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Asset Management Training
Module 3 – Funding Strategy for Asset
& Equipment Maintenance
On – Line Support & Knowledge Buil...
Structure of On Line Learning
1. Asset Management Module – 4
2. Asset Management Learners Guide
3. Active Canberra Asset M...
On Line Learning Modules
1. Background and understanding of the role and
importance of facility and equipment maintenance
...
Funding Strategy For Asset &
Equipment Management
1. Selection of new equipment and assets.
2. Typical financial funding s...
4Selection of new equipment and
assets.
1. Needs – how important is it to the operations and
driving revenue
2. Standards ...
Whole of Life Costings
1. Capital Investment – including court or facility
development and ancillary items (e.g. fences, l...
WOL Costings – Capital Investment
Capital cost of a new asset –
synthetic sports field with
ancillary items that will ensu...
WOL Costings – Ongoing Maintenance
Ongoing Maintenance
cost of the new asset –
depending on level of
use
WOL Costings – Replacement
Replacement cost should be
funded through a sinking
fund and linked to a revenue
generating str...
WOL Affordability
Maintain and Replace
Importance of Revenue Strategy
1. This will allow you to identify how much you need to
charge to recoup or plan for your f...
Exercise 3: Funding Considerations
Funding Questions –
sometimes the hardest
and organisation has to
make…
But the right a...
Module 3 Conclusion
1. If you understand the capitol and revenue costs then you can
plan to cover them with a revenue stra...
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Asset & equipment management presentation 2016 module 3 v2.01

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Module 3 of 4 - Covering Funding Strategy for Asset and Equipment Maintenance

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Asset & equipment management presentation 2016 module 3 v2.01

  1. 1. Asset Management Training Module 3 – Funding Strategy for Asset & Equipment Maintenance On – Line Support & Knowledge Building Martin Sheppard Smart Connection Consultancy
  2. 2. Structure of On Line Learning 1. Asset Management Module – 4 2. Asset Management Learners Guide 3. Active Canberra Asset Management Tool Box
  3. 3. On Line Learning Modules 1. Background and understanding of the role and importance of facility and equipment maintenance 2. Types of facility maintenance 3. Funding strategy for asset and equipment maintenance 4. What is an asset management plan for your facility and how do you develop one
  4. 4. Funding Strategy For Asset & Equipment Management 1. Selection of new equipment and assets. 2. Typical financial funding scenarios, including: • WOL funding options • Recurring revenue options • Sinking fund options. 3. The expense commitment, which includes: • The WOL costs • The annual maintenance costs • The replacement costs after an expected life of ten years. 4. The ability to generate revenue to offset the investment: • The pricing strategy • The return on investment.
  5. 5. 4Selection of new equipment and assets. 1. Needs – how important is it to the operations and driving revenue 2. Standards - what needs to be delivered to what standard and by when to keep the organisation compliant – in terms of the sport or legislative obligations; 3. Technology – explore the latest technologies to ascertain what has changed since your last purchase as the technology may have improved and be a cost saving against the WOL costs, e.g. lighting technology; and 4. Suppliers – are they, suppliers that your state/national /intentional bodies have an affiliation or certification with for your sport (e.g. FIFA Licensee or AFL Approved Supplier).
  6. 6. Whole of Life Costings 1. Capital Investment – including court or facility development and ancillary items (e.g. fences, lights etc);. 2. Maintenance Costs – the costs to keeping the asset maintained and ensuring it achieves its life expectancy; and 3. Replacement Costs – what needs to be ‘put away’ now and each year so that the organisation can afford the replacement once it’s reached its end of life expectancy
  7. 7. WOL Costings – Capital Investment Capital cost of a new asset – synthetic sports field with ancillary items that will ensure that you can generate income to offset costs Capital Investment and Installation Costs Component Aus. $ cost Pitch Costs Design $10,000 Site establishment, documentation & project management $60,000 Sub grade works $70,290 Drainage, gutters and concrete works $164,010 base pavement and asphalt $335,830 synthetic surface $312,400 shock pad installation $156,200 Pitch Sub total $1,108,730 Ancillary Costs Fencing $78,100 Lighting $273,350 Irrigation (optional) $0 Equipment $50,000 other $0 Ancillary costs Sub-Total $401,450 TOTAL COST FOR FIELD $1,510,180
  8. 8. WOL Costings – Ongoing Maintenance Ongoing Maintenance cost of the new asset – depending on level of use
  9. 9. WOL Costings – Replacement Replacement cost should be funded through a sinking fund and linked to a revenue generating strategy
  10. 10. WOL Affordability
  11. 11. Maintain and Replace
  12. 12. Importance of Revenue Strategy 1. This will allow you to identify how much you need to charge to recoup or plan for your future costs 2. Variable costs to different customers ensure that you encourage the people who can’t (really) afford to pay and those who can
  13. 13. Exercise 3: Funding Considerations Funding Questions – sometimes the hardest and organisation has to make… But the right answers can set them up for the future
  14. 14. Module 3 Conclusion 1. If you understand the capitol and revenue costs then you can plan to cover them with a revenue strategy by working out the level of funding you need 2. The revenue needed should be reflected in the price you charge the people who use the facilities 3. People don’t expect use of facilities for nothing and many feel that under values the service being provided 4. If users can see the continued investment in the facility to meet their needs they will continue to invest in membership and paying to use casually

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