Asset Managers Network Strategic Asset Management and the

Asset Managers Network Strategic Asset Management and the NRSCH David Edgerton FCPA Director Quality + Expertise + Flexibility + Innovation = Confidence & Real Value www. apv. net

Agenda • • • Background Context Performance Requirements (Assets) Asset Management Discussion www. apv. net

Background • Engaged to assist Q Shelter improve the asset management capability across the entire sector • Some preliminary meetings already held • Aim for today – – Crystallise understanding of issues, maturity, barriers and gaps – Highlight key training requirements www. apv. net

Context • • • Size and Complexity of Tiers Different resources and expertise Different programs Provider owned / Dept owned / Head Lease Every entity is different !!!!!! www. apv. net

Performance Requirements (Assets) • Determining and planning for changing housing needs • Property condition standards • Asset maintenance • Asset development www. apv. net

Type of Evidence Example Maintenance Plan www. apv. net

Asset Management www. apv. net

Corporate Governance & Asset Management Corporate Governance • everything you do in order to achieve your objectives – Corporate Structure – Polices and Procedures – Risk Management – Leadership / Tone at the Top www. apv. net

Corporate Governance & Asset Management • Delivering and acceptable Level of Service • In the long-run • In the most cost-effective manner www. apv. net

Optimisation • Level of Service against • Lifecycle Costs – Acquisition – Operation – Maintenance – Renewal – Upgrade – Disposal Different Strategies Lead to different outcomes (Levels of Service) With a different Whole of Lifecycle Cost www. apv. net

Financial Aspects • Cost to deliver the service • Funding available Financial Sustainability • Accountability and performance measurement Valuation and Depreciation www. apv. net

Asset Management Strategies Community Expectation What you deliver $ &/or Strategy Non-Asset Solution www. apv. net

National Asset Management Framework Key Elements • Policy • Strategy & Planning • Levels of Service • Skills & Processes • Data & Systems • Governance www. apv. net

Relationship between Key Terms ISO: 55000 www. apv. net

Scope of ISO: 55001 Organisational Context (Cl 4) Requirements/expectations of stakeholders (what do they WANT us to do? ) Issues that affect the businesses ability to achieve intended outcomes ( What do we have the Capability to do? ) • • • Leadership (Cl 5) Leadership and Commitment to AM AM Policy (intent) Responsibilities/authorities assigned & communicated Alignment w corporate and strategic goals • • Planning (Cl 6) Setting the Corporate/Strategic goals Plans and objectives that convert strategic outcomes to business and tactical action at all levels Identifies and addresses risk Communication and engagement Operations (Cl 8) Control the process to deliver targeted outcomes across all functions (Service delivery, Maintenance, Capital delivery) Consider how outsources activities are controlled and integrated. Support (Cl 7) Provide resources (skills, IT, $) Maintain or capability (competence) • Performance (Cl 9) Monitoring, measurement, analysis and evaluation • Improvement (Cl 10) Suitability, adequacy and effectiveness of AMS www. apv. net

IPSAS RPG 1: Sustainability www. apv. net

Discussion • Issues, maturity, barriers and gaps • Key areas to focus on • Maturity Assessment www. apv. net

Where are Tiers 1, 2 & 3? www. apv. net

Issues, maturity, barriers and gaps ? ? ? • • • 10 Year Maintenance Plans Policies and Procedures Asset Management Plans Condition Standards Levels of Service Valuation & Depreciation Optimisation Long Term Financial Plans Leased assets Upgrades & surplus funds Funding arrangements Modelling for the future Skills and knowledge development • Asset Registers • • • Tools and systems • Cost of regulatory compliance • ? ? ? ? www. apv. net

Key areas to focus on • • Everyone Tier 3 only Tier 1 & 2 only Local Govt & Indigenous ? • Timing? • Process? www. apv. net

Where to from here? www. apv. net

Questions David Edgerton FCPA Email: David@apv. net Web: www. apv. net Mob: 0412 033 845 Work: (07) 3221 3499 www. apv. net