Aged Care Asset Management Plans. If you think this is a one-off process think again!
The NSW Government has made a number of changes to the NSW Retirement Villages Act.
One of the key changes is that retirement village operators must prepare and keep an up-to-date 10-year asset management plan.
To allow time for operators to prepare the asset management plans and fully comply with this requirement, penalty provisions for non-compliance will not commence until 1 September 2021.
The 10-year plan will need to address a number of criteria, these include:
- Capital Maintenance – works carried out for the purpose of repairing or maintaining an item of capital that is not a capital replacement
- Capital replacement – works carried out for the purpose of replacing an item of capital with a value of $1,000 or more
- Capital Works Fund – annual contributions to meet the cost of capital maintenance over a period of one year or more.
How do Aged Care Facilities comply with the NSW Regulations?
- Asset Register: The plan must include an asset register of major capital items ($1,000+) and a maintenance schedule detailing major items of capital, including information about capital replacement.
- A 3-year Annual Report: While the regulations allow for the update of the plan at the end of each 10-year term there is a requirement to provide a regular annual 3-year report. This report uses data from the 10-year plan and forms the basis of the annual budget on a rolling 3-year basis.
- Ongoing Maintenance: While the initial creation of the 10-year plan is relatively straight forward it is the ongoing requirement to maintain the plan that will be complex.
- Asset Maintenance Reporting: Update reporting includes, for example, each time you “undertake maintenance or replace a major item of capital”. This will impose a considerable burden on Village Managers to not only record each item of work but also to link this to the relevant asset item. Asset reporting includes showing the accumulated costs of maintenance and repairs as a percentage of the original purchase cost.
How can the Asset Management Plan be utilised long term?
While the use of a spreadsheet may be sufficient for the initial 10-year plan, it will not be an effective tool to manage the day-to-day asset management operations. This will require a specialised asset or facility management system.
If you need help to develop a sustainable 10-year asset management plan then talk to the team at WebFM. Our suite of simple online systems will collect the entire asset life cycle from new works through to 10-year plans and day-to-day operations.
How can OmTrak help Aged Care Facilities?
OmTrak Software has tools to manage all building information and documents throughout the design phase, construction phase, and maintenance phase of an aged care facility. OmTrak software has already been used to manage the construction and assets of aged care facilities in Australia and New Zealand. To find out more download the case studies here; OMTRAK AGED CARE CASE STUDIES