BasicsofaMunicipalAssetRegister
Developedby:
Basics of a
Municipal Asset Register
MISA/MIPMIS/2017
(DRAFT)Version0.1
©MANConsortium,2017
Acknowledgements
NationalTreasury-NT
DepartmentofProvincialandLocalGovernment-DPLG
ConstructionIndustryDevelopmentBoard-CIDB
MunicipalInfrastructureSupportAgent-MISA
FOREWORD
Honourable Minister of Cooperative Governance and Traditional Affairs
Director General - Cooperative Governance and Traditional Affairs
Chief Executive Officer – Municipal Infrastructure Support Agent
Glossary of Terms
APP–AnnualPerformancePlan
ARs–AssetRegisters
B2B–BacktoBasics
BPM–BusinessProcessMapping
BPM–BusinessProcessMapping
DCoG–DepartmentofCooperativeGovernance
CMIP-ComprehensiveMunicipalInfrastructurePlan
CoGTA–CooperativeGovernanceandTraditionalAffairs
CRC–CurrentReplacementCost
DMS–Degrees,Minutes,Seconds
DPLG–DepartmentofProvincialandLocalGovernment
DR–DisasterRecovery
DRC–DepreciatedReplacementCost
DRP–DisasterRecoveryPlanning
DRS–DisasterRecoveryServer
EF–EntityFramework
ETL-Extraction,Transformation,andLoading
EUL–EstimatedUsefulLife
GIAMA-GovernmentImmovableAssetmanagementAct
GRAP-GenerallyRecognizedAccountingPractice
HDD–HardDiskDrive
HTML-HypertextMarkupLanguage
HTTP-HypertextTransferProtocol
ICT–InformationandCommunicationsTechnology
IDMS–InfrastructureDeliveryManagementSystem
IDP–IntegratedDevelopmentPlan
KPI–KeyPerformanceIndicator
LAN–LocalAreaNetwork
LGTAS–LocalGovernmentTurn-AroundStrategy
MANC–MunicipalActionNetworkConsortium
MFMA–MunicipalFinanceManagementAct
MIG–MunicipalInfrastructureGrant
MIGMIS–MunicipalInfrastructureGrantManagementInformationSystem
MIPMIS–MunicipalInfrastructurePerformanceManagementInformationSystem
MISA–MunicipalInfrastructureSupportAgent
MSTS–MunicipalSectoralTechnicalSupport
MVC–ModelViewController
NT–NationalTreasury
PIP–ProjectImplementationPlan
PPE–Property,plantandEquipment
PPM–ProvincialProgrammeManager
QA–QualityAssurance
QMC–QlikviewManagementConsole
RUL–RemainingUsefulLife
SALGA–SouthAfricanLocalGovernmentAssociation
SITA–StateInformationTechnologyAgency
SPV–SpecialPurposeVehicle
TC–TechnicalConsultant
WAN–WideAreaNetwork
XML-ExtensibleMarkupLanguage
Basics of Municipal Asset Register
TABLE OF CONTENTS
ACKNOWLEDGEMENTS I
FOREWORD II
HONOURABLE MINISTER OF COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS II
DIRECTOR GENERAL - COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS III
CHIEF EXECUTIVE OFFICER – MUNICIPAL INFRASTRUCTURE SUPPORT AGENT IV
GLOSSARY OF TERMS V
1 INTRODUCTION 1
1.1 TheNeedforanAssetRegister 1
1.2 TheImportanceofanAssetRegister 1
1.3 LegislativeFramework 21.3.1 Constitution 21.3.2 Over-archingLegislation 21.3.3 StrategicPlanning 21.3.4 OccupationalHealthandSafety 31.3.5 Sector-SpecificLegislation 41.3.6 AssetManagement 4
1.4 ChallengesinDevelopingStandardisedAssetRegistersacrossMunicipalities 51.4.1 LegislationandRegulations 51.4.2 CrossSectoral 51.4.3 Capacity 51.4.4 Standardisation 5
1.5 MISAAssistancetoMunicipalities 5
2 REQUIRED INFORMATION TO GO INTO AN ASSET REGISTER 6
2.1 LocalGovernmentCapitalAssetManagementGuideline-NT 62.1.1 Acquisition 62.1.2 Identification 62.1.3 Accountability 62.1.4 Performance 62.1.5 Disposal 72.1.6 Accounting 72.1.7 Managementandriskinformation 7
2.2 GuidelinesforInfrastructureAssetManagementinLocalGovernment–DPLG 7
2.3 MaintenanceManagementStandardforImmovableAssets-CIDB 9
2.4 AccountingGuideline-Property,PlantandEquipment-GRAP17 10
3 REQUIRED INFORMATION FOR A COMPLIANT ASSET REGISTER 11
3.1 AssetIdentification 113.1.1 UniqueAssetIdentificationNumber 113.1.2 DetailedAssetDescription 123.1.3 Acquisition 153.1.4 Accountability 163.1.5 Performance 163.1.6 Disposal 163.1.7 Accounting 173.1.8 Managementandriskinformation 17
4 CONTENT OF MISA DEVELOPED ASSET REGISTER 21
4.1 ListofDataFieldwithintheMIPMISAssetRegister 214.1.1 Risks 23
5 MIPMIS REPORTS ON ASSET REGISTER 24
5.1 InfrastructureOverviewReport 24
5.2 InfrastructureFinancialStatus 24
5.3 InfrastructureIndicators 24
5.4 DetailedInfrastructureConditionReport 24
5.5 ValueofAssets 24
5.6 InfrastructureReplacementandRenewalCost 24
5.7 GRAP17 24
6 UNDERSTANDING OF MIPMIS REPORT AND USE 246.1.1 ReportToolbar 24
6.1.2 Parameters 256.1.3 Credentials 25
7 BIBLIOGRAPHY 26
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1 Introduction
1.1 The Need for an Asset Register Effective management of municipalinfrastructure is central to municipalitiesprovidinganacceptablestandardofservicesto the community. Infrastructure impactsonthequalityofourlivingenvironmentandopportunitiestoprosper.
Not only is there a requirement to beeffective, but the manner in whichmunicipalities discharge theirresponsibilities as public entities is alsoimportant.Municipalitiesmustdemonstrate
good governance and customer care, andtheprocessesadoptedmustbeefficientandsustainable. Councillors and officials arecustodians on behalf of the public ofinfrastructureassets,thereplacementvalueof which even in a small municipality, canamount to several hundred million Rand,andinlargerones,toseveralbillionRand.
The Asset Register is the foundation thatmunicipalitiesusetoeffectivelymanageandplantheirAssetManagement.
1.2 The Importance of an Asset Register Without a correct and up to date AssetRegister all municipal planning and servicedelivery will be based on faultedassumptions. This can lead to inaccuratebudget spending, strategic planning andmajor inequality in service delivery to thecommunity.
An incorrectandoutofdateAssetRegistermustbeseenbymunicipalitiesasahighriskthat must be mitigated immediately. Theimportance of an asset register may beunderstood better by the followingdiagrammaticpresentation.
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1.3 Legislative Framework 1.3.1 Constitution The Constitution indicates the followingobjectivesoflocalgovernment:
• provide democratic andaccountable government for localcommunities;
• ensure the provision of services tothe community in a sustainablemanner;
• promote social and economicdevelopment;
• promote a safe and healthyenvironment;and
• encourage the involvement ofcommunities and communityorganisationsinthemattersoflocalgovernment.
The Constitution however cites animportant caveat: municipalities shouldstrive for the above objectiveswithin theirfinancial and administrative capacity. Thishighlightscapacitatingofmunicipalitiesasafundamental and core need and placesresponsibilityonall spheresofgovernmentto promote, monitor and support thebuildingofsuchcapacity.
1.3.2 Over-arching Legislation Figure indicates the suite of localgovernment specific legislation.
Municipalitiesmustalsocomplywithsectorspecificandcross-cuttinglegislation.
1.3.3 Strategic Planning The Municipal Systems Act establishes theIDP of a municipality is the principalstrategic planning instrument that guidesand informs all planning and development,and all decisions with regard to theplanning,managementanddevelopment inthe municipality. It links, integrates, andcoordinatesallmunicipalplansintoasinglestrategic plan for the development of themunicipality. It provides a basis fordetermining the level and extent ofmunicipal resources and capacity required,andforformulatingbudgets.
Every municipal council has to approve anannual municipal budget that includesprovisionforcapitalexpenditureonprojectsovernotmorethan3years.IntermsoftheMunicipal Systems Act, the Council mustalso approve a financial plan linked to anIDPthat ispreparedforaperiodof5years(anupdatedannually).
The preparation of an IDP is a legalrequirement,andintermsoftheMunicipalSystemsAct,itmustincludethefollowing:
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• the municipal council’s long-term
developmentvision;
• the existing level of development,
identifyingcommunitiesthatdonot
have access to basic municipal
services;
• the municipal council’s
development priorities and
objectives for its elected term,
including its local economic
development aims and its internal
transformationneeds;
• the municipal council’s
developmentstrategieswhichmust
be aligned with any national or
provincial sectoral plans and
planning requirements binding on
the municipality in terms of
legislation;
• a spatial development framework
which includes the provision of
basic guidelines for a land use
management system for the
municipality;
• thecouncil’soperationalstrategies;
• applicable disaster management
plans;
• afinancialplan,whichmustinclude
abudgetprojection forat least the
nextthreeyears;and
• thekeyperformanceindicatorsand
performancetargets.
TheMunicipalSystemsAct(section78&79processes)dealswithinfrastructureinvestmentplanninginthesensethatthecostofownershipmustbeknownandappropriatedeliverystrategiesidentifiedandimplemented.DPLG,whichisthecustodianofthisAct,viewsthepreparationofaCMIPasakeymechanismtoachievethisend.
1.3.4 Occupational Health and Safety TheOccupationalHealthandSafetyAct(85of1993,ConstructionRegulations) requiresthe owner of any “structure” (includingmunicipal infrastructure such as bridges,waterworks, reservoirs, buildings, drainageworksandroads)tomaintainsuchstructure
in such a manner that “the structureremains safe for continued use and suchmaintenance records shall be kept andmade available to an inspector uponrequest.”
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1.3.5 Sector-Specific Legislation Municipalitiesmustalsocomplywithsectorspecific legislation, indicated in table:
Sector Legislation
WaterandSanitationWaterServicesAct,1997(ActNo.108of1997)
NationalWaterAct,1998(ActNo.108of1998)
ElectricityElectricityAct,1987(ActNo.41of1987)
ElectricityDistributionIndustryRestructuringBill,2003
RoadsandStormwaterNationalLandTransportTransitionAct,2000(ActNo.22of2000)
Urban Transport Act, 1977 (Act No. 78 of 1977)
WasteManagementNationalEnvironmentalManagementAct,1998(ActNo.107of1998)
EnvironmentConservationAct,1989(ActNo.73of1989)
1.3.6 Asset Management Government policy has increasinglyfocussed on the need to balance thedelivery of new infrastructure in the shortterm, with the need to strive forsustainability. National Treasury hasprepared Asset Management Frameworkfor national and provincial spheres of
government that largely focuses onmovable assets. The Department of PublicWorks produced the GovernmentImmovableAssetmanagementAct(GIAMA)19of2007.GIAMAprescribes theneed forpublic entities to prepare AssetManagementPlansforimmovableassets.
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1.4 Challenges in Developing Standardised Asset Registers across Municipalities
1.4.1 Legislation and Regulations Withthewidevarietyof legislationinplacethat affects the Asset Register, confusioncanbecreatedifmunicipalitiesdonothave
a clear understanding of all the legislationandregulations.
1.4.2 Cross Sectoral To achieve a standardised Asset Registeracross sectors can be challenging as each
sector has their own unique legislation,regulationsandneeds.
1.4.3 Capacity Capacitywithinmunicipalitiesdiffersandtoachieve the same quality and accuracy of
Asset Registers is currently a majorchallenge.
1.4.4 Standardisation There is stilla lack innationwidestandardsfor/ortheuseofexistingstandardsrelatedto;
• Terminology,• Category - Sub-category, Asset
ClassandAssetDescriptors,
• Replacementequivalents,• Expectedusefullife,• Measurement criteria for
conditionofassetsand• Riskindicators
1.5 MISA Assistance to Municipalities
Municipal Infrastructure Support Agent(MISA), a government component,accountable to the Executive Authority oftheCooperativeGovernanceandTraditionalAffairs (COGTA) was formed as a SpecialPurpose Vehicle (SPV) as part ofimplementing the Local Government TurnAroundStrategy(LGTAS)inMay2012.
Thus MISA’s priorities and imperatives aredirectlyalignedtothestrategicobjectivesofOutcome 9 in achieving “A Responsive,Accountable, Effective and Efficient LocalGovernmentSystem”inSouthAfrica.
As part of achieving the set strategicobjectives and as part of continuation ofMISA’s intervention to supportmunicipalities that was initiated sinceMISA’s establishment,MISA has developedaweb-enabledAssetRegisterresiding in itsMunicipal Infrastructure PerformanceManagementInformationSystem(MIPMIS).
It is expected thatmunicipalitieswill enjoythis completely free service from MISA inmanaging their basic service delivery andassist in better planning in infrastructuredevelopment and Operations andMaintenance.
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2 Required information to go into an Asset Register 2.1 Local Government Capital Asset Management Guideline - NT
2.1.1 Acquisition
• TransactionDate• Amount• Supplier/Contractor• Reference
(invoice/contract/payment/ordernumber).
2.1.2 Identification
• Asset class: should facilitateGRAP financial reportingrequirements, e.g. PPE,investment property, intangibleasset,etc.
• Assetsub-class:shouldfacilitatemanagementandreporting,e.g.motor vehicle, furniture, roadinfrastructure,etc.
• Asset functional group (ifrelevant):e.g.clinic,warehouse,hall.
• Parent asset or standaloneasset: if parent thenmusthavelinks to separately depreciableparts. For separatelydepreciableparts:linktoparentasset.
• Assetnumber:auniquesystem-generated identifier, bar codeorotheruniquenumbersothatthe individual asset can bedistinguishedfromothers.
• Assetspecific identifiers (whereapplicable):e.g.serialnumbers,registration number, erfnumber.
• Asset description: e.g. 2005Toyota Corolla 140i, brownwooden six-seater boardroomtable,etc.
• Asset dimensions/capacity (ifrelevant): e.g. 200 litre (tank),4000sqmetre(building/land)
• Asset construction (if relevant):e.g.brick,wood,castiron
• Location: e.g. Office 123, StoreAbc,Erf.Xyz
• Zoning: residential, agricultural,industrial,etc.
• GPS: recommended for easylocation(whererelevant).
2.1.3 Accountability
• Department / division:(depends upon organisation).Section / unit (depends uponorganisation). Sub-section(depends upon organisation).Costcentre
• Custodian:e.g.useroftheassetor person responsible forsafeguarding the asset inhis/her possession: for laptop,custodian isMrJones(FinancialManager).
• Restrictions (if any) in use orchangingofanasset
• Ownership (if legal title is notwiththemunicipality)
• Licenceorpermits• Transfers: (to record date and
transferor).
2.1.4 Performance
• Capacity(whererelevant),e.g.2tonne, 2000 sq metres, 200ml/day
• Performance measures (whererelevant)
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• Condition Assessment (date,rating, person doingassessment,fileno–fordetails)
• Warranties, guaranties orcertification
• Useful life: e.g.years/hours/units/mileage, etc.ofexpecteduse
• Residual value: to be evaluatedannually.
2.1.5 Disposal
• Date• Amount:proceedsreceived• Capacity:atdateofdisposal• Condition: e.g. good, fair, bad,
etc.• Remaininguseful: if soldearlier
thanoriginallyplanned• Residualvalue:tocomparewith
proceeds• Reasonfordisposal.
2.1.6 Accounting
• Historical cost (or fair valuewhere cost not available forinitialrecognition)
• Fundingsource• Usefullife:(original)• Remainingusefullife:(assessed,
dateofassessment)• Residual value: (original,
assessed and date ofassessment)
• Depreciation method: (straightline, sum of units, diminishingbalance,etc.)
• Revaluation: (amount, date,method, by whom): ifrevaluation model adopted byentity, should continuerevaluing for subsequentmeasurement.
• Impairment. (amount, dateassessed)
• Depreciation: value and rate:currentyear
• Accumulated depreciation: lifetodate
• Carryingamount• Disposal (where relevant):
(date, realised amount, detailsondisposal,Councilresolution).
2.1.7 Management and risk information
• Criticalityrating:prioritisationintermsof servicedeliverywithinaprogrammeƒServicetype:e.g.Administration, Water,Electricity
• Maintenance history:(summarisedfrommaintenancesystems)
• Operational history:(summarisedfrommaintenancesystems)
• Risk assessment: (mayreference otherdocumentation).
2.2 Guidelines for Infrastructure Asset Management in Local Government – DPLG
• IdentificationReference(usingadocumented referencingconvention)
• GeneralLedgerCode• MovableorImmovableAsset
• Asset Category and Sub-category (PPE: land, infra,community, heritage, or other;investment property; orinventoryproperty)
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• Heritage status (indicate ifculturally, environmentally, orhistoricallysignificant)
• Asset Class (in accordancewithadocumentedconvention)
• AssetGroup(groupofassetsforreportingpurposese.g.networkinaparticulararea,oraspecificfacility)
• Description of Asset (cleardescriptione.g.nameoffacility,assettype,makeandmodel/filereftoplans)
• WardNumber• AssetLocation(Erf,street,room
–asapplicable)• Take-on Date (date of delivery
orbeneficialuse)• Municipal ownership or lease
(ownerorlesseeandfilereffortitledeed/lease/rights/restrictionsdetails)
• Supplier (company name,contactdetails)
• Work-in-progress (capitalexpensespriortobeneficialuseoftheasset)
• Original Cost (check treatmentofVAT–e.g.invoiceref)
• FundingSource(nameandtypeof funding of originalconstruction – surplus cash,loans, grants, donations,reserves)
• Responsible Department (nameofdepartment)
• Asset Custodian (name ofperson)
• Effective Date of Custodianship(datepersonbecamecustodian)
• Basic Municipal Service (Yes orNo,basedonmunicipalpolicy)
• Applicable Contracts(encumbrances, warranties,
guarantees, maintenancecontracts,etc.)
• Date Asset Last Renewed (fullrenewal-notpartial)
• ExpectedUsefulLife(years)• Age (years from take-onor last
renewal)• Remaining Useful Life (years -
initially, expected useful lifeminusage–supercededbyRULdeterminedonlatestrenewaloronre-valuation)
• Methodofdepreciation(usuallystraightline)
• ResidualValue(usuallytakenaszeroforinfrastructureassets)
• Capitalised Costs (expensesincurredinassetenhancement)o Thismontho ThisFinancialYearo Sincetake-on/re-valuation
• Depreciation (original cost orre-valued amount plussubsequent capitalisedexpenses/RUL)o Thismontho ThisFinancialYearo Sincetake-on/re-valuation
• Impairment losses (as assessedin re-valuation exercise or ad-hocimpairmentevent)o Thismontho ThisFinancialYearo Sincetake-on/re-valuation
• Carrying value (original cost orre-valued amount plussubsequent capitalisedexpenses, less subsequentdepreciationandimpairment)
• Disposal method (disposed,alienated, lost, stolen,destroyed,ordecommissioned)
• Disposalexpense/revenue
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• Date of write-off (date assetphysically removed ordecommissioned)
• Re-valuation data (immovableassetsonly)o Latestre-valuationdateo Nextre-valuationdateo Re-valuationmethodo PPE: DRC (or market
valuation for applicablebuildings)
o Unit measure of assetextent (e.g. m; sqm, kW,Mℓ,etc.)
o Extentofasset(number)o Latest unit rate for
replacement(Randperunit)o Replacement value (current
replacementcost:UnitRatexExtent)
o Latest re-valued amount(PPE: Replacement value xremaining usefullife/expectedusefullife)
o Change in value in currentfinancial year due to re-valuation (latest re-valuedamount minus carrying
value on date of re-valuation)
o Re-valuation reserve(accumulated change invalueduetore-valuations)
• Infrastructure ManagementData(immovableassetsonly)o Criticality (based on
documented gradingconvention)
o AssetCondition(basedonadocumented gradingconvention and linked toremainingusefullife)
o Maintenance history (keyinformation to supportlifecycledecisionsor link toMaintenanceSystem)
o Asset performance (basedon a documented gradingconvention)
o Assetutilisation(basedonadocumented gradingconvention)
o Data accuracy (based on adocumented gradingconvention)
2.3 Maintenance Management Standard for Immovable Assets - CIDB Each entity shall establish, maintain andupdate asset registers supportive of assetcareplanning,inthefollowingmanner:
• Segment and classify itsimmovable asset portfolio(s) toat least the level ofmaintenance-significant item inaccordance with apredetermined asset hierarchy,and shall furthermore, forpurposes of maintenance andrenewals planning, determineand record the following
information against each assetinitsassetregister:o assetidentificationnumber;o physicaldescription;o physicalparameters;o estimatedusefullife;o actual and minimum
acceptable asset failuremode ratings (condition,performance, capacity andcost-of-operations);
o remainingusefullife;o current and depreciated
replacementcost;
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o assetcriticalityrating;o any statutory obligations
regardingtheoperationandmaintenance of the asset;and
o responsibleperson(s).
• The entity shall, in maintainingand updating asset registers,update asset failure modestatus and current replacementcost data for each asset on anannualbasis.
2.4 Accounting Guideline - Property, Plant and Equipment - GRAP 17 • In order to comply with above, a
GRAP compliant asset registershould be prepared which shouldconsistofthefollowinginformationasaminimum:
o Detailassetdescription;o Bar code, unique identifier,
serial number (whereapplicable), erf number(whereapplicable)(orothernumber to distinguish itfromotherassets);
o Location;o Purchaseprice;o Acquisitiondate;o Estimated useful life
(original);o Estimatedresidualvalue;o Remainingusefullife;o Depreciation;o Accumulateddepreciation;o Disposal – date, proceeds,
depreciation up to date ofdisposal;
• Information on a change inaccounting estimate as a result of
change in useful life or residualvalue–datereassessed,etc.;
o Impairment loss recognisedorreversed;
o (NT, Accounting Guideline -Property, Plant andEquipment - GRAP 17,2012)Carrying amount atthe beginning and end ofthereportingperiod;
o Fundingsource;o Conditionoftheasset–this
can assist in determiningthe remaining useful life ofanassetandwhetheritmaypossiblybeimpaired;and
o Person responsible forsafeguarding andmaintainingtheasset(s).
• Thisinformationshouldbeprovidedforeachtypeofassete.g.property,plant and equipment, intangibleassets, investment property, andeach class e.g. buildings, officeequipment, computer equipment,and preferably for the current andpriorperiodsimultaneously.
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3 Required Information for a compliant Asset Register
3.1 Asset Identification
3.1.1 Unique Asset Identification Number
Every asset must have a unique numberthat are used across all departments withnoduplication.
It isrecommendedthatthisnumberhaveameaningful structure that can ensure noduplication and make the assets easy to
identify. MIPMIS use the Department ofProvincial and Local Government’sguidelines for the Unique AssetIdentificationNumberasfollows;
Category-Sub-category/AssetClass/AssetDescriptor-SequentialNumberfortheassettype
Example of how the categories can bebrokendownintosub-categoriesforeaseofreferenceandreporting:
Category ID Sub-Category IDLand LA Sub-categories based
onzoning
InfrastructureAssets IA RoadsNetwork RDSStorm-waterNetwork STWWaterNetwork WATSanitationNetwork SANSolidwastedisposal SOWElectricityNetwork ELE
CommunityAssets CA Sport & RecreationFacilities
SPR
CommunityFacilities COFHeritageAssets HA Sub-categories as
necessary – e.g.naturereserves, memorials,historicsitesetc.
OtherAssets OA Buildings BUIVehicles VEHOperational Plant andEquipment
OPE
Office Furniture andEquipment
OFE
Assets (both movable and immovable) arefurther classified according to asset class.The classifications need to be reviewed toensure theycoverall the typesofassets inthemunicipality, and aredefined in such away thatwill enableeffectivemanagementreporting.
Anassetclasswilloftencompriseanumberof similar assets that can be groupedtogether for ready identification using an
asset descriptor. In the case of movableassets,thiscanbeonthebasisofassettype(e.g. vehicle types), and, for immovableassets, location (e.g. reticulation inAganang,boreholes invillage6,mechanicalplantatPumpStation3).
Examples:
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• “IA-WAT/MEC/PS6 – 9” is theidentification for: InfrastructureAssets - Water Network /MechanicalPlant/atPumpStationNo6–Assetnumbernine;
• “CA-SPR/BG/SEL – 2” is theidentification for: CommunityAssets – Sport & Recreation /
Bowling Green / Seleka – Assetnumbertwo;and
• “IA-SAN/RET/MA2 – 3” is theidentification for: InfrastructureAsset – Sanitation Network /Reticulation / Marapong Extension2 – Asset number 3
•
3.1.2 Detailed Asset Description Every asset must have a detaileddescription.Thisincludes;
• AssetName• Model• SerialNumber• MaterialType• Size• AssetClass• Location• Zoning
3.1.2.1 Asset Class Theassetclassmakesuseofahierarchytoportray a clear, holistic and logicalbreakdown of infrastructure in each of theservices,usingastructurethatisconsistentwiththeassetcategoriesandclassesusedinfinancial management. Financial reportingwill typically be required at theFacility/AssetGrouplevel.
Network Facility or Asset Group Asset
Roads Paved Arterial and Distributor Roads
Formation
Pavement structure
Pavement surface
Kerbs and channels
Paved Collector and Residential Roads
Formation
Pavement structure
Pavement surface
Kerbs and channels
Gravel Roads Formation
Gravel surface
Structures Bridges
Retaining walls
Major culverts and subways
Overhead gantries
Footpaths Hardened footpath surface
Traffic Management Street signs
Traffic lights
Street Lights Street lights
Street furniture Commuter shelters
Guard rails
Buildings Buildings
Fences Fences
Storm-water Interception and conveyance Pipelines
Culverts
Open channels
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Network Facility or Asset Group Asset
Nodes, transitions
Attenuation Earth wall
Site
Perimeter protection
Hydrological Monitoring Stations Building
Specialist Equipment
Pump Stations Civil works
Building
Electrical Plant
Mechanical Plant
Perimeter Protection
Water supply Dams Dam wall
Site
Perimeter Protection
Spring protection Pipes
Dam wall
Tanks
Perimeter protection
Boreholes Building
Casing
Perimeter Protection
Electrical plant
Mechanical plant
Meter
Water treatment works (may be broken down per process element)
Civil Works
Mechanical plant
Electrical plant
Buildings
Pipes
Meters
Site
Perimeter protection
Pump station Civil works
Building
Electrical Plant
Mechanical Plant
Telemetry
Meter
Site
Perimeter Protection
Bulk water pipelines Pipelines
Valves
Meters
Storage Civil works - reservoirs, towers
Tanks
Support structure for tanks
Mechanical plant
Chlorinator
Meters
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Network Facility or Asset Group Asset
Hydrants
Perimeter protection
Site
Distribution Reticulation
Hydrants
Meters
Communal standpipes
Collection Sewerage reticulation
Vehicles (e.g. Honey sucker, tractor/trailer)
Bulk pipelines (outfall sewer) Rising mains
Gravity mains (outfall)
Pump station Civil works
Building
Electrical plant
Mechanical plant
Telemetry
Meter
Site
Perimeter protection
Wastewater Treatment Works (may be broken down per process
Civil Works
Mechanical plant
Electrical plant
Buildings
Meters
Site
Perimeter protection
Solid waste disposal Collection Vehicles
Containers/bins
Transfer stations, and processing facilities
Buildings
Electrical plant
Mechanical plant
Site
Perimeter protection
Landfill site Earthmoving and compaction equipment Landfill preparation
Perimeter protection
Building
Mechanical - weighbridge
Electrical - weighbridge
Electricity supply HV Transmission Network (>22kV) Overhead lines
Underground lines
Site
HV Substations (>22kV) Site
Building
HV outdoor equipment
HV GIS equipment
HV transformers
MV indoor equipment
MV Network (<22kV) Site
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Network Facility or Asset Group Asset
MV overhead
MV underground
MV Substation (<22kV) Site
Building
MV outdoor equipment
MV indoor equipment
MV transformers
LV Network LV underground
LV overhead
Consumer meters
Network Management Workstations
Software
Telemetry
Load Control
Sports-fields, Parks and Cemeteries Roads Paved areas (vehicles)
Gravel areas (vehicles)
Hardened surface (pedestrian) Hardened footpath surface
Tennis/basketball court
Buildings Buildings
Swimming Pool Swimming Pool
Storm-water Pipes
Culverts
Open channels
Nodes, transitions
Earth retention wall
Storm-water nodes/ transitions
Open Space Grass, shrubs and trees
Park furniture
Spectator stands
Lighting
Perimeter protection/fencing
Community Buildings and Administration Offices
Each Community Building Type Site
Structure and building fabric
Building finishes
Plumbing
Electrical
Air conditioning
Lifts
Fire prevention and protection
Equipment for theatres and council chambers Gas installations
Perimeter protection
3.1.3 Acquisition
• TransactionDate• Amount• Supplier/Contractor
• Reference(invoice/contract/payment/ordernumber).
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3.1.4 Accountability
• Department / division:(depends upon organisation).Section / unit (depends uponorganisation). Sub-section(depends upon organisation).Costcentre
• Custodian:e.g.useroftheassetor person responsible forsafeguarding the asset inhis/her possession: for laptop,custodian isMrJones(FinancialManager).
• Restrictions (if any) in use orchangingofanasset
• Ownership (if legal title is notwiththemunicipality)
• Licenceorpermits• Transfers: (to record date and
transferor).
3.1.5 Performance
• Capacity(whererelevant),e.g.2tonne, 2000 sq metres, 200ml/day
• Performance measures (whererelevant)
• Condition Assessment (date,rating, person doingassessment,fileno–fordetails)
• Warranties, guaranties orcertification
• Criticality• Useful life: e.g.
years/hours/units/mileage, etc.ofexpecteduse
• Residual value: to be evaluatedannually.
3.1.5.1 Condition The approach adopted for determiningconditionneedsto:
• be standardised so that it can beconsistently applied across allmunicipalities to enable effectivebenchmarking, trend monitoring,anddataaggregation;
• be cost effective, repeatable andobjective;
• be linked to the expected failurepattern of the specific assets(whereverpracticable);
• modelled on performance criteriarather than visual inspection ofcondition where such is notpracticable or inappropriate (e.g.pipelines,powercabling);
• alignwithexistingindustrynormsineachsector;
• supportrobustvaluation;and• support the modelling of renewal
budgetneeds.
Asimplegenericfive-pointgradingcanbeadopted.
Grade Description Detailed description Indicative RUL
1 Very good Sound structure, well maintained. Only normal maintenance required. 71-100% EUL
2 Good Serves needs but minor deterioration (<5%). Minor maintenance required. 46-70% EUL
3 Fair Marginal, clearly evident deterioration (10-20%). Significant maintenance required.
26-45% EUL
4 Poor Significant deterioration of structure and/or appearance. Significant impairment of functionality (20-40%). Significant renewal/upgrade required.
11-25% EUL
5 Very poor Unsound, failed needs reconstruction/ replacement (> 50% needs replacement)
0-10% EUL
3.1.6 Disposal
• Date
• Amount:proceedsreceived• Capacity:atdateofdisposal
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• Condition: e.g. good, fair, bad,etc.
• Remaininguseful: if soldearlierthanoriginallyplanned
• Residualvalue:tocomparewithproceeds
• Reasonfordisposal.
3.1.7 Accounting
• Historical cost (or fair valuewhere cost not available forinitialrecognition)
• Fundingsource• Usefullife:(original)• Remainingusefullife:(assessed,
dateofassessment)• Residual value: (original,
assessed and date ofassessment)
• Depreciation method: (straightline, sum of units, diminishingbalance,etc.)
• Revaluation: (amount, date,method, by whom): ifrevaluation model adopted byentity, should continuerevaluing for subsequentmeasurement.
• Impairment. (amount, dateassessed)
• Depreciation: value and rate:currentyear
• Accumulated depreciation: lifetodate
• Carryingamount• Disposal (where relevant):
(date, realised amount, detailsondisposal,Councilresolution).
3.1.8 Management and risk information
• Criticalityrating:prioritisationintermsof servicedeliverywithin
aprogrammeƒServicetype:e.g.Administration, Water,Electricity
• Maintenance history:(summarisedfrommaintenancesystems)
• Operational history:(summarisedfrommaintenancesystems)
• Risk assessment: (mayreference otherdocumentation).
3.1.8.1 Criticality Identifying critical assets is often the firststep inmanaging asset risk. It is necessarytohave some formofmeasurementof theconsequence of failure, and therefore anindicator of the “criticality” of the assets.Thiswillenablethefollowing:
• focusing of the level of detail andaccuracyofdatacollectionexercise;
• crafting of focused maintenanceresponses;
• prioritisationofassetrenewal;• prioritisation of asset-level risk
mitigationactions;and• measurement of the overall risk
exposureofeachnetwork.
Abasicapproach is forexample,wheretheimpacts of asset failure are contemplatedusing a simple rating approach. Thepotential impacts are aggregated, resultingintheallocationofacriticalitygradingonasimple3pointscale.Thecriteriaandratingattributedtoeachimpact,andthecriticalitygrading bands will need to be tested andadjustedovertime,basedonapplication.
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ConsequenceofFailure
Area of Impact Measure Rating
Public and municipal employees’ health and safety
Loss of life or multiple illness/injury
15
Single illness/minor injury 5
No effect 0
Financial losses (cost of repairs and/or loss of revenue)
More than R100,000 6
Between R20,000 and 100,000
4
Less than R20,000 2
Service delivery performance Major impact 8
Minor impact 4
No effect 0
Environment Major 10
Minor 5
No effect 0
CriticalityGrading
Consequence of Failure Score
Description Criticality Grading
≥15 Critical 1
11 – 14 Important 2
≤10 Non-critical 3
3.1.8.2 Risk Assessment
3.1.8.2.1 Risk Identification Riskevents shouldbe identifiedbyofficialswho are familiar with the assets and their
operatingenvironment.Thiscanbedonebyan individual, but there are benefits indiscussing potential risk events on acollective basis. A schedule of commonlyencountered risks that can be used tostimulatediscussionofpotentialriskevents.
Physical Condition-based failure
Vandalism
Theft/illegal connections
System losses
Operational Operator error
Misuse
Theft
Sabotage
Inadequate safety measures
Insufficient skills & capacity
Delays in contracts
Under or over utilisation
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Technical Inadequate planning
Inadequate data
Inadequate systems capability
Inadequate design
Fitness for purpose
Inadequate construction standards
Insufficient infrastructure capacity
Infrastructure obsolescence
Inadequate maintenance
Legal Loss of rights/license
Change in legislation
Fines
Natural/environmental Flood
Drought
Storms
Sinkholes
Fire
External Power cuts
Availability of consumables (e.g. diesel, chemicals)
Availability of parts supplies
Reliability of bulk
Quality of bulk
Capacity of bulk
Financial Inadequate CAPEX budget
Inadequate OPEX budget
Inefficient collection
Prohibitive O&M costs
Unforeseen budget cuts
Institutional Poor morale
Inadequate or cumbersome processes
Ineffective strategic leadership
Unclear targets/goals
Social Change in expectations
Change in demand
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3.1.8.2.2 Consequences of Risk Events Aconsequenceratinghastobeallocatedtoeach risk event. Whilst sophisticatedtechniques exist that attempt to quantifythese consequences, a more qualitativeapproach is often more practical, using a
guide such as shown in the table below.Consequencetablesareveryspecifictothesize and type of assets, and organisationalneeds–thusthetableshouldbedevelopedwithinputsfromseniormanagementofthemunicipality.
ConsequenceRating
QualitativeDescription
Directcosts(repair,lostincome,thirdpartydamage)
Servicedeliveryperformance
Effectonpublichealth,safetyandproperty
EnvironmentalDamage
MunicipalImage
1 Insignificant Isreadilyabsorbedundernormaloperatingconditions
<R20,000 Lessthan50customerswithoutpotablewaterforupto8hrs
Nohealthorsafetyimpact,minorpropertydamage
Minortransientenvironmentaldamage,visualeffectsonly
Individualinterestonly,nocommunityconcern
2 Minor Canbemanagedundernormaloperatingconditions
R20,000-R100,000
Lessthan50customerswithoutwaterforupto24hours
Minorhealthimpactonsmallnumberofpeople
Minordamagetoenvironment,longereffect
Minorcommunityinterest,minorlocalmediareport
3 Moderate Canbemanagedbutrequiresadditionalresourcesandmanagementeffort
R100,000-R500,000
Lessthan50customerswithoutpotablewaterforupto48hrs
Serioushealthimpactonsmallnumberorminorimpactonlargenumberofpeople
Moderateenvironmentaldamage,localimportance
Publiccommunitydiscussion,majorlocalmediainterest
4 Major Willhaveaprolongedimpactandextensiveconsequences
R500,000-R5,000,000
Morethan50customerswithoutpotablewaterforaperiodofover48hours
Extensiveinjuriesorsignificanthealthimpacts,singlefatality
Majorlongtermenvironmentalimpact.Prosecutionexpected
Majorlossincommunityconfidence
5 Catastrophic Irreversibleandextensiveimpacts,orsignificantlyunderminingkeybusinessobjectives
>R5,000,000Morethan500customerswithoutpotablewaterforaperiodofover48hours
Multiplefatalities
Seriousdamageofnationalimportanceandirreversibleimpact.Prosecutionexpected.
Nationalmedia
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3.1.8.2.3 Probability of Risk Events Aprobabilityratingisallocatedforeachriskevent.Whilststatisticalprobabilitiesmaybeused, municipalities may find it morepracticaltousesubjectivecriteria.
Rating Probability Condition
A Rare Very Good
B Unlikely Good
C Moderate Fair
D Likely Poor
E Almost certain
Very Poor
3.1.8.2.4 Risk Exposure The risk exposure of a municipality to aparticular event can be considered todepend on the consequences and the
probability of that event. Amatrix such asthe one indicated in Table can be used torankeventsaslow,moderate,significantorhighriskexposuretothemunicipality.
Consequence
1 I
nsi
gn
ific
ant
2 M
ino
r
3 M
od
erat
e
4 M
ajo
r
5 C
atas
tro
ph
ic
Pro
bab
ilit
y A Rare L L L M M
Risk Exposure B Unlikely L L M M S
L LOWC Moderate L M M S H
M MODERATED Likely M M S H H
S SIGNIFICANTE Almost certain M S H H H
H HIGH
4 Content of MISA developed Asset Register
4.1 List of Data Field with in the MIPMIS Asset Register
Organisation – This is the organisationresponsiblefortheInfrastructureAsset.
Number - All infrastructure assets musthave a unique identification referencenumber.Acommonapproachmustbeusedacross all departments in the municipality,suchasthefollowing:
Category-Sub-category/AssetClass/AssetDescriptor-SequentialNumberfortheassettype
Model - The model of an asset must beinserted.E.g.2500Ford.
SerialNumber - Standard serial number ofan asset. E.g. serial numbers, registrationnumber, erf Number or other number todistinguishitfromotherassets.
Description - A Descriptive name for theasset.
Material Type - The type ofmaterial of anasset.E.g.brick,wood,castiron,pvc.
Class Description/Nature - This field is adropdown,whereyouareabletoselecttherequired Class Description/Nature from apre-loadedlist.
Size-Thesizeofanassetmustbeinserted.E.g.150mmpipe,240lWheelieBin.
Capacity - The capacity of the asset. E.g.number of kiloliters, 200 litre (tank), 4000sqmetre(building/land),65l/s(waterpipe)
Quantity -Quantityof theasset.E.g.100mofpipe,1SolidWasteTruck.
Utilisation-Theextenttowhichanassetisbeing productively used – measured as apercentageofitscapacity.
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ReplacementEquivalent -Thereplacementequivalentofanassetmustbeinserted.E.g.A 300mm clay sewer pipe needs to bereplaced and the replacement equivalentwillbea300mmconcretepipe.
YearConstructed/PurchaseDate–Thedatetheassetwascompletedorpurchased.
SupplierName-Thesuppliername.
CriticalityGrade - This field isadropdown,where you are able to select the requiredCriticalityGradefromapre-loadedlist.
Condition -Thisfield isadropdown,whereyou are able to select the requiredConditionGradefromapre-loadedlist.
ConditionIndex/Grade-Oncetheconditionischosen,thisfieldisdisplayedaccordingtotheselectedcondition.
Ward -Thisfieldisadropdown,whereyouareabletoselecttherequiredWardfromapre-loadedlist.
Latitude-GPScoordinatestobeinsertedinthese fields, the format should be asfollows:-26.7627DecimalDegrees(DD),butMIPMIS also caters for Degrees Minutes
Seconds (DMS) aswell by pressing thetheusercancapturethelatitudeintheDMSformat.
Longitude -GPScoordinates tobe insertedin these fields, the format should be asfollows:35.1627DecimalDegrees(DD),butMIPMIS also caters for Degrees Minutes
Seconds (DMS) aswell by pressing thethe user can capture the longitude in theDMSformat.
Custodian - The person responsible forsafeguardingtheasset.
ReplacementCostperItem-ARandValue.Thecostof replacinganexistingasset itemwith a modern asset item of equivalentcapacity.
PurchasePrice-ARandValue.Costsshouldbe used for newly or recently acquiredassetsforwhichclearevidenceofcostscanbe determined from transactional records,e.g.Invoices.
Actual/DeemedCost -ARandValue. If thePurchase Price for an asset is not availableDeemed Cost should be selected, and themeasured value should be inserted, thedateonwhichthemeasurementwasmadeshould then be inserted in the YearConstructed/PurchaseDate.DeemedCostisdetermined by using the guidance andprovisions inDirective7onTheApplicationof Deemed Cost on the Adoption ofStandardsofGRAP.
Depreciated Replacement Cost - A RandValue. A measure of current value of anasset,basedonitscurrentreplacementcostless an allowance for deterioration ofcondition todate (basedon the fractionofRemainingUsefulLife/ExpectedUsefulLife).
𝐷𝑅𝐶 = 𝐶𝑅𝐶 ∗𝑅𝑈𝐿𝐸𝑈𝐿
Current Replacement Cost - A RandValue.Thecostofreplacinganexistingassetwithamodernassetofequivalentcapacity.
AdditionAmount-ARandValue.Capexonadditionsmadetoanasset.
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4.1.1 Risks Description - Enter a short description oftheRisk.ThisdescriptioncouldbethesameastheRiskType.
RiskType -This field isadropdown,whereyouareabletoselecttherequiredRiskTypefromapre-loadedlist.E.g.Insufficientskillsand Capacity, Condition-based failure,Vandalism,etc.
Risk Consequence - This field is adropdown,whereyouareabletoselecttherequired Risk Consequence from a pre-loaded list. E.g. Insignificant, Minor,Moderate,etc.
Risk Probability - This field is a dropdown,where you are able to select the requiredRisk Probability from a pre-loaded list. E.g.Rare,Unlikely,Moderate,etc.
Risk Exposure - This is a calculated fieldusing; Consequence and Probability.According to the selection you made forRiskConsequenceandRiskProbability, thisfieldiscalculatedautomatically.
Cost of Risk – This field is to indicate thecostifthisriskwillhappen.
Risk Response - Insert a Risk response inthisfield.
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5 MIPMIS Reports on Asset Register
5.1 Infrastructure Overview Report AddPicture
5.2 Infrastructure Financial Status AddPicture
5.3 Infrastructure Indicators AddPicture
5.4 Detailed Infrastructure Condition Report AddPicture
5.5 Value of Assets AddPicture
5.6 Infrastructure Replacement and Renewal Cost
5.7 GRAP 17 AddPicture
6 Understanding of MIPMIS report and use MIPMISprovidesaViewerthatisusedtodisplayreports on demand as they are requestedfromtheMIPMISserver.Itincludesareporttoolbar, a parameter section, a credentialssection, and a document map. The reporttoolbar includes features you can use towork with your report, including exportoptionssothatyoucanviewyourreport informats other than HTML. The parametersection and document map appear onlywhenyouopenreportsthatareconfiguredto use parameters and a document mapcontrol.
6.1.1 Report Toolbar
The report toolbar provides pagenavigation, zoom, refresh, search, export,print, and data feed functionality forreports.
Print functionality is optional. When it isavailable, a Printer icon appears on thereport toolbar. Clicking the Printer iconopens a Print dialog box so that you canselectfromtheprintersthatareconfiguredforyourcomputer.
Page navigationcontrols -Open the first or last page of areport,scrollthroughareportpagebypage,and open a specific page in a report. Toviewaspecificpage,typethepagenumberandpressENTER
Page display controls - Enlarge orreduce the size of the report page. Inaddition to percentage-based changes, youcan select PageWidthto fit the horizontallength of a report page in the browserwindow, orWhole Pageto fit the verticallength of a report in the browser window.AZoomoption is supported by MicrosoftInternetExplorer5.5andlater.
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Search field -Searchforcontentinthereportbytypingaword or phrase that youwant to find (themaximum value length is 256 characters).The search is case-insensitive and starts atthe page or section that is currentlyselected.Onlyvisible content is included ina search operation. To search forsubsequentoccurrencesof thesamevalue,clickNext.
Export formats - Open a newbrowser window and render the report inthe selected format. The formats that areavailable are determined by the renderingextensions that are installed on the reportserver. TIFF is recommended for printing.ClickExportto view the report in theselectedformat.
Documentmap icon-Showorhidethedocument map pane in a report thatincludesadocumentmap.Adocumentmapisa reportnavigationcontrol similar to thenavigationpaneonaWebsite.Youcanclickon items in thedocumentmap tonavigatetoaspecificgroup,page,orsub-report.
Printericon-OpenaPrintdialogboxsothatyoucanspecifyprintoptionsandprinta report. On first use, clicking this iconpromptsyoutodownloadtheprintcontrol.
Report refresh icon - Refresh thereport. Data for live reports are refreshed.Cached reports are reloaded from wheretheyarestored.
6.1.2 Parameters Parameters are values that are used toselect specific data (specifically, they areused to complete a query that selects thedata for your report, or to filter the resultset).Parametersthatarecommonlyusedinreports include dates, names, and IDs.When you specify a value for a parameter,the report contains only the data thatmatches the value; for example, employeedata based on an Employee ID parameter.Parameters correspond to fields on thereport. After you specify a parameter,clickViewReporttogetthedata.
The report author defines the parametervalues that are valid for each report. Areportadministratorcanalsosetparametervalues.To findoutwhichparametervaluesare valid for your report, ask your reportdesigneroradministrator.
6.1.3 Credentials Credentials are user name and passwordvalues that grant access to a data source.Afteryouspecifyyourcredentials,clickViewReportto get the data. If a report requiresyou to log on, the data that you areauthorizedtoseemightdifferfromthedatathat another user sees. Consequently, twousers can run the same report and getdifferent results. In addition, some reportscontain hidden areas that are revealedbased on user logon credentials orselectionsmade inthereport itself.Hiddenareas in the report are excluded fromsearch operations, producing differentsearch results than when all parts of thereportarevisible.
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7 Bibliography
CIDB. (2015). MAINTENANCE MANAGEMENT STANDARD for immovable assets under thecustodianshipofNationalandProvincialDepartmentsofWorks.
DPLG.(2009).GuidelinesforInfrastructureAssetManagementinLocalGovernment.
NT.(2012).AccountingGuideline-Property,PlantandEquipment-GRAP17.
NT.(n.d.).LOCALGOVERNMENTCAPITALASSETMANAGEMENTGUIDELINE.
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