A TB Perspective on the LTCP

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A TB Perspective on the LTCP

• Whats Required

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Questions

• What is an LTCP?
• What does TB really want?

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The LTCP is. . .

• TB requirement
• Departmental five-year capital plan that
  encompasses all asset categories
• Focus on major capital

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Policy Objectives

• Retain or acquire only the essential assets
  needed to deliver government programs efficiently
• Manage the existing asset base effectively and
  make appropriate changes to it within available
  resources
• Provide a rational context for resourcing
  considerations and project approvals
• From Chapter 1-1, Long-Term Capital Plans, TB
  Manual

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Policy StatementIt is government policy that
capital assets be

• Acquired, improved, and retained
• In support of program goals consistent with
  broader government objectives
• Based on long-term plans . . .
• Justified and approved through capital projects.
  . .
• Disposed of, as being surplus, when they are no
  longer required.
• From Chapter 1-1, Long-Term Capital Plans, TB
  Manual

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Minimum Structure

• Part I Policy and Management Focus
• How the department plans to manage assets
• Part II Projects
• Lists describes capital projects
• Profiles cash flows

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TBS Wants an LTCP to. . .

• Include all asset categories
• Include operating expenditures used to acquire
  long-term use of a capital asset (lease costs)
• Identify downstream implications of assets
• Define strategies for asset management
• Define priorities for capital disbursements
• Provide tool for departmental management

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Approval/Noting Can Be Linked

• Release of funds
• Obtaining EPA on major projects
• Revised delegation of authority
• Strategic positioning of Department
• Provides context for understanding issues and
  taking key decisions

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Monitoring

• Consistency 1 between capital strategies
  government objectives
• Consistency 2 between capital strategies and
  capital projects
• Compliance with policy timeliness quality
  (completeness, accuracy, ease of understanding)

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Insight 1
Its about the whole life cycle, not just asset
acquisition!
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Insight 2
Its about asset portfolios, not just individual
assets!
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Insight 3
Its about managing within, not asking for more!
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Insight 4
Its about demonstrating capacity, not just
designing projects!
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Insight 5
Its about strategic positioning, more than about
a capital budget!
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Suggestion 1
Consider adding Part IIIs to your LTCP! (Asset
Category Specific Reports Strategic Plans)
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Suggestion 2
Focus on creating maintaining an asset base
that is essential, safe, sustainable, productive
aligned.
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Suggestion 3
Talk about service posture the location,
access, utilization of assets.
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Suggestion 4
Consider the criteria to apply before taking the
asset ownership step.
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Suggestion 5
Incorporate the grand themes risk, results,
Comptrollership, environment, sustainable
development, etc., etc.
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Final Messages

• LTCP brings asset management to the senior
  management table
• LTCP in new resourcing context
• Convergence and integration

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END