Sydney Water Operational Audit 2011/2 - IPART - NSW Government

Clause Requirement Grade and
Reason
Audit Questions Evidence Requirements Audit Observations
substitution documented and
managed? Focus on
creation/acquisition.
10.How is proactive and reactive
maintenance scheduled and
managed? How is this documented
and linked with long term asset
understanding (eg: failure modes)?
4. In response to the query concerning the relationship between the
AM framework and the BOO contracts SWC responded “BOO
contracts are performance based on product. The risk for effective
management of plant is with the BOO contractor.”
5. A detailed response to the previous audit findings concerning the
reservoir assets was given in the first session. The records of the
site inspections (hand written and photographs) have been entered
in to Maximo. The records were demonstrated to confirm this
outcome.
11.How do you demonstrate prudent
decision making in balancing
acceptable risk with cost and service
provision?
Site inspection of Woronora WTP
and Illawarra WWTP and RW
scheme.
Gain understanding of
how O&M contract
managed to align with the
AMF.
Understand link with Asset
Register, maintenance,
replacement programs for
assets
How asset related
reporting across the
contract occurs.
How brought on-line and
how moth-balled –
considering asset
management.
Site inspection of 1 to 2
reservoirs.
It was noted that reservoirs have their own asset management plans
setting out the investment required. During detailed discussion
concerning reservoirs SWC stated that some roofs are coming to the
end of their lives. Alternatives to replacing the roof are explored
during business cases, especially as to carry out the works the site
would be out of operation for an extended period. Any option that
would cope temporarily with this extended down time should be
considered as a permanent option too.
It was noted that internal inspections of reservoir condition are held
in a separate bespoke database provided by the contractor who
carries out the inspections, often using divers. The database was
identified as ASAM (acronym unknown). It is probably efficient for
the contractor to supply updates to the information in their standard
database format however SWC are not storing that information in
Maximo. This raises the possibility that business cases for external
or internal works are not capturing the overall condition of the
structure. Inclusion of both may change the prudency and efficiency
arguments in a business case. It is recommended that reservoir
condition information is captured in one database and that should be
the standard Maximo used throughout SWC.
6. Programs of investment are put forward as a business case
requesting an allocation of funds. The business case depends on a
standard decision making framework used within that program,
based on risk, cost and payback period. This means that every
request has to be financially viable.
A corporate investment prioritisation is available to the Executive in
order that investment choices between business cases of varying
needs can be made (e.g. between ICT needs and network needs).
The investment prioritisation tool is a decision support tool under
Licence Clause 3.1.2. It is recommended that clarity be sought
concerning the use of this corporate framework and its influence on
asset investments.
7. SWC maintains and manages a large number of assets. The
records of these are managed through the Asset Management
system and the Geographic Information System. SWC commented
that “Maximo is our asset & works management system. We have
procedures for the creation and update of asset data.
70 | GHD | Report for Independent Pricing and Regulatory Tribunal - Operational Audit of Sydney Water Corporation, 23/14602