David Edgerton FCPA Director Quality + Expertise + Flexibility + Innovation = Confidence & Real Value Asset Managers Network Strategic Asset Management and the NRSCH

Agenda Background Context Performance Requirements (Assets) Asset Management Discussion

Background Engaged to assist Q Shelter improve the asset management capability across the entire sector Some preliminary meetings already held Aim for today – – Crystallise understanding of issues, maturity, barriers and gaps – Highlight key training requirements

Context Size and Complexity of Tiers Different resources and expertise Different programs Provider owned / Dept owned / Head Lease Every entity is different !!!!!!

Performance Requirements (Assets) Determining and planning for changing housing needs Property condition standards Asset maintenance Asset development

Type of Evidence Example Maintenance Plan Maintenance

Asset Management

Corporate Governance & Asset Management Corporate Governance everything you do in order to achieve your objectives – Corporate Structure – Polices and Procedures – Risk Management – Leadership / Tone at the Top

Corporate Governance & Asset Management Asset Management Delivering and acceptable Level of Service In the long-run In the most cost-effective manner

Optimisation Level of Service against Lifecycle Costs – Acquisition – Operation – Maintenance – Renewal – Upgrade – Disposal Different Strategies Lead to different outcomes (Levels of Service) With a different Whole of Lifecycle Cost

Valuation and Depreciation Financial Sustainability Financial Aspects Cost to deliver the service Funding available Accountability and performance measurement

Asset Management Strategies Community Expectation What you deliver $ &/or Strategy Non-Asset Solution

National Asset Management Framework Key Elements Policy Strategy & Planning Levels of Service Skills & Processes Data & Systems Governance

Relationship between Key Terms ISO:55000

Scope of ISO:55001 Leadership (Cl 5) Leadership and Commitment to AM AM Policy (intent) Responsibilities/authorities assigned & communicated Alignment w corporate and strategic goals Leadership (Cl 5) Leadership and Commitment to AM AM Policy (intent) Responsibilities/authorities assigned & communicated Alignment w corporate and strategic goals Planning (Cl 6) Setting the Corporate/Strategic goals Plans and objectives that convert strategic outcomes to business and tactical action at all levels Identifies and addresses risk Communication and engagement Planning (Cl 6) Setting the Corporate/Strategic goals Plans and objectives that convert strategic outcomes to business and tactical action at all levels Identifies and addresses risk Communication and engagement Operations (Cl 8) Control the process to deliver targeted outcomes across all functions (Service delivery, Maintenance, Capital delivery) Consider how outsources activities are controlled and integrated. Operations (Cl 8) Control the process to deliver targeted outcomes across all functions (Service delivery, Maintenance, Capital delivery) Consider how outsources activities are controlled and integrated. Support (Cl 7) Provide resources (skills, IT, $) Maintain or capability (competence) Support (Cl 7) Provide resources (skills, IT, $) Maintain or capability (competence) Performance (Cl 9) Monitoring, measurement, analysis and evaluation Performance (Cl 9) Monitoring, measurement, analysis and evaluation Improvement (Cl 10) Suitability, adequacy and effectiveness of AMS Improvement (Cl 10) Suitability, adequacy and effectiveness of AMS

IPSAS RPG1: Sustainability

Discussion Issues, maturity, barriers and gaps Key areas to focus on Maturity Assessment

Where are Tiers 1, 2 & 3?

Issues, maturity, barriers and gaps ??? 10 Year Maintenance Plans Policies and Procedures Asset Management Plans Condition Standards Levels of Service Valuation & Depreciation Optimisation Long Term Financial Plans Leased assets Upgrades & surplus funds Funding arrangements Modelling for the future Skills and knowledge development Asset Registers Tools and systems Cost of regulatory compliance ???????

Key areas to focus on Everyone Tier 3 only Tier 1 & 2 only Local Govt & Indigenous ? Timing? Process?

Where to from here?

Questions David Edgerton FCPA Web: Mob: Work:(07)