Formulation of a Government-wide Fixed Asset Management Framework
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Transcript of Formulation of a Government-wide Fixed Asset Management Framework
Formulation of a Government-wide Fixed
Asset Management Framework
Presentation to the Portfolio Committee of Public
Works13 November 2002
2
Why Immovable Asset Management Framework &
Act?Currently no comprehensive consolidated guideline for the State’s immovable assetsThis is a good governance initiative - Like PMFA and Public Service Act, Asset Management Framework – later Act, will guide whole of government to enable:
>Better allocation of limited resources >Better alignment of immovable assets with
service delivery & community expectations >Reduced demand for new immovable assets >More effective use of existing immovable assets
>Will apply to any sphere of government that has a role in immovable assets including infrastructure without taking away respective mandates or roles.
3
Why Specific Focus on Immovable Assets?
Impact on macro-economic and physical landscape of the country– positively or negativelyHave land ownership implications & often emotiveAre a finite resource Are difficult to change location & useHave lengthy acquisition periodsCostly to manage and maintainHave a very long life cycle
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Principles: Immovable Asset Management Framework
Immovable assets should support service deliveryImmovable asset management policies of any authority should be consistent with the government’s policies/legislationFramework is premised on basis that ownership of immovable assets is centralised in National, Provincial, Local Government & Parastatals entities, ie. title is not devolved to individual depts.Full life cycle costing, risk analysis and better use of existing immovable assets should be the driving factors in immovable asset management decisions – (user pays)Full cost of providing, operating, and maintaining of immovable assets should be reflected in the budgets of the authority responsible for delivering a service Immovable asset management decisions should be focused on meeting the service delivery needs of the present, without compromising the needs of future generations
5
Immovable Asset Management in a govt-wide
context
Resource Strategies and Plans
Service Delivery Strategy
Departmental Strategic Plan
Government-wide Policy/Legal Framework
Community Needs and Expectations
Human Resource Plan
IT and SupportSystems Plan
Im/movable AssetManagement Plan
Financial Plan
6
Immovable Asset in Context of Service
Delivery
Service DeliveryStrategy
CurrentAssetsFunctionality
Condition
Utilisation
Performance
GOVERNMENT OBJECTIVES AND POLICIES
Fixed Asset Requirements
Additional Utilise Redundant
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Useful Life of Immovable Asset
PlanningPlanning
DisposalDisposal
Utilise and Utilise and MaintainMaintain
AcquisitionAcquisition
8
Immovable Asset Life Cycle Cost
TimeTime
Co
stC
ost
Pla
nn
ing
Pla
nn
ing
Ac
qu
isit
ion
Ac
qu
isit
ion
Dis
po
sa
lD
isp
os
al
Utilise andUtilise andMaintainMaintain
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Portfolio
Treasury
DPW/Cust
DPSA
FINANCIAL POLICY AND BUDGET
IMMOVABLE ASSET MANAGEMENT POLICY AND CUSTODIAN
Dept A Dept B/Prov/Mun
Strategic Plan Strategic Plan
Service Delivery Strategy Service Delivery Strategy
Advice
Immovable Asset Management Plan
Additional Utilise Redundant
Immovable Asset Management Plan
Additional Utilise Redundant
Proposed Institutional Environment & Processes for the Government wide Immovable Asset
Management Framework
HUMAN RESOURCE POLICY
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ConclusionPresentation outlines the backbone of initial proposal regarding a Government-wide Immovable Asset Management FrameworkFramework will be developed into an Act, mid next year. (GIAMA)Currently framework consultations–DG to DGIncorporation into Jan 2003 Lekgotla, anticipated.Draft Bill to be ready – Feb 2003 for public consultations & promulgation target – July03In future, govt depts and other organs of govt will prepare yearly asset management plans, similarly to yearly budget plans.Anticipated other organs of State will begin doing the same, share information, intergrate planning and effort and follow uniform good governance guidelines and approaches, re: immovable assets.