In July 2007, Budget Committee of Cabinet endorsed a new process for developing the 10-year State Infrastructure Strategy (SIS). Agencies' Total Asset Management (TAM) submissions are the primary input to the new process detailing planned capital project and asset maintenance expenditure. TAM submissions are also the key input to an annual Infrastructure Review, during which Budget Committee will consider medium-term (10 year) infrastructure
plans and budgets. The outcomes of the Infrastructure Review will in turn inform final decisions on project funding during the annual Budget process. Major agencies will be advised of indicative 10-year planning limits, to guide their forward capital planning. For details see TC08/06, TC 08/07 and TPP 08-2.
All agencies are required to provide Proposed TAM submissions to Treasury each year. For most agencies, Proposed TAM submissions (due Oct/Nov at the beginning of the budget process) comprise TAM data tables and supporting business cases and Gateway Review reports for projects seeking funding approval in the upcoming Budget year. Only Nominated agencies provide an Asset Strategy as part of their Proposed TAM submission – this excludes most small agencies with few assets and small annual capital programs.
Agencies with significant capital programs will also be required to prepare an Agreed TAM submission at the end of the budget process (June / July) comprising of TAM data tables updated to reflect Budget outcomes. Treasury will directly advise these agencies of this requirement.
To support forward year planning, Treasury requires all agencies to submit preliminary business cases and Strategic Gateway reports for projects planned to commence in the forward years (post Budget Year), and where applicable, over the 10 year State Infrastructure Strategy planning period. For information on project criteria and thresholds, refer to TC08/07 Revised Project Size/Risk Thresholds for the submission of Business Cases and Gateway
Reports. Agencies should contact their Treasury analyst to discuss relevant project appraisals and timeframes for providing information to Treasury.
Real property, including office accommodation, is a significant asset class in many agencies TAM planning. The State Property Authority (SPA) provides services and advice in real property acquisition, management and disposal, to agencies (by agreement) and the Government. The Authority aims to:
Further details, including the Authority’s operating principles and a framework outlining its relationship with agencies in its dealings with them can be found in Premier’s Memorandum M2008-06 State Property Authority and Government Property Principles, available at the Premier’s Department website www.dpc.nsw.gov.au/publications/memos_and_circulars
In their TAM submissions, all agencies (except those SOCs not on the Nominated Agencies list on Treasury’s website) are required to provide business cases and Gateway Review reports to support the individual project proposals identified in their TAM Plans.
Generally, Proposed TAM submissions (due with budget submissions, around Oct/Nov each year) should include final business cases and Business Case stage Gateway Review reports for each project/program proposal identified forfunding approval in the upcoming budget.
Towards the end of the budget process (May/June) each year, agencies are required to submit preliminary business cases and Strategic Gateway Reviews for major and high-risk projects planned to commence in the forward years (post Budget year).
Thresholds determining all business case and Gateway Review requirements, for all asset classes are outlined in Treasury Circular TC 08/07 Revised Project Size/Risk Thresholds for the Submission of business cases and Gateway Reports and submission requirements in Treasury Policy Paper TPP 08-2 Total Asset Management (TAM) requirements for updating the NSW State Infrastructure Strategy (SIS).
TAM Policy applies to the management of all non-current physical assets owned or controlled by an agency and focuses on the management of assets to support business operations and service delivery. Applying TAM selectively to some asset types but not others weakens strategic asset planning and management and leads to development of compromised, sub optimal asset bases.
Asset planning integration refers to the planning and setting of expenditure priorities together for all assets that an agency owns, cognisant of the roles all asset types play in service delivery and that decisions regarding one asset impacts on others.
Each type of asset poses its own particular risks which must be appropriately managed. The great diversity of assets requires a broad range of skills to manage them and assets of particular types are often managed by separate groups within an agency. While this may prove an efficient means of managing a diverse portfolio it can lead to problems when the planning or operation of one asset type impacts on another.
Separate management of a particular asset type can also cause difficulties when it is conducted in competition with another internal group managing other types of assets rather than in the light of service and business needs of the agency. Integrating all asset planning within available resources minimises these difficulties.
Yes. Office accommodation and ICT assets are particular segments of the asset base which by their nature are governed by whole of government regulations and agencies’ strategies are reviewed by specialist groups for compliance with these regulations.
The planning of office accommodation and ICT assets should be integrated with the planning of all other assets in an agency’s TAM plans.
The State Property Authority analyses agencies’ Office Accommodation Data (provided in TAM data tables) and advises Treasury and the Government Asset Management Committee (GAMC) on government's current and future strategic property and accommodation needs.
The Government Chief Information Office (GCIO), within the Department of Commerce, sets the strategic directions and standards for the use of technology and seeks improvements in their procurement and deployment. The GCIO reviews agencies’ ICT Data (provided in TAM data tables) to ensure alignment with wider government priorities and ICT directions.
All assets should be planned in common so that decisions regarding their funding consider the relationship of each asset segment to the services they support. Thus it is possible to make decisions on the relative importance of each asset type and to establish overall capital and recurrent funding priorities.
The priority an agency places on the procurement or maintenance of a particular asset should reflect the role the asset plays in an agency’s service delivery and the risk involved if that expenditure does not proceed. Resource allocation decisions should not be made separately for particular classes of assets because of the tendency for this to focus attention on priorities within that class of assets rather than on agency service delivery and the risks to it. For example, a range of government issued licences can now be issued electronically. Similarly some documents can now be lodged electronically. This may require significant expenditure on ICT but allow an agency to reduce or eliminate counter services. In other circumstances investment in ICT will require additional investment in power supply or office accommodation to host the equipment.
An Agency's TAM Submissions should cover all the assets owned or controlled by an agency and should prioritise all proposed Capital Investment and Maintenence works.
Not generally, the TAM framework is not intended for the management of intangible assets. TAM is intended for the management of the State’s physical or tangible assets only. Management of the State’s intangible assets, such as Intellectual Property (IP), takes place within the Intellectual Property Management Framework for the NSW Public Sector (see Premier’s Department Circular 2005-06).
Procurement Plans do not come within the TAM framework though obviously there is a link between TAM and capital asset procurement. Procurement plans are covered by separate policies.
Agencies are required to prepare three-year rolling Procurement Plans updated on an annual basis, and submit progress reports annually to NSW Treasury. This process links procurement to service outcomes and the achievement of procurement efficiencies.
Further information on Procurement Plans can be found in NSW Treasury Research and Information Paper TRP 04-03 Procurement Planning Program (see www.treasury.nsw.gov.au).
The overarching Procurement Policy Framework is explained in TPP 04-01 – NSW Government Procurement Policy. Detailed information on NSW procurement policies can be accessed through the Department of Commerce web site www.procurepoint.nsw.gov.au.
Yes, as with all other physical assets, the agency’s TAM submissions should include MV fleet assets.
An agency’s MV fleet plan should flow from its Asset Strategy which should outline the service delivery or business need, size and composition of its fleet. The MV fleet plan may elaborate on these as necessary together with other requirements (see Premier’s Department Memorandum 2005-03 Cleaner NSW Government Fleet – Fuel efficiency improvements and emission reductions from Government vehicles).
TAM submissions support the Results and Services Plan (RSP) produced by General Government Budget Dependent agencies, and where applicable, the Statement of Business Intent (SBI), produced by non-Budget Dependent General Government agencies and the Statement of Corporate Intent (SCI), produced by Statutory Owned Corporations.
The TAM Asset Strategy is the strategic planning element of TAM which provides the platform for detailed planning for capital investment, maintenance and disposals. It is the agency’s ‘asset response’ to the high level service delivery requirements presented in the agency’s RSP, SBI or SCI demonstrating the alignment between an agency’s assets and services.
For more information on the Results and Services Plan (RSP) Policy, refer to TC 08/11 Results and Services Plans and TPP 06-9 What you do and why: an agency’s guide to defining results and services. Information on Treasury’s Commercial Policy Framework is available on the Treasury website. Budget Process information is available at NSW Treasury’s web site password protected site (www.treasury.nsw.gov.au).