Asset management is an organisation’s coordinated activities to realise the full value of assets in delivering service delivery objectives. It is carried out over the whole asset lifecycle.
The four key stages of the asset lifecycle are:
These stages are represented in the diagram below as occurring sequentially, but each stage will be informed by activities occurring in each of the other sectors:
Organisational leaders are expected to promote principles and policies for good asset management throughout all stages of the asset lifecycle.
The Asset Management Accountability Framework (AMAF) replaces Victoria’s existing asset management framework, Sustaining Our Assets and the related asset management series. The AMAF assists Victorian Public Sector agencies manage their asset portfolios and provide better services for Victorians.
Like Sustaining Our Assets, the AMAF is premised on a non-prescriptive, devolved accountability model of asset management. This allows public sector bodies to manage their assets in a manner that is consistent with government requirements, their own specific operational circumstances and the nature of their asset base.
The AMAF details mandatory asset management requirements as well as general guidance for agencies responsible for managing assets. Mandatory requirements include developing asset management strategies, governance frameworks, performance standards and processes to regularly monitor and improve asset management. The requirements also include establishing systems for maintaining assets and processes for identifying and addressing performance failures.
Additionally, secretaries and public sector boards, must attest to their agency’s compliance with the mandatory requirements of the AMAF in their annual report from 2017-18 and, every three years, self-assess their organisation's asset management maturity.
The AMAF applies to non-current assets (physical and intangible) but not financial assets, controlled by government departments, agencies, corporations, authorities, and other bodies that are captured by the Standing Directions of the Minister for Finance made under the Financial Management Act 1994 (FMA).
Asset Management Accountability Framework (PDF 735kb)
Asset Management Accountability Framework (DOCX 893kb)
AMAF Guidance Material (PDF 529kb)
AMAF Guidance Material (DOCX 574kb)