Department%20of%20Public%20Works%20%20Government%20Immovable%20%20%20%20Asset%20Management%20Bill%20GIAMA - PowerPoint PPT Presentation

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Department%20of%20Public%20Works%20%20Government%20Immovable%20%20%20%20Asset%20Management%20Bill%20GIAMA

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Title: Department%20of%20Public%20Works%20%20Government%20Immovable%20%20%20%20Asset%20Management%20Bill%20GIAMA


1
Department of Public WorksGovernment
Immovable Asset Management BillGIAMA
  • Portfolio Committee on Public Works
  • 28 February 2007

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Content
  1. Introduction
  2. The need for GIAMA
  3. Legal framework of GIAMA
  4. Objectives of GIAMA
  5. Principles of Immovable Asset Management
  6. Guidelines Requirements
  7. Immovable Asset Management Plans
  8. Responsibilities of Users
  9. User Asset Management Plans
  10. Responsibilities of Custodians
  11. Custodian Asset Management Plans
  12. Norms and Standards
  13. Scope of application of GIAMA
  14. Consultation
  15. Current position

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1. Introduction
  • This presentation aims at highlighting the
    objectives, principles and roles
    responsibilities pertaining to the draft
    legislation to govern the life-cycle management
    of immovable assets in the National Provincial
    spheres of Government, as embodied in the
    Government Immovable Asset Management Bill.

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2. Need for Government Immovable Asset
Management Act (GIAMA)
  • Government is confronted with service delivery
    needs which must be matched with the efficient
    and effective use of all resources, including
    immovable assets.
  • Governments extensive and diversified immovable
    assets have a significant impact on the overall
    macro-economic, socio-political physical
    landscape.
  • Decisions on immovable assets have long-term
    implications and should be based on the full
    impact of costs over the expected lifespan of
    such assets.
  • It is therefore imperative that Governments
    immovable assets be managed in a uniform,
    efficient, effective and accountable manner.

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3. Legal framework of GIAMA
  • The Constitution mandates the National Government
    to pass legislation for all spheres of government
    if the purpose is to establish uniformity and to
    set minimum norms and standards with regard
    to service delivery.
  • In 2003, Cabinet mandated the Minister of Public
    Works to develop a policy framework to govern
    immovable asset management throughout Government
    and to implement that policy by means of
    legislation -
  • there needs to be new legislation and
    regulations that govern the maintenance, handling
    and disposal of immovable assets.
  • In 2005, Cabinet approved the Government-wide
    Immovable Asset Management Policy and the
    introduction of legislation.
  • The Government Immovable Asset Management Bill
    B1-2006 was tabled in Parliament in Feb 2006.

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4. Objectives of GIAMA
  • GIAMA will make it incumbent on national
    provincial departments to promote Governments
    service delivery objectives through the sound
    management of immovable assets they use or
    control. The objectives of the legislation are to
    -
  • Provide a uniform immovable asset management
    framework to promote accountability
    transparency.
  • Ensure effective immovable asset management
    within departments.
  • Ensure alignment of the use of immovable assets
    with the service delivery objectives of
    departments, to ensure the efficient utilisation
    of such assets.
  • Optimise the cost of immovable assets allocated
    to departments.
  • Enable the submission of better quality
    information regarding immovable asset related
    needs into the budgeting process, which in turn
    will result in improved budgeting for capital
    works, maintenance and operating costs.

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5. Principles of Immovable Asset Management
The management of immovable assets as defined in
GIAMA must comply with the following principles
of immovable asset management
  1. IAM must comply with existing legislation (e.g.
    PFMA, Occupational Health and Safety Act sector
    specific legislation) government policies (e.g.
    Batho Pele access for disabled persons to
    public buildings) and regulations (e.g. National
    Building Regulations)
  2. Strategic planning and management of immovable
    assets are key corporate activities and need to
    be considered together with other strategic
    planning (e.g. human resources information
    technology).
  3. Immovable assets should exist to support the
    service delivery objectives of the organ of
    state.
  4. Immovable assets with strategic importance to
    Government should not be disposed of.

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Principles of Immovable Asset Management
(Continued)
  1. Required resources must be allocated to optimise
    utilisation of and expenditure on immovable
    assets.
  2. Before deciding to acquire new assets, organs of
    state must consider all relevant factors
    including non-asset solutions, full life-cycle
    costing, risk analysis and the optimal use of
    existing assets.
  3. In asset management decisions, organs of state
    should take into account the preservation of
    heritage, cultural environmental values.
  4. Immovable asset management decisions should meet
    the needs of the present without compromising the
    needs of future generations.
  5. Immovable asset management must be aimed at the
    improvement of health and safety in the working
    environment.
  6. Immovable asset management must be aimed at
    reducing the overall cost of service delivery
    through the optimal allocation of resources.

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6. Guidelines Requirements
  • The proposed legislation will empower the
    Minister of Public Works to determine
    immovable asset management guidelines and minimum
    requirements that will -
  • complement general asset management guidelines
    issued by National Treasury in terms of the PFMA
  • provide a framework for the management of
    immovable assets throughout their life-cycle,
    encompassing
  • Strategic planning
  • Acquisition (buy, build or lease)
  • Maintenance management and
  • Disposal.

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Guidelines Requirements (Continued)
  • address the minimum content, format and processes
    required to compile immovable asset management
    plans
  • provide a planning framework for custodians to
    implement a portfolio management function
  • provide a framework to facilitate benchmarking,
    condition assessment and performance measurement
    of immovable assets and
  • prescribe the minimum information required to
    manage immovable assets.

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7. Immovable Asset Management Plans
  • All national and provincial departments will be
    required to annually compile an Asset Management
    Plan (AMP) that will form part of Governments
    strategic planning budgeting processes.
  • A department responsible for custodial functions
    in respect of immovable assets will compile a
    Custodian AMP (C-AMP) that must cover all the
    immovable assets (State-owned and leased) that
    such custodian controls or intends to control.
  • A user of immovable assets will compile a User
    AMP (U-AMP) that must cover all the immovable
    assets (State-owned and leased) that such
    department uses or intends to use.
  • Custodians and users of immovable assets should
    jointly conduct the annual strategic planning
    process. Custodians must assist users by
    availing information pertaining to the
    performance of immovable assets allocated to such
    users.
  • Including the analysis of such information in a
    manner
  • that would enable users to make informed
    decisions

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Immovable Asset Management Plans (Continued)
  • All AMPs must be submitted to the relevant
    Treasury annually (on a date to be
    determined by that Treasury).
  • AMPs will inform the annual budgetary process and
    must be revised once budget allocations are
    finalised by National Treasury.
  • Revised AMPs must be included in the annual
    strategic plans of national and provincial
    departments and will therefore be presented to
    Parliament Provincial Legislatures respectively.

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Feb to May Users (assisted by Custodian) prepare
U-AMP for next financial cycle
November Budget allocations approved by Treasury
June Users submit U-AMP to Treasury Custodian
July to September Custodian assesses U-AMPs in
terms of total portfolio submits C-AMP to
Treasury
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8. Responsibilities of Users
  • A user of immovable assets utilises such assets
    to give best effect to its functions in pursuit
    of its service delivery objectives. A user must
    therefore produce a user asset management plan
    (U-AMP) to ensure -
  • accountable, fair and transparent utilisation of
    immovable assets
  • effective, efficient and economic use of
    immovable assets
  • reduced overall cost of service delivery
  • reduced demand for new immovable assets.

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9. User Asset Management Plans
  • The U-AMP enables the accounting officer of a
    user to
  • assess the utilisation of accommodation in terms
    of service delivery objectives
  • assess the functional performance of
    accommodation
  • prioritise the need for repair, upgrade or
    refurbishment of state-owned
    accommodation
  • plan for future accommodation needs
  • communicate these needs to the custodian and
    National Treasury in a structured fashion
    and
  • secure funds to pay for the use of its
    accommodation.
  • Such funds will include accommodation charges
    payable to the custodian (including
    maintenance cost existing leases)
    as well as new capital projects and new leases.

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10. Responsibilities of Custodians
  • Custodians are responsible for the efficient
    effective management of immovable assets
    throughout their life-cycle and therefore must
    produce a custodian asset management plan to
    ensure that immovable assets are
  • provided in a transparent cost effective manner
    to meet the service delivery requirements of
    users
  • maintained in the state in which they would
    optimally support service delivery objectives,
    including refurbishment at regular service-life
    intervals
  • assessed in relation to performance, suitability,
    condition and the effect that the condition of an
    asset has on service delivery ability and
  • dealt with in the manner which the assessments
    indicate relevant to each assets life cycle,
    including renewal at the end of its current
    economic-life or release for socio-economic
    purposes.

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11. Custodian Asset Management Plans
  • The C-AMP enables the accounting officer of a
    custodian to -
  • consolidate and assess users needs in terms of
    the total asset portfolio, by means of options
    and feasibility analyses and economic appraisals
    (best value)
  • determine full cost of immovable asset use
  • plan for implementation of acquisition, repair
    maintenance, refurbishment and disposal of
    assets
  • monitor performance of assets in terms of value
    utilisation life-cycle costs condition
    occupational health safety and service
    reliability and
  • plan to provide appropriate assets to users to
    fulfil service delivery needs at true cost.

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12. Norms and Standards
  • The legislation will allow the Minister of Public
    Works to issue regulations to ensure uniformity
    in respect of -
  • User Asset Management Plans
  • Custodian Asset Management Plans
  • Functional Assessment of Immovable Assets
  • Space cost norms
  • Valuation of immovable assets
  • Feasibility and Options Analyses
  • Immovable Asset Registers

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13. Scope of application of GIAMA
  • It is the intention to extend the objectives of
    GIAMA throughout Government (without disturbing
    existing mandates or the roles and
    responsibilities of government entities).
  • The Government Immovable Asset Management Bill
    B1-2006 is applicable to national and
    provincial departments only.
  • In order to achieve the objectives of GIAMA at
    municipal level, DPW is assisting the Department
    of Provincial Local Government (the dplg) to
    develop the regulatory framework to govern
    immovable asset management in local government,
    in terms of existing legislation (Local
    Government Municipal Systems Act, 2000 and
    Municipal Finance Management Act, 2003).
  • Given the varying levels of autonomy of Public
    Entities, extensive consultation is required
    before legislation applicable to such organs of
    State can be finalised.

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14. Consultation
  • DPW has consulted with all National and
    Provincial Departments on the GIAMA policy and
    their comments have been incorporated in the
    Bill.
  • In particular, DPW continually consults with
    National Treasury to ensure consistency with
    the Public Finance Management Act (PFMA) and its
    regulations, as well as National Treasurys
    Asset Management Guideline.
  • DPW has consulted extensively with the dplg
    regarding the extension of the principles and
    objectives of GIAMA to local governments, through
    the development of a regulatory framework in
    terms of existing legislation .

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15. Current position
  • DPW has developed comprehensive guidelines for
    the compilation of User- and Custodian Asset
    Management Plans, providing step-by-step guidance
    to strategic planning processes, methodologies,
    norms and standards as well as easy-to-use
    templates to facilitate uniformity.
  • As a pilot project, a U-AMP has been developed
    for the Department of Home Affairs. To launch
    strategic asset planning, DPW has initiated a
    process to compile U-AMPs for all national
    government departments and provide leadership in
    strategic asset management practices.
  • This process of engagement between custodian and
    user departments on the requirements of GIAMA
    will also be rolled-out to provincial governments
    in consultation with provincial public works
    departments.
  • -ooOoo-

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