Investment audits

This page relates to the 2021-24 National Land Transport Programme.

Introduction

Waka Kotahi NZ Transport Agency has a legal obligation to audit organisations that are funded through the National Land Transport Programme (NLTP).

The audit programme includes two types of investment audits:

• technical investment audit
• procedural investment audit.

Procedural audits typically take place every three years and technical audits every six years. Waka Kotahi (for its own activities) and Auckland Transport are exceptions – they account for over half of the land transport programme and are audited annually.

Mandate

The Land Transport Management Act 2003 section 95 (1)(e)(ii) requires us (Waka Kotahi as investor) to audit the performance of approved organisations in relation to activities we have approved.

Land Transport Management Act 2003 section 95(external link)

Selection factors

In selecting the approved organisations and Waka Kotahi (for its own activities) to audit, we consider three risk factors:

1. known issues/risks
2. levels of funding
3. length of time since the previous audit.

Audit programme

We publish the investment audit programme each year as a general circular prior to the upcoming NLTP year, which starts in July. The audit programme lists the approved organisations and Waka Kotahi (for its own activities) we intend to audit, gives details of the type of audit to be completed and the quarter of the year when the audit will take place. We contact the approved organisations and Waka Kotahi (for its own activities) selected for auditing approximately one month before the audit commences.

General circulars

The investment audits – what we do

We provide two types of investment audits – technical and procedural.

Procedural audits

The procedural investment audits typically take place every three years. The list of procedures or areas of focus includes:

• reviewing documentation/ledgers supporting final claims submitted to us
• reviewing and validating a sample of transactions included in the general ledger
• checking a sample of contracts to ensure they have been let in accordance with approved procurement procedures
• Waka Kotahi Procurement manual alignment
• looking at the management of the contracts subsequent to them being let, including both financial and non-financial, and validating annual achievement reports submitted to Waka Kotahi
• assessing whether the value for money objectives are being achieved
• compliance with this Knowledge Base
• road safety promotion
• the operation of the SuperGold scheme
• the management of the Total Mobility scheme
• public transport infrastructure maintenance and development
• validating patronage funding claims.

Technical audits

Technical investment audits typically take place every six years.

The technical aspects considered include:

• assessing whether the value for money objectives are being achieved
• activity management planning processes and documents
• data quality
• network activity management
• safety systems.

As part of the review, we carry out a network inspection.

Further information

For the investment audit programme see:

General circulars

For further questions please contact the Risk and Assurance team at RiskAssSharedMail@nzta.govt.nz