The Auditor-General’s report Investing in tertiary education assets was presented to the House of Representatives today.

This report considers the effectiveness of investment in tertiary education sector assets to support educational success.

Each tertiary education institution is required to prepare an investment plan to show how it plans to give effect to the priorities in the tertiary education strategy. For particular capital investments, institutions prepare business cases. We reviewed 14 business cases prepared in 2013 and 2014.

We found that these business cases were generally of a high standard. Benefits, risks, and risk management approaches were usually described in detail, and most sections dealing with risk included comments about a range of financial indicators. However, we saw little evidence in the business cases of how the strategy’s aim to enhance the effectiveness of the sector as a whole had been considered.

We developed a cost-effectiveness measure to see whether system-wide factors could affect the relationship between the money spent on assets and educational outcomes for students. Applying our measure shows how tertiary education institutions may individually and collectively be affected by changes in their wider environment.

There is an opportunity for education agencies, tertiary education institutions, and other stakeholders to explore the measurement of the effectiveness of investments in assets, and the potential opportunities for more sector-based investment decisions. We hope that this report will start conversations in the tertiary sector about the further development and reporting of a range of cost-effectiveness measures and tools, for the sector and for individual institutions.

A two-page summary of this report is also available.

Inquiry into aspects of Auckland Council’s Westgate/Massey North town centre project
This report was also presented to the House of Representatives today.
We looked into specific aspects of Auckland Council’s project to develop a new town centre in Massey North. Several people had raised concerns about the establishment and management of this new town centre. They questioned whether the public and private costs and benefits of the project have been appropriately balanced between Auckland Council and a private developer.

The focus of our inquiry was on Auckland Council’s management and governance of the project from 1 November 2010, when the newly amalgamated Auckland Council inherited the project from the now dissolved Waitakere City Council. This report focuses on some specific aspects of the development. The report also details how the project was set up and how the contractual relationship developed between Waitakere City Council and the private developer.

One of the concerns raised with us was about the lack of transparency, in particular being unable to access information about the project. In our view, Auckland Council could have made more information about this development available. It is important that local authorities strike the right balance between balancing commercial sensitivity, maintaining legal privilege as appropriate and being open with ratepayers and elected officials. Such openness allows public discussion and debate, and is essential to supporting public sector accountability. This exercise has highlighted once again the importance not just of making good decisions but also of being able to show that good decisions have been made.

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