Asset management plans and asset registers must be taken care of

With Retirement Living Operators now required to have Asset Management Plans in place, keeping them up to date and easily accessible to residents poses a significant challenge. Some Operators have been fined for not having their Asset Management Plans up to date.

Technology is available to help Retirement Living Operators build robust, transparent systems for reporting on asset management, and giving full visibility to residents. Ask managers at other villages what technology they use.

An asset management plan needs to have a 10-year planning horizon and must include an asset register and maintenance schedule. It must also have a three-year plan estimating capital maintenance and replacement costs.

The asset management plan must include an asset register and a maintenance schedule.

Most importantly, to remain compliant and meet future statutory guidelines, you must keep your asset register up to date, with major items of capital needing to be catalogued within seven days of purchase.

An Asset Register will document:

• What assets there are, and where they are located;
  
• When they were acquired and at what value; and
  
• The condition of each asset and their remaining useful life.

You must also include a three-year report to include expenditure for major items of capital in the annual budget. It will also provide information about your proposal to replace or continue to maintain an item to encourage a discussion with residents at the annual budget.

Following the expiry of the first 10-year period, you must prepare another asset management plan for each retirement village you operate every 10 years

Asset Management Plans are now mandated across NSW Retirement Living Operators and up-to-date plans need to be shared with residents.

Since the compliance deadline for NSW Retirement Village Operators has passed, managing ongoing compliance is now the focus.

This approach to Asset Management Plans is expected to be duplicated for other States and Territories in Australia in the coming months.

Audits are becoming frequent for Retirement Village Operators and some organisations have reported that have received fines for not being able to provide an up-to-date Village Asset Management Plan that is accessible to Residents.