Planning & Investment Knowledge Base

Investment Audits

 

Overview

Investment audits provide assurance to NZ Tranport Agency that its land transport investments are being well managed and providing value for money Selecting the right things to do, implementing them in the right way, at the right time and for the right price. .

 

Mandate
 All road controlling authorities (Approved Organisations and NZ Tranport Agency(state highways)) are subject to investment audits. The Land Transport Management Act 2003 section 95(1)(e)(ii), requires the NZ Tranport Agency to audit the performance of Approved Organisations in relation to activities it has approved.

 

Coverage

Investment audits take a risk based approach and consider some or all of the following components depending on audit scope:

  • planning and prioritisation of land transport activities
  • actual activity versus planned activity
  • validity of information informing decision making, for example Road Assessment and Maintenance Management (RAMM) data, Transport Investment Online (TIO The NZTA's web-based funding allocation system. ) achievement returns
  • procurement
  • contract and programme management
  • financial systems and claiming processes
  • special conditions of funding.

 

How entities are selected and notified for investment audits

Around 25 investment audits are completed each year by the Investment Assurance team of the NZ Tranport Agency(Planning & Investment).

 

Approved Organisations and NZ Tranport Agency(state highways) offices are selected for auditing at the start of each financial year using risk and time based criteria. This is done as part of the development of a wider investment assurance work programme. All approved organisations and NZ Tranport Agency(state highways) are notified in a general circular of the planned programme of investment audits. 

 

An auditor will contact an approved organisation at least one month ahead of a planned investment audit to arrange its details. This includes requesting that information be made available for the audit and agreeing a suitable date for the audit fieldwork to take place.

 

The audit process and fieldwork – information for audited entities

Audit visits usually take between two and five days to complete. The time required depends on factors such as the planned audit scope and the size of the audited entity and its land transport network. These factors also influence how many auditors will attend a visit. A lead auditor will advise you ahead of a visit how long it is expected to take and who will be attending.

 

Further information about what is involved with audit fieldwork and the general audit process followed is provided here.

 

 

Last Updated: 22/04/2016 1:04pm