Is asset management an unrecognised threat to sustainability of Australian universities?
In her speech Julie Bishop referred to the Institution Assessment Framework (IAF) data that suggests some universities “may face significant costs to bring their facilities up to a satisfactory standard.” Deferred maintenance involves capital maintenance which has been delayed and not performed when it should have been or when it was scheduled. According to DEST, based on data provided by universities the estimated amount of maintenance deferred is increasing. For 2005, the total value of deferred maintenance was estimated at $1.56 billion: • 10.8% of the total $14.3 billion total revenue of the sector for 2005, • an increase of 23.1% on estimated amount for 2004, and • 4.9% of the total replacement value of assets. CAVEAT: these are estimates based on un-audited, voluntary submissions to DEST. Definition of ‘asset management’ An important distinction needs to be made between ‘asset management’ as commonly applied within Australian university management practices, usually applying to ‘
