2022–2023 funding round
The Club Night Lights Program exemplifies the State Government’s commitment to the development of sustainable floodlighting infrastructure for sport across the State.
The purpose of the program is to provide financial assistance to community groups and local governments to develop sports floodlighting infrastructure. The program aims to maintain or increase participation in sport and recreation with an emphasis on physical activity, through rational development of good quality, well-designed and well-utilised facilities.
Through the Club Night Lights Program, the State Government will invest $10 million over four years towards floodlighting infrastructure. The maximum grant offered for standard grant applications is one third of the total estimated project cost (excluding GST) up to a maximum grant of $1 million.
The Department of Local Government, Sport and Cultural Industries (DLGSC) will assess the total eligible cost of your project (excluding GST) from the information provided.
Some applications will be eligible for up to one half of the project cost. This eligibility will be measured against key development principles. Applicants will have to show their eligibility through the development bonus section of the application form. Meeting Development Bonus criteria will not automatically ensure the applicant is eligible for 50% of the project cost.
Applicants will need to return unspent funds to the department in accordance with the terms of the grant agreement.
The Club Night Lights Program can fund new or upgraded facilities which will maintain or increase physical activity and participation through the provision of floodlighting.
Examples of projects which will be considered for funding include:
Funds will not be available for:
An amount of $10 million will be allocated from 2021-22 through to the 2024-25 financial year.
The maximum grant offered for standard grant applications is one third of the total estimated project cost (excluding GST) up to a maximum grant of $1 million. The department will assess the total eligible cost of your project (excluding GST) from the information provided. Any ineligible items shown as eligible will be deducted from the eligible project cost. This may result in the eligible funding requested for your project being less than the amount you have applied for.
Through a development bonus, some applications will be eligible for up to one half of the project cost. This eligibility will be measured against key development principles. Applicants must show their eligibility through the development bonus section of the application form. Meeting development bonus criteria will not automatically ensure the applicant is eligible for 50% of the project cost.
The department will assess the total eligible cost of your project (excluding GST) from the information provided. Any ineligible items shown as eligible will be deducted from the eligible project cost. This may result in the funding eligible for your project being less than the amount you have requested.
The department does not guarantee you will receive the full amount of financial assistance requested or the maximum level of funding. The level of financial assistance offered will be based on the overall significance of the proposed project, including the benefits provided to the community. Receiving financial assistance under this program does not guarantee future stages of your project will be funded.
There is no obligation on your local government or state sporting association to make a contribution to a project however a contribution from all stakeholders (which may include local government, State Sporting Association and user clubs) in a project that meets local and sporting needs will be viewed more favourably.
State Government funding for any project cannot exceed two thirds (66.66%) of the total project cost.
An important part of the funding process is to ensure the community can bear the true cost of running and maintaining a facility well into the future.
Developing a life cycle cost approach when considering your project’s parameters will provide you with a solid and informed base from which to make the most effective financial, economic and operationally sustainable decisions. This life cycle assessment
should be undertaken in the planning of any project so all parties have an understanding of the upfront, ongoing and replacement costs over the life of the project.
A life cycle cost analysis must be provided for projects with a total cost over $500,000.
Please refer to our Life Cycle Cost Guidelines.
A sinking fund is established by setting aside revenue over a period of time to meet future capital expenses. The annual amount to be set aside is determined by the expected life of the asset using the formula:
Expected cost of replacement (including inflation) divided by the expected number of years before replacement
The responsibility for maintaining and operating a facility rests with the local government, the club or a combination of both. It is important that applicants can demonstrate they can maintain the facility by developing a sinking fund for asset replacement. Local governments, as the asset owner, are expected to ensure that part of their assessment of a project includes confirmation they will underwrite any shortfalls.
Voluntary labour is work undertaken by people, without compensation or reward.
The value of work undertaken by volunteers can be included in the applicant’s contribution. Voluntary labour is allowable up to $50,000 in value, however the grantee’s cash contribution must match any non-cash contribution to the project.
Administration of projects, preparation of applications, claim forms, documentation, etc, is not recognised as a claimable item. In general local government staff hours will not be recognised.
Voluntary labour can be classified as follows:
General work is being undertaken where no recognised qualification is required. This includes work that is supervised by a skilled person and labourers.
A person with a recognised qualification specific to the work to be undertaken, i.e. electrician, grader driver etc.
A person with a formal tertiary qualification specific to the work to be undertaken, i.e. architectural, legal, engineering, surveying work or similar.
Donated materials can be recognised as part of an applicant’s contribution (see examples at the end of this section). Donated materials must be recorded on a Schedule of Donated Materials, which must be endorsed by the local government.
There is no limit on donated materials, however the applicant’s non-cash contribution cannot exceed the applicant’s cash contribution to the project.
Any local government cash/labour/machinery/materials are to be costed as part of the applicant’s cash contribution, not as voluntary labour or donated materials. However, certain services are considered to be part of the local governments normal function, i.e. shire engineers and administration/finance staff, and costs associated will not be recognised.
Donated materials may not be recognised where the donor is the supplier or contractor involved in the project. It is essential that the applicant completes a valid tender process before considering donations or discounts related to suppliers and contractors.
Note: If the supplier or contractor provides materials at the wholesale price or lower, then the difference between the retail price and the wholesale price may be recognised as a donation, (i.e. it has to be demonstrated that the donor is foregoing their profit component in favour of the applicant/project).
There are a variety of voluntary labour and/or donated materials combinations possible. Applicants must first estimate the total cost of the project and then work backwards to see if the method by which they intend to fund the project is allowable. The most important rules are:
You must contact your nearest department office to discuss your project in order to be eligible for funding. There are nine regional offices located throughout Western Australia.
Application forms are available from your nearest department office (regional WA) and local government (metro area only). A draft for information purposes can be downloaded.
Applicants must be either a local government or a not-for-profit sport, recreation or community organisation incorporated under the WA Associations Incorporation Act 2015 and have an Australian Business Number (ABN). Clubs must demonstrate equitable access to the public on a short term and casual basis.
The land on which the facility is to be developed must be one of the following:
Throughout the planning process you must liaise with department officers to ensure that you adequately address the assessment criteria and that information in your application can be clearly understood. The emphasis of the assessment factors is on a planned approach to facility provision and will require the applicant to demonstrate need and to consider planning, design, and management issues to substantiate the need for the proposed project.
Officers assessing applications will provide a rating against the level of project consultation. Where no consultation has occurred, the rating will be zero which will affect your chances of obtaining a grant. To apply for a development bonus, you must contact your nearest department office in order to determine whether you are eligible to apply.
The key principles of facility provision explain in depth the principles against which applications for Club Night Lights Program funding will be assessed. Your application will be assessed on the quality of information you provide and how well this information meets the key assessment criteria. You must answer each question in the application form and supply all requested information.
Assessments have been based on the following criteria:
Further details are available in the department’s document Key Principles of Key Principles of Facilities Provision Provision.
If you are applying for lighting above training standard, emphasis will be placed on projects formally identified by State Sporting Associations as a strategic location for match standard lighting.
Projects must also demonstrate that they can be delivered within the funding period. Projects will be assessed against the scope, time and budget being proposed. You must demonstrate that your project will be completed within the nominated timeframe.
Applicants must liaise with their local government regarding planning and building approvals pertinent to their project. Your local government will assess all relevant applications and is to rank applications in priority order for the municipality.
No distinctions should be made in the ranking between local governments and community applications.
Applicants must liaise with their State Sporting Association to discuss the project. State Sporting Associations are involved in the assessment of applications and may be able to provide valuable information when planning your project, particularly on information related to technical design issues and providing evidence of strategic planning for floodlighting locations.
Advice from all of the above forms part of the assessment of your project.
Your application form, together with the supporting documentation required, must be submitted to your local council by the relevant date outlined in the application process and timeline section. Please note that many local governments will close the application period sooner to accommodate council meeting schedules. It is recommended that you check the closing date for Club Night Lights Program applications with your local government to avoid missing out.
More information on Club Night Lights Program timeframes.
Funding under this program is administered in accordance with the grant agreement, which is executed by successful applicants. Some key obligations of the recipients and conditions of the grant are below — please note actual conditions may differ
at time of grant acceptance:
The State Government, through the department, provides a significant contribution to the sustainability and development of the sport and recreation industry. This is achieved through financial assistance and the provision of expertise, advice and services.
It is important that recipients of this support recognise the State Government contribution during the funding relationship.
Accordingly, successful applicants are required to abide by the grant acknowledgement requirements.
All information provided to the department and gathered during the grant assessment process will be stored on a database that will only be accessed by departmental personnel. The database is subject to privacy restrictions in accordance with the Privacy Act 1998 (Commonwealth) and the Freedom of Information Act 1992.
There are publications available on the department’s website which will assist you in preparing your application.
Suggested publications are:
This guide contains a series of practical tools to assist with the development of an Asset Management Plan for a facility.
Sport and recreation facilities are integral to our daily lives and we all rely on them to help us to continue our healthy and active lifestyles. It is now more widely acknowledged that whole of life asset management is critical to sustain a
level of service to clients and provide a return to you as the owner or operator of the facility.
We expect our sport and recreation assets to provide specific services at an acceptable level. Whether it is a playing field or a large recreation building, each needs to be managed so that they do what we expect of them.
When you have developed an effective asset management plan you will be ready for a range of eventualities that could affect the future of your asset. It will also give you confidence that you can adapt to the effects of environmental, social and economic
Whether you are in local government or a sporting organisation, this guide will provide you with an appreciation of the benefits of strategic asset management. It will also help you to consider the financial and economic requirements of asset management
and the treatment and management of risk and liability.
We have included practical examples and appendices to show you how to apply asset management principles effectively to enable you to continue to provide and maintain key assets with a greater level of sustainability. You can adapt the appendices as
needed so they reflect your particular organisation’s needs.
A guide for sport and recreation facility owners and managers.
January 2004ISBN: 0-975040030
This resource contains comments of a general nature only and is not intended to be relied upon as a substitute for professional advice. No responsibility will be accepted by the Department of Sport and Recreation for loss occasioned to any
person doing anything as a result of any material in this resource.
Acknowledgements This guide was prepared by Brett Treby and Rob Didcoe of the Department of Sport and Recreation’s Facilities Branch.
Western Australians are fortunate to have a large number of quality sport and recreation facilities. They are a key feature of our successful sport and recreation industry and a vital part of the way we live.
The community expects facilities to be safe and attractive places in which to be physically active. It expects well-maintained facilities that reflect value for money and a reason to keep coming back.
So, it is vital that anyone who is responsible for the management and maintenance of a sport and recreation facility has an asset management plan in place.
In many cases the managers of the most recently built facilities in WA are already doing this, but there are many ageing and poorly maintained facilities that need attention.
Maintaining or renewing these facilities has been complicated by issues such as:
The department developed this Asset Management Guide as a starting point for local government officers, elected members and state sporting organisations to develop asset management plans.
It is a reference tool that I expect will become an important part of your business management and, when applied, will reflect your desire to achieve good corporate governance.
I commend this guide to you and wish you well as you begin to develop and implement comprehensive asset management plans so that Western Australians can continue to enjoy access to sport and recreation facilities that encourage and promote physically
You are reading this guide because you are responsible for the management and maintenance of sporting and recreational facilities.
It contains a series of practical tools to help you through the process of developing an asset management plan so that your facilities are productive and sustainable.
Sport and recreation facilities are integral to our daily lives and we all rely on them to help us to continue our healthy and active lifestyles.
It is now more widely acknowledged that whole of life asset management is critical to sustain a level of service to clients and provide a return to you as the owner or operator of the facility.
We expect our sport and recreation assets to provide specific services at an acceptable level. Whether it is a playing field or a large recreation building, each needs to be managed so that they do what we expect of them.
When you have developed an effective asset management plan you will be ready for a range of eventualities that could affect the future of your asset. It will also give you confidence that you can adapt to the effects of environmental,
social and economic factors.
Whether you are in local government or a sporting organisation, this guide will provide you with an appreciation of the benefits of strategic asset management. It will also help you to consider the financial and economic requirements of
asset management and the treatment and management of risk and liability.
We have included practical examples and appendices to show you how to apply asset management principles effectively to enable you to continue to provide and maintain key assets with a greater level of sustainability. You can adapt the
appendices as needed so they reflect your particular organisation’s needs.
You can apply asset management principles equally to all physical assets including: infrastructure; property; heritage; reserves; water bodies; and plant and equipment.
A critical issue is the extent and degree to which these principles need to be translated into management action.
Whether you are an executive or senior manager in a local authority, executive officer or office bearer of a sporting body or recreation group, it is important for you to identify your key assets.
Below are some primary considerations for asset management principles:
Deciding whether to acquire, replace, use, maintain or dispose of an asset should be part of your organisation’s overall strategic plan.
You can achieve this by linking assets with program delivery standards and strategies.
As a local authority, sport or recreation organisation or multi-sport facility, developing an asset strategy will complement your operational or business plans.
All organisations need direction and should undertake regular strategic planning. A typical strategic plan looks ahead up to five years. Part of the strategic planning process will include issues or events that could have an impact on
your organisation’s operations.
Asset management planning should be part of the mission and vision of your organisation so you should link resource planning to your long-term objectives.
The Local Government Act 1995 requires all local authorities to undertake an annual “Principle Activities Plan” that looks at what the authority will do over the next 12 months. Many councils are now including longer-term strategic
planning in addition to principle activity planning.
Similarly, your sport or recreation organisation should set out your long-term strategic goals to give you an appreciation of the need for asset management and provision to support program initiatives.
In an environment of sustainability your organisation must also consider the needs of user groups and the capacity of current assets to meet those needs.
You should consider:
We will look at each of these key strategic areas later in this guide.
User demand is a fundamental component of any asset provision and management analysis.
It is an effective way to determine current and projected usage of a facility and any shortfall between that demand and the present level of asset provision.
So, if your organisation is considering taking over or acquiring an asset you should find out what the facility or asset is currently delivering and how it is being used.
These investigations should include:
The results should help you to identify any areas that deviate from the present level of asset provision. A needs analysis will provide useful information to help you make quality asset management decisions.
Information on how to conduct a needs analysis can be found at the department website.
A needs analysis is normally undertaken for new facilities, but the process works equally well with new or upgraded facility or asset provision. Implementing and reviewing a needs analysis can be subjective and should be supported by empirical
data and standards for like facilities or assets.
In cases where it is critical for you to comply with existing standards you should refer to ISO9001: 2000 which details the methodology to be used.
You should only take action in relation to an identified gap in asset service provision if it is consistent with your organisation’s strategic goals and if it falls within your organisation’s area of responsibility.
Critical success factors are those issues that your organisation decides are fundamental to the successful running of your facility or asset.
They are linked closely with associated risk management strategies and the paramount reasons for undertaking asset management strategies.
An example would be the effective management of a chemical system at an aquatic centre. Providing a primary and back-up system to correctly disburse chemicals would be critical to the success of the management of the facility.
Critical success factors need not involve life-threatening situations, but would typically be those that would stop you from delivering the primary service provided by your asset.
Critical success factors should be identified while undertaking strategic asset planning and apply a weighting to ensure that each separate critical success factor is highlighted and addressed as part of an integrated asset management
OutcomeIntegrating your asset management strategy into an operational or business plan will provide you with a framework to get the optimum use out of existing and new assets.
An effective asset planning framework will include an evaluation of the alternatives to acquiring a new asset and the replacement of an existing asset. The evaluation will include a comparison of life-cycle costs.
An acquisition plan details the rationale for acquiring, upgrading or replacing an asset.
It will include:
Implied costs may include a notional interest cost on funds used to acquire assets.
Expressed costs will include direct and indirect operating costs.
Scenario planning is extremely important when considering the key factors that will influence asset planning in the future.
The aim of scenario planning is to identify signposts (either triggers or warnings) and decide upon the most appropriate way to exploit opportunities or minimise threats.
Scenario planning will help your organisation to see how different forces can manipulate the future and help you to understand and prepare for uncertainty.
For the sport and recreation industry, scenario planning will help you to consider participation and utilisation trends; changing demographics; changing legal obligations and make more informed asset provision decisions.
To gain an understanding of the benefits of scenario planning, you must look at current situations and compare them with the rationale supporting the original decision.
Consider the air handling system associated with an aquatic redevelopment.
The system collects air from inside the complex and pumps it outside and provides fresher outdoor air for patrons inside the facility. The problem is that both air vents are located on the same external wall. The primary issue is that
the exhaust vent was located on the windward side of the supply vent, which meant that some of the exhausted air was being drawn back into the building.
Scenario planning would have considered alternative designs to achieve better construction and operational outcomes.
The optimum approach to scenario planning can be distilled into the following points:
You should consider all available alternatives if your asset planning is to address community demand for new or improved sport or recreation services.
This would include:
Each of these points should be considered against a baseline option of the consequences of adopting a ‘do nothing’ alternative.
As a logical follow on from scenario planning, the implications of deciding either an asset or non-asset solution should be supported by qualitative, quantitative and empirical data to show the benefits, consequences and costs associated
with each alternative.
There are two basic asset alternatives you must consider if you are planning to acquire a new asset to satisfy a community need:
The capacity to recover full operational costs – let alone capital costs — in the provision of community sporting or recreational facilities is minimal. This is due largely to clubs and sporting groups historically having dedicated
use of facilities, which limits opportunities to maximise use. Returns would be greater if the operational and capital costs could be spread across a larger user base. Therefore, collocation is a highly effective model compared with
single use facilities.
For many years, lawn bowls has enjoyed broad community sport. However, our changing society and community preferences have diminished the sport’s sustainability of facilities. A declining membership base and the need to upgrade facilities
has meant the sport has had to consider broader options.
A number of bowling clubs in the metropolitan area have considered two successful options:
Both approaches result in a level of concern among members but the opportunity to expand the membership base provides a greater opportunity for the facility to be sustainable by using a non-asset approach.
Materiality refers to issues that are directly relevant to the decisions you make about asset management. They may include:
You should consider each of these issues and weigh each one to reflect their order and level of importance.
Having previously established that an asset exists to provide a specific service, you must now work out how the asset will deliver an agreed level of service and continue to meet the expectations of those who use it.
The owner and the operator must agree on their roles and responsibilities whether they are the same organisation or separate. Roles and responsibilities must be put in writing and clearly state the expectations of each party.
Setting benchmarks provides a sound basis on which to establish what the asset is expected to achieve operationally.
Benchmarking would look at key result areas (KRAs) necessary to understand and agree upon operational parameters and outcomes. The owner and the operator would use the KRAs to identify and agree upon key performance indicators (KPIs).
See Appendix A for examples of KRAs and KPIs.
Once these have been established and agreed, it is customary for the asset owner and operator to form a joint working group to meet and discuss the ongoing performance of the asset. The working group should meet monthly or a minimum of
every three months.
The agreement between the owner and the operator should also provide the opportunity to vary the delivery of services provided by the asset.
A more efficient and cost-effective asset management framework that will reduce demand for new assets, extend asset life, lower program costs and improve delivery of services or products.
An operation and maintenance plan which establishes standards for the level of use, condition, maintenance and performance of assets. The plans also document the resources required to operate and maintain assets.
The contemporary accounting model is accrual accounting, which recognises debts and revenues when they are incurred or earned. The other more traditional method is cash accounting, which recognises debts and revenues when they are received
For asset management, an overarching principle in accrual accounting requires that funds (as a balance sheet item) be set aside in reserve accounts to replace the asset at the end of its economic life.
Swimming pool filtration and pumping equipment may have an economic life of 15 years.
With straight-line depreciation, the full new purchase price of the asset ($500,000) would be divided by 15 and that amount ($33,333) placed into a reserve account each year.
The annual depreciated (or accumulated) amount of $33,333 becomes a cost to the organisation and is recognised as a non-current liability on the balance sheet.
Additionally, works undertaken that materially affect the life, capacity or performance of the asset need to be recognised as capital expenditure and have a direct impact on the calculations of depreciation.
Further information can be gained by accessing Accounting Standard AASB 1021.
In a cash accounting environment, some organisations may not account for depreciation by this method. However, in terms of sustainable asset management, setting aside funding for future replacement is highly regarded.
In appreciating the financial impacts that operational changes have on assets, you should factor issues such as betterment, rehabilitation, acquisitions, enhancements or replacements into the depreciation equation.
Capital investment decisions concerning these issues are dealt with in 3.2 below, though they are based upon operational performance requirements.
Costs associated with consumable items associated with the asset are not considered capital expenditure and are not considered within the depreciation equation.
When you review an asset you should remember that it exists to serve a specific purpose. You should also consider the issues raised in the Integrated Planning section of this guide (see page 6).
Asset performance should directly relate to operational requirements in the strategic plan and demonstrate that they are required and are performing at the desired level (refer 2.4 on page 10).
To ensure that performance requirements are being met, you should carry out regular condition reports. While closely linked to the risk management process, condition reporting is where you examine your asset to be sure that its operation
service delivery targets are being met.
Assessing the condition of an asset involves systematically examining components and systems and documenting their condition according to the relevant standards for each element.
Recording the assessments will help with forecasting and benchmarking maintenance expenditure. The information will help to keep your asset register current. It will also be a guide to identifying under-utilised and over-utilised assets.
Equally important is the environmental condition of the asset. This means where the primary asset or facility is located and what is surrounding it that may influence its performance.
A condition report will identify risks immediately near the primary asset that demand attention.
For examples see Appendices D, E, F, G, H.
The reporting of asset condition has a direct bearing on the preparation of your organisation’s annual budget for operational and capital expenditure, in addition to strategic planning implications.
Your organisation should develop and maintain an accurate asset register to:
Recording and maintaining information on an asset register must be carried out according to provisions set out by Australian Accounting Standards Board (AASB).
It is important that the information is calculated as it relates to asset life and depreciation rates. To ensure accuracy in financial reporting and reserve account management, the calculation of annual depreciation for like assets should
occur equally between different organisations.
Information on asset management should be recorded and stored so that it is easily maintained and transparent across operating systems. This can be done using common proprietary software packages and generic spreadsheets.
Your organisation should follow contemporary management practices and have up to date asset recording systems, electronically and in hard copy. Copies of this information should also be stored off site in the event that it is destroyed.
The information should be user friendly and easy to understand. Where possible you should include footnotes or explanatory comments so that all staff can clearly understand what has been recorded and where it is kept, with cross-referencing
to explanatory notes, accounting standards or legislative requirements. The information should be distributed from time to time to maintain its operational integrity.
Effective accountability mechanisms will establish a culture where assets are adequately maintained and protected and, through optimisation of performance, maximise their outputs or service potential.
An effective internal control structure will establish and promulgate asset policies and procedures and use an information system that provides reliable, relevant and timely data with which to make informed asset management decisions.
A policy and procedure manual which details the requirements for effective governance of assets is complemented by an information system, based on an asset register, which provides the financial and non-financial information necessary
to manage assets.
In simple terms, your organisation must budget for the full costs associated with the development and management of assets or facilities. This provision extends beyond the cost of building or buying the asset and includes all costs associated
with running and maintaining the asset until you no longer own or operate it.
Where possible you should involve the operational staff in the development of the budget because they have detailed knowledge of the day-to-day and ongoing costs associated with the asset. However, ultimate budgetary control rests with
the manager appointed to oversee the facility or asset.
The budget must incorporate the full life-cycle costs associated with the asset. Life-cycle costing is a complex process and should be based upon the concepts of accrual accounting. The Department of Sport and Recreation will develop life
cycle costing guidelines in the near future. Until then, we encourage you to consult the relevant Australian Standard AS/NZS 4536:1999.
A service level agreement (SLA) is a contract between a facility asset owner or manager and an organisation engaged to deliver services associated with the primary asset
From a customer’s perspective, there should be a seamless relationship between the principal and the SLA organisation.
The delivery of this service is affected by a number of key elements:
For an example of a service level agreement see Appendix B.
The principal — or asset owner — typically enters into an arrangement where a service or number of services associated with the function of an asset are provided by a second organisation.
The principal must be satisfied that these services, while important, are not core to the function of the asset or facility and can be adequately carried out by other parties. In these circumstances, it is important that the principal
establishes a risk management strategy directly associated with the service that is being transferred to the second party.
Once the risk management strategy has been established, both parties should develop a formal agreement setting out the rights and responsibilities associated with the services to be undertaken.
This kind of arrangement must support an agreed level of asset performance to ensure that continuity of asset service is assured to users.
The principal must ensure that the level of service being provided by the contracted organisation supports both a level of service continuity and asset quality.
Both organisations should agree on how to measure and track performance, particularly in relation to asset management. The aim is to make sure that the principal is fully aware of the condition and serviceability of its assets and facilities.
The SLA must clearly set out the rights and obligations of the principal and service provider, particularly the delivery of services and management of facilities and assets under the control of the service provider.
Both parties should be clear on their rights and obligations so that each understands the other’s obligations.
A management committee should be established and it should meet regularly to discuss issues of service delivery, management and maintenance of the principal’s assets or facilities. This type of forum is the best way to ensure that
both parties have regular contact.
The SLA should clearly set out the fees and charges associated with the contract. Further, both parties should understand the true level of their economic exposure.
The SLA must also detail penalties for breaches of contract by either party, and how they will be identified. The contract should clearly state how issues can be mediated and/or remedies available to each party, including (but not limited
to) liquidated damages.
In order for the relationship between the principal and the service provider to be maintained, the SLA should clearly document the roles and responsibilities of each party.
Further, it is important that each organisation agree to a process that provides the opportunity to contractually amend their roles and responsibilities to deliver process benefits that will enhance asset or facility utilisation.
Risk management has become a formal management tool to systematically identify and manage risks throughout the life-cycle of an asset. The process helps to meet service delivery more efficiently and reduces the prospect of financial loss.
To better appreciate risk management, it is recommended that you consult Australian Standard, AS4360 and Handbook 246 (2002) Guidelines for Managing Risk in Sport and Recreation.
To identify risk, you should first have a clear understanding of the environment in which your asset operates and a strategic view of factors that could impact on your operation. This would include but not be limited to:
Once you have done this, you will gain a clear understanding of your organisation’s goals, objectives and strategies. You will further understand your organisation’s capabilities and limitations and will be in a better position
to develop strategies to address each area of concern identified.
Undertaking this approach will identify a series of risks to your organisation.
Once identified, you should assess the likelihood of the risk in terms of occurrence and the consequences associated with the risk occurring.
The three primary stages of risk management are:
Your organisation should also develop and maintain a risk register that would include:
Having identified and categorised each risk, you then need to monitor and treat it. Adopting the following steps will help this process:
See Appendix C for a detailed risk management procedure.
This process should be closely aligned to the performance of an asset or facility. It is important to monitor risks and the effectiveness of risk treatment plans regularly.
The frequency will depend on the type of risk.
An effective internal control structure that provides the framework to improve asset management. Without it there is limited scope for informed decision-making or implementation of management’s intentions.
An effective asset disposal framework should include alternatives for the disposal of surplus, obsolete, under-performing or unserviceable assets. Alternatives should be evaluated in cost-benefit terms.
A plan that sets out the reasons; time frame; method; and expected proceeds for the disposal of an asset.
Once an asset or facility has reached the end of its functional or physical life you will have to decide whether to dispose or decommission, update or replace it. Each has financial and organisational implications.
The following components should be considered:
You must carefully consider how you will retire or dispose of an asset if the service it provides is to be ongoing.
In cases where you have decided on replacement, you should develop a project plan or business case to smooth the progress of the decommissioning or disposal, and the seamless provision of a new or refurbished facility.
You may be required to undertake an environmental analysis of the disposal of an asset or facility. This may involve the physical structure and the materials or components that may be considered detrimental to the environment such as asbestos
There may also be environmental issues that require the site itself to undergo remediation as a consequence of the facility being decommissioned.
This level of analysis looks at the potential for impacts on workers involved in the decommissioning, staff or the surrounding community during the decommissioning of an asset or facility.
This would be the case in the decommissioning of a chemical plant, a power generation plant or some aspects of an aquatic facility.
Replacing an asset may result in new opportunities for a facility other than demolition. There may be scope for it to be used for something else.
Recent examples in the metropolitan area include converting former lawn bowling facilities into community centres and parks for use by the surrounding residents.
Effective management of the disposal process will minimise holding surplus and under-performing assets and will maximise return to the owner.
A structured process that seeks to ensure that all necessary functions of a project are provided at the lowest cost, while maintaining required levels of quality.
Do not submit enquiries with this form.