Strategic Asset Management

This policy is about the management of strategic assets and involves investment in planning acquisition, management, construction, maintenance, renewal, and disposal of infrastructure assets (e.g., land and buildings, site improvements, information technology hardware, plant, specialist teaching equipment, and motor vehicles) across Otago Polytechnic Limited (Ltd) in order to serve its primary purpose: to deliver high-quality programmes of learning to learners.

 To this end, the building, infrastructure, and other major assets should support the achievement of Otago Polytechnic Ltd’s Vision and Strategic Directions effectively, and at the lowest whole-of-life cost.

At an organisational-wide level this policy will:

1. Provide for a long-term vision for Otago Polytechnic Limited’s practice of strategic asset management.
2. Mandate the responsibilities of, and generate useful dialogue between, asset users and asset
3. Provide for the capital works investment determined by whole of life considerations (20 - 30-year cycle) e., CAPEX versus OPEX;
4. Allow for “ease of maintenance” factors to be considered in the design
5. Align, support, and inform the rebuild programmes.

Education and Training Act 2020

Requirements monitored by:

Office of the Auditor General, Tertiary Education Commission

International Infrastructure Management Manual (IIMM)

NAMS

ISO 55000

TEC Capital Asset Management Standard

1. This Policy applies to strategic assets such as buildings, infrastructure, information technology (IT) and teaching assets owned or leased by Otago Polytechnic Ltd. 

2. For an overview of how the Strategic Asset Management (SAM) processes, planning and implementation are managed at Otago Polytechnic Ltd refer to diagrams in Appendix 1, and Appendix 2 and refer to Strategic Asset Management Guidelines for definitions and other best practice procedures. 

3. Otago Polytechnic Ltd will ensure that at all times there is:
   • A current SSAM Plan in place, reviewed annually and approved by the Executive Leadership Team and/or Otago Polytechnic Ltd Board.
   • A current Level of Service (LoS) schedule, approved by Executive Leadership Team.
   • An annual audit of Otago Polytechnic Ltd’s asset management - CAMS audit. Every second (2^nd) year this will be an external audit.
   • An Asset Management Implementation Plan incorporating the recommendations of the CAMS external audit with appropriate performance measures. This will ensure the continuous improvement of Asset Management practices.
   • Current Campus Plans for the Dunedin, Cromwell, and Auckland (OPAIC Ltd.) campuses; as well as a Maintenance Plan; and that these are aligned with the principles and objectives of the SAM Plan and LoS and reviewed annually. 

4. The SAM Plan provides the context, rationale and expectations for the Dunedin, Cromwell, Auckland, Maintenance Plans, and other asset planning documents as well as all Business Case planning for the procurement of new buildings and major capital The principle elements that inform Otago Polytechnic Ltd’s SAM Plan are:
   • Asset management as an essential part of good business planning.
   • Effective asset management as an organisation-wide approach.
   • LoS that match client/business expectations and ability to resource these.
   • Managing risk as an essential part of managing Otago Polytechnic Ltd assets.
   • Planning that provides financial forecasts and work effort schedules to both underpin short-term budgets and ensure integration with the required long- term plans.
   • Otago Polytechnic Ltd’s asset management principles are applied to the design of all capital works. 

5. The Maintenance Plan is informed by the asset life-cycle reporting, in order to maintain assets; and the LoS at the lowest long-term cost and is reviewed annually. 

6. Otago Polytechnic Ltd’s Asset Management Planning Group (AMPG) will meet at least four (4) times per year and guide and monitor the Asset Management Implementation of this policy. 

7. The AMPG will focus on planning – not operations - and guide the Asset Management Implementation Plan (AMIP) in order to achieve the performance measures defined in it and the improvement targets prioritised by the CAMS audits.

Appendices (refer below)

• Appendix Otago Polytechnic Strategic Asset Management (SAM) Diagram.
• Appendix 2. Otago Polytechnic Ltd Asset Management Planning and Implementation
• Appendix 3. Strategic Asset Management

 Policies 

Asset Management (Operational - Acquisition and Disposal) policy

Delegations from the Board to the Chief Executive and Authorities and Sub Delegations from Chief Executive policy

Procurement and Purchasing Te Pūkenga Aligned Policy

Risk Management policy 

The following corporate documents are available on request from the Deputy Chief Executive: Corporate Service

• Strategic Asset Management Plan (SAM Plan)
• Levels of Service (LoS)
• Capital Asset Management Audit (CAMS) Audit (undertaken annually; external audit every other year)
• Asset Management Implementation Plan (AMIP).

Appendix 1: Otago Polytechnic Limited Strategic Asset Management (SAM) Diagram

Otago Polytechnic Limited Strategic Asset Management planning processes results in:
 

• Assets and facilities that direct available funds to support Otago Polytechnic Ltd’s Vision
• Cost effective facilities that conserve valuable and non-renewable resources.
• Acquisition of fit for purpose assets and asset maintenance and development that will ensure on-going fitness for purpose for learners and staff.
• Assets acquired to accommodate long-term sustainable demand rather than to meet short-term imperatives.
• Retirement or disposal of ageing facilities that have become costly to maintain and less supportive of the Mission.
• Exit non-viable leased premises or land that inhibits OP’s long-term planning for the facilities required to deliver Otago Polytechnic Ltd’s Strategic Directions and Vision.

Appendix 2: Otago Polytechnic Limited Asset Management Planning and Implementation Diagram

 Appendix 3. Strategic Asset Management (SAM) Guideline

In relation to the Strategic Asset Management policy, the following guideline procedures should be followed.

 In managing strategic assets Otago Polytechnic Ltd will adhere to the following procedures:

1. Plan, develop, maintain, and manage infrastructure assets at defined levels to meet the challenges of the business as outlined in the Vision, Goals and Strategic Directions of Otago Polytechnic Ltd.
2. Monitor standards, especially the Levels of Service (LoS) to ensure that they meet/support the agreed goals and objectives.
3. Apply informed best practice i.e., Investment Logic Mapping (ILM) & Better Business Case (BBC) model decision-making principles around all strategising, planning, and developing business cases for infrastructure decisions and procurement.
4. Develop and maintain asset inventories of its entire infrastructure at sufficient detail to enable for achievement of a minimum of Intermediate rating or higher on the Tertiary Education Commission’s (TEC) Capital Asset Management maturity rating scale, (SPM Assets database).
5. Establish infrastructure replacement strategies through the use of the full whole of life (life cycle) costing principles.
6. Plan financially for the appropriate level of maintenance of assets to deliver the defined LoS. This will ensure that when the Strategic Asset Management (SAM) Plan and budgets are reviewed annually, the funding and LoS will be aligned.
7. Plan for and provide stable long-term funding to replace and/or renew and/or decommission infrastructure assets. This should be done in conjunction with reviewing the Capital Intentions Schedule included in the SAM Plan to include building, infrastructure, IT, and major teaching assets with funding allocated according to lifecycle analysis and whole-of-life considerations.
8. Consider and incorporate asset management requirements and achievements in its other corporate plans as appropriate.
9. Demonstrate accountability and responsibility in its infrastructure management through regular reporting on the status and performance of work related to the implementation of this asset management policy.
10. Provide accurate life-cycle data modelling (SPM Assets) to inform the Otago Polytechnic Ltd, Board, Executive Leadership Team, and Head of College decision-making for procurement of assets.

 Definitions: