Queensland Local Government Minister Desley Boyle has released a new guide to help Mayors and Councillors across the State better understand their responsibilities in managing billions of dollars of community assets under their watch.
The Guide to Asset Accounting in Local Governments explains key concepts around assets and depreciation, with links and resources to assist in measuring the residual value of community assets and their depreciation.
Minister Boyle commended councils across Queensland who are advanced in developing their long term asset management plans which need to be in place by the end of the year.
“This guide will be a very handy tool for Mayors and Councillors,” she said. “They have an important role to play in providing stewardship in this and I commend the guide to them as essential reading.
“Under the asset management policy for Local Government, councils’ long term financial forecasts need to be underpinned by robust estimates produced from asset management plans. Community assets have to be well managed for their entire lifespan and their full cost, including depreciation, needs to be accounted for.”
She said the range of issues councils need to consider include:
- setting the expected levels of service for council services
- agreeing on acceptable levels of risk and cost for the expected levels of service
- approving a council’s asset management policy, strategy and
asset management plans - ensuring funding decisions are based on long term asset
management plans - evaluating asset management performance, to ensure that
the council’s assets provide the services as expected.
“This guide will assist Mayors and Councillors to avoid any confusion of the broad range of terminology and concepts associated with asset management, asset accounting and financial management,” the Minister said.
The guide is on the web at www.dip.qld.gov.au/lgaguide
