LGA ‘Infrastructure and Asset Management (Policy and Planning) Information Paper
Councils in South Australia are the custodians of over $10b of infrastructure and assets on
behalf of their communities.
They have an obligation to ensure that current
managed efficiently and effectively and that decisions regarding the and the sale and maintenance of current assets are undertaken in fashion.
acquisition of an open and
assets are new assets transparent
Relative to annual income the South Australian Local Government sector is 3 times more asset intensive (i.e. value of assets/income) than the State Government and 9 times more asset intensive than the Commonwealth Government. It follows that asset management is a more critical responsibility for Councils than for other spheres of government. Sound asset management is key to the financial sustainability of every Council.
This information paper is Sustainability Program. Management in Councils’
one of a number being developed as part It is designed to provide an overview operations.
Financial of Asset
Recent amendments to the Local Government Act will require all Councils to develop and adopt infrastructure and asset management plans covering a period of at least 10 years. In
addition Councils will be required to adopt long term covering a period at least 10 years. Both of these plans
financial management plans also will form part of Councils’ strategic between the development and
implementation of Councils’ asset and long term financial plans and this paper demonstrate the importance of these links. The relevant legislative provisions are to come into operation on 1 January 2007.
seeks to expected
This paper should be read in conjunction with the information papers on Financial Sustainability which highlight the increasing demands on Councils and the importance of efficiently managing the delivery of services. Information papers have been, or will soon be, prepared on the following topics:
An Overview of Audit Mechanisms
Scope of External Audits - Audit Specification
Efficiency & Economy Audits
Infrastructure and Asset Management (Policy and Planning)
Service Delivery Framework including the Role of Shared Services
Long-term Financial Plans
Governance in Local Government
Financial Governance and Management
Revenue and Funding Policies
A New Approach to Standards in Local Government
A New Approach to State-Local Resourcing
Local Government Financial Indicators
An Approach to Assessing Financial Sustainability for Local Government
A number of manuals, guidelines, templates, technical definitions, codes, standards and similar documents supporting this series of information papers are also being prepared by the LGA to provide practical assistance to Councils.
LGA Financial Sustainability Program – www.lga.sa.gov.au/goto/fsp