Introduction to Asset Management Principles

The emphasis placed on commercial principles in the delivery of public services in Australia is increasing. Administrations are becoming more streamlined, the `user pays' principle is gaining ground, and public sector managers are being made more directly accountable for the management of the resources under their control. These elements include not only the programs and human resources involved in the delivery of public services, but also the diversity of assets used to provide those services.

This three-part Asset Management Series has been produced to help Victoria's public sector financial managers and asset managers become more aware of their responsibilities and of the information networks that they can use for help. The series is not exhaustive in its coverage. Rather, it represents the first step of an evolving process of reform directed at establishing a cohesive and workable body of practice for best managing the State's assets.

The series is intended for application to physical assets with a potential service life of more than one year. In the public sector, these physical assets may be classed as land, buildings, infrastructure, plant and equipment, cultural collections and natural resources. Financial, human and information assets (including intellectual property) are not covered.

Part 1 of the series, Asset Management Principles, describes the purpose and fundamental principles of effective asset management in public sector agencies, and provides a strategic framework through which these can be effectively implemented

Part 2, Asset Management Policies and Practices, sets out the policies and practices for asset management that apply to all Victorian Government departments and agencies wholly or partly funded through the State budget. It provides assistance for asset managers to interpret policy requirements in the light of their particular situation. It was developed in line with the principles and key activities set out in Part 1 and in the context of applicable legislation and policy.

Part 3, the Asset Management Catalogue of Reference, details some of the relevant documentation that currently exists on asset management (in both the public and private sectors)

The three parts of the series are shown diagrammatically in Figure I.

Regular reviews of the series will ensure its continuing relevance to both the current environment and the achievement of superior asset management practice. A forum comprising major stakeholders in the public sector has been established to coordinate the ongoing development of asset management policy and practices.

Figure I

The asset Management series

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