15-29 – Auditing of the Report on Infrastructure Assets (Special Schedule 7)

What’s new or changing

  • The 2013/14 Local Government Code of Accounting Practice and Financial Reporting (Update 22) advised that the Report on Infrastructure Assets (Special Schedule 7) would be audited from 2015 onwards.
  • In recognition of work councils are currently undertaking associated with the Fit for the Future reform process, this audit will now be phased in over three stages:
    • Stage 1:   Auditors to conduct an Asset Management Audit Preparedness Assessment as part of, or immediately following, the 2014/15 financial audit.
    • Stage 2:   Special Schedule 7 to be reviewed and updated by the end of 2015.
    • Stage 3:   Auditors to conduct an audit of the updated Special Schedule 7 as part of the 2015/16 financial audit.
  • Further information on Stages 2 and 3 will be distributed in the near future.

What this will mean for your council

  • In Stage 1, Council’s auditor will assess the systems and processes that are in place to gather, manage and report on infrastructure assets.
  • Councils should undertake a self-assessment using the Asset Management Audit Preparedness Assessment 2015 Workbook prior to the auditor’s assessment.
  • The auditor is required to submit their assessment to Council and to the Office of Local Government by 30 November 2015.
  • The auditor’s assessment should be used by councils to enhance their asset management systems and processes prior to the audit of Special Schedule 7 in 2016.

Key points

  • The assessment is designed to help councils identify deficiencies in their asset management systems and processes that could impact on audit opinion in 2015/16.
  • The Office will utilise the information from the assessments to identify those areas of greatest weakness and to determine any capacity building priorities.

Where to go for further information

Marcia Doheny
Chief Executive