This post discusses the need and options for Victorian government entities self-assessing their asset management maturity in line with mandatory requirement 16a of the Department of Treasury and Finance’s Asset Management Accountability Framework (AMAF).
The AMAF establishes a flexible and non-prescriptive set of requirements that aim to ensure Victorian public sector Accountable Officers manage asset portfolios appropriately. The AMAF demonstrates consistency with the principles of ISO 55000, the international standard for asset management, albeit with a different structure so that it aligns with the policy and operations of the Victorian Government.
Commencing with the 2020/21 financial year, requirement 16a stipulates asset management maturity self-assessments should be conducted a minimum of every three years.
Being non-prescriptive, there are no guidelines from the Department of Treasury and Finance (DTF) that explicitly define how entities should measure their maturity. There is also no prescribed maturity scale. However, requirement 16b stipulates:
As part of this self-assessment, Responsible Bodies must evaluate:
– the maturity of their asset management systems and practices;
– the maturity of their systems and practices against their aspirational target; and
– their path towards achieving their aspirational target.
Taking into consideration the non-prescriptive nature of AMAF and the generality of requirement 16b, a government entity has a number of options when it comes to performing their self-assessment, including:
- Development of their own maturity model and assessment tool;
- Use of an established maturity model reference, such as that published by the Institute of Asset Management in the UK;
- Use of an established maturity assessment tool, with integrated maturity model.
Considering each AMAF requirement against the various levels of a maturity scale provides two outcomes for the price of one.
Firstly, it allows the entity to consider whether they meet the needs of the requirement and to what extent. Considering all requirements in this fashion allows the entity to be confident they satisfy requirement 5 and also provides assurance to an audit committee, satisfying requirement 11.
Secondly, it ensures the entity satisfies the asset management maturity self-assessment requirements 16a and 16b.
A simple way to perform a self-assessment like this is to review requirements and record ratings in a spreadsheet. However, whilst this may seem like an easy and logical approach, there are a number of drawbacks, including:
- Complexity summarising results for reporting to the audit committee and other areas of management;
- No straightforward way to collate evidence with each requirement that provides justification and line of sight to the actual rating;
- Limited options to explain material defects and deficiencies in capabilities, often required by an audit committee;
- Limited or zero integration with guidance materials supplied by DTF.
The Assessity Platform
The Assessity platform circumvents these limitations, providing an interactive user interface that guides users through their self-assessments. The assessment uses the AMAF requirements and a general maturity scale that ranges from Innocence to Optimising.
A completed and finalised assessment report provides graphed ratings along with detailed inputs including evidence and supporting comments. Reports can be filed in perpetuity and shared with management.
The following screencast provides a walk-through of an AMAF maturity self-assessment using the Assessity platform.
The Assessity platform is available at https://my.assessity.com.