Understanding asset management

Asset management requirements will differ from agency to agency, depending on the number and complexity of assets they hold.

Defining assets

Assets are the things your agency owns. For government agencies, assets generally fall into the following categories.

Hard fit-out or leaseholder fixed capital assets

Also known as tenant improvements, leasehold/lessee improvements and lessee fixtures. These include:

• conventional and operable walls
• fixed partitions
• fixed joinery and wall and ceiling mounted equipment (excluding all audio-visual equipment)
• security system assets.

Soft fit-out assets or furniture, fittings and equipment

These include:

• office furniture like desks, screens, chairs, tables
• audio-visual equipment
• signage.

Excluded assets

Because most agencies lease buildings, building-related assets – like ducted air conditioning and lifts – are usually owned and managed by the landlord.

ICT assets aren't generally considered property assets, as they are managed by an agency's ICT team. Check with your ICT team that you don't need to include these items in your asset register.

Items that are leased are also not assets and shouldn't be included in an asset register.

Managing assets

Government asset management follows the usual property lifecycle of planning, acquisition, management and operation, and renewal or disposal. It should have a focus on providing value for money, sustainability, and adapting and reusing assets wherever possible.

The amount of planning required depends on the scope and complexity of assets you need to manage. In general, for most government agencies, we recommend developing at least:

• a detailed plan including a 10-year forecast of asset requirements, and
• a physical asset register.

Agencies with more complex assets may need to develop more detailed documents for asset management policy and strategy.

Asset management planning