Part 8: Why an audit matters

Asset management for public entities: Learning from local government examples.

Asset management plans are not for the auditor; nor should they be written solely to fulfil some legislative obligation or a piece of Treasury guidance. Nevertheless, an audit, along with other forms of external review and scrutiny can play a part in effective asset management planning.

External review can provide assurance over the quality of planning and the information that underlies it. That is good for both asset managers (who can have confidence in their own work) and those who use asset management plans to inform their decisions. Those in governance roles are more likely to make decisions in line with asset needs if they have confidence in the quality of the related planning.

Review can also be a good source of ideas for improving asset management planning, particularly as it brings an alternative perspective. That perspective might be informed by knowledge of asset management practice in other organisations, or the disciplines of another profession. Either way, it expands the range of thinking that goes into planning.

Confidence in the quality and reliability of your planning

Manageable steps towards an appropriate level of sophistication

  • Case study 8.3: Palmerston North City Council – improvement plans
  • Case study 8.4: Palmerston North City Council – improving current practices