Q1.  What is Asset Management and Why is it Important?

 

A1.  Asset management is a systematic process to guide the planning, acquisition, operation and maintenance, renewal and disposal of assets. Its objective is to maximise asset service delivery potential and manage related risks and costs over their entire lives. Infrastructure assets are fundamental to overall council service delivery and planning. Taking effective responsibility for asset planning requires a strong and informed council, management team and an engaged community. The long-lived nature of many assets and the need for their ongoing renewal means that planning must be based on an understanding of the full costs throughout each asset’s lifecycle, and address both short and long-term planning needs. Key to effective asset management is the preparation of a high quality asset management policy and strategy, supported by Asset Management Plans that focus on value for money and support councils in engaging with communities to find a balance between service levels, risk and cost.

(LGA Best Practice Guide)

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Q2.  What is an Infrastructure Asset?

 

A2.  Physical assets of the entity or of another entity that contribute to meeting the public’s need for access to major economic and social facilities and services, e.g. roads, drainage, footpaths, kerb and gutter. These are typically large, interconnected networks or portfolios of composite assets. The components of these assets may be separately maintained, renewed or replaced individually so that the required level of service from the network of assets is continuously sustained. Generally, the components and hence the assets have long lives. They are fixed in place and often have no market value.

(IIMM)

 

 

Q3.  What is meant by Level of Service?

 

A3.  The defined service quality for a particular service against which service performance may be measured. Service levels usually relate to quality, quantity, reliability, responsiveness, environmental, acceptability and cost.

(IIMM)

 

 

Q4.  What is Life Cycle Expenditure?

 

A4.  The Life Cycle Expenditure is the actual or planned annual operations, maintenance and capital renewal expenditure incurred in providing the service in a particular year. Life cycle expenditures will vary depending on the timing of the asset renewals.

(IIMM)

 

 

Q5.  What is meant by Useful Life?

 

A5.  Useful Life is the period over which an asset is expected to be available for use by an entity. It is the estimated or expected time between placing the asset into service and removing it from service, or the estimated period of time over which the future economic benefit embodied in a depreciable asset, are expected to be consumed.

(IIMM)

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Q6.  What is Remaining Life?

 

A6.  Remaining Life refers to the time remaining until an asset ceases to provide the required service level or economic usefulness.

(IIMM)

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Do you have any Asset Management Questions?

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