Robust performance information is vital to effective asset management. It allows an organisation to assess how well it is meeting its expectations and objectives, both at an organisational and asset level. It provides a method for comparing performance across entities, and a tool for identifying and assessing areas for improvement. This can lead to greater utilisation of Crown assets and helps ensure that assets meet needs more effectively. This in turn will allow government to provide the required level of service at the least cost.
The 2018 investment statement reinforces the need to improve the management of assets used to support delivery of key state services.
This builds on the imperative in the 2014 Investment Statement to: “Further develop and utilise metrics for the measurement and monitoring of the performance of Crown assets in meeting government objectives.”
One of the ways Treasury intends to bring a focus to asset performance is by implementing to investment intensive agencies the mandatory requirements in Cabinet Office Circular CO(15)5 - Investment Management and Asset Performance in the State Services via this annual reporting guidance.
Cabinet Office Circular CO(15)5 includes the following requirements for reporting asset performance indicators and asset management.
Mandatory: Cabinet Office Circular CO(15)5:
Expectations relating to reporting on investment performance by agencies
Paragraph 61: Agencies must report on relevant asset performance indicators in their Annual Reports.
Expectations relating to asset management
Paragraph 62: Agencies must capture and use in internal management and decision-making processes, relevant indicators of past and projected asset performance, such as asset utilisation, condition and fitness for purpose.
2018/19 reporting on asset performance indicators
Investment-intensive agencies should report on asset performance indicators in their 2018/19 annual report. The reporting is based on the guidance documents below.
For 2018/19, it is requested that the asset performance indicators are included in a section of the report that is not subject to formal audit procedures eg, alongside other organisational health measures. Where asset performance information has previously been included in an audited section of the annual report (eg, the SSP), then agencies should continue to report that particular information within that section.
- Annual Report Guidance for Departments - Asset Performance Indicators (PDF 168 KB)
- Annual Report Guidance for Crown Entities - Asset Performance Indicators (PDF 168 KB)
Agencies already meeting the requirement
As identified above, if an agency already meets all the requirements as set out in the Annual Report Guidance in their existing annual report, the agency should continue to do so.
It is expected that guidance documents will be updated in the future.