Investment audits

This page relates to the 2024–27 National Land Transport Programme.

IntroductionBack to top

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

The audit programme includes 2 main types of investment audits:

• technical investment audit
• procedural investment audit.

Additionally, theme audits may be carried out if a specific issue impacting the transport network is identified.

Approved organisations will typically undergo a procedural audit once every 3 to 4 years and technical audits every 6 to 7 years. There are exceptions to the frequency of a procedural or technical audit, and the selection factors detailed below determine if an approved organisation requires more frequent visits.

MandateBack to top

The Land Transport Management Act 2003 section 95 (1)(e)(ii) requires us (NZTA 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 factorsBack to top

In selecting the approved organisations to audit, we consider a number of factors including but not limited to:

1. known issues/risks and findings from previous investment audits
2. level of funding
3. length of time since the previous audit
4. for technical audits, the complexity of the network.

Audit programmeBack to top

We publish the investment audit programme each year as a general circular prior to the upcoming financial year, which starts in July. The audit programme lists the approved organisations we intend to audit, gives details of the type of audit to be completed and the quarter of the year when the audit is proposed to take place. Prior to the audit commencing, we contact the approved organisations to give the council officers sufficient time to prepare documents ahead of the audit.

General circulars

The investment audits – what we doBack to top

Procedural audits

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
• NZTA 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 NZTA
• 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

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.

Theme audits

We may undertake theme audits on an as-needed basis. The documents we require for theme audits and the areas of focus depend on the specific transport network issue the audit is inspecting.

Further informationBack to top

For the investment audit programme see:

General circulars

For further questions please contact the Risk and Assurance team at:

riskandassurance@nzta.govt.nz