Asset management principles

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1. Service delivery needs are to guide asset practices and decisions.

   Agencies are to undertake asset management activities within a strategic framework that is driven by program and service delivery needs.

2. Asset planning and management are to be integrated with corporate and business plans, budgetary and reporting processes.

   Planning, budgeting for, and reporting on assets are to be integrated with broader planning processes, both within agencies and between central and other agencies.

3. Asset management decisions are to be based on evaluations of alternatives that take into account full life cycle costs, benefits and risks of assets.

   Capital expenditure decisions are to be based on rigorous and documented economic appraisals of options that include financial as well as non-financial parameters. The economic appraisals should be evaluated by a party other than the proponent of the project.

4. Ownership, control, accountability and reporting requirements for assets are to be established, clearly communicated and implemented.

   Ownership and control of all assets are to be fully defined. Accountability and reporting requirements for both ownership and control are to be determined and clearly communicated.

5. Asset management activities are to be undertaken within an integrated Government asset management policy framework.

   Agency asset management is to be based on best practice in government and industry and on Government policy as reflected in the Asset Management Series.

The asset management checklist at the end of this part provides more details of the requirements for implementing these principles. Figure 1.2 shows diagrammatically the interrelationship between the asset management principles.

Figure 1.2 Key principles

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