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29 September 2008

Programme director
Municipal managers
Chief Financial Officers (CFO)
Asset Management practitioners
Ladies and gentlemen

It is a great honour to be given this opportunity to welcome you to this august and historic 2008 local government asset management workshop.

Today's workshop, ladies and gentlemen is not another workshop or a talk show characterised by grand speeches and palatable lunches. The principal objective of this gathering is not only to help us grasp the principle of asset management at local government level but also to provide strategic policy advice on the prudent valuable public asset management.

Sound asset management practices, Programme director should be understood within the context of good governance. It entails managing and protecting public sector resources.

Chapter five of the Municipal Finance Management Act (MFMA) enjoins both national and provincial governments to assist municipalities in building their capacity to effectively and efficiently manage their financial resources.

Accordingly, together with our counterparts from national treasury through this workshop we are heeding the call by this piece of legislation.

This workshop will undoubtedly respond to the daunting challenges our local government colleagues faced in implementing sound asset management guidelines.

This include inter alia:

* safeguarding assets
* maintenance of those assets
* development of asset valuation principles in accordance with generally recognised accounting practice (grap)
* establishing and maintaining systems of internal controls over assets
* establishing and maintaining asset register
* clarifying responsibilities for asset management process.

Asset Management is vital in providing required services in a cost-effective, efficient and transparent manner.

As you may be aware municipal finance management reforms has been introduced since the promulgation of MFMA in 2003.

We are pleased to inform you that some municipalities even in this province have commendably implemented positive changes brought about by this act.

The workshop will further enhance our understanding of certain provision of this act dealing with asset management. We also hope to have some deliberation on capital asset management, governance and internal controls and creation of asset register.

Furthermore, the workshop will deal with asset transfer regulations and raise awareness about Generally Recognised Accounting Practice standards.

I have been told that this intensive three-day workshop will be practical and that participants will emerge from this engagement having acquired valuable skills on how to implement the reconfigured asset management framework in their respective local and district municipalities.

We take this opportunity to extend our warm welcome and hope that you will have robust discussion on this important element of governance.

Enjoy the workshop. And thank you for responding positively to our invitation.

Issued by: Department of Sport Arts and Culture, Free State Provincial Government
29 September 2008
Source: Free State Provincial Government (http://www.treasury.fs.gov.za)