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1 INTRODUCTION
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,
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,
Bibliography: Albino-War, M.A. & Singh, R. 2005. Substantial Public Financial Management: Institutions and Macroeconomic Considerations. International Monetary Fund: Mumbai. Edgeworth, D. 2004. Asset Forfeiture: Practice and Procedure in State and Federal Courts. American Bar Association: USA. Fanchi, J. 2010. Integrated Reservoir Asset management: Principles and Best Practices. Gulf Professional Publishing: UK. Hastings, N. A. J. 2009. Physics Asset Management. Springer: Netherlands. Kiritsis, D. & Emmanouilidis, C. 2010. Asset Lifecycle Management: Proceedings of the 4th World Congress on Public Asset Management. Springer: London. Luctchman R. 2006. Sustainable asset management: linking assets, people, people, and processes for results. Destech Publications, Inc.: UK. South African Municipal Finance Management Act 56 0f 2003. Local Government Capital Asset Management Guideline. Government Printer: Pretoria Wood, R.W. 2001. Limited Liability Companies: Formation, Operation, and Conversion. Aspen Publishers Online: USA.