Formulation of a Government-

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Nov 18, 2013 (3 years and 11 months ago)

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Formulation of a Government
-
wide Fixed Asset Management
Framework

Presentation to

the


Portfolio Committee of Public
Works

13 November 2002

2

Why Immovable Asset
Management

Framework & Act
?

Currently no comprehensive consolidated guideline
for the State’s immovable assets

This is a good governance initiative
-

Like

PMFA
and
Public Service Act, Asset Management
Framework


later Act, will guide whole of
government to enable:


>B
etter allocation of limited resources


>
Better alignment of
immovable
assets

with

service delivery
&
community

e
xpectations


>
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 negatively

Have land ownership implications &
often emotive

Are a finite resource

Are difficult to change location

&
use

Have lengthy acquisition periods

Costly to manage and maintain

Have a very long life cycle




4

Principles
:
Immovable Asset Management

Framework


Immovable assets should support service delivery

Immovable asset management policies of any authority should
be consistent with the government’s policies/legislation

Framework 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 Support

Systems Plan

Im
/
movable Asset

Management Plan

Financial Plan

6

Immovable Asset
in Context of
Service Delivery

Service Delivery

Strategy

Current

Assets

Functionality

Condition

Utilisation

Performance

GOVERNMENT OBJECTIVES AND POLICIES

Fixed Asset Requirements

Additional

Utilise

Redundant

7

Useful Life of Immovable
Asset

Planning

Disposal

Utilise and

Maintain

Acquisition

8

Immovable Asset


Life Cycle Cost

Time

Cost

Planning

Acquisition

Disposal

Utilise and

Maintain

14

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

15

Conclusion

Presentation outlines the backbone of
initial proposal
regarding a Government
-
wide Immovable Asset
Management Framework

Framework

will be developed into an Act, mid next year.
(GIAMA)

Currently framework consultations

DG to DG

Incorporation into Jan 2003 Lekgotla, anticipated.

Draft Bill to be ready


Feb 2003 for public consultations
& promulgation target


July03

In 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.