Corporate Asset Management

Corporate Asset Management

What is Asset Management?

Asset Management is when an organization works together to determine value from its assets. It involves balancing of costs, risks, opportunities, and performance benefits. It looks at all types of assets and all stages of an asset’s life cycle. These include planning, acquiring, and the effects of growth, operations, maintenance, renewal, and disposal of any remaining liabilities.  

The 4 fundamentals of Asset Management:

Value - The value of an asset, from when they are first acquired to when they are replaced or renewed, remains important as customer and stakeholder needs change over time.

Alignment - Organizational objectives help to make informed technical and financial decisions, ensuring we continue to do what we “say” is important.  

Leadership & Workplace Culture - Stays informed on the asset’s ability to provide good service and current performance.  

Assurance – Makes sure assets do their job by linking their required purpose and performance to the City’s strategic goals, and checks that the City achieves what it planned.  

The following video by the Municipal Finance Officers’ Association of Ontario (MFOA) provides an overview of how municipalities can use asset management to make the right decisions at the right time for the right amount. 

Ontario’s Legislation and Regulation

In 2015, the Province passed the Infrastructure for Jobs and Prosperity Act with Ontario Regulation 588/17: Asset Management Planning for Municipal Infrastructure filed under this act.

The regulation sets out detailed requirements for municipalities to ensure the long-term sustainability of municipal infrastructure through the preparation of a Strategic Asset Management Policy, a comprehensive Asset Management Plan (AMP) and companion Financial Strategy, phased-in and delivered through 4 milestones, by July 1, 2025: 

City of Markham's Asset Management Journey

2016 Asset Management Plan

In April 2014, as part of the Municipal Funding Agreement renewal for the Federal Gas Tax Funds, it was announced that municipalities must develop Asset Management Plans (AMP) by December 31, 2016. These plans were to be developed in accordance with the guidelines set out in the Ministry of Infrastructure‘s – Building Together: Guide for Municipal Asset Management Plans II (2012) to be eligible for federal Gas Tax Funds.

Approved by Council in November 2016, the 2016 Asset Management Plan documents the City’s existing Asset Management practices and identifies challenges of current and future infrastructure needs. It also includes further refinement of the City‘s Asset Management Strategy to ensure consistent practices in data collection, decision making, and risk assessment.

Aligned with the City‘s Strategy Plan, Building Markham Future Together (BMFT), and other key strategic documents, including Greenprint, Markham‘s Community Sustainability Plan, and Official Plan, this plan: 

• serves as a strategic, tactical, and financial document to guide the City‘s timely investments and optimal resource utilization while ensuring desired levels of service
• provides sound asset management principles and practices for effective management of the City‘s existing and future infrastructure assets particularly; renewing, operating, maintaining, building, replacing and disposing of infrastructure 

2019 Strategic Asset Management Policy and Asset Management Audit

The Asset Management Policy states what the City of Markham intends to do and sets out:

• The principles that guide how the practice of Asset Management will be implemented to achieve its objectives
• Aligns with the City’s strategic plans, their policies and objectives
• Refer to other key documents such as the Asset Management Strategy, Asset Management Plans and long-term financial plan

To coordinate, develop and implement activities relating to asset management, the Asset Management Steering Committee was established.  

In October 2019, as part of the four-year audit plan, MNP LLP performed an Asset Management Audit of the City’s 2016 Asset Management Plan. It contained the Auditor General’s observations, recommendations and timelines. In October 2020, in response to the Auditor General’s recommendations, Council received a progress update to confirm continuous compliance with Ontario Regulation 588/17. Read the progress report here: General Committee Report - October 19, 2020 - Asset Management Plan Progress Update - Revised 

Asset Management Policy [PDF]