Compliance with the Asset Management Accountability Framework

Expected to be tabled in May 2019

Overview

Objective To determine the reliability of agencies’ certifications of compliance with the Asset Management Accountability Framework (AMAF).

Issues

Public sector agencies manage a portfolio of non-current assets comprising land, buildings, infrastructure, and plant and equipment, valued at over $238.9 billion. Effective management of these assets is critical for government to deliver many important services to the community. They are vital for the productivity and economic prosperity of Victoria.

Service delivery needs and the desired outputs and outcomes should drive all agencies' asset management activities across the asset life cycle. Effective asset management involves a range of activities, from initial assessment of investment proposals, ongoing maintenance and renewal, through to asset replacement or disposal decisions.

Our previous audits have identified persistent weaknesses in the public sector's asset management practices over the past 15 years. Ineffective asset management heightens the risk of agencies' service capacity being depleted through deteriorating and failing assets and growing renewal gaps, ultimately reducing the availability and quality of services available to the community.

The Department of Treasury and Finance (DTF) released the AMAF in February 2016 to help public sector agencies manage their asset portfolios and provide better services. Under the AMAF, agencies must attest to their compliance with the mandatory requirements in their annual report from 2017–18 and must periodically self-assess their asset management maturity.

Parliament and the community are entitled to have confidence in the attestations made by public sector agencies about their level of compliance with the AMAF.

This audit will provide assurance to key stakeholders on the reliability of agencies' attestations.

Proposed agencies DTF, Department of Health and Human Services (DHHS), Department of Education and Training (DET), Department of Environment, Land, Water and Planning (DELWP), Department of Economic Development, Jobs, Transport and Resources (DEDJTR), Department of Premier and Cabinet (DPC) and Department of Justice and Regulation (DJR).

Back to Top