The company running Mt Eden prison has received a glowing report on its management of Western Australia's largest and only private jail.
Custodial Services Inspector Neil Morgan says Serco has made the Acacia Prison one of the best, if not the best-run, prisons in Western Australia during the past five years.
He says Acacia's running costs per inmate are 30% less than those of a public prison, and it has a good record of security, safety and duty of care.
But Mr Morgan also found room for improvement, citing an underfunded maintenance contract and a struggle to find sufficient meaningful employment for inmates.
Radio New Zealand's justice reporter says innovation and cost savings are achievements the Government hopes will be emulated when Serco assumes full control of Mt Eden prison in Auckland in August.