Improving asset management in local government

Tabled Report 2: 2023–24

Tabled date

2023-07-25

Report year

2023-24

Community amenities Infrastructure Local government

Entities audited

Not identified in the published HTML audit scope.

Recommendations

1. QAO's text Addressed to: all councils assess whether their

   governance structures and culture ensure a whole-of-council (finance, asset, and service teams) approach to asset management, including planning, operating and maintaining, disposing and monitoring performance of assets

2. QAO's text Addressed to: all councils assess whether their

   asset management plans are current and cover all major asset classes, including if

   • the data is consistent with the data in the long-term financial forecast and is based on the same assumptions
   • the data needs to be updated because significant changes have reduced its accuracy
   • the key performance measures accurately measure whether the council’s assets are effectively delivering services aligned with the goals in the corporate plan

3. QAO's text Addressed to: all councils assess whether their

   data, if stored in separate asset management information systems, is recorded in a way that can be and is reconciled to the financial asset register

4. QAO's text Addressed to: all councils assess whether their

   workforce plans and/or strategies identify the necessary asset management capabilities and the optional and mandatory training to be completed.

5. QAO's text Addressed to: all councils

   provide their assessments and associated action plans to address any of the above recommendations, where relevant, to their audit and risk committees to allow for regular progress reporting.

6. QAO's text Addressed to: the Department of State Development, Infrastructure, Local Government and Planning

   develops a documented compliance strategy to monitor councils’ asset management approaches to meet the asset sustainability ratios

7. QAO's text Addressed to: the Department of State Development, Infrastructure, Local Government and Planning

   in assessing grant applications for infrastructure projects, analyses asset management plans to determine whether proposed projects are based on complete and accurate information, aligned to councils’ long-term sustainability

8. QAO's text Addressed to: the Department of State Development, Infrastructure, Local Government and Planning

   works with local governments to enhance asset management capability by

   • identifying the key capabilities needed by asset managers
   • assessing current asset management capability gaps across councils
   • developing strategies to help asset managers improve their capabilities through training and/or mentoring
   • providing periodic training to councillors and senior leadership teams focusing on asset leadership and governance
   • evaluating the results

9. QAO's text Addressed to: the Department of State Development, Infrastructure, Local Government and Planning

   develops comprehensive better practice guidance for local government on the minimum requirements and templates for the following key asset management documents

   • asset management policy
   • long-term asset management plan
   • asset management plans (for individual asset classes).

Authoritative report — Queensland Audit Office

Report PDF on QAO