Local government assets: Asset management and compliance

Expected to be tabled in May 2019

Overview

Objective To determine whether local councils accurately document infrastructure assets in their information systems and use this data in their asset management and planning.

Issues At 30 June 2017, the 79 Victorian councils controlled $91.2 billion of fixed assets including land, roads, buildings, drains, footpaths and bridges. Our previous audits of councils' asset management practices over the past 15 years have identified persistent weaknesses in their asset management. Councils require accurate asset information to comply with state and federal disaster response programs—if their asset management programs are noncompliant, they risk being unable to access funding.

In the event of a disaster, Natural Disaster Financial Assistance (NDFA) for local councils provides assistance in the recovery process in accordance with Commonwealth–State Natural Disaster Relief and Recovery Arrangements (NDRRA). The Department of Treasury and Finance (DTF) has a role in administering NDFA.

This audit will help councils to identify possible areas for improvement and/or better practice in the way they capture accurate information about their assets and use this information to inform their asset planning and management.

Proposed agencies Colac Otway Shire, Nillumbik Shire Council, City of Darebin, Hindmarsh Shire Council and Mildura Rural City Council.

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