Asset management, risk and pricing policies

Asset management

Treasury performs the duties of building owner for the Government office accommodation portfolio through the Statutory Maintenance and Office Works Program. This program provides funding to enable the necessary maintenance activities required by the Building Code of Australia, and through other legislation such as the Workplace Health and Safety Act 1995 and the Building Act 2000. Existing statutory maintenance contracts provide for routine and remedial maintenance and security on the Government office portfolio managed by Treasury.

The Office Works Program represents a funding allocation for consultancy investigations and landlord works for the buildings within the Government office portfolio managed by Treasury. Projects completed during 2007–08 under this Program included:

The Capital Investment Program-Essential Maintenance funding program provides Government agencies with the ability to submit priority projects for the maintenance of Government buildings. Projects completed by Treasury through the CIP-EM Program were:

Given the Government's policy to divest most of its office portfolio, careful consideration is given to each new project to ensure that overcapitalisation does not occur. The majority of works are those considered essential in accordance with the Building Code of Australia, Occupational Health, Safety and Welfare requirements or tenant leasing commitments; or value-adding works and works to maintain the integrity of a building's fabric until sale.

The financial statements for 2007–08 contain full details of the Department's asset management policies as notes to the statements. Departmental assets are valued in accordance with the Department's accounting policies and procedures. These values are disclosed in the statements, together with appropriate notes on valuation methods. Details of Treasury's assets are recorded in the asset module of the Department's finance system. This provides a direct link between the Department's asset register and the general ledger, thus enhancing financial reporting.