An Auditor s view of Asset Management

Transcription

1 RCA Frum December 2011 An Auditr s view f Asset Management Specialist Assurance Specialist team frmed in the 1990 s Cre service lines Tendering and prcurement Cntract management Prject management Asset management Risk management Gvernance and ethical issues Anything else where independent review wuld add value. Invlved in develping public sectr guidelines (prcurement, cnflict f interest) Auditrs just nt funny 1

2 Asset Management 1. What d auditrs d? 2. Recent perfrmance audits 3. i-share 4. Lng Term Planning in Lcal Gvernment Auditr-General s Strategy Our visin is that ur audit and assurance wrk imprves the perfrmance f, and the public s trust in, the public sectr. Our purpse is t give independent assurance t Parliament and the public abut whether public entities are: Carrying ut their activities effectively, efficiently and apprpriately; Using public funds wisely; and Reprting their perfrmance apprpriately. A range f wrk and prducts Audit Results Perfrmance Audits Gd Practice Guides Inquiries Strategies and Crprate Reprts Management reprts Learning frm. Internal cmmunicatin 2

3 Asset management why care? Public services rely n assets t supprt their delivery. Unless assets are well managed, services suffer. Assets represent a significant investment by New Zealanders which needs t be prtected. Assets are ften taken fr granted until they fail. A failed asset can have bth a scial and ecnmic impact n the cuntry. T avid this, assets cannt be taken fr granted by everyne, they have t be managed. Significant assets? - asset management shuld be an imprtant part f decisinmaking and management cntrl envirnment. Gvernment interested - CAM Asset management is imprtant t Auditrs Ptential impact n financial frecasts, funding, service perfrmance and management cntrl Reliability f valuatins and financial frecast Recgnitin f capital v peratinal expenditure Assessment f depreciatin Funding, affrdability fr the cmmunity and use f reserves Unnecessary cst r wastage Service perfrmance reprting, service reductins r An auditr s failures view f asset management December 2011 Managing risk NZTA perfrmance audit 1 NZTA has the knwledge f the netwrk and planning essentials in place t maintain the netwrk well n a day-t-day basis levels f service are cmparable with verseas rading authrities the scpe and frequency f inspectins is cmparable with verseas NZTA needs t imprve its infrmatin and plan mre systematically fr lng-term maintenance and renewal f the netwrk, fr maintenance and renewal t be cst-effective ver time 3

4 NZTA perfrmance audit 2 NZTA effectively maintains the state highway t a safe cnditin fr rad users A gd range f cntract mdels, market knwledge, lng term apprach t prcurement, and cntract management NZTA culd imprve the range f suppliers and cnsistency f management acrss the cuntry NZTA culd als use infrmatin t imprve the effectiveness f maintenance wrk and target the mst imprtant areas fr the lng term cnditin and use f state highways ishare knwledge transprt sectr pilt 11 A prject t Take mre f a sectr view nt entity by entity Cnsider the infrmatin we hld (and culd hld) abut the transprt sectr Think abut hw we capture, share and use this infrmatin Explre hw we can use it t imprve what we and transprt sectr agencies d ishare knwledge transprt sectr pilt 4

5 Asset Management in Lng Term Planning 10 Cnclusins Reliable plans and data Lifecycle asset management strategies and reasnable estimates Schedule 10 requirements met by AMP financial frecasts Apprpriate assumptins Asset related Levels f Service well funded and reflecting in LTP Links t ther plans, plicies and strategies Gd quality verall planning envirnment Materially cmplete gd quality AMPs Cnsistency between AMPs and LTP Right debate drawn ut f AMPs Risk assessment cntrls r substantive cnclusin We already knw a lt We knw a lt abut the quality f asset management We have reviewed planning as part f LTCCP in 2006 and 2009 We are getting lts f gd quality infrmatin frm the self assessment: 16 specific questins that map directly t ur methdlgy We have the findings f ur annual audits And ther intelligence we have gathered alng the way This year we are taking this knwledge and building n it 5

6 But the track recrd isn t great Cmparisn f Asset Management Planning 2006 t 2009 Percentage f Cuncils in these categries Excellent Gd Needs Imprvement Pr Grades as per the auditr's scale fr assessing ESCO (envirnment, systems and cntrls) What did we d and why? Reviewed the asset management planning f 72 lcal authrities, as part f ur audit f LTCCPs Lts f knwledge gathered fr ne purpse, but valuable fr thers Lts f demand frm entities t knw wh s ding this well? Reviewed ur wrk and pulled ut all the ntable practice Offer it t the sectr t help imprve perfrmance in this imprtant (and smetimes neglected) area f public management. What did it tell the sectr? 1. What are the Asset Management essentials that we must get right? The basics as we see them. 2. The best f what we fund, and what makes it s gd. Thse examples f taking the next step in practice. 3. The wrst f what we fund, and why it matters. The pitfalls yu need t avid. 4. The mst effective imprvements yu culd make. Cncentrating n these things can be an effective way frward. 5. Things that lk gd but dn t add value. Asset management needs t be real and kept in prprtin. N-ne has time fr things that dn t add value. 6. What shuld we be talking t ur stakehlders abut? Assets are there t supprt services, and the views f service users are imprtant. 7. Why audit and ther external review matters. We believe it des and the best perfrming rganisatins seem t agree. 6

7 Summary Perfrmance auditing NZTA Gd day t day knwledge, cmparable with verseas - Culd be used better in lng term Taking a sectr-wide view and explring what infrmatin can be shared A cllectin f ntable practice Give value back and help imprvement A risk based apprach t review in 2011/12 linked directly t reaching an pinin n the LTP Cnclusin Asset management : prviding a desired level f service thrugh managing assets in the mst cst effective manner fr present and future custmers It is fundamental t gd business planning and there is pressure t imprve 7