Integrated Planning and Reporting Manual - Division of Local ...

3. THE RESOURCING STRATEGY
3.4 Asset Management Planning
Essential Element 2.9
Each council must account for and plan for all existing assets under its control, and any new asset
solutions proposed in its Community Strategic Plan and Delivery Program.
Essential Element 2.10
Each council must prepare an Asset Management Strategy and Asset Management Plan/s to support
the Community Strategic Plan and Delivery Program.
NSW local government is the custodian of approximately $50 billion of community assets which
enable councils to provide services to their community. These assets include roads, water and
sewerage assets, drains, bridges, footpaths, public buildings, recreational facilities and parks and
gardens.
As custodian, councils are responsible for effectively accounting for and managing these assets and
having regard for the long-term and cumulative effects of the decisions. This is a core function of
councils and is reflected in the Charter in section 8 of the Local Government Act 1993.
Furthermore, a strong and sustainable local government system requires a robust planning process
to ensure that these assets are managed in the most appropriate way on behalf of local
communities.
Defining an asset
An asset is defined as “a resource controlled by a council as a result of past events and from which
future economic benefits are expected to flow to the council.” At this stage, councils are only
required to specifically consider their physical assets. However, some councils currently choose to
plan for the long-term management of ‘soft assets’ (intangibles) such as intellectual property and
natural assets.
Councils should ensure their asset management planning has a service delivery focus. In other
words, the assets that are provided are necessary to meet the needs of the community as identified
by the community.
Defining asset management
The term ‘asset management’ describes the process for ‘whole of life’ asset management from
planning, purchase, operation, and maintenance to disposal of assets. It also encompasses
integration of asset and service outcomes.
Under the Asset Management Standard Public Available Specification 55, asset management is
defined as “…the systematic and coordinated activities and practices through which an organisation
optimally manages its physical assets, and their associated performance, risks and expenditures
over their lifecycle for the purpose of achieving its organisational strategic plan ”1 .
1
PAS 55 is published by the British Standards Institute
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