South Burnett Asset Management Policy Template

Table of Contents
SCOPE 1
POLICY OBJECTIVES 1
DEFINITIONS 1
POLICY DETAILS 2
LEGISLATIVE AUTHORITY 5
ASSOCIATED PROCEDURES AND RELATED POLICIES 5
REVIEW DATE 6

SCOPE
This policy applies to the creation, acquisition, operation, maintenance, rehabilitation and disposal of all Council Assets.

POLICY OBJECTIVES
This policy provides the overall framework to guide the management of Council’s Assets to ensure that:
• Assets continue to deliver a standard of service to the community at an agreed level of service.
• There is clear direction for staff to make informed decisions.
• Legislative requirements are satisfied.
• Exposure to risk is limited to acceptable levels.
• Asset purchases or construction are only approved after whole of life costs and benefits are assessed.
• To give clear allocations of responsibilities for the management of each class of asset.

DEFINITIONS
Assets: Any physical item that Council acquires or constructs which gives benefit or service to the community.
Asset Register: A record of asset information considered worthy of separate identification.
Asset Life: Time from acquisition to disposal
Asset Management: Activities and practices through which Council optimally manages its physical assets, and their associated performance, risks and expenditures over their lifecycle for the purpose of achieving the organisational strategic plan.
Asset Management Plan: A plan that details financial and technical treatments over the life of the asset or class to allow the asset to maintain an agreed level of service.
Level of Service: The desired measureable service quality set for a class of asset. Each activity in the class, is to have its service performance measured against the set level.
Life Cycle costs: Total cost of an asset over its entire life including Capital Expenditure, Maintenance Expenditure and Disposal Expenditure.
Capital Expenditure: Any expenditure that is used to procure or construct:
• a new asset
• upgrade the capability of an asset
• make improvements to an asset
• make additions to an asset
• replace an asset
Maintenance Expenditure: Any expenditure that allows an asset to continue providing the agreed level of service until the end of life is reached.

POLICY DETAILS
1. Asset Planning
1.1. Council will adopt a whole of life cycle cost analysis as set out in the “International Infrastructure Management Manual” (IIMM), for the management of infrastructure assets.
1.2. Prior to acceptance, proposed Capital Works projects shall be subjected to technical and financial life cost evaluation and prioritised using predetermined criteria developed to satisfy the goals of the Corporate Plan.
1.3. Wherever possible predictive modelling will be used to develop and implement preventative maintenance programs to ensure lowest net life cycle costs.

2. Community Expectations
2.1. Council will seek and value community input regarding desirable infrastructure before projects are commissioned for Asset planning investigations.
2.2. All infrastructure services will be regularly reviewed to ascertain the community level of service expectations.
2.3. Council will regularly review its asset inventory and identify opportunities for rationalisation in line with community requirements.

3. Risk Assessment and Management
3.1. Council will maintain a program of regular inspections of assets under its control to minimise risk to the community.
3.2. Maintenance and capital work to assets will be allocated in line with Council’s Risk Management policy

4. Asset Accounting
4.1. Council will maintain asset registers to the level of detail reflected in the Asset Hierarchy policy. (To be determined and hyperlinked).
4.2. Useful lives shall be determined and given to each asset based on past experience and current benchmarked standards.
4.3. Depreciation charges will be calculated using a method that reflects the true consumption of the asset or its service potential as set out in the Depreciation policy.
4.4. Assets shall be condition inspected on a regular basis. The frequency shall be determined by the type of asset.
4.5. Where ever practical, the use of assets should attract a charge (internal hire rates), which will cover the whole of life cost for that asset.
4.6. Funding for all asset purchase, maintenance, rehabilitation and replacement shall be guided by Council’s Asset Management Plans and included in the Capital Works program, Long Term Financial plan and budgetary process.
4.7. Assets shall be added to the asset register at cost. The “fair value” method will be used at the time of revaluation.

5. Roles And Responsibilities

5.1. Council
5.1.1. To act as custodians of community assets.
5.1.2. To set corporate asset management policy with linkage to Council’s Corporate Plan.
5.1.3. To set agreed Levels of Service and Levels of Acceptable Risk for each asset class.
5.1.4. Allocate budgets to achieve the levels set in 5.1.3.
5.1.5. To ensure appropriate resources for Asset Management activities are made available.

5.2. Chief Executive Officer / Executive Team
5.2.1. To provide strategic direction and leadership.
5.2.2. To ensure there is continuous improvement in asset management.
5.2.3. To review existing policies and develop new policies related to asset management.
5.2.4. To implement Corporate Asset Management Strategies with agreed resources.
5.2.5. To monitor and review managers and staff in achieving the Asset Management Strategy.
5.2.6. To ensure accurate and reliable asset information is presented to Council.

5.3. Managers and Staff
5.3.1. To implement the Corporate Asset management strategy with agreed resources.
5.3.2. To develop and implement improvement plans for individual asset groups.
5.3.3. To develop and implement Maintenance and Capital Works programs in accordance with Asset Management Plan and budgets.
5.3.4. To deliver levels of service to agreed risk and cost standards.
5.3.5. To present information to the Council, Chief Executive Officer and Executive team in terms of life cycle risks and costs.
5.3.6. To seek community feedback on proposed changes to service levels and willingness to pay for increased levels.

6. Asset Management Working Groups
6.1. A multi disciplinary and cross functional Asset Management working group will be established to assist and have input with strategic asset management planning.
6.2. Staff responsibilities for Asset Management activities shall be included in the Asset Management Plans and also be reflected in individual position descriptions.

7. AM Plans
7.1. Council will develop 10 Year Asset Management Plans for each class of asset.
7.2. Asset Management Plans shall define the management strategies to be adopted through out the life cycle of the asset.
7.3. The Asset Management Plan sets out for each class of asset::
7.3.1. Levels of service required
7.3.2. Any future changes in demand
7.3.3. The maintenance, renewal and replacement of assets.
7.3.4. Methods of performance monitoring and appraisal.
7.3.5. Financial projections

8. Asset Acquisition
8.1. At acquisition, Assets valued at $5,001 or greater shall be entered to the asset register as a major capitalised asset and included in the financial reports.
The exceptions to this policy are:
8.1.1. Land has no threshold value.
8.1.2. Networked assets which have an initial value of $1,500 or greater.
8.2. Networked assets are any “like” items that form a group with a total value exceeding $5,000 and a life of more than two years. eg computers and playground equipment.
A networked asset will be depreciated individually.
8.3. At acquisition, Assets valued at $5,000 or less shall be expensed. If an asset is deemed portable and attractive and it has a value of above $200 or a record of the asset is desired to be kept, the asset may be recorded in the asset register as a minor asset. Assets entered in this manner will not have their values included in the financial reporting.
8.4. Assets acquired as a donation will be entered to the Asset Register at the current applicable Council unit rate for that class of asset, or at fair value.

9. Asset Maintenance
9.1. Council assets will be regularly maintained as detailed in the Asset Maintenance policy to ensure that they continue to function as constructed for the duration of their lives.

10. Asset Disposal
10.1. Assets no longer required by Council shall be disposed in accordance with the Local Government Act 1993: S491 and S484. Hence Assets shall be:
10.1.1. disposed of by public auction;
10.1.2. computer hard drives shall be destroyed;
10.1.3. recorded in the asset register in accordance with the Asset Disposal procedure as sold.

10.2. Assets that have been damaged, used for parts, lost or are obsolete shall be:
10.2.1. written off
10.2.2. recorded in the asset register as written off with no value.

LEGISLATIVE AUTHORITY
[Type your text here]
ASSOCIATED PROCEDURES AND RELATED POLICIES

Risk Management policy
Asset Hierarchy policy
Depreciation policy
Asset Maintenance policy
Asset Residual Value policy
Asset Disposal procedure
Portable and Attractive policy
Revaluation of Assets policy
Interim Revaluation by Indexing policy
Plant Replacement policy
Roads policy

REVIEW DATE
Three years from acceptance of original policy
(Note: These headings are optional some will not be relevant depending on the purpose of the policy.)
(Note: Changes to or new policies must be approved by your Manager and Director before submission to Council)

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