Victoria's roads, railways, schools and hospitals form part of $265 billion of non-financial assets that government departments and agencies manage. These assets support the delivery of services that affect all Victorians, so it is important to manage them well. Having up-to-date knowledge of assets and their condition helps government agencies get the best value from their asset-related investments, make good decisions about when to acquire, renew or divest assets, be responsive to changes in demand or use, and provide better services.

Figure B1 compares the results of our maturity assessment across the audited councils.

Figure B1
Maturity assessment results

We have consulted with Colac Otway, Darebin, Hindmarsh, Mildura, Nillumbik and we considered their views when reaching our audit conclusions. As required by section 16(3) of the Audit Act 1994, we gave a draft copy of this report, or relevant extracts, to those agencies and asked for their submissions and comments. We also provided a copy of the report to the Department of Premier and Cabinet.

Responsibility for the accuracy, fairness and balance of those comments rests solely with the agency head.

Responses were received as follows:

Councils should use the asset information available to them to inform their asset planning and decision-making, including decisions on acquiring, replacing or renewing assets and ongoing maintenance activities.

Comprehensive and accurate asset information enables councils to make informed decisions about their assets—for example, decisions about maintaining, renewing, and replacing assets.

1.1 Background

One way in which local councils deliver services to the community is through effective use of their assets. Council assets typically include roads, bridges, footpaths, drains, libraries, town halls and recreational centres, and may include other specialised facilities such as airports and landfills. The 79 Victorian councils control more than $102.1 billion in assets and infrastructure, including more than $26.5 billion in roads and bridges and $8.7 billion in drains, as shown in Figure 1A.

One way in which local councils deliver services to the community is through effective use of their assets. Council assets include roads, bridges, footpaths, drains, libraries, town halls, parks, recreational centres, and other community facilities. The 79 Victorian councils control more than $102.1 billion in assets and infrastructure, including more than $26.5 billion in roads and bridges and $8.7 billion in drains.

Independent assurance report to Parliament

Ordered to be published

VICTORIAN GOVERNMENT PRINTER May 2019

PP No 27, Session 2018–19