An initiative to optimise the management, performance and use of the State’s assets
A consistent and improved approach to asset planning and delivery is required across Government. This approach will need to be underpinned by the consideration of asset life cycle costs, performance, risk, and economic modelling to support the strategic priorities of the NSW Government. Working in collaboration with Government agencies, Infrastructure NSW is leading asset management reform across the state to optimise the management, performance, and use of the State’s assets. This need was highlighted as a strategic objective in the State Infrastructure Strategy 2018-2038 and 2022-42.
Asset Management Policy
The objective of the Asset Management Policy is to achieve a consistent and improved approach to asset planning and delivery across Government, based on current industry asset management standards and approaches. This is critical given the significant increase to the State’s asset portfolio, which in addition to the age profile of existing infrastructure, population growth, climate change, and increased prevalence of extreme weather events, will place considerable pressure on the operations and maintenance of assets.
Asset Management Assurance
The NSW Asset Management Policy includes assurance requirements designed to give NSW Government and Cabinet confidence that the policy is being effectively implemented and that its objectives are being achieved.
Through the Asset Management Assurance process, Infrastructure NSW provides independent advice and reporting to agencies, NSW Government and Cabinet. The independent advice seeks to proactively contribute to the NSW Asset Management Policy’s aim of driving better asset management through strengthening accountability, performance, and capability across the public sector.
Building asset management capability and support for agencies
Building and sustaining a level of asset management capability is necessary to allow agencies to:
Increase the level of asset management maturity of NSW public sector agencies in line with accepted industry standards to be able to manage the State’s growing asset base
Demonstrate and increase triple-bottom-line benefits of current assets through better asset management and planning
Decease lifecycle operating costs through risk-based preventative and predictive maintenance regimes. Increase return on assets through improving commercial value and performance of assets
Prospectively identify the optimal asset maintenance regime and any upfront expenditure required with consideration to criticality and economic outcomes.
Asset Management Policy Scope
Assets and activities considered within the scope of the policy include:
All non-financial assets recognised in an agency’s financial statements. This includes land and buildings, plant and equipment, infrastructure, leased assets, works in progress, cultural and heritage collections, ICT systems, and digital services
Activities related to the management of assets carried out either by an agency or outsourced service provider who is required to establish, implement, manage and continually improve the asset portfolio as captured in the financial statements.
Annual Asset Management Assurance Cycle
The Asset Management assurance cycle is aligned to the annual NSW Budget process set by NSW Treasury. The assurance process is timed to ensure that it will inform investment decision-making for the State Budget.
As per the Asset Management policy, agencies are required to make two submissions to Treasury each year:
Asset Planning Submissions
The Asset Planning Submission comprises the agency’s Asset Management Policy, Strategic Asset Management Plan (SAMP), Asset Management Plans (AMP/s), and any supporting documentation. Together, the SAMP and AMP/s set out agency target outcomes, related asset management objectives, asset portfolio management strategies, and continuous improvement activities. The purpose of and requirements for the SAMP and AMP/s are described in the NSW Asset Management Policy.
The NSW Asset Management Policy stipulates that an agency’s Accountable Authority must annually attest to the agency’s alignment with the ‘core requirements’ set out in the policy.
The Attestation Statement must certify compliance for the reporting period, that is, the prior financial year. All agencies must return the Attestation Statement to Treasury annually.
Further detail on the attestation process is set out within the NSW Asset Management Policy
Support for agencies
The following programs are available to support agencies build their asset management capability:
NSW Asset Management Community of Practice
NSW Asset Management Policy Maturity Assessment Tool
Development of Guidelines and Support Material
A quarterly asset management forum for NSW agencies to improve their capability, knowledge and practices
The NSW Asset Management Policy Maturity Assessment Tool (MAT) is used by agencies to support asset management continuous improvement. Agencies’ use of this tool is required to support policy attestation.
Tailored advice is provided to agencies as part of asset management assurance reviews. Guidance material and case studies are shared via the AM CoP to facilitate knowledge sharing across Government.
Infrastructure NSW has established the NSW Asset Management Community of Practice (AMCoP). The objective of the AMCoP is to develop a shared understanding of good asset management and raise the maturity level across government while supporting the implementation of the asset management assurance framework.
The AMCoP has members across NSW Government. Members’ continued involvement and commitment are critical to lifting asset management capability across the State.
If you are interested in joining the Asset Management Community of Practice or would like further information, please contact firstname.lastname@example.org