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

3. THE RESOURCING STRATEGY
Key components of an asset management system
The key components or tools in a council’s asset management system should include:
Asset registers
Asset condition assessments
Asset maintenance and management systems
Strategic planning capabilities
Predictive modelling
Deterioration modelling
Risk analysis
Lifecycle costing.
Asset management decisions should be informed by evaluation of alternative means of service
provision (eg asset sharing), full lifecycle costing, and performance measurement and monitoring.
Informed decision-making recognises the long-lived character of infrastructure assets and the need
to plan and budget for them on a full lifecycle basis beginning with the identification of a service
need and the means to meet that need.
The planning horizon
Essential Element 2.11
The Asset Management Strategy and Plan/s must be for a minimum timeframe of 10 years.
The Asset Management Strategy and Plan/s will require three different but interlocking planning
periods:
A rolling 10-20+ years forecast, linked to the Community Strategic Plan and Long Term
Financial Plan
4 years to guide asset decisions flowing from the Delivery Program
An annual plan detailing the actions to be implemented in the Operational Plan.
As the Strategy is a ‘living document’ that will include benchmarks and milestones aimed at
improving Council’s asset management processes and procedures, it must be monitored regularly
and amended to reflect progression in its implementation.
In addition, the Strategy and the Plan/s need to reflect any major changes in Council’s asset
portfolio. These changes may reflect asset investments or disposals that have resulted from, or are
reflected in, Council’s Delivery Program. Alternatively, these changes may result from unexpected
major events, such as the decommissioning of a major asset due to severe storm damage or other
natural disaster.
Asset Management Plans should also be subject to ongoing monitoring and regular review (at least
annually) to reflect any changes in asset conditions and/or the asset portfolio.
With a 10 to 20+ year forward plan, elected members of Council and staff are in a better position to
appreciate their current position and to be in a position to ensure any decisions take into account
the impact on future generations. A council should not face any surprises in managing its assets.
The relationship between long term financial planning and asset management planning is discussed
further on page 5 of the Australian Infrastructure Financial Management Guidelines 2 (AIFMG).
2
Australian Infrastructure Financial Management Guidelines – Version 1.0, 2009
Planning & Reporting Manual Page 68 of 115