1. Asset Management Accountability Framework
IHEA Professional Development Day – 19 May 2017
Warren Corlett, FIEAust CPEng
Manager, Asset Management
Department of Health and Human Services

2. Asset Management Accountability Framework
Announced/ released by DTF in February 2016
Mandated by a new Standing Direction ( Asset Management) of the 2016 Standing Directions of the Minister for Finance on 1 July 2016 (published February 2016)
Applies to non-current assets controlled by government departments, portfolio agencies and other public bodies
Encourages good practice asset management
To ensure assets are managed over their whole lifecycle and achieve service delivery outcomes
Framework aligns with the ISO Standard but covers some areas where the ISO Standard is silent

3. Asset Management Accountability Framework
Has mandatory requirements that public sector agencies must meet
To lift management practice to ensure the best is made of our existing asset base
Requirements include developing:
asset management strategies, performance standards and processes to regularly monitor and improve asset management
systems to maintain assets and processes to identify and address performance failures

4. The new Framework…

5. Key Framework features
Same principles …
service delivery focused
integrated into planning frameworks
a whole of life cycle approach
informed decision making
considerate of other government asset management policies
The asset lifecycle
PLANNING
Asset management strategy Planning for uncertainty
Business cases
Risk management Cost/benefit analysis
Accounting treatment
Non-asset alternatives
ACQUISITION
Acquisition process
Risk evaluation
Procurement method
DISPOSAL
Retirement Replacement Renewal Redeployment
OPERATION Monitoring
Maintenance
Information management Asset valuation Utilisation
Functionality

6. Relationship between the AMAF and other government policies

7. Service planning interface with asset planning and management

8. Accountability
The Framework formalises asset management accountability
At the start of the present financial year, the Framework was added into the Financial Management Compliance Framework
Requires the departmental secretary and the board of each portfolio agency to attest to compliance with Standing Directions (including disclosing any material deficiencies) and confirm the veracity of the organisation’s asset management system

9. Attestation implementation timelines
For financial year - agencies are:
required to assess their compliance with the Framework
in the agency non-published attestation, attest to compliance and disclose material compliance deficiencies
compliance against AMAF requirements is assessed as at 30 June 2018
For financial year - agencies are:
on an ongoing basis into the future, required to assess their compliance with the Framework
in the agency annual report, attest to compliance and disclose material compliance deficiencies
compliance is assessed in relation to the entire financial year

10. What’s different under the AMAF
Over fifty mandatory asset management requirements introduced
Accountability and governance requirements increased
More stringent requirements to plan and manage asset and asset management system performance
Specific information requirements are to be documented and maintained by Accountable Officers
Reporting to government and department’s portfolio role strengthened
Tighter controls for fraud and corruption

11. What’s different under the AMAF (continued)
Each Responsible Body’s Audit Committee has an enhanced and leading role in agency asset management governance and oversight
Public attestation by the Accountable Officer to evidence compliance with mandatory requirements as part of overall meeting the requirements of all Standing Directions
Accountability further devolved to Responsible Bodies to:
deliver and demonstrate specific performance expectations in systems, staffing and processes
set and manage against standards, monitor compliance
demonstrate appropriate asset management practice

12. What are some key Framework requirements
Develop asset management strategies
Governance Frameworks
Performance standards
Processes to monitor & improve asset management
Establish systems for maintaining assets
Processes to identify and address performance failures

13. Some implementation issues
Resourcing
Framework introduction
Advice and support
Going beyond reporting and compliance
Asset information tools and systems
Efficient data exchange
Asset Information Management Systems
Asset management maturity

14. Implementation issues (continued)
Getting up to speed
Asset Management Strategy
Asset Management Plans
Establishing Standards
Key Performance Indicators
Attestation scale
Addressing inadequate practices

15. In closing
Portfolio agencies are encouraged to work closely to coordinate their AMAF implementation consistent with their portfolio role
For portfolio agencies, Boards are ultimately responsible for strategic management of assets under their control and for meeting AMAF requirements