This Memorandum reconfirms the Government's commitment to the implementation of the principles of Total Asset Management (TAM) and introduces the updated TAM Manual.
Government agencies are required to adopt the principles of TAM in the management of the State's asset base. TAM focuses directly on how assets support the delivery of services to the community. It goes beyond planning the acquisition and maintenance of physical assets such as buildings or roads. It is a strategic process that establishes the right balance of assets to best deliver a wide range of services with the available resources.
TAM is part of the broader NSW Government Strategic Management Framework that summarises and defines the various processes which the NSW Government and its agencies use to plan activities and services, to allocate resources, and to report on performance. TAM is also an integral part of the Treasury's Financial Management Framework, www.treasury.nsw.gov.au , and the Government's Working with Government Guidelines for Privately Financed Projects, www.nsw.gov.au/wwg , (Premiers Memorandum No. 2001-18).
The Government Asset Management Committee (GAMC) promotes and monitors the application of TAM and has endorsed the new TAM Manual, which is available on its website at www.gamc.nsw.gov.au . The TAM Manual will not be released in hard copy but will be maintained as a 'live' Internet based document.
To ensure the currency and continuous development of the TAM Manual, it is proposed to establish a Reference Group of asset-holding agencies, as a working party of the GAMC, that will meet regularly to discuss the practical aspects and emerging issues in TAM planning. In addition, the Policy Services Division of the Department of Public Works and Services will arrange a number of information sessions and workshops for agencies to promote TAM planning and determine future training requirements.
Budget dependent and non-budget dependent agencies are required to submit Asset Strategies to Treasury annually in support of their bids for capital and recurrent funding. These strategies must clearly identify the links between an agency's corporate and service delivery strategies and asset planning. Asset Strategies are to include Capital Investment, Asset Maintenance, Asset Disposal and Office Accommodation Strategic Plans. Office Accommodation Strategies should continue to be submitted annually to the Department of Public Works and Services.
Shareholding Ministers and Boards of State Owned Corporations are to give consideration to adopting the principles of TAM as part of their Statements of Corporate Intent, where they are not already in place, and advise the NSW Treasury of the extent to which they will be or have been implemented.
To realise the full benefits of TAM, all Ministers are asked to ensure that agencies, including Government Trading Enterprises (GTE's) under their administration are aware of, and adopt, TAM principles.