Asset Management Accountability Framework (AMAF)

Summary

The AMAF is a non-prescriptive, devolved accountability framework requiring Victorian government entities to manage their assets effectively. It replaces the earlier "Sustaining Our Assets" framework.

Mandated via Standing Direction 4.2.3 under the FMA, the AMAF requires entities to comply with 41 mandatory requirements and attest to compliance annually. The framework is deliberately flexible — it sets outcomes rather than prescribing methods, allowing each entity to scale implementation to the size and criticality of its asset base.

41 Mandatory Requirements

The 41 requirements are organised across five asset lifecycle areas. Each requirement applies to all entities subject to the Standing Directions, scaled to the organisation's asset threshold.

Leadership and Accountability (Requirements 1–19)

The largest group — 19 requirements — establishes the governance architecture for asset management. This is where most compliance effort concentrates.

Resourcing and governance (Reqs 1–5): Entities must establish asset management functions with qualified staff, build governance frameworks covering both directly controlled and portfolio assets, and ensure compliance with mandatory requirements under other government policies. Where asset management is outsourced, provider capability must be assured.

Responsibility and accountability (Reqs 6–10): Clear allocation of responsibility, authority, and accountability across all lifecycle stages. All asset decisions require proper authorisation including financial delegations. Entities must document who monitors AMAF compliance and who holds decision authority at each lifecycle stage.

Attestation (Req 11): The audit committee (or equivalent) must review and be satisfied with the AMAF attestation before it appears in the annual report.

Performance monitoring (Reqs 12–18): Entities must set performance standards and targets, monitor and review asset performance periodically, and integrate asset performance into corporate planning. Dual monitoring is required — both individual asset performance and the effectiveness of the asset management system itself. From 2020-21, a maturity self-assessment must be conducted at least every three years. Entities must maintain an AIMS capable of providing data to government on request.

Risk management (Req 19): Dedicated risk management strategies for assets, including processes to identify assets at risk of critical service failure.

Planning (Requirements 20–23)

Four requirements for strategic asset planning. Entities must develop a portfolio-wide asset management strategy covering the whole lifecycle, with short-term (1–3 years), medium-term (4–9 years), and long-term (10+ years) planning horizons. The strategy must be evaluated and updated by senior management. Risk management planning — with specific treatment plans — must be embedded in the strategy and regularly reviewed.

Acquisition (Requirements 24–25)

Two requirements ensuring acquisition decisions are considered and justified. Before acquiring assets, entities must evaluate non-asset service delivery alternatives, assess risks, select appropriate procurement methods, and follow proper approval mechanisms. The acquisition process must account for the asset management strategy, market conditions, industry capacity, and available resources.

Operation (Requirements 26–40)

Fifteen requirements covering the longest phase of the asset lifecycle. These fall into four clusters:

Monitoring and preventive action (Reqs 26–30): Condition monitoring, proactive failure identification, incident response for critical failures, corrective action review, and fraud/misuse prevention.

Maintenance (Reqs 31–32): Systems for maintenance activities, with regular review to ensure effort and resources are appropriately allocated.

Information management (Reqs 33–38): Accurate recording and valuation procedures, establishment and maintenance of an AIMS with asset registers, data accessibility for accountable staff, historical data retention, defined minimum information requirements, and regular data quality review.

Records and valuation (Reqs 39–40): Record-keeping to meet both operational and accounting standards, plus documented revaluation policies and procedures.

Disposal (Requirement 41)

One requirement: comply with approval processes and select the disposal method — retirement, replacement, renewal, or redeployment — that maximises financial benefits.

Compliance and Attestation

Entities must: 1. Self-assess against all 41 requirements 2. Board/accountable officer attests to compliance in the entity's annual report 3. Audit committee (or alternative) reviews and endorses the attestation 4. From 2020-21, conduct maturity self-assessment at least every three years 5. VAGO may audit compliance (has done so — see VAGO AMAF compliance audit)

DTF provides a Compliance and Maturity Rating tool as part of the compliance assurance guidance note. This uses a 0–4 rating scale for both system status and effectiveness of application.

Relevance to Procurement

AMAF connects to procurement where: - Procurement of assets must align with the entity's asset management strategy (Reqs 20–21) - Acquisition decisions must consider non-asset alternatives and appropriate procurement methods (Reqs 24–25) - Asset lifecycle planning (whole-of-life costing) feeds into procurement specifications - Disposal of assets must follow approval processes and maximise financial outcomes (Req 41)