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Audit of Capital Assets Management

Annex 2 - Audit Criteria

Criteria Audit Sub-Criteria Met / Not met 
1. Governance, management control frameworks and decision making mechanisms should exist and be and operating efficiently and effectively
  • Roles and responsibilities are well defined and communicated;
  • Procedures are in place to assure asset value to the organization and alignment with corporate priorities; and
  • Adequate segregation of duties exists
Met with minor issues
2. Effective systems, processes, procedures and controls should be in place and should be operating efficiently and effectively to support effective lifecycle management decision making (planning, acquisition, operation, maintenance, retention and disposal) as appropriate for the nature of the capital assets being managed
  • Investment decisions are based upon demonstrated program priorities and/or operational requirements and are subject to peer review
  • Where standards exist, we will assess the adequacy of the capital investment budget against those standards
  • Information for investment decisions includes all anticipated costs throughout the asset’s lifecycle;
  • Investment decisions made through IPP are implemented and tracked
  • The procedures for receiving, assigning and disposing of assets are followed
  • Capital assets are inventoried in compliance with procedures
  • Investment and disposal decisions provide optimal value for the department
Met with minor issues
3. Overall operational performance and condition of capital assets should be regularly and systematically assessed (including the asset’s functionality, extent and nature of use, and physical and financial performance) as appropriate for the nature of the capital assets being monitored
  • Testing and/or monitoring are performed to assess the on-going functionality and condition of capital assets
  • Management assesses the value of capital assets against the organization’s project priorities
  • An effective mechanism for measurement of the operational performance of capital assets is in place and operating efficiently and effectively
  • Performance indicators for describing the effectiveness and efficiency of the capital asset management processes are adequate and employed for decision making in the area of capital asset use, maintenance and replacement
Partially met
4. Accurate and reliable information, that is appropriate for the nature of the capital assets being monitored, is available for, and is used in, performance monitoring and reporting
  • Complete, accurate and timely information necessary to manage capital asset throughout their lifecycle is available
  • The asset lifecycle management information is used for decision making, performance monitoring and reporting on the existence and condition of capital assets.
Partially met
 
Introduction
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