APV / ACEAM & Assetic pre conference LGAAQ – November 2010 Anthony Keleher, Manager Financial Accounting Bundaberg Regional Council

Bundaberg Region

Bundaberg Regional Council Assets - $1.6 B Population - 100,000 approx Area - 6,451 Km 2 Bundaberg CityBurnett ShireKolan ShireIsis Shire

Where we Started Various Asset Registers Inconsistent Asset Classes and Components – Caravan Parks >> Land, Buildings, Roads, Plant & Equipment – Sewerage Infrastructure >> Buildings – Water Infrastructure >> Buildings – Buildings >> All other buildings not recorded in other classes

Missing attributes Inconsistent Segmentation Limited Policies, Procedures, Work Instructions Duplicated Assets Various capitalisation thresholds Where we Started

Progress to Date Formed a centralise Asset Management Team – 2 * Asset Managers (Engineering & Accounting) – 2 * Maintenance Planners – 2 * Asset Accountants – 2 * Asset Officers (technical staff) Corporate Asset Management System >> Accounting and Engineering information Defined Asset Classes & Components Restructured all assets by these Classes & Components – Making assumptions for missing data

Condition Assessment of Buildings and active Infrastructure Assets Full 15 March 2008 Unqualified Audits 2009 & 2010 Desktop 1 July 2009 (rebuild asset tables) Re-segmentation of Roads, Water and Sewerage Assets in 2010 (ongoing) Roads condition assessment in 2010 Draft Asset Management Plans for all asset classes Progress to Date

How did we do it? BST from a dedicated team Support of Council and Management Engaged External Experts >>Assetic, APV and ACEAM Working closely with External Auditors

Assetic MyData – Asset Register – Used for 2 years – Numerous issues in 1 st year (30 June 2009) Some issues related to the 15.5 month reporting period Difficult to extract supporting information Council’s limited experience Financial Reconciliation Report ? – Excellent Support – Quick response to software issues – Implemented enhancements

Assetic works closely with our technical staff and accountants Outstanding Issues / Enhancements – No Part Disposals or Notional Disposals (Audit MLP in 2010) – Not Transaction based – Difficult to do cross table reports / queries – Inconsistent field codes – Lack of macro / control process for changing data – Reports on treatments from prior year Assetic

Work Handling not used yet Fleet Maintenance Planning – WIP – Council working with Assetic to build this system – Major release expected next week – Service scheduling with parts order – Plant Hire Rates Calculator My Predictor >> Renewal Program for 2012 Linking to GIS – not yet >>ARC Assetic

ACEAM Valuation of passive assets Assisted in consolidating the asset data Combined data from former Councils Created a new BRC database Single Asset Management system within 12 months Enabled Council staff to consolidate financial systems.

ACEAM Training and implementing MyPredictor Disadvantages using external expert – Lack of Local Knowledge – Assumptions – storm water pipe size – Missing road segments & Airport runway

APV Valuation of all Assets except for passive infrastructure assets Condition Rating of some assets Desktop revaluation for 3 years Advanced SLAM vs. Straight Line Auditors may require more information before they are “Comfortable” with Advances Slam – Lack of policies and procedures – Position Papers

Conclusion We have made it through amalgamation / restructure No qualifications in 2009 or 2010 At this stage the engineers and accountants are operating from one Asset Management system, although we still use a separate maintenance scheduling system Assetic are extremely good to work with, value for money Access to expert advice from Ashay, David and Alf with prompt responses