Download Asset Management Accountability Framework

Asset Management Accountability
Framework
IHEA Professional Development Day – 19 May 2017
Warren Corlett, FIEAust CPEng
Manager, Asset Management
Department of Health and Human Services
Asset Management Accountability Framework
• Announced/ released by DTF in February 2016
• Mandated by a new Standing Direction (4.2.3 - Asset
Management) of the 2016 Standing Directions of the Minister for
Finance on 1 July 2016 (published February 2016)
• Applies to non-current assets controlled by government
departments, portfolio agencies and other public bodies
• Encourages good practice asset management
• To ensure assets are managed over their whole lifecycle and
achieve service delivery outcomes
• Framework aligns with the ISO Standard but covers some areas
where the ISO Standard is silent
Asset Management Accountability Framework
• Has mandatory requirements that public sector agencies
must meet
• To lift management practice to ensure the best is made of
our existing asset base
• Requirements include developing:
o asset management strategies, performance standards and
processes to regularly monitor and improve asset management
o systems to maintain assets and processes to identify and address
performance failures
The new Framework…
Key Framework features
Same principles …
o service delivery focused
o integrated into planning
frameworks
o a whole of life cycle
approach
o informed decision making
The asset lifecycle
PLANNING
ACQUISITION
Asset management strategy
Planning for uncertainty
Business cases
Risk management
Cost/benefit analysis
Accounting treatment
Non-asset alternatives
Acquisition process
Risk evaluation
Procurement method
o considerate of other
government asset
management policies
DISPOSAL
Retirement
Replacement
Renewal
Redeployment
OPERATION
Monitoring
Maintenance
Information management
Asset valuation
Utilisation
Functionality
Relationship between the AMAF and other
government policies
Service planning interface with asset planning and
management
Accountability
• The Framework formalises asset management
accountability
• At the start of the present financial year, the Framework
was added into the Financial Management Compliance
Framework
• Requires the departmental secretary and the board of each
portfolio agency to attest to compliance with Standing
Directions (including disclosing any material deficiencies)
and confirm the veracity of the organisation’s asset
management system
Attestation implementation timelines
• For 2017-18 financial year - agencies are:
o required to assess their compliance with the Framework
o in the agency non-published attestation, attest to compliance and
disclose material compliance deficiencies
o compliance against AMAF requirements is assessed as at 30 June
2018
• For 2018-19 financial year - agencies are:
o on an ongoing basis into the future, required to assess their
compliance with the Framework
o in the agency annual report, attest to compliance and disclose
material compliance deficiencies
o compliance is assessed in relation to the entire financial year
What’s different under the AMAF
• Over fifty mandatory asset management requirements
introduced
• Accountability and governance requirements increased
• More stringent requirements to plan and manage asset and
asset management system performance
• Specific information requirements are to be documented
and maintained by Accountable Officers
• Reporting to government and department’s portfolio role
strengthened
• Tighter controls for fraud and corruption
What’s different under the AMAF (continued)
• Each Responsible Body’s Audit Committee has an
enhanced and leading role in agency asset management
governance and oversight
• Public attestation by the Accountable Officer to evidence
compliance with mandatory requirements as part of overall
meeting the requirements of all Standing Directions
• Accountability further devolved to Responsible Bodies to:
o deliver and demonstrate specific performance expectations in
systems, staffing and processes
o set and manage against standards, monitor compliance
o demonstrate appropriate asset management practice
What are some key Framework requirements
• Develop asset management strategies
• Governance Frameworks
• Performance standards
• Processes to monitor & improve asset management
• Establish systems for maintaining assets
• Processes to identify and address performance failures
Some implementation issues
Resourcing
Framework introduction
Advice and support
Going beyond reporting and compliance
Asset information tools and systems
Efficient data exchange
Asset Information Management Systems
Asset management maturity
Implementation issues (continued)
Getting up to speed
Asset Management Strategy
Asset Management Plans
Establishing Standards
Key Performance Indicators
Attestation scale
Addressing inadequate practices
In closing
• Portfolio agencies are encouraged to work closely to coordinate
their AMAF implementation consistent with their portfolio role
• For portfolio agencies, Boards are ultimately responsible for
strategic management of assets under their control and for
meeting AMAF requirements