Asset Management Plan Update No. 12 – Guidance and Audit Requirements

The Office of the Auditor-General (OAG) has a statutory role in completing audits of Councils Long-Term Plans and also the asset management plans that support these.

Given their statutory role, the OAG and your auditors are one of the audiences for your AMP.

In the past 12 months, the OAG has published a range of information relating to local government asset management.

The OAG Annual Plan specifically outlines the importance of asset management:

Figure 1, p8 – overview of proposed work – AM a key element in this diagram
Figure 3, p12 – management of significant assets
Figure 5, p15 – Local Government asset and service level management

During 2013, the OAG also published the Managing Public Assets discussion paper, which raised a number of issues relating to asset management.

The Auditor-General’s Summary: Inquiry into the Mangawhai community wastewater scheme and Inquiry into the Mangawhai community wastewater scheme outline a range of issues associated with the Kaipara District Council Managawhai community wastewater scheme.

As the OAG implements the findings of the Managawhai report I am predicting a far more rigorous audit approach through 2014 and onwards.

This will obviously translate to AMP’s as well, as they provide forecasting for the bulk of Council expenditure.

The OAG has also been providing sector guidance and direction to individual Councils, which along with rolling reviews will continue through this year.

When updating your Asset Management Plan remember to look at recent audit Management Reports, and ensure that the issues raised in the Management Reports are addressed in the AMP updating process.

PHOTO CREDIT: Waste Water Treatment Plant by Ross Waugh