2.3.4 Accountability for Assets
Asset Accountability focuses on jobs that manage, use, maintain and enhance existing capital assets to deliver customer service and value.
This factor measures two aspects of the management/use of assets:
1. The Asset Value / significance of the assets and of effective use of the assets, in the context of the organisation's total assets. Seven classifications of Asset Value are measured, ranging from minimal to critical.
2. The type of responsibility and stewardship the position has for the assets, including the competent use or management of the assets by the jobholder or subordinates. Two levels/types for each asset classification are measured:
(i) Primary responsibility - where the position is primarily responsible for directing or carrying out activities relating to the use or management of the asset, or where the position directs the use of an asset. Primary Responsibility is relatively rare, especially in large organisations.
(ii) Shared responsibility, where the position shares accountability for the use or management of the asset with others. For example, a Utility network or service has multiple people (positions) responsible for customer service delivery.
Capital assets are used for income producing, or potentially income producing activities, or for the primary customer service delivery by the organisation (the latter applies in particular for not-for-profit).
The assets are items either owned by the organisation or are assets to which the organisation has specific valuable rights.
Examples of physical assets include cash, raw materials, plant and equipment, trading stock and inventories, livestock, plantations, farmland, land and buildings. Non-physical tangible assets include bank deposits, accounts receivable, investments, and securities. Relevant intangible assets include for example contracts, patents, copyrights, leases and similar rights. Information such as research data and proprietary analysis, including market research, and valuable records (as opposed to mere record keeping) are also assets within the definition of this factor, as are significant natural assets within the organisation's area of authority, such as a national park within a Local or State government area. In not-for-profit organisations the assets can be those used for providing a service, eg a hospital, community centre, parks and gardens, or a library.
This factor is not concerned with the building up or procurement of assets. These latter aspects are implied and evaluated in the technical and problem-solving evaluation factors. Similarly, aspects such as Goodwill, Reputation, Brand are regarded as non-relevant Intangible assets (for these purposes) and are assessed within other Factors.
As with other factors in Jobscore we consider competency requirements in the normal management of the assets, not the impact of negligent management or unpredictable risks associated with Assets.
Note: An organisation may not hold assets at the higher Asset Value levels described in the Table below, in which case those levels do not apply to positions within the organisation. For example, a small organisation (normally) does not have Assets at the levels which correspond to Factor Level 8 or above, so none of the positions has this Factor level.
Assets rating must be NOT GREATER than the immediate supervisor.
From the table following select the level of significance (Asset Value) of the assets in the overall context of all the organisation's assets; and the level of responsibility the position has for the assets - either shared or primary.
|
Level
|
Classification
|
Responsibility
|
Description
|
|
1
|
Minimal
|
n.a.
|
The position may not have specific accountability for the use or management of organisation assets, and where the position does the assets are of minimal importance in the overall context of the organisation. Examples include small tools and office equipment.
|
|
2
|
Limited
|
Shared
|
The assets over which the position has a level of stewardship have limited importance in the overall context of the organisation and the level of efficiency of their use does not materially impact on the organisation's overall performance. Such assets include for example light machinery, vehicles, small mobile plant, and smaller amounts of cash.
|
|
3
|
Primary
|
|
4
|
Material
|
Shared
|
The assets over which the position has a level of stewardship have a material impact on the performance of the organisation. Such assets include for example heavy machinery, large specialised vehicles, substantial amounts of cash, major pieces of computer hardware and specialised, purpose-built software. These assets are replaceable within reasonable time and cost.
|
|
5
|
Primary
|
|
6
|
Important
|
Shared
|
The assets over which the position has a level of stewardship are important to the ongoing performance of the organisation, and would require some form of notification in audited accounts if materially impacted. For example important pieces of equipment and machinery, and important, but replaceable, information records (including libraries and computer-based information records). These assets are difficult to replace but need to be replaced if lost.
|
|
7
|
Primary
|
|
8
|
Significant
|
Shared
|
The assets over which the position has a level of stewardship make a significant contribution to the wellbeing of the organisation (for example would require some form of market disclosure in a listed entity if impaired in any way), and the level of efficiency of their use has a substantial impact on the overall performance of the organisation. Some form of market disclosure would be required in a listed entity if the assets are impaired.
Such assets are costly and time consuming to establish, eg engineered structures, units of a production plant, livestock, land and buildings, warehouses, negotiated rights, contracts, research and development outcomes and proprietary technologies, and investments.
|
|
9
|
Primary
|
|
10
|
Critical
|
Shared
|
The efficient management of the assets over which the position has a level of stewardship and accountability impacts critically on the overall performance and wellbeing of the organisation, eg major engineering structures, high rise buildings and office blocks, large hospitals, major units of production plant such as mines, factories and oil refineries, large plantations and other agricultural properties, major investment portfolios, major long term contracts, rights that give the organisation a significant advantage over competitors. These assets are critical to the value of the organisation.
Included in this classification are capital assets that cannot be replaced within ‘business as normal’ and are of long term value to the organisation eg unique items, very important works of art, some copyrights, some patents. Individually, the level of efficiency of the management and use of these assets makes a highly significant contributions to the overall success or profitability of the organisation.
|
|
11
|
Primary
|
