DTF is responsible for supporting the implementation of the AMAF and overseeing compliance with the standing directions. We examined its approach to meeting these responsibilities and the extent to which it has addressed departments' needs for guidance and support.
Key requirements for agencies to comply with the standing directions include:
DTF also requires departments to report to it annually on their financial management compliance and that of their portfolio agencies.
Previous audits have identified that many departments and agencies need to improve their asset management practices. The AMAF has a strong focus on continuously improving asset management. Departments need well-planned approaches to use the AMAF to improve their practices, and departmental staff need to be well organised and clear about their roles.
Many public services rely on public assets such as trains, roads and schools to support their delivery. The Treasurer's 2017–18 Financial Report identifies that the State of Victoria controlled a total of $265 billion of non-financial assets at 30 June 2018. Inadequate management of these assets can affect the services these assets provide or support, and, therefore, the quality of life for all Victorians.
Victoria's roads, railways, schools and hospitals form part of $265 billion of non-financial assets that government departments and agencies manage. These assets support the delivery of services that affect all Victorians, so it is important to manage them well. Having up-to-date knowledge of assets and their condition helps government agencies get the best value from their asset-related investments, make good decisions about when to acquire, renew or divest assets, be responsive to changes in demand or use, and provide better services.
| AIMS | Asset Information Management System |
| AMAF | Asset Management Accountability Framework |
| DEDJTR | Department of Economic Development, Jobs, Transport and Resources |
| DELWP | Department of Environment, Land, Water and Planning |
| DET | Department of Education and Training |
| DHHS | Department of Health and Human Services |
Figure B1 compares the results of our maturity assessment across the audited councils.
Figure B1
Maturity assessment results
We have consulted with Colac Otway, Darebin, Hindmarsh, Mildura, Nillumbik and we considered their views when reaching our audit conclusions. As required by section 16(3) of the Audit Act 1994, we gave a draft copy of this report, or relevant extracts, to those agencies and asked for their submissions and comments. We also provided a copy of the report to the Department of Premier and Cabinet.
Responsibility for the accuracy, fairness and balance of those comments rests solely with the agency head.
Responses were received as follows:
Councils should use the asset information available to them to inform their asset planning and decision-making, including decisions on acquiring, replacing or renewing assets and ongoing maintenance activities.
Comprehensive and accurate asset information enables councils to make informed decisions about their assets—for example, decisions about maintaining, renewing, and replacing assets.