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HomeMy WebLinkAboutFIN 05-25 Report to Executive Committee Report Number: FIN 05-25 Date: April 7, 2025 From: Stan Karwowski Director, Finance & Treasurer Subject: Asset Management Data Governance Policy & Procedure - F-1200-001 Recommendation: 1. That Report FIN 05-25, regarding the Asset Management Data Governance Policy & Procedure, be received; 2. That the Asset Management Data Governance Policy (FIN 120) & Procedure (FIN 120- 001), set out in Attachments 1 and 2 respectively, be approved; 3. That the Chief Administrative Officer and the Director, Finance & Treasurer be authorized to make any interpretations of the Asset Management Data Governance Policy & Procedure, make rulings that will allow the conduct of business to proceed, and to take any actions necessary to this effect; and, 4. That the appropriate officials of the City of Pickering be authorized to take the necessary actions as indicated in this report. Executive Summary: The purpose of this report is for Council to adopt a policy and procedure relating to asset management data governance. Asset management is defined as: the coordinated activity of an organization to realize value from assets. It considers all asset types, and includes all activities involved in the asset’s life cycle from planning and acquisition/creation; to operational and maintenance activities, rehabilitation, and renewal; to replacement or disposal and any remaining liabilities. Asset management is comprehensive and normally involves balancing costs, risks, opportunities, and performance benefits to achieve the total lowest lifecycle cost for each asset. Data governance ensures efficient, secure, timely and accurate data; as well as defining processes to make data more usable and compliant with legislation and best practices. Relationship to the Pickering Strategic Plan: The recommendations in this report respond to the Pickering Strategic Plan Corporate Key: Good Governance/Customer Service Excellence. FIN 05-25 April 7, 2025 Subject: Asset Management Data Governance Policy & Procedure Page 2 Financial Implications: While there are no immediate identifiable financial implications associated with the adoption of this report and the attached policy and procedure, it will impact the City’s business practices regarding efficient, secure, timely and accurate data that will be used for reporting, budgeting, and Asset Management Plans. Discussion: Asset management builds on the Public Sector Account Board standard PS 3150, which required municipal government to account and report on their Tangible Capital Assets (TCA), effective with fiscal years starting January 1, 2009. The City, through its annual financial statements, reports on its TCA on Note 10. The attached policy and procedure further build on the Accounting for Tangible Capital Assets Policy (FIN 050), as well as the Strategic Asset Management Policy (FIN 080) as required by Ontario Regulation 588/17 under the Infrastructure for Jobs and Prosperity Act, 2015. This policy describes the procedures required to control the collection, quality, and management of asset data during an asset’s lifecycle for the purposes of implementing the City’s Asset Management Plan. It also defines the roles and responsibilities of municipal staff that are involved in the collection and management of asset data. The Asset Management Data Governance Policy (FIN 120) also ensures that the City has the proper knowledge and information to make sound, evidence-based decisions regarding the management of municipal assets. The Asset Management Data Governance Procedure (FIN 120-001) aims at delivering consistent, efficient, and effective management solutions for each department. This procedure is designed to ensure the timely reporting as well as the integrity and accuracy of asset data. It addresses inventory, lifecycle, financial impacts, levels of service, and risk management through a formal Corporate Data Audit Process. Additionally, it emphasizes proper asset stewardship, ensuring responsible management and oversight of assets for maintenance and usefulness throughout their lifecycle. This approach will enable the City to optimize asset utilization, enhance decision-making processes, and ensure compliance with regulatory standards, thereby achieving sustainable asset management and operational excellence. The policy and procedure, in its draft form, were shared with the Chief Administrative Officer and Directors, and their comments have been considered in the final policy and procedure. The policy and procedure will be posted on the City’s internet and intranet. Attachments: 1. Asset Management Data Governance Policy 2. Asset Management Data Governance Procedure FIN 05-25 April 7, 2025 Subject: Asset Management Data Governance Policy & Procedure Page 3 Prepared By: Approved/Endorsed By: Original Signed By: Original Signed By: Julie S. Robertson, CPA Stan Karwowski Senior Financial Analyst – Asset Director, Finance & Treasurer Management Coordinator SK:jsr Recommended for the consideration of Pickering City Council Original Signed By: Marisa Carpino, M.A. Chief Administrative Officer Policy Procedure Title: Asset Management Data Governance Policy Policy Number FIN 120 Reference Date Originated (m/d/y) "Click and type date" Date Revised (m/d/y) "Click and type date" Pages 6 Approval: Chief Administrative Officer Point of Contact Senior Financial Analyst – Asset Management Coordinator, Finance Policy Objective This policy will describe the procedures required to control the collection, quality and management of asset data during an asset’s lifecycle for the purposes of implementing the City’s Asset Management Plan. It will also define the roles and responsibilities of municipal staff that are involved in the collection and management of asset data. The policy will also ensure that the City has the proper knowledge and information to make sound, evidence-based decisions regarding the management of municipal assets. This policy shall be implemented in accordance with the guidelines and provisions set forth in the Accounting for Tangible Capital Assets Policy (FIN 050), the Strategic Asset Management Policy (FIN 080), the Records Management Policy (ADM 060), and the Purchasing Policy (PUR 010). Index 01 Definitions 02 Objectives 03 Business Functions of the City’s Asset Management System 04 Roles & Responsibilities 05 Authority 06 Scope Attachment 1 to Report FIN 05-25 Policy Title: Asset Management Data Governance Policy Page 2 of 5 Policy Number: FIN 120 01 Definitions 01.01 Asset Management (AM) – the coordinated activity of an organization to realize value from assets. It considers all asset types, and includes all activities involved in the asset’s lifecycle from planning and acquisition/creation; to operational and maintenance activities, rehabilitation, and renewal; to replacement or disposal and any remaining liabilities. Asset management is holistic and normally involves balancing costs, risks, opportunities, and performance benefits to achieve the total lowest lifecycle cost for each asset. 01.02 Asset Management Data Governance Procedure (AM Data Governance Procedure)1 – a catalogue of data procedures that outlines standards, processes, roles, and responsibilities in the management of data used to inform corporate asset management decision-making. 01.03 Asset Management System (AM System) – the set of interacting elements of an organization to establish AM policies and objectives, and processes to achieve those objectives. 01.04 Asset Management Information System (AMIS) – a combination of processes, data, software, and hardware applied to provide the essential outputs for effective asset management such as reduced risk and optimum infrastructure investment. 01.05 Asset Inventory – a centralized electronic catalogue of all assets relevant to an organization. 01.06 Business Function – refers to a specific activity or process within an organization that contributes to the overall goals and objectives of the business. It involves a set of related tasks and responsibilities that are carried out by a group of people. 01.07 Data – raw facts and figures, such as numbers, words, symbols, and images, that gain meaning and context when organized and analyzed. 01.08 Information – a collection of data expressed with supporting context. 01.09 Lifecycle Management – all practices associated with considering management strategies as part of the asset lifecycle, from planning to disposal. 01.10 Municipal Infrastructure Assets – an infrastructure asset directly owned by a municipality or included on the consolidated financial statements of a municipality. 1 Attached to the Policy. Policy Title: Asset Management Data Governance Policy Page 3 of 5 Policy Number: FIN 120 02 Objectives 02.01 All business functions of the City’s AM System shall be supported by Data and Information requirements as identified in the AM Data Governance Procedure. The requirements shall be revised according to the evolving understanding of the information needs of the AM System. 02.02 As new business functions related to asset management are identified, best efforts should be made to develop processes that outline the key Data and Information required to satisfy these functions and be included in the AM Data Governance Procedure. 02.03 All asset Data and Information relevant to the management of Municipal Infrastructure Assets shall be consolidated and stored in a centralized Asset Inventory that allows for controlled access by staff in accordance with the AM Data Governance Procedure. 02.04 The archiving and/or disposal of any asset Data must be approved as per the Purchasing Policy (PUR 010) unless otherwise outlined in the AM Data Governance Procedure. 02.05 Asset Data and Information shall be collected according to the AM Data Governance Procedure to ensure a high level of quality, consistency and accuracy for the purposes of asset management. 02.06 Asset Data shall be transmitted between essential personnel within the timelines specified in the AM Data Governance Procedure. 02.07 Best efforts shall be made as it relates to the City’s AMIS in the context of a continuous cycle of audit and review of Data quality and confidence to maintain the highest possible Data quality and integrity. The audit shall determine areas of non-conformance and improvement actions required to correct these non-conformances. 03 Business Functions of the City’s AM System An AM System has four primary business functions beyond the asset Inventory Management: risk management, lifecycle management, levels of service management, and financial management. 03.01 The Asset Inventory Management: This function involves the systematic tracking, evaluation, and management of all physical assets within the municipality, requiring the development and maintenance of tools such as the AMIS. 03.02 Risk Management: This function involves identifying and managing risks associated with City assets with the intended purpose of identifying, evaluating, and mitigating against such risks over the life of the assets. Effective risk Policy Title: Asset Management Data Governance Policy Page 4 of 5 Policy Number: FIN 120 management can help reduce downtime, repair costs, and safety hazards, while improving overall asset performance. 03.03 Lifecycle Management: This function considers the full cost of ownership, from planning and design to acquisition, operation, maintenance, and disposal of assets. It involves regular monitoring, maintenance, and inspection, as well as identifying opportunities for upgrades or replacement. By optimizing the use of assets over time, organizations can extend their lifespan and reduce replacement costs. 03.04 Levels of Service Management: This function focuses on maintaining or improving the levels of service provided by assets to community members and stakeholders. It involves identifying and prioritizing service requirements, setting performance targets, and monitoring and reporting on performance. Effective levels of service management can help improve the satisfaction of users and stakeholders, while minimizing the risk of service disruptions or failures. 03.05 Financial Management: This function focuses on ensuring that the costs of asset acquisition, operation, maintenance, and replacement are balanced against the benefits they provide. This involves developing long-term investment strategies, analyzing costs and benefits, and prioritizing investments based on strategic objectives and risk considerations. Effective financial management can help ensure the sustainability of the AM System and the organization as a whole. 04 Roles & Responsibilities 04.01 Data Executive – Asset Management Coordinator: a) maintains the centralized Asset Inventory b)provides leadership in resolving conflict c) provides direction and priorities in data management activities d)maintains and coordinates changes to AM Data Governance Procedure e)coordinates the regular audit and review of the AMIS f)coordinates user access to the centralized Asset Inventory g)coordinates training, onboarding, and reporting 04.02 Data Owners – Departmental Directors: a)defines the Data and Information required for asset management for theirrespective Department, Divisions or sections b)outlines Data quality standards Policy Title: Asset Management Data Governance Policy Page 5 of 5 Policy Number: FIN 120 c) recommends updates to the AM Data Governance Procedure, as necessary d)ensures that Data Stewards and Providers have the requisite training and resources to perform required data-related processes and functions 04.03 Data Stewards – Individual staff members assigned from each Department to be responsible for routine management of asset Data: a) coordinates data-related processes and functions b)coordinates improvements to Data and Information quality c) maintains the centralized Asset Inventory for AM purposes d)serves as the liaison between the City Department and Consultants 04.04 Data Providers – Departmental Staff/Consultants: a)collects Data that support asset management activities b)provides Data and Information to Data Stewards 05 Authority 05.01 This policy shall be administered by the Finance Department, and the Treasurer, in consultation with the necessary Department, shall have the authority to interpret any provisions in the policy necessary for the good and efficient conduct and business of the City. Any changes shall be approved by Council. 06 Scope 06.01 This policy applies to Municipal Infrastructure Assets under the operations of the City including any Agencies, Boards and Commissions. It applies to the Pickering Public Library to the extent that it does not conflict with the role of the Board or Chief Executive Officer under the Public Libraries Act. Please refer to all associated Polices and Procedures where applicable, for detailed processes regarding this Policy. Procedure Procedure Title: Asset Management Data Governance Procedure Procedure Number FIN 120-001 Reference: FIN 120 Date Originated (m/d/y) "Click and type date" Date Revised (m/d/y) "Click and type date" Pages 8 Approval: Chief Administrative Officer Point of Contact Senior Financial Analyst – Asset Management Coordinator, Finance Procedure Objective To establish and implement an Asset Management Data Governance Procedure for the City of Pickering, aimed at delivering consistent, efficient, and effective management solutions for each Department. This procedure is designed to ensure the timely reporting as well as the integrity and accuracy of asset data. It addresses inventory, lifecycle, financial impacts, levels of service, and risk management through a formal Corporate Data Audit Process. Additionally, it emphasizes proper asset stewardship, ensuring responsible management and oversight of assets for maintenance and usefulness throughout their lifecycle. This approach will enable the City to optimize asset utilization, enhance decision-making processes, and ensure compliance with regulatory standards, thereby achieving sustainable asset management and operational excellence. Index 01 Identification of the Processes Required to Support the Asset Management Data Governance Policy 02 Corporate Data Audit Process 03 Departmental Data Management Procedures Overview 04 Departmental Distinctions for Engineering Services 05 Departmental Distinctions for Operations Attachment 2 to Report FIN 05-25 Procedure Title: Asset Management Data Governance Procedure Page 2 of 8 Procedure Number: FIN 120-001 01 Identification of the Processes Required to Support the Asset Management Data Governance Policy The City of Pickering has developed tailored data management processes for asset management, addressing the unique needs of each department. These processes encompass asset acquisition, operations, maintenance, and disposal, ensuring efficient and effective asset management. Key considerations include: • Process Description/Purpose: Summarizes each process's role in asset management planning, specifying when it is required. • Data/Information Required: Details the types of data needed, as defined in data templates. • Collection Processes: Detailed processes for data collection/generation methods, quality assurance, and timing. • Roles and Responsibilities: Defines roles in procedure implementation, covering data collection, uploading, quality control, and strategic oversight. • Data Transmission and Interdepartmental Coordination: Describes data transmission methods and the level of coordination needed between Departments. • Process Review and Assurance Requirements: Establishes audit and assurance protocols for regular process evaluation and necessary updates. The processes include: • Corporate Data Audit Process • Asset Acquisition Data Collection Process • Condition Assessment Data Collection Process • Asset Disposal Data Collection Process 02 Corporate Data Audit Process To ensure data is accurate, complete, and recent, the City of Pickering shall implement a rigorous Corporate Data Audit Process1. The process includes the following stages: 02.01 Preparation for the Audit (1 month): The Asset Management Coordinator2 initiates the audit process by delineating the scope and scheduling the audit. During this stage, they conduct a preliminary review of the data currently stored in the Asset Management Information System and use an audit template to guide the process. 02.02 Execution of the Audit (1-2 months): Following the preparation phase, the Asset Management Coordinator carries out a comprehensive audit of the data in the Asset Management Information System. They carefully inspect the data for completeness, age, and quality, ensuring all necessary attributes are adequately represented and accurate. 1 Synchronized with the updates to the City’s Asset Management Plan. 2 As defined in the Asset Management Steering Committee structure. Procedure Title: Asset Management Data Governance Procedure Page 3 of 8 Procedure Number: FIN 120-001 02.03 Data Request to Fill Identified Gaps (1 month): If the audit identifies gaps in the data, the Asset Management Coordinator sends a request to the respective departments or data providers. They detail the gaps, outline the appropriate format, and specify the submission timeline. The request should include a spreadsheet highlighting the gaps. 02.04 Processing and Verification of Received Data (1 month): Upon receipt of the requested data, the Asset Management Coordinator processes and verifies it for completeness. Staff members from respective departments take part in this process, checking the data and rectifying any discrepancies. 02.05 Resolution for Data Gaps and Submission of Final Spreadsheet (1-2 months): The staff members are responsible for resolving the identified data gaps and submitting a final spreadsheet to the Asset Management Coordinator. This collaborative process involves discussion and decision-making on how to handle remaining data gaps that cannot be readily filled, potentially including the use of estimates based on existing data or other suitable methodologies. 02.06 Integration of New Data into Asset Management Information System (1 month): With the verified data at hand, the Asset Management Coordinator integrates this data into the Asset Management Information System. This step ensures the most recent, complete, and accurate data is available to all Departments, promoting informed decision-making. 03 Departmental Data Management Procedures Overview 03.01 Asset Acquisition Data Collection Process3 The City of Pickering is planning to adopt an effective Asset Acquisition Data Collection Process to manage and document new acquisitions. This process, occurring on a 30-day cycle, includes the following steps: 03.01.01 Development and Verification of the Acquisition Data Collection Template: The Asset Management Coordinator has created a Tangible Capital Assets (TCA) template. This tool standardizes the collection of data for new asset acquisitions, ensuring consistency and accuracy. 03.01.02 Data Collection on New Acquisitions: Every 30 days, the Asset Management Coordinator will send an updated version of the template to necessary departments for review of current year capital spending to determine where TCA forms have not yet been submitted, or where costs need to be expensed. The Department follows up by completing and sending in the necessary TCA forms for new acquisitions or 3 The same process can be used for asset betterment data collection. A betterment is when a rehabilitation activity that adds useful life to the asset is applied. Procedure Title: Asset Management Data Governance Procedure Page 4 of 8 Procedure Number: FIN 120-001 completing the template for costs deemed to be expense. The cost of new acquisitions is based on the final invoice(s) received. 03.01.03 Verification and Validation of Acquisition Data by Asset Management Coordinator: The TCA forms and template are rigorously reviewed by the Asset Management Coordinator, ensuring the accuracy and completeness of the data. Any issues with the reported data are discussed and resolved with the concerned parties. 03.01.04 Data Transfer to Asset Management Coordinator: After the acquisition data has been verified and validated, the data is officially transferred to the Asset Management Coordinator, centralizing the data management process. 03.01.05 Upload of Acquisition Data to Asset Management Information System: The Asset Management Coordinator uploads the approved acquisition data to the Asset Management Information System, making it accessible to all relevant Departments for efficient decision-making and asset management purposes. 03.02 Condition Assessment Data Collection Process The City of Pickering is planning to implement a thorough Condition Assessment Data Collection Process to manage the various asset classes under its care. This process shall be used for specific categories of assets or pieces of assets that exceed a certain threshold4 in value. 03.02.01 Process Initiation: Following the completion of a condition assessment study, departmental staff are responsible for ensuring timely execution and completion of the process, ideally aligning with updates to the City’s Asset Management Plan. 03.02.02 Data Collection Template Development: A standardized template or methodology developed to facilitate the transfer of condition scores from various tools, databases, and studies to the Asset Management Information System. 03.02.03 Data Collection by Departmental Staff: One or more designated departmental staff responsible for the collection and synchronization of condition assessment data. They extract condition scores from completed staff assessments, capturing this information in the established templates. 03.02.04 Data Transfer and Verification: Upon completion of data collection and synchronization, the data is reviewed and approved for upload to 4 Thresholds to be defined by individual department. Procedure Title: Asset Management Data Governance Procedure Page 5 of 8 Procedure Number: FIN 120-001 the Asset Management Information System by the Asset Management Coordinator. 03.02.05 Issue Resolution: If the data is not accepted during the verification stage, the Asset Management Coordinator and departmental staff member discuss and resolve any outstanding concerns. 03.02.06 Final Upload: After the data has been verified and approved, the condition scores are uploaded to the Asset Management Information System. This ensures that the updated and accurate data is accessible for decision-making and future asset management planning. 03.03 Asset Disposal Data Collection Process The City of Pickering is planning to adopt an effective Asset Disposal Data Collection Process to manage and document asset disposals. The process, occurring on a 30-day cycle, includes the following stages: 03.03.01 Development and Verification of the TCA Forms: The Asset Management Coordinator has created a tangible capital assets (TCA) form. This form standardizes the collection of data for asset disposals, standardizing the data collection process for asset disposals. 03.03.02 Data Collection on Asset Disposals: TCA forms are completed when an asset is flagged as ready for disposal. The TCA forms are forwarded to the Asset Management Coordinator to start the disposal process. 03.03.03 Verification and Validation of Disposal Data by Asset Management Coordinator: The Asset Management Coordinator reviews the submitted TCA forms, ensuring the accuracy and completeness of the disposal data. Any issues identified during this verification stage are resolved on a case-by-case basis between the relevant parties. 03.03.04 Data Transfer to Asset Management Coordinator: Following verification and validation, the disposal data is officially transferred to the Asset Management Coordinator to commence the disposal process (approval by Treasurer, straight disposal, GovDeals auctions, processing of auction proceeds, etc.). 03.03.05 Integration of Disposal Data into Asset Management Information System: At the completion of the disposal process, The Asset Management Coordinator integrates the approved disposal data into the Asset Management Information System, ensuring that the most recent and accurate data is accessible to all pertinent Departments. Procedure Title: Asset Management Data Governance Procedure Page 6 of 8 Procedure Number: FIN 120-001 04 Departmental Distinctions for Engineering Services 04.01 Asset Acquisition Data Collection Process The Engineering Services Department of the City of Pickering distinguishes itself in the Asset Acquisition Data Collection Process as follows: 04.01.01 Incorporating GIS: Utilizing Geographic Information System (GIS) for spatial inventory of new capital infrastructure and contributed assets. 04.01.02 Targeted Focus: • Capital Asset Acquisition: Identifying new capital infrastructure based on completion status (90% or more) and payment completion. • Contributed Assets: Focusing on assets contributed post-final acceptance letter, mainly through development activity. 04.01.03 Specialized Costing Methods: Employing construction Payment Certificates and Engineering cost estimates, supported by as-built drawings for detailed cost breakdown. 04.02 Condition Assessment Data Collection Process The Engineering Services Department of the City of Pickering distinguishes itself in the Condition Assessment Data Collection Process as follows: 04.02.01 Responsibility and Oversight: • General Process: Managed by departmental staff with the Asset Management Coordinator overseeing verification and upload. • Engineering Services Process: Led by the Senior Coordinator, Asset Management who is central to the process from data collection to review. 04.02.02 Asset Complexity: • General Process: Covers various asset classes without specific complexity details. • Engineering Services Process: Differentiates between simple assets assessed internally and complex assets requiring third-party assessments. Procedure Title: Asset Management Data Governance Procedure Page 7 of 8 Procedure Number: FIN 120-001 04.02.03 Specificity of Assessment Studies: • General Process: General approach to condition assessment. • Engineering Services Process: Utilizes specific studies like road needs studies and structural appraisals. 04.02.04 Data Collection and Synchronization: • General Process: Handled by departmental staff. • Engineering Services Process: Specifically managed by the Senior Coordinator, Asset Management. 04.02.05 Verification and Issue Resolution: • General Process: Asset Management Coordinator is key in resolving issues. • Engineering Services Process: Involves collaboration between the Senior Coordinator, Asset Management and the Asset Management Coordinator for issue resolution. 04.02.06 Alignment with Asset Management Plan: • Both processes align with the Asset Management Plan, but the Engineering Services Department emphasizes the Senior Coordinator Asset Management's role in this alignment. 04.03 Asset Disposal Data Collection Process The Engineering Services Department of the City of Pickering distinguishes itself in the Asset Disposal Data Collection Process as follows: 04.03.01 Data Collection Tool: • General Process: Utilizes TCA forms created by the Asset Management Coordinator. • Engineering Services Process: Employs a standardized data collection template designed by the Asset Management Coordinator, emphasizing consistency and accuracy. Procedure Title: Asset Management Data Governance Procedure Page 8 of 8 Procedure Number: FIN 120-001 05 Departmental Distinctions for Operations 05.01 Asset Acquisition Data Collection Process The Operations Department of the City of Pickering distinguishes itself in the Asset Acquisition Data Collection Process as follows: 05.01.01 Data Collection Frequency: The Operations Department aims to collect data every 60-90 days or as resources allow, compared to the City's general 30-day cycle. This longer interval may reflect the nature and scale of operations projects. 05.02 Condition Assessment Data Collection Process The Operations Department of the City of Pickering distinguishes itself in the Condition Assessment Data Collection Process for Facilities and Parks assets as follows: 05.02.01 Process Initiation: • Led by the Asset Management Coordinator, this process starts prior to updating the City’s Asset Management Plan, with sufficient lead time for completion. 05.02.02 Data Collection Methodology: • A standardized methodology is developed and maintained to streamline the collection of condition scores and capital projections by departmental staff and the Asset Management Coordinator. 05.02.03 Data Collection by Operations Staff: • Designated staff members are responsible for collecting and synchronizing condition assessment and capital projections data. This includes updating and extracting condition scores in a compatible format for different data platforms. 05.03 Asset Disposal Data Collection Process The Operations Department of the City of Pickering distinguishes itself in the Asset Disposal Data Collection Process as follows: 05.03.01 Data Collection Frequency: The Operations Department aims to collect data every 60-90 days or as resources allow, compared to the City's general 30-day cycle. This longer interval may reflect the nature and scale of operations projects.