Fewer than one in ten Queensland councils meet international standards for asset management, according to a new report from the state’s auditor general.

Queensland’s 77 councils need to improve the way they manage their $114 billion worth of assets, auditor Brendan Worrall says.

A report released on Tuesday finds gaps in asset management practices and deficiencies in capabilities among five councils audited.

In one case, gaps and shortcomings in managing a 20-year-old sewage treatment plant potentially posed a public health risk, and meant the council had to fork out $1.9 million to build a new system and protect the town’s water supply.

Mr Worrall says the findings apply across the local government sector, but he also calls out the Department of State Development, Infrastructure, Local Government and Planning for not doing enough to help councils manage their assets.

“The department has a role in supporting local governments to be sustainable and in monitoring compliance with the Local Government Act 2009,” he says.

“It has not documented how it will fulfil this role or how it will identify those councils that need help to address risks to the sustainability of their assets and services.”

The audit found while the department requires that councils report on the sustainability of their assets, it hasn’t provided any guidance on developing asset management plans.

And in the last three years, only 21 per cent of councils have participated in workshops offered by the government to improve asset management capability.

“The department needs to assess what asset management training council leaders and staff need, so it can work with its partners to tailor its programs to those in most need,” the report says.

Need for leadership

The report investigated how the five councils managed their assets, as well as asking them to self-assess their approach to asset management.

The results showed a need for stronger leadership to not only embed sound practices, but also to withstand staff changes and help councillors deliver sustainable, quality services to their communities.

“Council leaders require accurate information on the status, condition, and value of their assets so they know how much revenue they need to maintain them and so they can make informed investment decisions,” the report says. 

“We observed from the self-assessment asset management survey that only 9.6 per cent of councils had an overall maturity average at or above the minimum requirements of the internationally recognised standard for asset management.”

The report makes six recommendations for all councils, as well as the state’s local government department, around governance, compliance and monitoring, asset plans and guidance and training.  

Mr Worrall said next year he will review how the local government sector is meeting the sustainability challenges identified by the audit, and how councils and the state government are addressing his recommendations.