ASSET MANAGEMENT SELF ASSESSMENT TOOL ANALYSIS OF 2004 RESPONSES

ASSET MANAGEMENT SELF ASSESSMENT TOOL ANALYSIS OF 2004 RESPONSES Local Government Association of South Australia 30 April 2005

1. Introduction In 2001 the SA Local Government Metropolitan CEO's Association initiated a study into the condition of assets and infrastructure in South Australian Councils. One of the recommendations to improve the management of assets in Local Government was the identification of education and training needs in this area. The self assessment tool was designed to assist Council staff who manage Council assets to identify their own education and training needs. The information gathered will also be used to develop education and training strategies for asset management for the Local Government sector. For the purpose of the self assessment tool asset management was defined as: Those activities involved in the planning, development, renewal, acquisition, disposal, maintenance and evaluation of a Council s assets. Assets have indefinite lives and include roads, bridges, drains, parks, buildings, STEDS, footpaths, airports, cemeteries, structures and natural, coastal, sport and recreation assets including land. Assets (for the purpose of the self assessment tool) DO NOT include trees and plant and equipment, however it is recognised that the staff skill requirements for their management may be similar. The self assessment tool offers six areas of assessment as follows: A. Asset Management Records and Information B. Asset Management Systems Performance C. Business Infrastructure Asset Management D. Computerised Asset Management Systems E. Construction/Maintenance of Infrastructure Assets F. Strategic Asset Management Asset management is a multi disciplinary activity involving almost all of the key roles in Council from strategic planning to administration, from finance to engineering, and from operations to service provision. Participants were requested to identify their work function from the following list: Strategic Asset Planning Infrastructure/Parks & Reserves Finance Information Technology Property Management Combination of some/all of the above There are currently 68 Councils operating in South Australia and 68 Council officers from 41 Councils completed a self assessment in October/November 2004. A list of these 41 Councils is included as Appendix A. A printout from the self assessment tool of the questions and responses provided for each area of assessment is attached as Appendix B. DME 13650 1

2. Analysis of Overall Responses Overall the responses to all six assessment areas covered were: 35.8% had a good understanding 31.0% had an average understanding 23.0% had a poor understanding 10.2% had an excellent understanding These responses indicate that less than half of participants feel that they have an excellent or good understanding of the assessment areas covered with 54% indicating either an average or a poor understanding. This result would suggest a pressing need for further training in most areas both at the Council and sector levels. 3. Analysis of Responses to Individual Areas of Assessment An analysis of the responses to each of the six areas of assessment follows: 3.A Asset Management Records and Information 63 participants completed this section of the assessment with the breakdown into the nominated functions as follows: Strategic Asset Planning - 9 Infrastructure/Parks & Reserves -18 Finance - 13 Information Technology - 1 Property Management -12 Combination of some/all of the above - 10 The overall responses registered for this section of the assessment were: 37.9% had a good understanding 24.9% had an average understanding 22.9% had an excellent understanding 14.3% had a poor understanding The only questions in this section where participants registered high percentages of excellent understanding were: the importance of providing good customer service 55.6% and the need to maintain the integrity of stored information 36.5%. These two unusually high response rates had the effect of skewing the overall results for this section to show a more positive picture than is the case for the rest of the questions. All other questions registered between 22% and 38% of participants with only average understanding levels and between 11% and 28% with poor levels of understanding. The areas of lowest understanding in this section were: determining methods of valuation and depreciation for various asset classes (22.2% average understanding 28.5% poor understanding) and applying statutory, legislative and reporting requirements associated with data capture and maintaining records and information (30.2% average understanding and 22.2% poor understanding). DME 13650 2

3.B Asset Management Systems Performance 51 participants completed this section of the assessment with the breakdown into the nominated functions as follows: Strategic Asset Planning - 8 Infrastructure/Parks & Reserves -18 Finance - 5 Information Technology - 0 Property Management -10 Combination of some/all of the above 10 The overall responses registered for this section of the assessment were: 42.4% had a good understanding 29.0% had an average understanding 23.9% had a poor understanding 4.7% had an excellent understanding There were no questions in this section where participants registered high percentages of excellent understanding (highest was 8%) and in one instance (the question regarding benchmark, review and analysis of asset management systems, practices and service levels) not one participant registered an excellent understanding. All questions registered between 10% and 39% of participants with only average understanding levels and between 17% and 33% with poor levels of understanding. The areas of lowest understanding in this section were: understanding of the triple bottom line approach and its application to infrastructure asset management (25.5% average understanding and 33.3% poor understanding) and how to benchmark, review and analyse asset management systems, practices and service levels (39.2% average understanding and 27.5% poor understanding). 3.C Business Infrastructure Asset Management 50 participants completed this section of the assessment with the breakdown into the nominated functions as follows: Strategic Asset Planning - 7 Infrastructure/Parks & Reserves -12 Finance - 5 Information Technology - 1 Property Management -14 Combination of some/all of the above - 11 The overall responses registered for this section of the assessment were: 33.0% had an average understanding 30.0% had a poor understanding 28.7% had a good understanding 8.3% had an excellent understanding DME 13650 3

There were no questions in this section where participants registered high levels of excellent understanding (highest was 16%) and in two instances (the questions regarding representing Council in joint arrangements with external joint venture partners, and developing and presenting a business case) not one participant registered an excellent understanding. All questions registered between 24% and 46% of participants with only average understanding levels and between 26% and 34% with poor levels of understanding. The areas of lowest understanding in this section were: providing advice on relevant legislation and ensuring Council complies with all requirements (24% average understanding and 34% poor understanding) and providing property asset management services (34% average understanding and 34% poor understanding). 3.D Computerised Asset Management Systems 45 participants completed this section of the assessment with the breakdown into the nominated functions as follows: Strategic Asset Planning - 8 Infrastructure/Parks & Reserves -12 Finance - 6 Information Technology - 3 Property Management - 8 Combination of some/all of the above - 8 The overall responses registered for this section of the assessment were: 38.5% had an average understanding 31.9% had a good understanding 24.4% had a poor understanding 5.2% had an excellent understanding There were no questions in this section where participants registered high levels of excellent understanding (highest was 9%). All questions registered between 29% and 46% of participants with only average understanding levels and between 22% and 26% with poor levels of understanding The areas of lowest understanding in this section were: how to develop a business case for the purchase of an integrated computerised asset management system (40% average understanding 26.6% poor understanding) and how to develop infrastructure management information systems (28.9% average understanding and 24.5% poor understanding). 3.E Construction/Maintenance of Infrastructure Assets 68 participants completed this section of the assessment with the breakdown into the nominated functions as follows: Strategic Asset Planning - 7 Infrastructure/Parks & Reserves - 28 Finance - 4 Information Technology - 0 Property Management - 14 Combination of some/all of the above 15 DME 13650 4

The overall responses registered for this section of the assessment were: 38.4% had a good understanding 26.3% had an average understanding 22.9% had a poor understanding 12.4% had an excellent understanding The only questions in this section where participants registered higher than 15% of excellent understanding were: understanding the importance of good design in the construction process 25%, managing construction and maintenance contracts 23.5% and planning, implementing and managing the construction of infrastructure asset projects 19.1%. All questions registered between 17% and 35% of participants with only average understanding levels and between 10% and 40% with poor levels of understanding. The areas of lowest understanding in this section were: how to assess construction and maintenance projects using a triple bottom line approach (30.9% average understanding and 39.7% poor understanding) and understanding contract law in relation to construction and maintenance contracts (23.5% average understanding and 27.9% poor understanding). 3.F Strategic Asset Management 56 participants completed this section of the assessment with the breakdown into the nominated functions as follows: Strategic Asset Planning - 14 Infrastructure/Parks & Reserves - 16 Finance - 4 Information Technology - 0 Property Management - 9 Combination of some/all of the above 13 The overall responses registered for this section of the assessment were: 35.4% had a good understanding 33.9% had an average understanding 23.3% had a poor understanding 7.4% had an excellent understanding The only question in this section where participants registered higher than 10% of excellent understanding was: how to access and apply for external funding to meet strategic infrastructure asset goals14.3%. This question also registered a high level of poor understanding (see below) which indicates that participants had very differing levels of personal expertise in this area. All questions registered between 25% and 46% of participants with only average understanding levels and between 12% and 36% with poor levels of understanding. The areas of lowest understanding in this section were: how to access and apply for external funding to meet strategic infrastructure asset goals (28.6% average understanding and 35.7% poor understanding), how to analyse Council s infrastructure assets and develop strategic options to reduce risk (37.5% average understanding and 33.9% poor understanding) and how to undertake a needs assessment to determine community infrastructure asset management needs (32.1% average understanding and 30.4% poor understanding). DME 13650 5

4. Summary Asset Management Self Assessment Tool Analysis of 2004 Responses The areas that registered the lowest levels of understanding were: determining methods of valuation and depreciation for various asset classes applying statutory, legislative and reporting requirements associated with data capture and maintaining records and information understanding of the triple bottom line approach and its application to infrastructure asset management how to benchmark, review and analyse asset management systems, practices and service levels providing advice on relevant legislation and ensuring Council complies with all requirements providing property asset management services how to develop a business case for the purchase of an integrated computerised asset management system how to develop infrastructure management information systems how to assess construction and maintenance projects using a triple bottom line approach understanding contract law in relation to construction and maintenance contracts how to access and apply for external funding to meet strategic infrastructure asset goals how to analyse Council s infrastructure assets and develop strategic options to reduce risk how to undertake a needs assessment to determine community infrastructure asset management needs The insights provided by the self assessment responses are extremely important for developing education and training materials and sessions to support staff who manage Council assets. In addition the responses would suggest that models and guidelines relevant to asset management would be invaluable to Local Government and the LGA s Asset Management Advisory Committee is currently working to address a range of sector wide asset management issues. DME 13650 6

Appendix A LIST OF COUNCILS PARTICIPATING IN THE ASSESSMENT IN 2004 Adelaide City Council Adelaide Hills Council Alexandrina Council Barossa Council District Council of Barunga West City of Burnside Campbelltown City Council City of Charles Sturt Clare & Gilbert Valleys Council District Council of Coober Pedy Flinders Ranges Council Goyder Regional Council District Council of Grant Holdfast Bay City Council Kangaroo Island Council District Council of Kimba District Council of Le Hunte Light Regional Council District Council of Lower Eyre Peninsula District Council of Loxton Waikerie Corporation of the City of Marion City of Mitcham District Council of Mount Barker City of Mount Gambier District Council of Mount Remarkable Northern Areas Council City of Norwood, Payneham & St Peters City of Onkaparinga District Council of Orroroo/Carrieton City of Port Adelaide Enfield City of Port Augusta City of Port Lincoln City of Prospect District Council of Robe City of Salisbury District Council of Southern Mallee District Council of Tatiara District Council of Tumby Bay City of West Torrens District Council of Yankalilla District Council of Yorke Peninsula DME 13650 7

Appendix B A. ASSET MANAGEMENT RECORDS & INFORMATION The following results were generated from 63 attempts, rated from 1 (Needs Work) to 5 (Excellent): A. Asset Management Records & Information Understands how to capture, update and maintain data to meet Council s infrastructure asset management objectives and legislative and statutory reporting requirements. Performance Criteria A.1) I am able to identify data requirements (including the nature and type of data asset history and ownership, data collection techniques and processes) to achieve infrastructure asset management objectives. A.2) I have a good understanding of the need to maintain the integrity (including confidentiality requirements) of information stored. A.3) I know and can apply statutory, legislative and reporting requirements (including Australian Accounting Standards 27, Local Government Act, Road Traffic Act etc) associated with data capture and maintaining records and information and its application to infrastructure asset management. A.4) I am able to effectively program and coordinate the activities associated with the capture, updating, and review of data for infrastructure asset management. A.5) I understand the importance of providing efficient and effective customer service to both internal and external customers. A.6) I am able to determine methods of valuation and depreciation for various asset classes taking into account the useful life of the asset. A.7) I am able to use electronic records management systems and relevant asset management software packages. 5 14.3% 4 36.5% 3 38.1% 2 9.5% 1 1.6% 5 36.5% 4 44.4% 3 15.9% 2 3.2% 1 0% 5 9.5% 4 38.1% 3 30.2% 2 15.9% 1 6.3% 5 14.3% 4 36.5% 3 33.3% 2 7.9% 1 7.9% 5 55.6% 4 39.7% 3 4.8% 2 0% 1 0% 5 9.5% 4 39.7% 3 22.2% 2 19% 1 9.5% 5 20.6% 4 30.2% 3 30.2% 2 11.1% 1 7.9% DME 13650 8

B. ASSET MANAGEMENT SYSTEMS PERFORMANCE The following results were generated from 51 attempts, rated from 1 (Needs Work) to 5 (Excellent): B. Asset Management Systems Performance Understands how to monitor and maintain performance of the asset management system through measuring asset performance, managing assets and best practice benchmarking. Performance Criteria B.1) I am able to develop and implement performance measurement and control systems to manage the performance of Council s infrastructure assets. B.2) I know how to benchmark and review and analyse infrastructure asset management systems, practices and service levels in order to continually improve infrastructure asset management performance. B.3) I have a good understanding of Triple Bottom Line and it s application to infrastructure asset management and measuring the economic, social and environmental impacts of providing and maintaining Council's assets. B.4) I am able to apply a long term view to infrastructure asset management and set goals accordingly. B.5) I can provide meaningful reports on the performance of Council s infrastructure asset management. 5 5.9% 4 33.3% 3 39.2% 2 19.6% 1 2% 5 0% 4 33.3% 3 39.2% 2 21.6% 1 5.9% 5 2% 4 39.2% 3 25.5% 2 23.5% 1 9.8% 5 7.8% 4 62.7% 3 9.8% 2 17.6% 1 2% 5 7.8% 4 43.1% 3 31.4% 2 15.7% 1 2% DME 13650 9

C. BUSINESS INFRASTRUCTURE ASSET MANAGEMENT The following results were generated from 50 attempts, rated from 1 (Needs Work) to 5 (Excellent): C. Business Infrastructure Asset Management Understands business principles and their application to infrastructure asset management in order to ensure Council achieves its strategic and operational objectives. Performance Criteria C.1) I am able to represent Council in joint development/collaborative arrangements with external joint venture partners. This includes negotiating with partners, managing the project, managing risk and ensuring financial and legal requirements are met. 5 0% 4 38% 3 36% 2 16% 1 10% C.2) I am able to develop and present a business case based on the analysis of financial and technical information (including projections), consideration of the different classes of assets, the impact of renewal versus new assets, Council s strategic direction and resource capacity. C.3) I am able to provide advice on relevant legislation (including contract law, Local Government Act etc) and ensure that Council complies with all requirements. 5 0% 4 26% 3 46% 2 18% 1 10% 5 10% 4 32% 3 24% 2 26% 1 8% C.4) I can provide property asset management services including leasing & licensing, acquisition, occupancy and disposal of council property, monitoring and reviewing usage and occupancy rates, and reporting on the condition and repair of Council s property assets. 5 16% 4 16% 3 34% 2 26% 1 8% C.5) I know how to develop and maintain a database of Council s property/commercial assets. C.6) I know how to deal effectively with the private/commercial sector and understand market conditions and forces and property purchase and sale processes. 5 16% 4 32% 3 26% 2 16% 1 10% 5 8% 4 28% 3 32% 2 24% 1 8% DME 13650 10

D. COMPUTERISED ASSET MANAGEMENT SYSTEMS The following results were generated from 45 attempts, rated from 1 (Needs Work) to 5 (Excellent): D. Computerised Asset Management Systems Understands how to establish and update information systems to support strategic asset management planning and management of infrastructure assets in consultation with internal and external experts. Performance Criteria D.1) I am able to develop appropriate infrastructure management information systems to support Council s strategic asset management goals and objectives and operational needs. D.2) I am able to assess software capabilities through undertaking needs analysis, investigation and evaluating software packages, identifying enhancements and developing a system to compare various packages. D.3) I know how to develop a business case for the purchase of an integrated computerised asset management system that will meet Council s asset management goals and objectives. 5 8.9% 4 37.8% 3 28.9% 2 15.6% 1 8.9% 5 2.2% 4 28.9% 3 46.7% 2 15.6% 1 6.7% 5 4.4% 4 28.9% 3 40% 2 13.3% 1 13.3% DME 13650 11

E. CONSTRUCTION/MAINTENANCE OF INFRASTRUCTURE ASSETS The following results were generated from 68 attempts, rated from 1 (Needs Work) to 5 (Excellent): E. Construction/Maintenance of Infrastructure Assets Understands the processes and systems involved in constructing and maintaining Council s infrastructure assets effectively in order to minimise Council s risk. Performance Criteria E.1) I understand the importance of good design (including standards and specifications) in the construction process and am able to develop a design brief. E.2) I can plan, implement and manage the construction of infrastructure asset projects (including scheduling of work, determining resource (financial, physical & human) requirements & critical timelines) ensuring specification standards & requirements are met. E.3) I know how to develop, implement and monitor a programmed maintenance system including defining and reviewing service/intervention levels, monitoring the conditions of assets and forecasting and scheduling preventative maintenance tasks. E.4) I am able to review and analyse asset service levels, systems practices and procedures in order to ensure efficiency, reliability and cost effectiveness. E.5) I know and can apply legislative, statutory and council policy requirements relative to infrastructure asset management. E.6) I am able to manage construction and maintenance contracts including development of specifications and assessment criteria and contractor performance. E.7) I have an understanding of contract law and its application to construction and maintenance contracts E.8) I am able to develop and implement a risk management approach for construction and maintenance of council s assets. 5 25% 4 38.2% 3 17.6% 2 8.8% 1 10.3% 5 19.1% 4 39.7% 3 22.1% 2 11.8% 1 7.4% 5 8.8% 4 36.8% 3 29.4% 2 16.2% 1 8.8% 5 11.8% 4 33.8% 3 33.8% 2 16.2% 1 4.4% 5 13.2% 4 41.2% 3 25% 2 17.6% 1 2.9% 5 23.5% 4 36.8% 3 19.1% 2 13.2% 1 7.4% 5 5.9% 4 42.6% 3 23.5% 2 19.1% 1 8.8% 5 5.9% 4 41.2% 3 27.9% 2 19.1% 1 5.9% DME 13650 12

E.9) I know how to assess construction and maintenance projects using a triple bottom line approach to assess economic, social and environmental impacts. E.10) I know how to develop and maintain an asset records system identifying data needs, collection procedures and upkeep. E.11) I understand the importance of operating procedures and can ensure operations manuals are developed, implemented and reviewed. E.12) I know how to research best practice approaches in construction and maintenance and use such information to develop options for improvement in construction and maintenance, asset management systems, procedures and practices. 5 2.9% 4 26.5% 3 30.9% 2 23.5% 1 16.2% 5 13.2% 4 38.2% 3 23.5% 2 17.6% 1 7.4% 5 8.8% 4 45.6% 3 35.3% 2 7.4% 1 2.9% 5 10.3% 4 39.7% 3 27.9% 2 13.2% 1 8.8% DME 13650 13

F. STRATEGIC ASSET MANAGEMENT The following results were generated from 56 attempts, rated from 1 (Needs Work) to 5 (Excellent): F. Strategic Asset Management Understands how to undertake strategic infrastructure asset management planning in order for Council to achieve its strategic goals and objectives and minimise risk. Performance Criteria F.1) I am able to review Councils strategic directions and resource capacity to develop long term infrastructure asset management goals, objectives and strategies accordingly. F.2) I know how to interpret long term strategic goals and develop an annual business plan and annual budget. F.3) I know how to undertake an analysis (including technical, demographic, whole of life and forecasting) of Council s infrastructure assets and develop strategic options to reduce Council s risk. F.4) I am able to apply legislative, statutory and Council s policy requirements to strategic infrastructure asset management planning. F.5) I know how to develop policies and guidelines in order to effectively manage Council s infrastructure assets. F.6) I know how to access and apply for external funding to meet strategic infrastructure asset goals. F.7) I know how to undertake a needs assessment (including community consultation) in order to determine community infrastructure asset management needs. F.8) I am able to develop a priority program for infrastructure asset management in line with statutory requirements to ensure logical and structured implementation. 5 7.1% 4 42.9% 3 25% 2 21.4% 1 3.6% 5 8.9% 4 51.8% 3 26.8% 2 12.5% 1 0% 5 3.6% 4 25% 3 37.5% 2 23.2% 1 10.7% 5 7.1% 4 32.1% 3 35.7% 2 19.6% 1 5.4% 5 7.1% 4 33.9% 3 39.3% 2 17.9% 1 1.8% 5 14.3% 4 21.4% 3 28.6% 2 28.6% 1 7.1% 5 1.8% 4 35.7% 3 32.1% 2 30.4% 1 0% 5 10.7% 4 42.9% 3 30.4% 2 10.7% 1 5.4% DME 13650 14

F.9) I know how to develop and implement a risk management strategy for Council involving risk identification and analysis, undertaking control measures and communicating and liaising with the relevant internal and external stakeholders. F.10) I know how to plan for and undertake acquisition of new assets and dispose of surplus assets based on strategic and customer requirements. F.11) I know how to measure the full cost (using full cost attribution and whole-of-life forecasts) of providing and maintaining Council s infrastructure assets. F.12) I am able to negotiate, communicate and present best practice asset management concepts and issues to Council Members, management and other stakeholders. 5 3.6% 4 35.7% 3 46.4% 2 10.7% 1 3.6% 5 8.9% 4 48.2% 3 25% 2 12.5% 1 5.4% 5 7.1% 4 21.4% 3 42.9% 2 21.4% 1 7.1% 5 8.9% 4 33.9% 3 37.5% 2 16.1% 1 3.6% DME 13650 15