Asset Management
The Department maintains a register of assets with a value of $5,000 or more (the Department gained an exemption under the Financial Management and Audit Act 1990 from the $2,000 threshold). In addition, other factors such as attractiveness and portability are considered when determining whether an asset should be recorded in the Department's asset register. Computer equipment costing $5,000 or more has been capitalised.

The Department is also responsible for the management of the State Classified Road Network, which consists of 3,600 km of roads servicing all major population centres and transport routes. It includes 319.5 km of the National Highway; 242 km of unsealed roads in rural areas; as well as responsibility for 1,200 bridges and structures. The Department has an asset management focus when looking at future strategies and assessment of the Road Network.

Asset management systems
The Department maintains a computerised database of assets, with regular updates to record acquisitions, transfers and disposals.

Detailed asset management systems have also been developed for infrastructure assets, including the maintenance of condition data to assist in asset valuation and management.

Asset valuation
The Department uses a range of methods for valuing its assets. Full details are disclosed in the Annual Financial Statements for the year ended 30 June 2001.

Road infrastructure
The Department has been valuing its road assets for the past six years and produces an annual document supporting the valuation as at 30 June each year.

Asset acquisition and disposal
The acquisition and disposal of assets is undertaken in accordance with the requirements of the Financial Management and Audit Act 1990.

Risk Management
The Department recognises that risk management is an integral part of the management process, and has implemented a number of mechanisms for the management of risks associated with its activities.

The higher-level performance assessments that are part of a continuing internal audit process routinely report on opportunities for minimising risks in the audited areas. For 2000-01 the internal audit's primary focus was on reviewing controls from a risk management perspective in specifically identified areas.

In 1998-99 the Department joined the Tasmanian Risk Management Fund. This involves whole- of-government and department-specific insurance cover either through self-insurance or purchased insurance coverage. The program began with a whole-of-government risk identification and assessment process. A more detailed assessment of the Department's risk and control systems was conducted in 2000-01

The quality system implemented for the development and maintenance of roads represents a significant proportion of the Agency's ] operations. It is designed to manage the risks associated with this core business.

It is also subject to external surveillance and incorporates:

clear definition of accountabilities;
executive review of system effectiveness;
management of risk within processes;
feedback systems for improvement;
audits of these activities; and
audits of the work of contractors to the Agency.
In December 1997 the Department undertook an extensive assessment of its tangible risks. The findings of this assessment have been used to draft a risk management policy and put in place actions to address high-risk areas. This process is likely to be repeated in 2001-02.

Ultimately, risk management is being integrated into the Department's management and planning system.