This assignment will critically discuss the asset management with the specific reference to the role of its legislative framework in ensuring the effective management of state assets. First and fore most this assignment will start by explaining the following terms, state assets, asset management and legislation, then follow by discussing asset management in the public sector, discuss the process of asset management , discuss the principles of asset management and again this essay will discuss the asset life cycle, discuss the legislative framework of asset management in the public sector where it will explain further about the Public Financial Management Act of 1999 (PFMA) and Treasury Regulations and lastly conclude everything, finding solutions and recommendations of asset management. 2 DEFINITION OF TERMS
2.1 State assets
States assets is defined as the assets that are not only the states have access to them but also the people from societies, which is the citizens of the country have also access on them. For example, infrastructure, land and buildings and so forth. The activities of the state assets include the deliverance of direction to the public administrations which directly involved different assets that are being managed by them. State assets are those assets that belong to the state, these assets are not for sale, they are for free and they also belong to the citizens of the country (Edgeworth, 2004: 9). 2.2 Asset Management
According to Hastings (2009:34) “Asset Management is defined as the process of guiding the acquisition, the use, safeguarding and disposal of assets to create the majority and their ability of delivering services using their potential and manage the connected risks and costs that they will face for the rest of their whole lives”. This means that Asset managers have many responsibilities when it comes to managing the assets within a country in the public sector, these assets includes land and buildings, equipment and so forth. This meaning of asset management talks about the process of planning, decision-making and the control over those acquisition and disposal assets to increase not only their service delivery potential but also the benefits. These assets play a very important role in people’s daily lives within a country that is why it is very significant for the government and their elected or selected asset managers to make sure that they do that their jobs effectively and manage these assets in an ethical and moral way. Asset management is an organized process that strives to make certain best value for money from property assets in helping the strategic needs of local authorities.
Legislation is defined as an assembly that deliberates and adopts the laws within a country and again it has the power to increase whatever that they want to increase significant financial things such as taxes, adopt the budget and other money bills and again they want to ratify treaties and declare war by reckoning the requirement of approval or agreement. The legislature is responsible in making all those laws which bind anyone who is the citizen of the country regardless of how much power he or she has in a country, for example the South African President Mr. Jacob Zuma is also expected to follow the laws that the legislation makes and also makes sure that he does not break any as he might face music. The legislature is also known as the both “congress and parliament around the world. Legislation can be also portrayed as the responsibility of legislatures in making the laws of the country (Hastings, 2009:20). 3. ASSET MANAGEMENT IN THE PUBLIC SECTOR
According to Hastings (2009:45) “asset management in the public sector was introduced in the early 1980s. The Cero Davies report on the NHS estate, the Cabinet Office report on the Central Government office accommodation and the Audit Commission report on Local Authority property all highlighted issues of under-use...
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