Total Asset Management Template (Page 4 of 12) in pdf

What use is made of the TAM Strategies?

The Asset Strategy is primarily for use by the agency to establish the optimum form of the assets

required for them to deliver, within resource limits, the results and services sought by government. The

resulting Capital Investment, Asset Maintenance and Asset Disposal Strategies detail the actions the

agency proposes to undertake to manage its asset needs. These plans should prioritise proposed

expenditure across all types of assets owned or controlled by the agency.

TAM Strategies are required by Treasury to ascertain the assets required for the agency to deliver

government’s program of services and whether agencies are planning and managing all assets efficiently

and effectively in accordance with TAM policy.

The budget process distinguishes between agency efforts to maintain existing services in terms of

service nature, availability, quantity and quality and efforts to extend or enhance agency service

delivery. This distinction should be evident throughout an agency’s TAM Strategies. Proposed capital

and recurrent projects should be identified as either maintaining or enhancing an agency’s service

delivery.

Which agencies are required to prepare TAM Strategies?

The need to prepare Asset Strategies arises from TAM Policy, which applies to all government

departments, statutory authorities, trusts and other government entities.

State Owned Corporations under the State Owned Corporations Act while exempt, are encouraged to

adopt aspects of TAM that are consistent with their corporate intent.

Some agencies through self funding are able to internally fund major projects. Procurement Policy

requires these agencies to submit any such projects to Treasury for full assessment prior to approval of

funding. As part of this assessment an agency would be expected to demonstrate a need for the project,

through its Asset Strategy and supporting Capital Investment Strategic Plan or equivalent plans.

When are TAM Strategies required?

TAM Strategies covering all types of assets are required by Treasury by the end of August each year.

Refer to Treasury Circular T.C.04/09 for submission requirements.

Total Asset Management Template (TAM06-6)

Total Asset Management Template Page 4