contains estimates of revenue and expenditure for year
2 Budget includes an explanation of the council's financial position and performance
2 Budget is adopted after public advertising and consideration of comments received
1 Annual budget is available to those who ask
Framework Financial Planning & Reporting
Element Annual Report
Practice Area Annual Report Core Maturity Assessment Partially Meets
Requirements
Current Score 2.6 Core Target 3
Question: Does your Council publish an annual report?
Observations of Current Maturity Level
Annual reporting requirements are nearing ‘core’ level, but Council does not currently have a capitalisation policy and needs to report the performance of its strategic
objectives in the annual report
Implications of Current Maturity Level
Draft Tatiara District Council Asset Management Strategy - 2012 Page 12
Inconsistent treatment of capital expenditure and misalignment of annual report with the strategic plan
Recommendations
Develop capitalisation policy and report on strategic objectives performance in the annual report
Maturity Score Result Characteristic
3 The Annual Report complies with all statutory requirements including publication by the due date and is made widely available to the
public.
3 The Annual Report includes independently audited financial statements that are prepared on an accrual basis in accordance with the
Australian Accounting Standards.
3 The Annual Report reviews the performance of the Council against its strategic objectives and explains variations between the budget
and actual results and how these variations impact on the Strategic Plan.
3 The Annual Report includes details of any major changes in functions of the Council, organisation structure and/or policy initiatives and
how these changes might impact on Council’s Strategic Plan.
3
In relation to the financial reporting framework in the Annual Report, the Annual Report addresses the following issues in accordance
with relevant state policies, Australian Accounting Standards and other best practice guidelines: a. Asset valuations and revaluations,
b. Asset acquisitions including capitalisation policy, c. Asset disposals
2 Annual report contains audited financial statements
2 Annual report is widely available to the general public
2 Annual report reports on council's operations for the year in terms of goals and objectives for preceding year
Draft Tatiara District Council Asset Management Strategy - 2012 Page 13
2 Annual report contains explanation on variations between budget and actual results
1 Annual report is published each year
Framework Asset Management & Planning
Element AM Policy
Practice Area AM Policy Core Maturity Assessment Partially Meets
Requirements
Current Score 2.7 Core Target 3
Question: Does your council have an adopted asset management policy?
Observations of Current Maturity Level
Council has an adopted asset management policy which satisfies the major competencies to meet ‘core’ asset management maturity. The policy lacks identification of a
process for meeting training needs in financial and asset management practices. This has not been given a high importance as training needs are identified in the AM
strategy.
Implications of Current Maturity Level
Lack of asset management knowledge and understanding throughout the organisation.
Recommendations
Assess training requirements and development and implement training plan
Draft Tatiara District Council Asset Management Strategy - 2012 Page 14
Maturity Score Result Characteristic
3 Council has an adopted AM Policy which defines the Council’s vision and service delivery objectives for asset management.
3 AM Policy has a direct linkage with Council’s Strategic Plan and LTFP.
3 AM Policy requires the adoption of AM Plans informed by community consultation and local government financial reporting frameworks.
3 AM Policy defines asset management roles, responsibilities and reporting framework.
3 AM Policy identifies a process for meeting training needs in financial and asset management practices for councillors and staff.
2 AM Policy adopted by Council
1 AM Policy in place but not adopted by Council OR some awareness by Council of asset management policy elements and asset
management principles.
Framework Asset Management & Planning
Element AM Strategy
Practice Area AM Strategy Core Maturity Assessment Not Substantially
Progressed
Current Score 1 Core Target 3
Question: Does your council have an adopted asset management strategy?
Draft Tatiara District Council Asset Management Strategy - 2012 Page 15
Observations of Current Maturity Level
An asset management strategy is in development as part of this assessment. Once adopted all core competencies will be met.
Implications of Current Maturity Level
Lack of direction and accountability in asset management processes.
Recommendations
Develop asset management strategy that meets core criteria including required actions, responsibilities and timeframes.
Maturity Score Result Characteristic
3 Council has an AM Strategy which shows how the asset portfolio can meet the service delivery needs of the community and defines the
future vision of asset management practices within Council.
3 Council’s AM Strategy is linked to Council's AM Policy and integrated into Council’s Strategic planning and annual budgeting processes.
3
Council's AM Strategy documents the current status of asset management practices (processes, asset data and information systems)
within the Council and what actions Council must take to implement the AM Policy, including resource requirements, timeframes and
accountabilities.
2 Strategy shows what assets the council has
2 Strategy fits with the council strategic plans
1 Draft AM Strategy Prepared but not adopted by Council
Draft Tatiara District Council Asset Management Strategy - 2012 Page 16
Framework Asset Management & Planning
Element AM Plans
Practice Area AM Plans Core Maturity Assessment Partially Meets
Requirements
Current Score 1.4 Core Target 3
Question: Does your council have adopted asset management plans?
Observations of Current Maturity Level
Asset Management Plans for Roads, Parks & Gardens and CWMS are complete and have been adopted by Council. Roads and Parks and Gardens are being reviewed. There
are some inconsistences in format and asset registers are still incomplete for some asset classes and need further development.
Implications of Current Maturity Level
Possibility of inaccuracies in projections based on asset registers implicating on the accuracy of Councils long term financial plan and financial indicators
Recommendations
Develop accurate asset registers and complete asset management plans for all major asset classes. Adopt NamsPlus templates and formats for asset management
planning and reporting
Maturity Score Result Characteristic
3 AM Plans adopted by Council for all material asset groups in a consistent format in accordance with industry best practice (E.g. Appendix
A of the International Infrastructure Management Manual (IIMM)) and are available to all relevant staff across the organisation.
Draft Tatiara District Council Asset Management Strategy - 2012 Page 17
3 AM Plans define which asset groups are covered by each Plan in accordance with a clearly documented Infrastructure Asset Hierarchy.
3 AMPS cover at least 10 years and
3 a. Refer to Council's AM Policy and AM Strategy;
3 b. Include all assets and document asset inventory information for the asset group/category as recorded in the asset register;
3 c. Document the asset hierarchy within each asset group;
3 d. Document the current condition of assets;
3 e. Document the adopted useful lives of assets;
3 f. Include risk assessment and criticality profiles;
3 g. Provide information about assets, including particular actions and costs to provide a defined (current and/or target) level of service in
the most cost effective manner
3 h. Include demand forecasts including possible effects of demographic change and demand management plans
3 i. Address life cycle costs of assets;
3 j. Include forward programs identifying cash flow forecasts projected for:
3 i. Asset Renewals;
Draft Tatiara District Council Asset Management Strategy - 2012 Page 18
3 ii. New Assets and Upgrades of existing assets;
3 iii. Maintenance expenditure;
3 iv. Operational expenditure (including depreciation expense);
3 k. Address asset performance and utilisation measures and associated targets as linked to levels of service;
3 l. Include an asset rationalisation and disposal program; and
3 m. Include an asset management improvement plan.
3 n. Include consideration of non-asset service delivery solutions (leasing private/public partnerships)
3 o. Recognise changes in service potential of assets through projections of asset replacement costs, depreciated replacement cost and
depreciation expense.
3 p. Include consideration of possible effects of climate change on asset useful lifes and maintenance costs
3 AM Plans link to the Council’s AM Policy, AM Strategy, Strategic Plan, LTFP and other relevant Council Policy objectives.
3 AM Plans have all been prepared in association with community consultation.
2 Separate AM Plans for each asset group - high level overall framework but not consistent
2 AM Plans in place but not regularly reviewed or adopted
Draft Tatiara District Council Asset Management Strategy - 2012 Page 19
2 AM Plans include all assets on asset register
2 AM Plans Include an improvement plan
1 No AM Plans, AM is Reactive and Fragmented
Framework Asset Management & Planning
Element Governance and Management
Practice Area Governance and Management Core Maturity Assessment Partially Meets
Requirements
Current Score 1.2 Core Target 3
Question: Does your council have good management practices linking AM to service delivery?
Observations of Current Maturity Level
Asset management governance partially meets core requirements and has improved in recent times with a greater corporate emphasis on asset management, however it
is an area that needs improvement.
Implications of Current Maturity Level
Unclear direction to improve asset management processes and fragmented asset management functions throughout the organisation
Recommendations
Implementation of an AM steering committee with cross functional representation. Clearly define each employees AM role and responsibility. Develop an AM training
Draft Tatiara District Council Asset Management Strategy - 2012 Page 20
schedule for Councillors and improve AM knowledge within the organisation
Maturity Score Result Characteristic
3 Council has mechanisms in place to provide high level oversight by the Council, CEO/GM and Executive Management Team, for
development and implementation of the AM Strategy and AM Plans.
3 Roles and responsibilities are clearly defined in a matrix or policy, identifying positions responsible for determining levels of service and
positions responsible for managing the assets to meet service delivery needs.
3 The staff structure and position descriptions clearly define asset management functions, responsibilities and skill requirements for
managing all asset classes.
3
Council has a documented process for making capital investment decisions, which is driven by Council’s Strategic Plan, LTFP and the
Service Plan and explicitly details the impacts on the future operations and maintenance budgets, “Whole of Life” costs and risk
management assessments.
3 Council involves all its departments in Asset Management.
3 Council has an AM Steering Committee, with cross functional representation and clearly defined and documented terms of reference,
focussed on coordinating the linkages between service delivery and asset management implementation.
3 There are internal processes to promote Asset Management across Council
2 Multi-disciplinary AM Steering Committee in operation with regular meetings
2 AM improvement plan in operation
1 AM Steering activities are dependent on individual initiatives and are not co-ordinated
Draft Tatiara District Council Asset Management Strategy - 2012 Page 21
Framework Asset Management & Planning
Element Levels of Service
Practice Area Levels of Service Core Maturity Assessment Partially Meets
Requirements
Current Score 2.2 Core Target 3
Question: Does your Council have a defined process for determining current and target levels of service and costs?
Observations of Current Maturity Level
Service levels are fragmented across the minor asset classes often the result of annual budget allocation. However, documented and defined technical and community
levels of service are developed for the major asset classes of Roads, CWMS and Buildings.
Implications of Current Maturity Level
Difficulty defining the direct link between service levels and budget
Recommendations
Develop levels of service for all asset classes based on current budget expenditure. Directly link LOS with costs of providing the service and seek public consultation to
determine required LOS
Maturity Score Result Characteristic
3 Council has Service Plans for each of its services which have been developed in consultation with the community.
Draft Tatiara District Council Asset Management Strategy - 2012 Page 22
3 Council has undertaken the process of defining, quantifying and documenting current community levels of service and technical levels of
service, and costs of providing the current levels of service.
3 Current and target levels of service (for both community levels of service and associated technical levels of service) are clearly defined in
each AM Plan.
3 Technical levels of service are incorporated into service agreements and/or maintenance, operational and capital renewal procedures.
2 Service levels in some areas - fragmented
1 Service levels are consequences of annual budget allocation and not defined.
Framework Asset Management & Planning
Element Data & Systems
Practice Area Data & Systems Core Maturity Assessment Partially Meets
Requirements
Current Score 2.3 Core Target 3
Question: Does council have the data & systems knowledge to perform asset data management activities?
Observations of Current Maturity Level
Asset registers are improving but there is a requirement to adopt a corporate data framework for use across all asset groups. Asset management systems are convoluted
using a variety of software applications and analysis techniques often with poor documentation
Implications of Current Maturity Level
Draft Tatiara District Council Asset Management Strategy - 2012 Page 23
Difficulty in maintaining asset registers and asset related data due to the range of databases and formats currently in use.
Recommendations
Adopt a corporate data framework across all asset groups. Improve documentation of asset condition assessment methodologies and frequencies. Development processes
and data documentation to improve efficiencies in asset data maintenance and analysis. Investigate AM software that provides a single consolidated asset register and,
maintenance and renewal planning functionality.
Maturity Score Result Characteristic
3 Council has a consolidated, integrated, accurate, up to date and complete componentised asset register with the required functionality
to ensure security and data integrity, which includes all information about each asset sorted by asset group.
3 There is a common corporate data framework used across all asset groups, which is defined by Council’s Infrastructure Asset Hierarchy.
3 Council has documented repeatable methodologies to carry out consistent asset condition surveys and defect identification assessments,
as documented in a Condition Rating Assessment Manual for applicable asset classes.
3 Council's asset financial reporting functionality is comprehensive and includes audit trails, depreciation calculations, reporting thresholds
and records of acquisition and disposal of assets
3 Council's systems, procedures and processes allow it to benchmark its asset management performance against like Councils over time.
3 AM systems have the functionality to generate maintenance and renewal programs and produce associated cash flow forecasts.
3 Council has defined and documented procedures for determining asset replacement and treatment unit rates, which are then stored in
Council’s AM system.
3 Council has a defined process for operations, maintenance, renewal and upgrade planning for its existing assets.
Draft Tatiara District Council Asset Management Strategy - 2012 Page 24
2 Skill & knowledge requirements determined
2 Audit completed to determine current skill & knowledge levels
1 Council has a corporate asset register supported by technical asset registers with regular validation of data in registers
Framework Asset Management & Planning
Element Skills and Processes
Practice Area Skills and Processes Core Maturity Assessment Not Substantially
Progressed
Current Score 1.5 Core Target 3
Question: Does council have the skills & knowledge to perform asset data management activities?
Observations of Current Maturity Level
Council needs to adopt a whole of Council approach to asset management which includes increasing awareness of AM with Councillors and staff. Many processes are
implicit requiring thorough review, definition and documentation.
Implications of Current Maturity Level
Disjointed focus to asset management across the organisation and uncertainty in asset management roles, responsibilities and processes
Recommendations
Complete audit to determine current skills and knowledge levels and develop ongoing training programs for Councillors. Develop a skills matrix, identify training needs and
Draft Tatiara District Council Asset Management Strategy - 2012 Page 25
schedule. Complete documentation of processes for assessing asset condition and remaining useful lives
Maturity Score Result Characteristic
3 Council has a process to review and update the AM Strategy on a maximum of a 5 year cycle. The AM Strategy is formally adopted by
Council.
3 Council has a process to review and update AM Plans for all asset groups on a maximum of a 3 to 4 year cycle consistent with the Council
election cycle. AM Plans are formally adopted by Council.
3 Council has a process to identify operational risks, assign responsibilities and monitor risk treatment actions all recorded within a risk
register.
3 Council has a process to annually review and update the financial forecasts for all asset classes and update the LTFP.
3
Council has assessed the skills and knowledge required to perform asset data management activities, conduct financial reporting
valuations and develop AM Plans. Council has a current asset management skills matrix. Staff training needs have been identified and
training scheduled.
3 Council has a defined methodology for assessing the Remaining and Useful Life, Residual Value and Depreciation Method of assets.
3 Council has a process to collect and record asset data into an AM system upon the commissioning of new (and/or modified) assets,
including built and contributed assets.
3 Council has formal processes for the handover of assets to asset custodians/owners.
3 Council has a process to communicate the financial implications of the AM Plans to internal and external stakeholders.
3 Council provides ongoing training programs for councillors, council management and officers on key asset management topics.
Draft Tatiara District Council Asset Management Strategy - 2012 Page 26
2 Skill & knowledge requirements determined
2 Audit completed to determine current skill & knowledge levels
2 Documented asset data management procedures
1 Asset data management limited to plans and data required for current projects
Framework Asset Management & Planning
Element Evaluation
Practice Area Evaluation Core Maturity Assessment Not Substantially
Progressed
Current Score 0.5 Core Target 3
Question: Does council have a process to evaluate progress and use of resources on implementation of the National Frameworks?
Observations of Current Maturity Level
Currently undertaking asset management maturity assessment and developing improvement plans
Implications of Current Maturity Level
Fragmented asset management improvement process lacking accountability
Recommendations
Complete asset management maturity assessment and develop improvement plan. Include in AM strategy document to be adopted by Council. Develop and monitor
Draft Tatiara District Council Asset Management Strategy - 2012 Page 27
adopted service levels performance.
Maturity Score Result Characteristic
3 Council has a documented evaluation process by which asset management improvements are identified, timeframes established,
resources allocated, actioned, monitored and reported to the Executive Management Team and/or CEO
3 Technical levels of service are monitored and performance reported.
3 Community levels of service are monitored and performance reported.
2 Improvement tasks are included in staff performance plans and reviews
1 No formal evaluation process
Draft Tatiara District Council Asset Management Strategy - 2012 Page 28
Appendix B Staff Roles & Responsibilities Matrix
Staff
Function Activity CEO MCCS MTS MDIS ASC WM STO FM WSE WSW
Planning
Resourcing of AM Requirements S, A P P P
Strategic Planning S A
Long term Financial Plan S A P P P P
Asset Management Improvement Program & Strategy S, A P P P K
Asset Management Policy S A P
Asset Management Plans S A A K P
AM Committee A P P P K P P P
Annual Works Programs S A A K P
Project Cost estimates for AM planning (valuation) and budgetary purposes A A K K K
AM Lifecycle cost optimisation A A K K P P P
Systems/Data
Asset Registers and Data Management K A A
Asset Mapping and Analysis A
Works and Maintenance records A A K P P P P
Development of Council's AM systems A P A P
Service Delivery
Plan Delivery - Project Management S S A A A A P P
Asset Maintenance & Operation delivery S A A A A
Project design and as constructed drawings S A
Final project costings A A P K P P P
CEO Chief Executive Officer
S Signoff responsibilities - ultimate responsibility
MCCS Manager Corporate & Community Services
A Accountable - responsible for overseeing processes and result.
MTS Manager Technical Services
K Key participant - often responsible for major outputs
MDIS Manager Development & Inspectorial Services
P Participant - provides input and participates in the process ASC Asset Systems Coordinator
Draft Tatiara District Council Asset Management Strategy - 2012 Page 29
WM Works Manager
Roads, CWMS, Stormwater, Parks & gardens
STO Senior Technical Officer
Buildings
FM Finance Manager
WSE Works Supervisor East WSW Works Supervisor West