Asset Management Policy

An Asset Management Policy is a high level document that describes how an organisation intends to approach asset management within the organisation.

An asset management policy, along with asset management plans & an asset management strategy/asset plan, is a key part of an organisation's asset management framework.

National Asset Management Assessment Framework

The National Asset Management Assessment Framework makes the following statements with regard to Asset Management Policy

The Asset Management Policy requires the adoption of Asset Management Plans informed by community consultation and local government financial reporting frameworks.

• The Asset Management Policy defines asset management roles, responsibilities and reporting framework.
• The Asset Management Policy identifies a process for meeting training needs in financial and asset management practices for councillors and staff.
• The Asset Management Policy provides a reasonable basis for long-term integrated decision making by the Council and for participative decision making by the community and subsequent accountability to the community about the activities of the Council
• The Asset Management Policy clearly articulates the principles and financial implications upon which decisions relating to assets and their performance will be based. Such as:-
  • Whole of Life costs
  • Renew before New
  • Forms part of Long Term Financial Plan
  • Capital contributions
• The Asset Management Policy has organisational context and acknowledges the importance of asset management in supporting services provided by Council.
• The Asset Management Policy identifies the need for Council reporting to be categorised in terms of operational, maintenance, renewal, upgrade and new expenditure classifications.
• The Asset Management Policy includes audit and review procedures, specifies review dates and has a sunset clause.

Local Government Asset Management Better Practice Guide

The Local Government Asset Management Better Practice Guide includes the following list of Asset Management Policy functions:

• Establishes the goals and objectives for asset management providing a platform for service delivery.
• Integrates long term asset and financial management with council’s strategic objectives.
• Maximises value for money by adoption of life cycle costing, combined with disciplined performance measurement.
• Assigns accountability and responsibility for service delivery together with asset management.
• Promotes sustainability to protect the needs of future generations.

Asset Planning and Management Framework

The Local Government and Planning Ministers' Council's Asset Planning and Management Framework suggests that an Asset Management Policy should:

• establish the objectives for asset management providing a platform for service delivery;
• integrate asset management with corporate and financial planning;
• assign accountability and responsibility for service delivery together with asset management;
• broadly takes account of whole of life costing, service levels and financing options; and
• requires the adoption of an asset management plan informed by community consultation and local government financial reporting, and which
• is supported by training in financial and asset management.

International Infrastructure Management Manual

Section 2.1.2 of the International Infrastructure Management Manual deals with "Developing the Asset Management Policy". It contains a checklist similar to those above and two very brief Asset Management Policy case studies

Related Pages

• Asset Management Framework
• Asset Management Plan
• Asset Management Strategy
• Asset Register

External Links & References

1. Google Search