Transcript Asset Management in Integrated Planning and Reporting for

Asset Management in Integrated
Planning and Reporting for Local
Governments
Troy Daniels, Project Manager
Department of Local Government and Communities
Drivers of Local Government Reform in
Western Australia
LGAB Ensuring the
Future
Sustainability of
Communities
Report
recommendations
LGPMC Nationally
Consistent
Frameworks on
Local Government
Sustainability
(2006)
(2009)
(2008)
WALGA Systemic
Sustainability
Study
(2010) Reform
Steering
Committee Report
Drivers of Local Government Reform in
Western Australia
• Estimated local government asset renewal gap =
$110 million per annum (Allan, 2012)
• Estimated local government infrastructure
renewal backlog = $1.75 billion (Allan, 2012)
• Pressure on local government to increase fees,
charges, rates and borrowing
Tackling Asset Management Reform
• Integrated Planning and Reporting (IPR) Framework developed in
2010
• Changes to ‘Plan for the Future’ regulations gazetted August 2011
• Responded to capacity challenges in the sector
• Integrated approach to planning based on meaningful
engagement with the community on significant choices
• De-emphasized the annual budget cycle
• Recognised diversity of the sector
• Enhanced opportunities to engage with other agencies
Asset Management Framework and
Guidelines
• Aligns with interstate and international
frameworks and asset management practice.
• Developed with the sector through Asset
Management Working Group.
• Aims to enhance the sustainable management of
local government assets by encouraging a ‘whole
of life’ and ‘whole of organisation’ approach to
asset management.
Implementing Integrated Planning
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Frameworks
Guidelines
Toolkits
Regulations
Advisory Standard
Website & e-bulletin
Workshops
Master classes
The Local Government Sector
Responds
Asset Management Challenges To Date
Internal Challenges
GENERAL GAPS
• IPR alignment
100%
90%
80%
70%
64%
• Cross-organisational
responsibility
64%
55%
60%
50%
32%
40%
30%
20%
• AM Strategy
10%
Data
management
N = 22
• Performance
measurement
Condition and
useful life
Service levels
O&M, renewal
and replacement
strategies
• AM Policy
Asset Management Challenges To Date
Challenge
Data management
Condition and useful life
Service levels
O&M, renewal and
replacement strategies
What local governments may require help with….
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Methods to maintain data appropriately.
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Methodologies for carrying out consistent asset condition surveys and defect identification.
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Processes for quantifying maintenance expenditure into reactive and planned maintenance.
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Processes for and assistance in ‘horizon planning’; capital works justification & prioritisation for
implementing investments in new assets.
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Collection and management of condition data.
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Robust processes for condition ratings and modelling.
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Determining asset performance targets and current performance.
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Determining the current utilisation levels of assets and remaining capacity.
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Developing formalised process for O&M.
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Documenting an O&M strategy.
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Documenting the renewal and replacement strategy.
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Documenting the capital investment strategy.
The Future of Asset Management in WA
2013 – 2015
2016 – 2018
AM Plans Completed.
Implementation of AM
Improvement Strategies
commences.
AM Improvement Strategies
implemented.
Fair Value accounting
adopted.
Renewal and replacement
strategies in place.
Condition and useful life data
collected and complete.
Service Levels agreed with
community as part of SCP
review and renewal.
LGs have confidence in
setting and assessing
achievement against asset
performance targets.
LG AM Plans inform State
funding decisions.
AM Plans Reviewed and
renewed where appropriate.
Capital investment strategies
and decision making criteria
set.
Monitoring of AM practice
commences (through NAF).
Data Management improves.
2018 +
Renewal funding
strategies established
through LTFPs to address
funding gaps .
AM practice consistently
improving.
The Future of Asset Management in
WA
Timeframe
DLGC Activities
Short Term
(12-18 months)
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Advice and support
Review of IPR frameworks and guidelines
Review and renewal of IPR Advisory Standard
Update of the Performance Management Framework
Asset management support for country local governments
Support for National Assessment Framework
Medium Term
(2-4 years)
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Training for elected members
Asset management support for country local governments
Support for National Assessment Framework
Engagement with State Agencies
Long Term
(5 years +)
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Ongoing advice and support
Engagement with State Agencies
Thank you
Department of Local Government and Communities
Gordon Stephenson House
140 William Street
PERTH WA 6000
GPO Box R1250 PERTH WA 6844
Telephone: (08) 6551 8700
http://www.dlgc.wa.gov.au
Integrated Planning enquiries: [email protected]
E1320163