Circulars

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

• The Asset Management Audit Preparedness Assessment 2015 Workbook and the Guidance for Councils and Auditors is also available on the Office’s website at www.olg.nsw.gov.au.

Marcia Doheny
Chief Executive