Financial Sustainability and the Management of Public Infrastructure

Infrastructure is a core function, responsibility and even a liability of municipal and other levels of government. Infrastructure is the very foundation of our communities. The impact of maintaining and renewing infrastructure is having significant impacts on the financial sustainability of communities and government. Sustainable management of infrastructure needs to be an essential part of doing business.
 
New national guidelines published in Australia by IPWEA effectively link the technical and financial aspects of managing infrastructure and services. Engineers and accountants speaking the same language to assist infrastructure owners develop sustainable long-term asset renewal and financial management plans. National financial sustainability indicators have also been recommended.
 
The guidelines provide a methodology for valuing and depreciating assets which applies the requirements of all Australian Accounting Standards to allocate the depreciable amount of an asset on a systematic basis over its useful life to reflect the pattern in which the asset‟s future economic benefits are expected to be consumed.
 
These new infrastructure financial guidelines will assist financial and asset practitioners to improve the quality of asset register data and to enhance financial reporting and long-term financial planning – and ultimately ensuring sustainability in the provision of services required by our communities. The methods and guidelines are applicable internationally.