Asset Annual Funding identifies an annual asset cost budget and actual asset expenses for the planned / expected and actual life of the asset. The period is typically a rolling 25-year period. This is a projection and although it supports an annual budget request, it is not limited by any annual funding limitations.
Organizations require a planned and deliberate approach to utilize the funding allocations they receive. Asset Annual Funding identifies the required annual asset management budget and expenses that supports the intended use, expected life, and level of service required from the asset.
The purpose of this principle defines and projects annual operations and maintenance (O&M) and capital funding needs for any required planning horizon (typically 25 years) for the life of the asset. This principle utilizes data from Asset Costing (3.3.5), Asset Inspection (3.3.6), and Asset Performance (3.3.7) to develop an Asset Annual Funding plan.
Asset Annual Funding is the plan to identify the necessary funding to cover the TCO of the asset for the next fiscal year and is developed annually for an organization. The plan will identify annual expenses and periodic renewal investments. The plan will anticipate the level of maintenance services and expense to support the asset’s life.