An audit has revealed $1.3 billion in assets that councils did not know they had. 

The Queensland Audit Office (QAO) has identified vast stretches of neglected roads totaling $1.3 billion in value, left out as a result of administrative errors within the state's councils.

According to the latest QAO report, spanning the past five years, Queensland councils have unwittingly uncovered these “found assets”, including roads, bridges, and various infrastructures, highlighting significant deficiencies in asset management.

QAO says these recurring errors indicate systemic failures in asset management, cautioning that isolated incidents may not be alarming, but repeated instances signal fundamental internal control issues.

A recent Grattan Institute report underscored the widespread confusion among councils, revealing that 25 per cent were uncertain about the number of roads or bridges they owned within a 10 per cent margin of error. 

The report also showed that only 9.6 per cent of councils met the minimum international standards for asset management.

In one case, the Brisbane City Council discovered $17 million in unaccounted-for assets in 2021, prompting a system upgrade to enhance asset management capabilities. 

Similarly, the Central Highlands Regional Council uncovered $32.5 million worth of assets, including footpaths, pipes, culverts, and floodways, which had gone unnoticed for 13 years.

A spokesperson from the Brisbane City Council indicated that an upgraded asset management system now allows for more granular definition of infrastructure, especially concerning interactions with Queensland government assets.

The Grattan Institute report cited several challenges hindering effective asset management, including insufficient funding, excessive state government regulations, and a scarcity of skilled personnel. Recruitment difficulties were reported by 90 per cent of councils.

Notably, the report also showed that 50 per cent of remote councils lacked accurate information on their road and bridge assets, and over 40 per cent were unaware of the conditions of their roads. Remote roads were identified as the most underfunded.