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.

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

Approved organisations will typically undergo a procedural audit once every 3 to 4 years and technical audits every 6 to 7 years. However, there are exceptions to the frequency of a procedural or technical audit.

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

Audits generally require 2 to 5 days at the approved organisation to complete.

Factors influencing the duration of the audit and the number of auditors or other people involved include:

• size and complexity of the approved organisation and its land transport network
• planned scope of the audit
• findings during the audit that may require additional investigation.

Procedural audits

Procedural audits of small and medium size approved organisations will usually be performed by one auditor, who may take up to 4 days to complete the audit. Audits of larger or more complex organisations may involve additional auditors and could take 4 or more days to complete.

These audits provide assurance in relation to the systems and processes of the approved organisation and will address the following:

• National Land Transport Programme funding is used for the purpose it was provided.
• The funding is appropriately accounted for.
• NZTA requirements have been met.
• The contract management best reflects leading practice.
• NZTA procurement procedures are being met.
• Land transport disbursement correctly reflects the land transport expenditure.

Technical audits

Technical investment audits primarily focus on the management, performance and condition of the network of the approved organisation , including  road safety performance and how the network has changed over time. A major part of a technical audit is a drive-over of the network to assess its condition.

Site visits for technical investment audits may take up to 5 days. People involved may include:

• one or more officers from the approved organisation – especially desirable is an officer with an understanding/knowledge of the network maintenance programme
• third parties involved in the development and delivery of the programmes – these can be involved at the council’s discretion
• one to 2 technical auditors
• the local investment advisor from NZTA
• an independent local authority representative from a council with a similar type of network (if possible)
• an independent peer auditor who will accompany the NZTA auditor as required.

The involvement of an independent local authority representative or peer auditor gives a good opportunity for the collegial exchange of ideas, independent assessment with a broader perspective and enhanced application of good practice.

These audits provide assurance in relation to the systems and processes of the approved organisation and will address the following:

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

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