Asset Management Accountability Framework (AMAF)

Poor asset management practices can lead to inefficiencies and increased costs. As such, Victorian public sector organisations are required to comply with a robust framework to ensure assets are managed effectively.

The Asset Management Accountability Framework (AMAF) offers a structured approach for this. When implemented successfully, AMAF seeks to streamline operations, reduce costs and ensure public funding is utilised as effectively as possible.

What is the Asset Management Accountability Framework?

The Asset Management Accountability Framework (AMAF) is a policy established by the Victorian Government to enhance the management of public assets.

It provides guidelines for planning, acquiring, operating, and disposing of assets to ensure they support service delivery objectives efficiently and effectively.

By meeting the attestation requirements set out in the AMAF, Victorian public sector organisations can ensure their assets are managed in a way that maximises value for money, mitigates risks, and meets the needs of the community.

Why Does the Framework Exist?

AMAF was created to support the delivery of government services to the community, including preserving cultural and heritage assets with unique historical, cultural, or environmental attributes. The framework ensures that Accountable Officers manage Victoria’s portfolio of assets efficiently and effectively.

Key objectives of AMAF include:

• Ensuring that assets are appropriately planned, built, acquired, used, maintained, and disposed of.
• Providing the right assets at the appropriate time and location in the necessary quantities.
• Allowing flexibility to delay asset acquisition, expansion, or disposal when circumstances change.
• Maximising value for money by considering the full costs (including embedded option value) of acquiring, holding, using, and disposing of assets throughout their lifecycles.
• Exploring private sector engagement options where feasible.
• Acquiring only those assets required to support service delivery or cultural outcomes.
• Managing associated asset risks efficiently and effectively.
• Applying lessons learned from the performance of existing assets when considering new investments.
• Considering non-asset service delivery alternatives to minimise demand for new assets.

To achieve these objectives, organisations are required to nominate an Accountable Officer who will be responsible for the implementation of, and attestation of, the Framework.

Who is an Accountable Officer?

An Accountable Officer is typically the department head of a government department or the Chief Executive Officer of a public body, unless otherwise determined by the Minister. They are responsible for ensuring that the principles and requirements of the AMAF are applied to manage the assets under their control.

Accountable Officers are tasked with:

• Establishing asset management functions.
• Ensuring these functions are appropriately resourced with skilled staff.
• Maintaining compliance with the framework.

Their leadership sets the tone for asset management within their organisations, promoting best practices and fostering a culture of continuous improvement. By driving these initiatives, Accountable Officers play a pivotal role in enhancing the efficiency and effectiveness of asset management.

What are the Requirements?

Victorian public sector organisations must meet the following annual attestation requirements to ensure effective asset management, including:

1. Leadership and Accountability: Organisations must establish robust asset management functions, governance frameworks, and performance standards. Clear responsibility and accountability for asset management activities must be defined and communicated throughout the organisation.
   
2. Planning: Accountable Officers must develop a comprehensive asset management strategy that covers the entire asset lifecycle. This strategy should outline how assets will support the organisation’s service delivery objectives and include planning for upgrades, acquisitions, and disposals over different time periods (short, medium, and long-term).
   
3. Acquisition: Before acquiring new assets, organisations should consider non-asset solutions. When acquisition is necessary, appropriate procurement methods should be chosen to ensure value for money and alignment with strategic objectives. Risks associated with acquisition should be assessed and managed effectively.
   
4. Operations: Organisations must establish processes to monitor and maintain the condition of their assets. Proactive measures should be taken to identify and address potential asset performance failures. Policies should be implemented to protect assets against fraudulent activity and improper use.
   
5. Disposal: Disposal of assets should be planned in advance and carried out in a manner that maximises financial benefits and complies with relevant approval processes. Disposal decisions should be made within an integrated planning framework.
   
6. Information Management: Accurate recording, identification, valuation, and reporting procedures must be established. An Asset Information Management System (AIMS) should be maintained to support decision-making and reporting requirements. The AIMS must include up-to-date asset information and historical records of financial and non-financial data.
   
7. Record Keeping: Organisations must establish appropriate record-keeping processes to meet operational needs and accounting standards. This includes maintaining accurate records for contingent and intangible assets.
   
8. Asset Valuation: Policies and procedures for asset revaluation must be documented and followed. Regular asset valuations ensure accurate financial reporting and inform decisions on maintenance, modification, and disposal.
   
9. Performance Monitoring: Asset performance should be continuously monitored and reviewed against established standards, targets, or benchmarks. Organisations should regularly assess and update their asset management practices based on performance data.

How Can Kairos Help?

The framework is comprehensive, and its requirements reflect asset management best practices that any medium-to-large organisation—public or private—would benefit from.

Sometimes, teams face capability or capacity gaps, which is where we come in. We support Victorian government organisations to ensure compliance and meet (and indeed exceed) the requirements.

We have experience working with Asset Management leaders at City of Melbourne, Department of Transport & Planning, Department of Education, Greater Metropolitan Cemeteries Trust, Monash Health and others. As a result, we’re very familiar with your requirements and obligations under AMAF.

From focused on-the-ground data capture initiatives, full-scale strategy and rollout engagements, and project recovery programs, we have the expertise, equipment, and personnel required to assist.

Here are a few ways we can help:

• Develop and review a comprehensive asset management strategy: We help plan for upgrades, acquisitions, and disposals, assisting senior management in evaluating and updating the strategy as needed.
  
• Implement risk management strategies: We identify, assess, and mitigate asset-related risks, regularly evaluating their effectiveness.
  
• Monitor, maintain, and review asset conditions and performance: We establish processes to monitor asset conditions, identify failures, implement corrective actions, and regularly assess performance against standards and benchmarks.
  
• Develop and review maintenance programs: We ensure high-priority assets are effectively maintained through regular program reviews.
  
• Set up accurate recording, reporting, and record-keeping procedures: We establish procedures for asset recording, valuation, and reporting, including maintaining an Asset Information Management System (AIMS) and ensuring compliance with accounting standards.
  
• Document policies and procedures for asset revaluation: We ensure accurate financial reporting and informed decisions on maintenance, modification, and disposal.
  
• Identify gaps in your current asset data register: We find gaps in your asset data register and build an engagement structure to meet your requirements.
  
• Work with stakeholders to ensure alignment: We ensure alignment on project objectives, covering mobilisation, communication, risk management, and scheduling.
  
• Coordinate scheduling, site access, inductions, and training: We manage scheduling, site access, inductions, and training, providing daily updates and quality assurance.
  
• Review all facets of your assets and organisation: We assess your assets, organisation, team, technology, and data, creating a data-led approach for optimal asset management.
  
• Implement and execute asset management initiatives: We validate and track improvements in asset utilisation, lifespans, reactive maintenance, downtime, budgeting, and forecasting.
  
• Periodically review your asset management strategy: We evaluate your strategy’s effectiveness, identify areas for improvement, and adapt to evolving needs.

FAQs

What is the AMAF?

The AMAF, or Asset Management Accountability Framework, is a policy established by the Victorian Government to ensure public assets are managed efficiently and effectively throughout their lifecycle.

Who must comply with the AMAF?

All Victorian public sector agencies, including departments, agencies, corporations, and authorities, are required to comply with the AMAF.

Who can be an Accountable Officer?

An Accountable Officer is typically the department head of a government department or the chief executive officer of a public body, unless otherwise determined by the Minister.

Does my organisation need to comply with the AMAF?

Yes, if your organisation is a Victorian public sector agency subject to the Standing Directions of the Minister for Finance, you must meet attestation requirements annually.

What types of assets are covered under the AMAF?

The AMAF applies to non-current physical and intangible assets, including land, buildings, infrastructure, plant, equipment, and ICT assets, but excludes financial assets.

What are the responsibilities of an Accountable Officer under the AMAF?

Accountable Officers must ensure the establishment of asset management functions, develop asset management strategies, maintain accurate asset records, and comply with mandatory attestation requirements.

What should be included in an asset management strategy?

An asset management strategy should outline how assets will support the organisation’s service delivery objectives and include planning for upgrades, acquisitions, and disposals over different time periods (short, medium, and long-term).

What is an Asset Information Management System (AIMS)?

An AIMS is a system used to maintain up-to-date asset information, including asset registers, and to support decision-making and reporting requirements.

What is the role of the audit committee in AMAF compliance?

The audit committee must review and be satisfied with the Responsible Body’s attestation of compliance with the AMAF requirements before finalising the attestation in the annual report.

How often should organisations conduct self-assessments of asset management maturity?

From 2020-21, organisations must conduct a self-assessment of their asset management maturity at least every three years and report the results in their annual report.

What should an organisation’s governance framework include under the AMAF?

Governance frameworks should support the management of assets, clearly defining and allocating asset management responsibilities and ensuring compliance with mandatory requirements.

What is the role of continuous improvement in the AMAF?

Continuous improvement involves regularly reviewing and enhancing asset management practices to adapt to changing circumstances and improve performance.

Key Resources and Contacts

Essential Resources

• Department of Treasury and Finance Victoria: Comprehensive overview and guidelines for AMAF compliance.
  • DTF Victoria
• Victorian Auditor-General’s Office: Audit reports on AMAF compliance and implementation.
  • Victorian Auditor-General’s Office
• Vic.gov.au: Information on how AMAF aligns with international standards and other relevant strategies.
  • Vic.gov.au

Key Contacts

• Department of Treasury and Finance Victoria: For queries related to the AMAF and compliance.
  • Email: information@dtf.vic.gov.au
  • Phone: +61 3 9651 5111
• Victorian Auditor-General’s Office: For audit reports and compliance insights.
  • Email: inquiries@audit.vic.gov.au
  • Phone: +61 3 8601 7000

Conclusion

The AMAF provides a robust framework for managing public assets in Victoria. By following its guidelines, public organisations can ensure efficient service delivery, cost-effective asset management, and compliance with government standards.

If you require extra support in meeting your AMAF attestation requirements, we can help. We have experience with Asset Management leaders at the City of Melbourne, Department of Transport & Planning, Department of Education, Greater Metropolitan Cemeteries Trust, Monash Health, and more.

From focused data capture initiatives to full-scale strategy rollouts and project recovery, we have the expertise and personnel to required to assist with complex asset management initiatives.

Contact us using the form below and we’ll be in touch as soon as possible.