Audit Methodology

Fixed Asset Register Audit Methodology

For Strata Committees and Owners Corporations (NSW & VIC)

1. Purpose of the Audit

The purpose of the Fixed Asset Register Audit is to provide strata committees and owners corporations with an independent, accurate, and defensible record of building assets, enabling:

• Sound governance and informed decision-making
• Compliance with statutory and best-practice obligations
• Transparent capital planning and budgeting
• Risk identification and mitigation
• Alignment with depreciation schedules and maintenance planning

The audit is designed to remove conflicts of interest, improve visibility of asset condition and life cycle, and support long-term asset stewardship.

2. Audit Principles

The audit methodology is underpinned by the following principles:

• Independence – Assets are reviewed and recorded independently of managing agents and incumbent contractors
• Completeness – All qualifying assets are captured without omission
• Accuracy – Asset data is verified on-site where practicable
• Consistency – Standardised classification and life-cycle assessment is applied
• Transparency – Assumptions, limitations, and methodologies are clearly documented

3. Audit Scope Definition

Prior to commencement, the scope of the audit is agreed with the strata committee or board and typically includes:

• Asset categories and systems to be included
• Level of detail required for each asset
• Intended use of the register (governance, sale, capital works planning, maintenance management)
• Reporting format and software integration (where applicable)

The scope may be adjusted to reflect budget constraints, building complexity, and committee objectives.

4. Asset Inclusion Criteria

The audit will include, at a minimum:

• All Essential Services equipment, including portable fire equipment and fire blankets, regardless of value
• All equipment subject to a maintenance agreement
• All equipment with moving or mechanical components
• All energy-consuming equipment
• All assets exceeding the approved financial benchmark
• All Base Building assets
• All Common Area assets

5. Systems Reviewed

Subject to the agreed scope, systems typically reviewed include:

• Fire and Essential Services
• Mechanical Air Conditioning and Central Plant
• Electrical and Mechanical Electrical Infrastructure
• Elevators and Vertical Transport
• Automatic, Fire, and Roller Doors
• Access Control Systems
• Security and CCTV
• Telecommunications and NBN Infrastructure
• Windows, Glazing, and Façade Elements
• Floor Coverings, Finishes, and Painting
• Water, Pumps, Tanks, and Plumbing Systems

6. Audit Process

6.1 Desktop Review

A review of available documentation, including:

• Existing asset registers
• Maintenance contracts and service reports
• As-built drawings and O&M manuals (where available)
• Compliance and certification records

6.2 On-Site Physical Inspection

A systematic inspection of accessible common property assets to:

• Verify asset existence and condition
• Confirm model, serial numbers, and configuration
• Identify unrecorded or obsolete equipment

6.3 Asset Identification and Classification

Each asset is:

• Assigned a unique asset identifier
• Categorised by system and location
• Classified as Base Building or Common Area property

7. Asset Data Captured

For each asset, the following information is recorded (subject to access and availability):

• Asset description
• Manufacturer, model, and serial number
• Date of installation (estimated where necessary)
• Original installation cost (where available)
• Estimated replacement cost, including associated building works
• Expected life term
• Remaining life term
• Maintenance regime and frequency
• Obsolescence risk
• Historical maintenance costs or known parts issues
• Energy consumption rating (Low / Medium / High / Very High)
• Estimated current value

8. Life Cycle and Risk Assessment

Assets are assessed for:

• Condition and serviceability
• Remaining useful life
• Obsolescence and compliance risk
• Likelihood and consequence of failure

This enables prioritisation of maintenance and capital works expenditure.

9. Maintenance Regime Alignment

Where requested, the audit includes:

• Recommended maintenance regimes aligned with asset criticality
• Identification of critical service dates
• Forward planning for upgrades and replacements

This ensures the Asset Register functions as a live management tool, not merely a compliance document.

10. Reporting and Deliverables

The final deliverables typically include:

• A comprehensive Fixed Asset Register (digital format)
• Summary findings and key risks
• Observations regarding asset gaps or deficiencies
• Recommendations for ongoing asset management

Reporting can be tailored for strata software platforms or committee reporting formats.

11. Limitations and Reliance

The audit:

• Is non-intrusive and visual unless otherwise agreed
• Relies on available documentation and site access
• Does not constitute a structural, fire engineering, or compliance certification unless expressly stated

Any limitations are clearly documented in the final report.

12. Review and Update Recommendations

To maintain relevance and accuracy, it is recommended that:

• The Fixed Asset Register be reviewed annually
• A full audit be conducted every 3–5 years, or following major capital works
• Updates be made following significant upgrades, replacements, or compliance changes

13. Governance Statement

This methodology is designed to support:

Defensible governance in the event of disputes, audits, or transactions

Prudent decision-making by strata committees

Transparent reporting to lot owners