PPMP20010 - Assessment 2: Project Audit and Governance Reports

PROJECT AUDIT& GOVERNANCE REPORT
PROJECT NAME:
PPMP20010 - Assessment 2
Project Audit and Governance Reports
PROJECT AUDIT REPORT
Project name:
Date of report:
Project ownership:
Senior User:
Prepared by:
Distribution list:
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The project audit report is a tool used to substantiate to the stakeholders of a project that the goals and
objectives of the project are being met and important items or deliverables are being produced by the
project. This audit report is a vital communication tool that is used as the basis for ensuring that the
stakeholders acknowledge the project success and accept the outcomes.
Kerzner (2017) in Section 11.32 identifies five different types of project audits – performance, compliance,
quality, exit, and best practices. Audits do not have to occur at the end of a project but can occur during the
project life cycle as health checks and quality audits.
Managing Successful Projects with PRINCE2 (2017) states that an audit review is typically undertaken at the
end of each stage and at the end of the project. Kerzner (2017) in Section 11.32 states the audits can be
scheduled or random and can be performed by in-house personnel or external examiners.
Directing Successful Projects with PRINCE2 (2009) Section 9.3.1 identifies that there are four metrics that may
be valuable – progress, quality, change and risk. Each auditable category should have a value to the project
and future projects.
Please complete this report in the context of the case study provided within the Assessment section on Moodle
website.
All guidance box must be deleted before uploading and submitting this report into Moodle.

PROJECT AUDIT& GOVERNANCE REPORT
PROJECT NAME:
1 LIST 2ISSUES DISCOVERED IN THE AUDIT REPORTS (200-300 WORDS)
Total
cost of
the
CSELR
project
will
exceed
$3.1
billion
The estimated cost for the project was determined at $2.104 billion in February
2015. It was done by taking approvals. The same Cost structure was
redesigned and the cost for such redesign is $2.9 billion. But the issues found in
audit suggests that cost exceeded a total of $3.1 billion and does not includes
$36.07 million for pre-contract award costs, $60.0 million for assisting small
business package, $57.77 million additional cost of financing due to delays in
project. The costs are not monitored on a regular basis that gives rise to
increase in costs of project (Audit.nsw.gov.au, 2020)
Project
costs and
benefits
does not
matched
from
published
sources
In June 2019, it has been issued that total budgeted cost of project is $2.1 billion and
noted that is has entered into revision of schedule that includes $576 million as
additional costs. Audit report raises the issue that it does not disclose the
occurrence of costs of $57.77 million in financing additional costs. The
construction figure was also not reported appropriately of what it is required to.
This shows lack of planning and concealment of information from general public
as a whole (Martens, 2017).
2 IDENTIFY 2REASONS FOR EACH ISSUEFROM AUDIT REPORTS (400-500 WORDS)
Issue 1 Reason 1 The main reasons for rise in costs are the issues with budgeting structure
of project. The estimated cost of project is exceeded due to lack of
proper planning and delay in scheduling of activities. The additional
funds are raised for this purpose. These costs are determined in order to
maintain effectiveness in responses. The costs exceeded the planned
costs is highlighted in audit report. The cost estimation must be defined
clearly in order to sustain appropriateness of facts (Martens, 2017).
Reason 2 The implementation of project requires large investment with proper
planning and budgets conducted by expert engineers. The project is
designed to benefit public by providing effective source of transport. But
this must be planned in order to support given cost structure, the costs
need not be exceeded in order to mention long term efficiency in
business. The reason for occurrence of issue is inappropriate planning
before execution of project. The benefits of project are overestimated
and costs of project are underestimated that creates the problem and
problem has been raised (Audit.nsw.gov.au, 2020).
Issue 2 Reason 1 The facts are concealed by project management team when publishing
data on website, the reason for same could be due to increase in costs
the team does not want to disclose inappropriate planning and failure of
plans for implementing the project. This will disgrace the trust among
public for government and team. There is major missing of blueprint and
increase in project management issues in a project. The delays and
extension of costs must be appropriately conveyed to public at large
recognition of same in a project. It will have direct impact on
performance of structure.
Reason 2 The report given by auditors suggested that planning procedures are
ignored that gave rise to the problems. There are no appropriate
planning procedures that led to have controls over project. Effective
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PROJECT AUDIT& GOVERNANCE REPORT
PROJECT NAME:
control procedures must be established that would bring sustainability
in a project. These are used to enhance long term effects in a project
(Martens, 2017). The finalization of third party agreements is also done
at stage third, this would also have affected the project and its
resources. The procurement process also got failed in determining best
value of assets. There is need to enhance the planning phase of the
project so that requirements of NSW government can be fulfilled on
time. The reason for such failure is assuming things wrong that lead to
decline in project performance (Audit.nsw.gov.au, 2020).
3 PROVIDE 2 RECOMMENDATIONS FOR EACH ISSUE (400-500 WORDS)
Issue 1 Recommendation 1 Identification of requirements of stakeholders
Stakeholders are crucial for every project as they are directly
associated with it. The management team of projects must
take care of objectives of stakeholders who invested their time
and money with the expectation of getting some returns. To
keep the project costs under control, it is required to identify
needs and wants of stakeholders and communicate these
things to public having interest in the project. This would have
controls over project costs and budgets. The process is
although complex but needs to establish so that benefits are
realised in long term (PMBOK, 2017).
Recommendation 2 Setting up of Key Performance Indicators
Costs of companies are exceeded the estimated budgets of
project that would need to establish appropriate controls. The
budgets must be prepared to controls returns of project. The
project activities and deliverables must be process on
appropriate basis. These are required to ascertain long term
benefits in a project. The manager of project must keep a
control over irrelevant and wasteful costs that can be
determined by forming appropriate budgets. Important key
performance indicators are-
i. Cost Variance –it is the comparison of actual and
standard costs of project.
ii. Actual cost –the amount of money that would
actually be spend on project
iii. Planned Value –the cost of activities that are
planned for the current date.
iv. Earned Value –it is required to display budgets
that exceeded specified point of time (PMBOK,
2017).
Issue 2 Recommendation 1 Project Scope
The schedule of project is affected by inappropriate planning
of the project. This give rise to non-disclosure of actual costs
and benefits of project. For keeping this secure there is need
to define scope of project that covers activities included in
project, scheduled time for carrying out each and every
activity. These are decided on realistic basis. This will help in
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