News_ITIT launch - iStock_000020859186SmallThe Department of Treasury and Finance released the Asset Management Accountability Framework (or AMAF as it is known) in early 2016. It is a “devolved accountability model for (non current) assets”.

The AMAF is not just a tick box exercise performed as part of a one-time audit.
It is, in fact, an annual obligation that will appear in the annual report and will require full attestation by agencies and departments every three years. It requires a business transformation to achieve.

Written with regard to the ISO 55000 suite of asset management standards and particularly the ISO 55001 Management Systems Requirements, the AMAF presents Responsible Officers with a new challenge: to develop a plan for attestation over a number of years with reducing exceptions year on year. That will require changes to systems, processes, skills and workflow. The expectation is that this will be self-managed through a four-year transition program.

The AMAF has both mandatory compliance activities and guidelines, which, when followed, engage organisations in a programme of change lasting some years, requiring continuous monitoring. Although organisations self-attest, departments and agencies can be audited independently by third parties.

Timescales
The first AMAF attestation is due in the 2017/18 annual report, with a trial attestation required in 2016/20171. It is expected that there will be a four year transition period to full compliance.

Risks
To be successful in the first attestation, organisations will need to be already significantly along the journey towards asset management, otherwise they will not be prepared for the level of effort that is involved in achieving compliance and this can lead to missteps and rework.

Turning compliance to business advantage
Considering that the AMAF is based on the ISO 55001 management systems requirements, which is designed to improve business performance, preparing for an attestation is a major opportunity to improve business performance. To do this, organisations need to develop a strategy that delivers business value including attestation to the AMAF as part of the implementation of an asset management practice.

Our Value Proposition
At Innovative Thinking (IT) we are assisting agencies and departments to develop a strategy that includes both compliance and business value. This approach enables organisations to avoid duplication of effort and rework while at the same time delivering business performance improvements.

1 Asset Management Accountability Framework Guidance Material Updated June 2016