Basics of a Municipal Asset Register - Welcome to MIPMIS of a Municipal Asset Register... · basics of municipal asset register table of contents acknowledgements i foreword ii honourable

BasicsofaMunicipalAssetRegister

Developedby:

Basics of a

Municipal Asset Register

MISA/MIPMIS/2017

(DRAFT)Version0.1

©MANConsortium,2017

Acknowledgements

NationalTreasury-NT

DepartmentofProvincialandLocalGovernment-DPLG

ConstructionIndustryDevelopmentBoard-CIDB

MunicipalInfrastructureSupportAgent-MISA

FOREWORD

Honourable Minister of Cooperative Governance and Traditional Affairs

Director General - Cooperative Governance and Traditional Affairs

Chief Executive Officer – Municipal Infrastructure Support Agent

Glossary of Terms

APP–AnnualPerformancePlan

ARs–AssetRegisters

B2B–BacktoBasics

BPM–BusinessProcessMapping

BPM–BusinessProcessMapping

DCoG–DepartmentofCooperativeGovernance

CMIP-ComprehensiveMunicipalInfrastructurePlan

CoGTA–CooperativeGovernanceandTraditionalAffairs

CRC–CurrentReplacementCost

DMS–Degrees,Minutes,Seconds

DPLG–DepartmentofProvincialandLocalGovernment

DR–DisasterRecovery

DRC–DepreciatedReplacementCost

DRP–DisasterRecoveryPlanning

DRS–DisasterRecoveryServer

EF–EntityFramework

ETL-Extraction,Transformation,andLoading

EUL–EstimatedUsefulLife

GIAMA-GovernmentImmovableAssetmanagementAct

GRAP-GenerallyRecognizedAccountingPractice

HDD–HardDiskDrive

HTML-HypertextMarkupLanguage

HTTP-HypertextTransferProtocol

ICT–InformationandCommunicationsTechnology

IDMS–InfrastructureDeliveryManagementSystem

IDP–IntegratedDevelopmentPlan

KPI–KeyPerformanceIndicator

LAN–LocalAreaNetwork

LGTAS–LocalGovernmentTurn-AroundStrategy

MANC–MunicipalActionNetworkConsortium

MFMA–MunicipalFinanceManagementAct

MIG–MunicipalInfrastructureGrant

MIGMIS–MunicipalInfrastructureGrantManagementInformationSystem

MIPMIS–MunicipalInfrastructurePerformanceManagementInformationSystem

MISA–MunicipalInfrastructureSupportAgent

MSTS–MunicipalSectoralTechnicalSupport

MVC–ModelViewController

NT–NationalTreasury

PIP–ProjectImplementationPlan

PPE–Property,plantandEquipment

PPM–ProvincialProgrammeManager

QA–QualityAssurance

QMC–QlikviewManagementConsole

RUL–RemainingUsefulLife

SALGA–SouthAfricanLocalGovernmentAssociation

SITA–StateInformationTechnologyAgency

SPV–SpecialPurposeVehicle

TC–TechnicalConsultant

WAN–WideAreaNetwork

XML-ExtensibleMarkupLanguage

Basics of Municipal Asset Register

TABLE OF CONTENTS

ACKNOWLEDGEMENTS I

FOREWORD II

HONOURABLE MINISTER OF COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS II

DIRECTOR GENERAL - COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS III

CHIEF EXECUTIVE OFFICER – MUNICIPAL INFRASTRUCTURE SUPPORT AGENT IV

GLOSSARY OF TERMS V

1 INTRODUCTION 1

1.1 TheNeedforanAssetRegister 1

1.2 TheImportanceofanAssetRegister 1

1.3 LegislativeFramework 21.3.1 Constitution 21.3.2 Over-archingLegislation 21.3.3 StrategicPlanning 21.3.4 OccupationalHealthandSafety 31.3.5 Sector-SpecificLegislation 41.3.6 AssetManagement 4

1.4 ChallengesinDevelopingStandardisedAssetRegistersacrossMunicipalities 51.4.1 LegislationandRegulations 51.4.2 CrossSectoral 51.4.3 Capacity 51.4.4 Standardisation 5

1.5 MISAAssistancetoMunicipalities 5

2 REQUIRED INFORMATION TO GO INTO AN ASSET REGISTER 6

2.1 LocalGovernmentCapitalAssetManagementGuideline-NT 62.1.1 Acquisition 62.1.2 Identification 62.1.3 Accountability 62.1.4 Performance 62.1.5 Disposal 72.1.6 Accounting 72.1.7 Managementandriskinformation 7

2.2 GuidelinesforInfrastructureAssetManagementinLocalGovernment–DPLG 7

2.3 MaintenanceManagementStandardforImmovableAssets-CIDB 9

2.4 AccountingGuideline-Property,PlantandEquipment-GRAP17 10

3 REQUIRED INFORMATION FOR A COMPLIANT ASSET REGISTER 11

3.1 AssetIdentification 113.1.1 UniqueAssetIdentificationNumber 113.1.2 DetailedAssetDescription 123.1.3 Acquisition 153.1.4 Accountability 163.1.5 Performance 163.1.6 Disposal 163.1.7 Accounting 173.1.8 Managementandriskinformation 17

4 CONTENT OF MISA DEVELOPED ASSET REGISTER 21

4.1 ListofDataFieldwithintheMIPMISAssetRegister 214.1.1 Risks 23

5 MIPMIS REPORTS ON ASSET REGISTER 24

5.1 InfrastructureOverviewReport 24

5.2 InfrastructureFinancialStatus 24

5.3 InfrastructureIndicators 24

5.4 DetailedInfrastructureConditionReport 24

5.5 ValueofAssets 24

5.6 InfrastructureReplacementandRenewalCost 24

5.7 GRAP17 24

6 UNDERSTANDING OF MIPMIS REPORT AND USE 246.1.1 ReportToolbar 24

6.1.2 Parameters 256.1.3 Credentials 25

7 BIBLIOGRAPHY 26

Page 1 of 27

1 Introduction

1.1 The Need for an Asset Register Effective management of municipalinfrastructure is central to municipalitiesprovidinganacceptablestandardofservicesto the community. Infrastructure impactsonthequalityofourlivingenvironmentandopportunitiestoprosper.

Not only is there a requirement to beeffective, but the manner in whichmunicipalities discharge theirresponsibilities as public entities is alsoimportant.Municipalitiesmustdemonstrate

good governance and customer care, andtheprocessesadoptedmustbeefficientandsustainable. Councillors and officials arecustodians on behalf of the public ofinfrastructureassets,thereplacementvalueof which even in a small municipality, canamount to several hundred million Rand,andinlargerones,toseveralbillionRand.

The Asset Register is the foundation thatmunicipalitiesusetoeffectivelymanageandplantheirAssetManagement.

1.2 The Importance of an Asset Register Without a correct and up to date AssetRegister all municipal planning and servicedelivery will be based on faultedassumptions. This can lead to inaccuratebudget spending, strategic planning andmajor inequality in service delivery to thecommunity.

An incorrectandoutofdateAssetRegistermustbeseenbymunicipalitiesasahighriskthat must be mitigated immediately. Theimportance of an asset register may beunderstood better by the followingdiagrammaticpresentation.

Page 2 of 27

1.3 Legislative Framework 1.3.1 Constitution The Constitution indicates the followingobjectivesoflocalgovernment:

• provide democratic andaccountable government for localcommunities;

• ensure the provision of services tothe community in a sustainablemanner;

• promote social and economicdevelopment;

• promote a safe and healthyenvironment;and

• encourage the involvement ofcommunities and communityorganisationsinthemattersoflocalgovernment.

The Constitution however cites animportant caveat: municipalities shouldstrive for the above objectiveswithin theirfinancial and administrative capacity. Thishighlightscapacitatingofmunicipalitiesasafundamental and core need and placesresponsibilityonall spheresofgovernmentto promote, monitor and support thebuildingofsuchcapacity.

1.3.2 Over-arching Legislation Figure indicates the suite of localgovernment specific legislation.

Municipalitiesmustalsocomplywithsectorspecificandcross-cuttinglegislation.

1.3.3 Strategic Planning The Municipal Systems Act establishes theIDP of a municipality is the principalstrategic planning instrument that guidesand informs all planning and development,and all decisions with regard to theplanning,managementanddevelopment inthe municipality. It links, integrates, andcoordinatesallmunicipalplansintoasinglestrategic plan for the development of themunicipality. It provides a basis fordetermining the level and extent ofmunicipal resources and capacity required,andforformulatingbudgets.

Every municipal council has to approve anannual municipal budget that includesprovisionforcapitalexpenditureonprojectsovernotmorethan3years.IntermsoftheMunicipal Systems Act, the Council mustalso approve a financial plan linked to anIDPthat ispreparedforaperiodof5years(anupdatedannually).

The preparation of an IDP is a legalrequirement,andintermsoftheMunicipalSystemsAct,itmustincludethefollowing:

Page 3 of 27

• the municipal council’s long-term

developmentvision;

• the existing level of development,

identifyingcommunitiesthatdonot

have access to basic municipal

services;

• the municipal council’s

development priorities and

objectives for its elected term,

including its local economic

development aims and its internal

transformationneeds;

• the municipal council’s

developmentstrategieswhichmust

be aligned with any national or

provincial sectoral plans and

planning requirements binding on

the municipality in terms of

legislation;

• a spatial development framework

which includes the provision of

basic guidelines for a land use

management system for the

municipality;

• thecouncil’soperationalstrategies;

• applicable disaster management

plans;

• afinancialplan,whichmustinclude

abudgetprojection forat least the

nextthreeyears;and

• thekeyperformanceindicatorsand

performancetargets.

TheMunicipalSystemsAct(section78&79processes)dealswithinfrastructureinvestmentplanninginthesensethatthecostofownershipmustbeknownandappropriatedeliverystrategiesidentifiedandimplemented.DPLG,whichisthecustodianofthisAct,viewsthepreparationofaCMIPasakeymechanismtoachievethisend.

1.3.4 Occupational Health and Safety TheOccupationalHealthandSafetyAct(85of1993,ConstructionRegulations) requiresthe owner of any “structure” (includingmunicipal infrastructure such as bridges,waterworks, reservoirs, buildings, drainageworksandroads)tomaintainsuchstructure

in such a manner that “the structureremains safe for continued use and suchmaintenance records shall be kept andmade available to an inspector uponrequest.”

Page 4 of 27

1.3.5 Sector-Specific Legislation Municipalitiesmustalsocomplywithsectorspecific legislation, indicated in table:

Sector Legislation

WaterandSanitationWaterServicesAct,1997(ActNo.108of1997)

NationalWaterAct,1998(ActNo.108of1998)

ElectricityElectricityAct,1987(ActNo.41of1987)

ElectricityDistributionIndustryRestructuringBill,2003

RoadsandStormwaterNationalLandTransportTransitionAct,2000(ActNo.22of2000)

Urban Transport Act, 1977 (Act No. 78 of 1977)

WasteManagementNationalEnvironmentalManagementAct,1998(ActNo.107of1998)

EnvironmentConservationAct,1989(ActNo.73of1989)

1.3.6 Asset Management Government policy has increasinglyfocussed on the need to balance thedelivery of new infrastructure in the shortterm, with the need to strive forsustainability. National Treasury hasprepared Asset Management Frameworkfor national and provincial spheres of

government that largely focuses onmovable assets. The Department of PublicWorks produced the GovernmentImmovableAssetmanagementAct(GIAMA)19of2007.GIAMAprescribes theneed forpublic entities to prepare AssetManagementPlansforimmovableassets.

Page 5 of 27

1.4 Challenges in Developing Standardised Asset Registers across Municipalities

1.4.1 Legislation and Regulations Withthewidevarietyof legislationinplacethat affects the Asset Register, confusioncanbecreatedifmunicipalitiesdonothave

a clear understanding of all the legislationandregulations.

1.4.2 Cross Sectoral To achieve a standardised Asset Registeracross sectors can be challenging as each

sector has their own unique legislation,regulationsandneeds.

1.4.3 Capacity Capacitywithinmunicipalitiesdiffersandtoachieve the same quality and accuracy of

Asset Registers is currently a majorchallenge.

1.4.4 Standardisation There is stilla lack innationwidestandardsfor/ortheuseofexistingstandardsrelatedto;

• Terminology,• Category - Sub-category, Asset

ClassandAssetDescriptors,

• Replacementequivalents,• Expectedusefullife,• Measurement criteria for

conditionofassetsand• Riskindicators

1.5 MISA Assistance to Municipalities

Municipal Infrastructure Support Agent(MISA), a government component,accountable to the Executive Authority oftheCooperativeGovernanceandTraditionalAffairs (COGTA) was formed as a SpecialPurpose Vehicle (SPV) as part ofimplementing the Local Government TurnAroundStrategy(LGTAS)inMay2012.

Thus MISA’s priorities and imperatives aredirectlyalignedtothestrategicobjectivesofOutcome 9 in achieving “A Responsive,Accountable, Effective and Efficient LocalGovernmentSystem”inSouthAfrica.

As part of achieving the set strategicobjectives and as part of continuation ofMISA’s intervention to supportmunicipalities that was initiated sinceMISA’s establishment,MISA has developedaweb-enabledAssetRegisterresiding in itsMunicipal Infrastructure PerformanceManagementInformationSystem(MIPMIS).

It is expected thatmunicipalitieswill enjoythis completely free service from MISA inmanaging their basic service delivery andassist in better planning in infrastructuredevelopment and Operations andMaintenance.

Page 6 of 27

2 Required information to go into an Asset Register 2.1 Local Government Capital Asset Management Guideline - NT

2.1.1 Acquisition

• TransactionDate• Amount• Supplier/Contractor• Reference

(invoice/contract/payment/ordernumber).

2.1.2 Identification

• Asset class: should facilitateGRAP financial reportingrequirements, e.g. PPE,investment property, intangibleasset,etc.

• Assetsub-class:shouldfacilitatemanagementandreporting,e.g.motor vehicle, furniture, roadinfrastructure,etc.

• Asset functional group (ifrelevant):e.g.clinic,warehouse,hall.

• Parent asset or standaloneasset: if parent thenmusthavelinks to separately depreciableparts. For separatelydepreciableparts:linktoparentasset.

• Assetnumber:auniquesystem-generated identifier, bar codeorotheruniquenumbersothatthe individual asset can bedistinguishedfromothers.

• Assetspecific identifiers (whereapplicable):e.g.serialnumbers,registration number, erfnumber.

• Asset description: e.g. 2005Toyota Corolla 140i, brownwooden six-seater boardroomtable,etc.

• Asset dimensions/capacity (ifrelevant): e.g. 200 litre (tank),4000sqmetre(building/land)

• Asset construction (if relevant):e.g.brick,wood,castiron

• Location: e.g. Office 123, StoreAbc,Erf.Xyz

• Zoning: residential, agricultural,industrial,etc.

• GPS: recommended for easylocation(whererelevant).

2.1.3 Accountability

• Department / division:(depends upon organisation).Section / unit (depends uponorganisation). Sub-section(depends upon organisation).Costcentre

• Custodian:e.g.useroftheassetor person responsible forsafeguarding the asset inhis/her possession: for laptop,custodian isMrJones(FinancialManager).

• Restrictions (if any) in use orchangingofanasset

• Ownership (if legal title is notwiththemunicipality)

• Licenceorpermits• Transfers: (to record date and

transferor).

2.1.4 Performance

• Capacity(whererelevant),e.g.2tonne, 2000 sq metres, 200ml/day

• Performance measures (whererelevant)

Page 7 of 27

• Condition Assessment (date,rating, person doingassessment,fileno–fordetails)

• Warranties, guaranties orcertification

• Useful life: e.g.years/hours/units/mileage, etc.ofexpecteduse

• Residual value: to be evaluatedannually.

2.1.5 Disposal

• Date• Amount:proceedsreceived• Capacity:atdateofdisposal• Condition: e.g. good, fair, bad,

etc.• Remaininguseful: if soldearlier

thanoriginallyplanned• Residualvalue:tocomparewith

proceeds• Reasonfordisposal.

2.1.6 Accounting

• Historical cost (or fair valuewhere cost not available forinitialrecognition)

• Fundingsource• Usefullife:(original)• Remainingusefullife:(assessed,

dateofassessment)• Residual value: (original,

assessed and date ofassessment)

• Depreciation method: (straightline, sum of units, diminishingbalance,etc.)

• Revaluation: (amount, date,method, by whom): ifrevaluation model adopted byentity, should continuerevaluing for subsequentmeasurement.

• Impairment. (amount, dateassessed)

• Depreciation: value and rate:currentyear

• Accumulated depreciation: lifetodate

• Carryingamount• Disposal (where relevant):

(date, realised amount, detailsondisposal,Councilresolution).

2.1.7 Management and risk information

• Criticalityrating:prioritisationintermsof servicedeliverywithinaprogrammeƒServicetype:e.g.Administration, Water,Electricity

• Maintenance history:(summarisedfrommaintenancesystems)

• Operational history:(summarisedfrommaintenancesystems)

• Risk assessment: (mayreference otherdocumentation).

2.2 Guidelines for Infrastructure Asset Management in Local Government – DPLG

• IdentificationReference(usingadocumented referencingconvention)

• GeneralLedgerCode• MovableorImmovableAsset

• Asset Category and Sub-category (PPE: land, infra,community, heritage, or other;investment property; orinventoryproperty)

Page 8 of 27

• Heritage status (indicate ifculturally, environmentally, orhistoricallysignificant)

• Asset Class (in accordancewithadocumentedconvention)

• AssetGroup(groupofassetsforreportingpurposese.g.networkinaparticulararea,oraspecificfacility)

• Description of Asset (cleardescriptione.g.nameoffacility,assettype,makeandmodel/filereftoplans)

• WardNumber• AssetLocation(Erf,street,room

–asapplicable)• Take-on Date (date of delivery

orbeneficialuse)• Municipal ownership or lease

(ownerorlesseeandfilereffortitledeed/lease/rights/restrictionsdetails)

• Supplier (company name,contactdetails)

• Work-in-progress (capitalexpensespriortobeneficialuseoftheasset)

• Original Cost (check treatmentofVAT–e.g.invoiceref)

• FundingSource(nameandtypeof funding of originalconstruction – surplus cash,loans, grants, donations,reserves)

• Responsible Department (nameofdepartment)

• Asset Custodian (name ofperson)

• Effective Date of Custodianship(datepersonbecamecustodian)

• Basic Municipal Service (Yes orNo,basedonmunicipalpolicy)

• Applicable Contracts(encumbrances, warranties,

guarantees, maintenancecontracts,etc.)

• Date Asset Last Renewed (fullrenewal-notpartial)

• ExpectedUsefulLife(years)• Age (years from take-onor last

renewal)• Remaining Useful Life (years -

initially, expected useful lifeminusage–supercededbyRULdeterminedonlatestrenewaloronre-valuation)

• Methodofdepreciation(usuallystraightline)

• ResidualValue(usuallytakenaszeroforinfrastructureassets)

• Capitalised Costs (expensesincurredinassetenhancement)o Thismontho ThisFinancialYearo Sincetake-on/re-valuation

• Depreciation (original cost orre-valued amount plussubsequent capitalisedexpenses/RUL)o Thismontho ThisFinancialYearo Sincetake-on/re-valuation

• Impairment losses (as assessedin re-valuation exercise or ad-hocimpairmentevent)o Thismontho ThisFinancialYearo Sincetake-on/re-valuation

• Carrying value (original cost orre-valued amount plussubsequent capitalisedexpenses, less subsequentdepreciationandimpairment)

• Disposal method (disposed,alienated, lost, stolen,destroyed,ordecommissioned)

• Disposalexpense/revenue

Page 9 of 27

• Date of write-off (date assetphysically removed ordecommissioned)

• Re-valuation data (immovableassetsonly)o Latestre-valuationdateo Nextre-valuationdateo Re-valuationmethodo PPE: DRC (or market

valuation for applicablebuildings)

o Unit measure of assetextent (e.g. m; sqm, kW,Mℓ,etc.)

o Extentofasset(number)o Latest unit rate for

replacement(Randperunit)o Replacement value (current

replacementcost:UnitRatexExtent)

o Latest re-valued amount(PPE: Replacement value xremaining usefullife/expectedusefullife)

o Change in value in currentfinancial year due to re-valuation (latest re-valuedamount minus carrying

value on date of re-valuation)

o Re-valuation reserve(accumulated change invalueduetore-valuations)

• Infrastructure ManagementData(immovableassetsonly)o Criticality (based on

documented gradingconvention)

o AssetCondition(basedonadocumented gradingconvention and linked toremainingusefullife)

o Maintenance history (keyinformation to supportlifecycledecisionsor link toMaintenanceSystem)

o Asset performance (basedon a documented gradingconvention)

o Assetutilisation(basedonadocumented gradingconvention)

o Data accuracy (based on adocumented gradingconvention)

2.3 Maintenance Management Standard for Immovable Assets - CIDB Each entity shall establish, maintain andupdate asset registers supportive of assetcareplanning,inthefollowingmanner:

• Segment and classify itsimmovable asset portfolio(s) toat least the level ofmaintenance-significant item inaccordance with apredetermined asset hierarchy,and shall furthermore, forpurposes of maintenance andrenewals planning, determineand record the following

information against each assetinitsassetregister:o assetidentificationnumber;o physicaldescription;o physicalparameters;o estimatedusefullife;o actual and minimum

acceptable asset failuremode ratings (condition,performance, capacity andcost-of-operations);

o remainingusefullife;o current and depreciated

replacementcost;

Page 10 of 27

o assetcriticalityrating;o any statutory obligations

regardingtheoperationandmaintenance of the asset;and

o responsibleperson(s).

• The entity shall, in maintainingand updating asset registers,update asset failure modestatus and current replacementcost data for each asset on anannualbasis.

2.4 Accounting Guideline - Property, Plant and Equipment - GRAP 17 • In order to comply with above, a

GRAP compliant asset registershould be prepared which shouldconsistofthefollowinginformationasaminimum:

o Detailassetdescription;o Bar code, unique identifier,

serial number (whereapplicable), erf number(whereapplicable)(orothernumber to distinguish itfromotherassets);

o Location;o Purchaseprice;o Acquisitiondate;o Estimated useful life

(original);o Estimatedresidualvalue;o Remainingusefullife;o Depreciation;o Accumulateddepreciation;o Disposal – date, proceeds,

depreciation up to date ofdisposal;

• Information on a change inaccounting estimate as a result of

change in useful life or residualvalue–datereassessed,etc.;

o Impairment loss recognisedorreversed;

o (NT, Accounting Guideline -Property, Plant andEquipment - GRAP 17,2012)Carrying amount atthe beginning and end ofthereportingperiod;

o Fundingsource;o Conditionoftheasset–this

can assist in determiningthe remaining useful life ofanassetandwhetheritmaypossiblybeimpaired;and

o Person responsible forsafeguarding andmaintainingtheasset(s).

• Thisinformationshouldbeprovidedforeachtypeofassete.g.property,plant and equipment, intangibleassets, investment property, andeach class e.g. buildings, officeequipment, computer equipment,and preferably for the current andpriorperiodsimultaneously.

Page 11 of 27

3 Required Information for a compliant Asset Register

3.1 Asset Identification

3.1.1 Unique Asset Identification Number

Every asset must have a unique numberthat are used across all departments withnoduplication.

It isrecommendedthatthisnumberhaveameaningful structure that can ensure noduplication and make the assets easy to

identify. MIPMIS use the Department ofProvincial and Local Government’sguidelines for the Unique AssetIdentificationNumberasfollows;

Category-Sub-category/AssetClass/AssetDescriptor-SequentialNumberfortheassettype

Example of how the categories can bebrokendownintosub-categoriesforeaseofreferenceandreporting:

Category ID Sub-Category IDLand LA Sub-categories based

onzoning

InfrastructureAssets IA RoadsNetwork RDSStorm-waterNetwork STWWaterNetwork WATSanitationNetwork SANSolidwastedisposal SOWElectricityNetwork ELE

CommunityAssets CA Sport & RecreationFacilities

SPR

CommunityFacilities COFHeritageAssets HA Sub-categories as

necessary – e.g.naturereserves, memorials,historicsitesetc.

OtherAssets OA Buildings BUIVehicles VEHOperational Plant andEquipment

OPE

Office Furniture andEquipment

OFE

Assets (both movable and immovable) arefurther classified according to asset class.The classifications need to be reviewed toensure theycoverall the typesofassets inthemunicipality, and aredefined in such away thatwill enableeffectivemanagementreporting.

Anassetclasswilloftencompriseanumberof similar assets that can be groupedtogether for ready identification using an

asset descriptor. In the case of movableassets,thiscanbeonthebasisofassettype(e.g. vehicle types), and, for immovableassets, location (e.g. reticulation inAganang,boreholes invillage6,mechanicalplantatPumpStation3).

Examples:

Page 12 of 27

• “IA-WAT/MEC/PS6 – 9” is theidentification for: InfrastructureAssets - Water Network /MechanicalPlant/atPumpStationNo6–Assetnumbernine;

• “CA-SPR/BG/SEL – 2” is theidentification for: CommunityAssets – Sport & Recreation /

Bowling Green / Seleka – Assetnumbertwo;and

• “IA-SAN/RET/MA2 – 3” is theidentification for: InfrastructureAsset – Sanitation Network /Reticulation / Marapong Extension2 – Asset number 3

•

3.1.2 Detailed Asset Description Every asset must have a detaileddescription.Thisincludes;

• AssetName• Model• SerialNumber• MaterialType• Size• AssetClass• Location• Zoning

3.1.2.1 Asset Class Theassetclassmakesuseofahierarchytoportray a clear, holistic and logicalbreakdown of infrastructure in each of theservices,usingastructurethatisconsistentwiththeassetcategoriesandclassesusedinfinancial management. Financial reportingwill typically be required at theFacility/AssetGrouplevel.

Network Facility or Asset Group Asset

Roads Paved Arterial and Distributor Roads

Formation

Pavement structure

Pavement surface

Kerbs and channels

Paved Collector and Residential Roads

Formation

Pavement structure

Pavement surface

Kerbs and channels

Gravel Roads Formation

Gravel surface

Structures Bridges

Retaining walls

Major culverts and subways

Overhead gantries

Footpaths Hardened footpath surface

Traffic Management Street signs

Traffic lights

Street Lights Street lights

Street furniture Commuter shelters

Guard rails

Buildings Buildings

Fences Fences

Storm-water Interception and conveyance Pipelines

Culverts

Open channels

Page 13 of 27


Nodes, transitions

Attenuation Earth wall

Site

Perimeter protection

Hydrological Monitoring Stations Building

Specialist Equipment

Pump Stations Civil works

Building

Electrical Plant

Mechanical Plant

Perimeter Protection

Water supply Dams Dam wall

Site


Spring protection Pipes

Dam wall

Tanks


Boreholes Building

Casing


Electrical plant

Mechanical plant

Meter

Water treatment works (may be broken down per process element)

Civil Works

Mechanical plant

Electrical plant

Buildings

Pipes

Meters

Site


Pump station Civil works

Building

Electrical Plant

Mechanical Plant

Telemetry

Meter

Site


Bulk water pipelines Pipelines

Valves

Meters

Storage Civil works - reservoirs, towers

Tanks

Support structure for tanks

Mechanical plant

Chlorinator

Meters

Page 14 of 27


Hydrants


Site

Distribution Reticulation

Hydrants

Meters

Communal standpipes

Collection Sewerage reticulation

Vehicles (e.g. Honey sucker, tractor/trailer)

Bulk pipelines (outfall sewer) Rising mains

Gravity mains (outfall)

Pump station Civil works

Building

Electrical plant

Mechanical plant

Telemetry

Meter

Site


Wastewater Treatment Works (may be broken down per process

Civil Works

Mechanical plant

Electrical plant

Buildings

Meters

Site


Solid waste disposal Collection Vehicles

Containers/bins

Transfer stations, and processing facilities

Buildings

Electrical plant

Mechanical plant

Site


Landfill site Earthmoving and compaction equipment Landfill preparation


Building

Mechanical - weighbridge

Electrical - weighbridge

Electricity supply HV Transmission Network (>22kV) Overhead lines

Underground lines

Site

HV Substations (>22kV) Site

Building

HV outdoor equipment

HV GIS equipment

HV transformers

MV indoor equipment

MV Network (<22kV) Site

Page 15 of 27


MV overhead

MV underground

MV Substation (<22kV) Site

Building

MV outdoor equipment

MV indoor equipment

MV transformers

LV Network LV underground

LV overhead

Consumer meters

Network Management Workstations

Software

Telemetry

Load Control

Sports-fields, Parks and Cemeteries Roads Paved areas (vehicles)

Gravel areas (vehicles)

Hardened surface (pedestrian) Hardened footpath surface

Tennis/basketball court

Buildings Buildings

Swimming Pool Swimming Pool

Storm-water Pipes

Culverts

Open channels

Nodes, transitions

Earth retention wall

Storm-water nodes/ transitions

Open Space Grass, shrubs and trees

Park furniture

Spectator stands

Lighting

Perimeter protection/fencing

Community Buildings and Administration Offices

Each Community Building Type Site

Structure and building fabric

Building finishes

Plumbing

Electrical

Air conditioning

Lifts

Fire prevention and protection

Equipment for theatres and council chambers Gas installations


3.1.3 Acquisition

• TransactionDate• Amount• Supplier/Contractor

• Reference(invoice/contract/payment/ordernumber).

Page 16 of 27

3.1.4 Accountability

• Department / division:(depends upon organisation).Section / unit (depends uponorganisation). Sub-section(depends upon organisation).Costcentre

• Custodian:e.g.useroftheassetor person responsible forsafeguarding the asset inhis/her possession: for laptop,custodian isMrJones(FinancialManager).

• Restrictions (if any) in use orchangingofanasset

• Ownership (if legal title is notwiththemunicipality)

• Licenceorpermits• Transfers: (to record date and

transferor).

3.1.5 Performance

• Capacity(whererelevant),e.g.2tonne, 2000 sq metres, 200ml/day

• Performance measures (whererelevant)

• Condition Assessment (date,rating, person doingassessment,fileno–fordetails)

• Warranties, guaranties orcertification

• Criticality• Useful life: e.g.

years/hours/units/mileage, etc.ofexpecteduse

• Residual value: to be evaluatedannually.

3.1.5.1 Condition The approach adopted for determiningconditionneedsto:

• be standardised so that it can beconsistently applied across allmunicipalities to enable effectivebenchmarking, trend monitoring,anddataaggregation;

• be cost effective, repeatable andobjective;

• be linked to the expected failurepattern of the specific assets(whereverpracticable);

• modelled on performance criteriarather than visual inspection ofcondition where such is notpracticable or inappropriate (e.g.pipelines,powercabling);

• alignwithexistingindustrynormsineachsector;

• supportrobustvaluation;and• support the modelling of renewal

budgetneeds.

Asimplegenericfive-pointgradingcanbeadopted.

Grade Description Detailed description Indicative RUL

1 Very good Sound structure, well maintained. Only normal maintenance required. 71-100% EUL

2 Good Serves needs but minor deterioration (<5%). Minor maintenance required. 46-70% EUL

3 Fair Marginal, clearly evident deterioration (10-20%). Significant maintenance required.

26-45% EUL

4 Poor Significant deterioration of structure and/or appearance. Significant impairment of functionality (20-40%). Significant renewal/upgrade required.

11-25% EUL

5 Very poor Unsound, failed needs reconstruction/ replacement (> 50% needs replacement)

0-10% EUL

3.1.6 Disposal

• Date

• Amount:proceedsreceived• Capacity:atdateofdisposal

Page 17 of 27

• Condition: e.g. good, fair, bad,etc.

• Remaininguseful: if soldearlierthanoriginallyplanned

• Residualvalue:tocomparewithproceeds

• Reasonfordisposal.

3.1.7 Accounting

• Historical cost (or fair valuewhere cost not available forinitialrecognition)

• Fundingsource• Usefullife:(original)• Remainingusefullife:(assessed,

dateofassessment)• Residual value: (original,

assessed and date ofassessment)

• Depreciation method: (straightline, sum of units, diminishingbalance,etc.)

• Revaluation: (amount, date,method, by whom): ifrevaluation model adopted byentity, should continuerevaluing for subsequentmeasurement.

• Impairment. (amount, dateassessed)

• Depreciation: value and rate:currentyear

• Accumulated depreciation: lifetodate

• Carryingamount• Disposal (where relevant):

(date, realised amount, detailsondisposal,Councilresolution).

3.1.8 Management and risk information

• Criticalityrating:prioritisationintermsof servicedeliverywithin

aprogrammeƒServicetype:e.g.Administration, Water,Electricity

• Maintenance history:(summarisedfrommaintenancesystems)

• Operational history:(summarisedfrommaintenancesystems)

• Risk assessment: (mayreference otherdocumentation).

3.1.8.1 Criticality Identifying critical assets is often the firststep inmanaging asset risk. It is necessarytohave some formofmeasurementof theconsequence of failure, and therefore anindicator of the “criticality” of the assets.Thiswillenablethefollowing:

• focusing of the level of detail andaccuracyofdatacollectionexercise;

• crafting of focused maintenanceresponses;

• prioritisationofassetrenewal;• prioritisation of asset-level risk

mitigationactions;and• measurement of the overall risk

exposureofeachnetwork.

Abasicapproach is forexample,wheretheimpacts of asset failure are contemplatedusing a simple rating approach. Thepotential impacts are aggregated, resultingintheallocationofacriticalitygradingonasimple3pointscale.Thecriteriaandratingattributedtoeachimpact,andthecriticalitygrading bands will need to be tested andadjustedovertime,basedonapplication.

Page 18 of 27

ConsequenceofFailure

Area of Impact Measure Rating

Public and municipal employees’ health and safety

Loss of life or multiple illness/injury

15

Single illness/minor injury 5

No effect 0

Financial losses (cost of repairs and/or loss of revenue)

More than R100,000 6

Between R20,000 and 100,000

4

Less than R20,000 2

Service delivery performance Major impact 8

Minor impact 4

No effect 0

Environment Major 10

Minor 5

No effect 0

CriticalityGrading

Consequence of Failure Score

Description Criticality Grading

≥15 Critical 1

11 – 14 Important 2

≤10 Non-critical 3

3.1.8.2 Risk Assessment

3.1.8.2.1 Risk Identification Riskevents shouldbe identifiedbyofficialswho are familiar with the assets and their

operatingenvironment.Thiscanbedonebyan individual, but there are benefits indiscussing potential risk events on acollective basis. A schedule of commonlyencountered risks that can be used tostimulatediscussionofpotentialriskevents.

Physical Condition-based failure

Vandalism

Theft/illegal connections

System losses

Operational Operator error

Misuse

Theft

Sabotage

Inadequate safety measures

Insufficient skills & capacity

Delays in contracts

Under or over utilisation

Page 19 of 27

Technical Inadequate planning

Inadequate data

Inadequate systems capability

Inadequate design

Fitness for purpose

Inadequate construction standards

Insufficient infrastructure capacity

Infrastructure obsolescence

Inadequate maintenance

Legal Loss of rights/license

Change in legislation

Fines

Natural/environmental Flood

Drought

Storms

Sinkholes

Fire

External Power cuts

Availability of consumables (e.g. diesel, chemicals)

Availability of parts supplies

Reliability of bulk

Quality of bulk

Capacity of bulk

Financial Inadequate CAPEX budget

Inadequate OPEX budget

Inefficient collection

Prohibitive O&M costs

Unforeseen budget cuts

Institutional Poor morale

Inadequate or cumbersome processes

Ineffective strategic leadership

Unclear targets/goals

Social Change in expectations

Change in demand

Page 20 of 27

3.1.8.2.2 Consequences of Risk Events Aconsequenceratinghastobeallocatedtoeach risk event. Whilst sophisticatedtechniques exist that attempt to quantifythese consequences, a more qualitativeapproach is often more practical, using a

guide such as shown in the table below.Consequencetablesareveryspecifictothesize and type of assets, and organisationalneeds–thusthetableshouldbedevelopedwithinputsfromseniormanagementofthemunicipality.

ConsequenceRating

QualitativeDescription

Directcosts(repair,lostincome,thirdpartydamage)

Servicedeliveryperformance

Effectonpublichealth,safetyandproperty

EnvironmentalDamage

MunicipalImage

1 Insignificant Isreadilyabsorbedundernormaloperatingconditions

<R20,000 Lessthan50customerswithoutpotablewaterforupto8hrs

Nohealthorsafetyimpact,minorpropertydamage

Minortransientenvironmentaldamage,visualeffectsonly

Individualinterestonly,nocommunityconcern

2 Minor Canbemanagedundernormaloperatingconditions

R20,000-R100,000

Lessthan50customerswithoutwaterforupto24hours

Minorhealthimpactonsmallnumberofpeople

Minordamagetoenvironment,longereffect

Minorcommunityinterest,minorlocalmediareport

3 Moderate Canbemanagedbutrequiresadditionalresourcesandmanagementeffort

R100,000-R500,000

Lessthan50customerswithoutpotablewaterforupto48hrs

Serioushealthimpactonsmallnumberorminorimpactonlargenumberofpeople

Moderateenvironmentaldamage,localimportance

Publiccommunitydiscussion,majorlocalmediainterest

4 Major Willhaveaprolongedimpactandextensiveconsequences

R500,000-R5,000,000

Morethan50customerswithoutpotablewaterforaperiodofover48hours

Extensiveinjuriesorsignificanthealthimpacts,singlefatality

Majorlongtermenvironmentalimpact.Prosecutionexpected

Majorlossincommunityconfidence

5 Catastrophic Irreversibleandextensiveimpacts,orsignificantlyunderminingkeybusinessobjectives

>R5,000,000Morethan500customerswithoutpotablewaterforaperiodofover48hours

Multiplefatalities

Seriousdamageofnationalimportanceandirreversibleimpact.Prosecutionexpected.

Nationalmedia

Page 21 of 27

3.1.8.2.3 Probability of Risk Events Aprobabilityratingisallocatedforeachriskevent.Whilststatisticalprobabilitiesmaybeused, municipalities may find it morepracticaltousesubjectivecriteria.

Rating Probability Condition

A Rare Very Good

B Unlikely Good

C Moderate Fair

D Likely Poor

E Almost certain

Very Poor

3.1.8.2.4 Risk Exposure The risk exposure of a municipality to aparticular event can be considered todepend on the consequences and the

probability of that event. Amatrix such asthe one indicated in Table can be used torankeventsaslow,moderate,significantorhighriskexposuretothemunicipality.

Consequence

1 I

nsi

gn

ific

ant

2 M

ino

r

3 M

od

erat

e

4 M

ajo

r

5 C

atas

tro

ph

ic

Pro

bab

ilit

y A Rare L L L M M

Risk Exposure B Unlikely L L M M S

L LOWC Moderate L M M S H

M MODERATED Likely M M S H H

S SIGNIFICANTE Almost certain M S H H H

H HIGH

4 Content of MISA developed Asset Register

4.1 List of Data Field with in the MIPMIS Asset Register

Organisation – This is the organisationresponsiblefortheInfrastructureAsset.

Number - All infrastructure assets musthave a unique identification referencenumber.Acommonapproachmustbeusedacross all departments in the municipality,suchasthefollowing:

Category-Sub-category/AssetClass/AssetDescriptor-SequentialNumberfortheassettype

Model - The model of an asset must beinserted.E.g.2500Ford.

SerialNumber - Standard serial number ofan asset. E.g. serial numbers, registrationnumber, erf Number or other number todistinguishitfromotherassets.

Description - A Descriptive name for theasset.

Material Type - The type ofmaterial of anasset.E.g.brick,wood,castiron,pvc.

Class Description/Nature - This field is adropdown,whereyouareabletoselecttherequired Class Description/Nature from apre-loadedlist.

Size-Thesizeofanassetmustbeinserted.E.g.150mmpipe,240lWheelieBin.

Capacity - The capacity of the asset. E.g.number of kiloliters, 200 litre (tank), 4000sqmetre(building/land),65l/s(waterpipe)

Quantity -Quantityof theasset.E.g.100mofpipe,1SolidWasteTruck.

Utilisation-Theextenttowhichanassetisbeing productively used – measured as apercentageofitscapacity.

Page 22 of 27

ReplacementEquivalent -Thereplacementequivalentofanassetmustbeinserted.E.g.A 300mm clay sewer pipe needs to bereplaced and the replacement equivalentwillbea300mmconcretepipe.

YearConstructed/PurchaseDate–Thedatetheassetwascompletedorpurchased.

SupplierName-Thesuppliername.

CriticalityGrade - This field isadropdown,where you are able to select the requiredCriticalityGradefromapre-loadedlist.

Condition -Thisfield isadropdown,whereyou are able to select the requiredConditionGradefromapre-loadedlist.

ConditionIndex/Grade-Oncetheconditionischosen,thisfieldisdisplayedaccordingtotheselectedcondition.

Ward -Thisfieldisadropdown,whereyouareabletoselecttherequiredWardfromapre-loadedlist.

Latitude-GPScoordinatestobeinsertedinthese fields, the format should be asfollows:-26.7627DecimalDegrees(DD),butMIPMIS also caters for Degrees Minutes

Seconds (DMS) aswell by pressing thetheusercancapturethelatitudeintheDMSformat.

Longitude -GPScoordinates tobe insertedin these fields, the format should be asfollows:35.1627DecimalDegrees(DD),butMIPMIS also caters for Degrees Minutes

Seconds (DMS) aswell by pressing thethe user can capture the longitude in theDMSformat.

Custodian - The person responsible forsafeguardingtheasset.

ReplacementCostperItem-ARandValue.Thecostof replacinganexistingasset itemwith a modern asset item of equivalentcapacity.

PurchasePrice-ARandValue.Costsshouldbe used for newly or recently acquiredassetsforwhichclearevidenceofcostscanbe determined from transactional records,e.g.Invoices.

Actual/DeemedCost -ARandValue. If thePurchase Price for an asset is not availableDeemed Cost should be selected, and themeasured value should be inserted, thedateonwhichthemeasurementwasmadeshould then be inserted in the YearConstructed/PurchaseDate.DeemedCostisdetermined by using the guidance andprovisions inDirective7onTheApplicationof Deemed Cost on the Adoption ofStandardsofGRAP.

Depreciated Replacement Cost - A RandValue. A measure of current value of anasset,basedonitscurrentreplacementcostless an allowance for deterioration ofcondition todate (basedon the fractionofRemainingUsefulLife/ExpectedUsefulLife).

𝐷𝑅𝐶 = 𝐶𝑅𝐶 ∗𝑅𝑈𝐿𝐸𝑈𝐿

Current Replacement Cost - A RandValue.Thecostofreplacinganexistingassetwithamodernassetofequivalentcapacity.

AdditionAmount-ARandValue.Capexonadditionsmadetoanasset.

Page 23 of 27

4.1.1 Risks Description - Enter a short description oftheRisk.ThisdescriptioncouldbethesameastheRiskType.

RiskType -This field isadropdown,whereyouareabletoselecttherequiredRiskTypefromapre-loadedlist.E.g.Insufficientskillsand Capacity, Condition-based failure,Vandalism,etc.

Risk Consequence - This field is adropdown,whereyouareabletoselecttherequired Risk Consequence from a pre-loaded list. E.g. Insignificant, Minor,Moderate,etc.

Risk Probability - This field is a dropdown,where you are able to select the requiredRisk Probability from a pre-loaded list. E.g.Rare,Unlikely,Moderate,etc.

Risk Exposure - This is a calculated fieldusing; Consequence and Probability.According to the selection you made forRiskConsequenceandRiskProbability, thisfieldiscalculatedautomatically.

Cost of Risk – This field is to indicate thecostifthisriskwillhappen.

Risk Response - Insert a Risk response inthisfield.

Page 24 of 27

5 MIPMIS Reports on Asset Register

5.1 Infrastructure Overview Report AddPicture

5.2 Infrastructure Financial Status AddPicture

5.3 Infrastructure Indicators AddPicture

5.4 Detailed Infrastructure Condition Report AddPicture

5.5 Value of Assets AddPicture

5.6 Infrastructure Replacement and Renewal Cost

5.7 GRAP 17 AddPicture

6 Understanding of MIPMIS report and use MIPMISprovidesaViewerthatisusedtodisplayreports on demand as they are requestedfromtheMIPMISserver.Itincludesareporttoolbar, a parameter section, a credentialssection, and a document map. The reporttoolbar includes features you can use towork with your report, including exportoptionssothatyoucanviewyourreport informats other than HTML. The parametersection and document map appear onlywhenyouopenreportsthatareconfiguredto use parameters and a document mapcontrol.

6.1.1 Report Toolbar

The report toolbar provides pagenavigation, zoom, refresh, search, export,print, and data feed functionality forreports.

Print functionality is optional. When it isavailable, a Printer icon appears on thereport toolbar. Clicking the Printer iconopens a Print dialog box so that you canselectfromtheprintersthatareconfiguredforyourcomputer.

Page navigationcontrols -Open the first or last page of areport,scrollthroughareportpagebypage,and open a specific page in a report. Toviewaspecificpage,typethepagenumberandpressENTER

Page display controls - Enlarge orreduce the size of the report page. Inaddition to percentage-based changes, youcan select PageWidthto fit the horizontallength of a report page in the browserwindow, orWhole Pageto fit the verticallength of a report in the browser window.AZoomoption is supported by MicrosoftInternetExplorer5.5andlater.

Page 25 of 27

Search field -Searchforcontentinthereportbytypingaword or phrase that youwant to find (themaximum value length is 256 characters).The search is case-insensitive and starts atthe page or section that is currentlyselected.Onlyvisible content is included ina search operation. To search forsubsequentoccurrencesof thesamevalue,clickNext.

Export formats - Open a newbrowser window and render the report inthe selected format. The formats that areavailable are determined by the renderingextensions that are installed on the reportserver. TIFF is recommended for printing.ClickExportto view the report in theselectedformat.

Documentmap icon-Showorhidethedocument map pane in a report thatincludesadocumentmap.Adocumentmapisa reportnavigationcontrol similar to thenavigationpaneonaWebsite.Youcanclickon items in thedocumentmap tonavigatetoaspecificgroup,page,orsub-report.

Printericon-OpenaPrintdialogboxsothatyoucanspecifyprintoptionsandprinta report. On first use, clicking this iconpromptsyoutodownloadtheprintcontrol.

Report refresh icon - Refresh thereport. Data for live reports are refreshed.Cached reports are reloaded from wheretheyarestored.

6.1.2 Parameters Parameters are values that are used toselect specific data (specifically, they areused to complete a query that selects thedata for your report, or to filter the resultset).Parametersthatarecommonlyusedinreports include dates, names, and IDs.When you specify a value for a parameter,the report contains only the data thatmatches the value; for example, employeedata based on an Employee ID parameter.Parameters correspond to fields on thereport. After you specify a parameter,clickViewReporttogetthedata.

The report author defines the parametervalues that are valid for each report. Areportadministratorcanalsosetparametervalues.To findoutwhichparametervaluesare valid for your report, ask your reportdesigneroradministrator.

6.1.3 Credentials Credentials are user name and passwordvalues that grant access to a data source.Afteryouspecifyyourcredentials,clickViewReportto get the data. If a report requiresyou to log on, the data that you areauthorizedtoseemightdifferfromthedatathat another user sees. Consequently, twousers can run the same report and getdifferent results. In addition, some reportscontain hidden areas that are revealedbased on user logon credentials orselectionsmade inthereport itself.Hiddenareas in the report are excluded fromsearch operations, producing differentsearch results than when all parts of thereportarevisible.

Page 26 of 27

7 Bibliography

CIDB. (2015). MAINTENANCE MANAGEMENT STANDARD for immovable assets under thecustodianshipofNationalandProvincialDepartmentsofWorks.

DPLG.(2009).GuidelinesforInfrastructureAssetManagementinLocalGovernment.

NT.(2012).AccountingGuideline-Property,PlantandEquipment-GRAP17.

NT.(n.d.).LOCALGOVERNMENTCAPITALASSETMANAGEMENTGUIDELINE.

Page 27 of 27

Documents

Basics of a Municipal Asset Register - Welcome to MIPMIS of a Municipal Asset Register... · basics of municipal asset register table of contents acknowledgements i foreword ii honourable