Developer contributed assets are items of public infrastructure – such as roads, parks, water, and sewer network assets – that a developer constructs as part of a development approval and hands over to a council for its ownership and maintenance.
Through our audits of major capital projects, the Queensland Audit Office (QAO) has developed insights to assist our auditors and clients in determining when to start capitalising project costs. This blog shares these insights as a guide and outlines how we will engage with our clients.
As we all know, buildings are expensive to construct and maintain, but they are critical for the delivery of public services. If entities do not maintain their buildings well:
Why adopt a systems approach?
Providing services to the community relies on governments entities taking care of the physical assets they operate.
Infrastructure investment is essential for improving and maintaining economic, social, and environmental wellbeing.
In a world where organisations constantly face financial challenges and uncertainties, it’s critical they understand the capability of their assets to deliver the services their community needs now and into the future.
One of the biggest risks when an entity engages a contractor or consultant is the outsourced project or service costing more than first anticipated.
Most infrastructure assets are expensive to build and maintain, but are the main way that public sector entities, including councils, deliver key services to their communities.
Public sector entities in Queensland – both state and local governments – collectively manage approximately $475 billion in infrastructure assets to service the needs of the community.
The Queensland Government plans to spend billions of dollars on infrastructure projects over the coming years, and with Brisbane recently announced as host city for 2032 Olympic Games, further expenditure is expected.