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)
Issues
related
to
planning
Because of the planning issues the project got failed to meet the deadline and the
issues identified in the south east light rail and CBD project. Due to the lack of proper
planning and procurement there have been delays in several work of the project. The
planning area of the project lacked the governance arrangements. The roles and
responsibilities were also lacked the clarity in defining and for the assignment.
According to the audit report deliverables of the project were not much effective in the
management of planning and execution. Earlier for the project between the period of
2006 to 2009 stakeholders were consulted but in order to take the final decision in the
year 2012 they were not consulted (Acciona 2020).
Issues
related
to
costing
The project also faced the costing issues due to which it was the situation of concern
for the government and the stakeholders of the project. The reason behind this issues
can be no proper communication to the stakeholders regarding the insight information
linked to the handling and execution of the project. Due to lack of update about the
costing there were issues for meeting the deadline of the project. Changes were also
made to the estimated cost due to which ambiguity increased in the accountability and
the financial management of the project.
2 IDENTIFY 2REASONS FOR EACH ISSUEFROM AUDIT REPORTS(400-500 WORDS)
Issues
related
to
planning
Reason 1 One of the reason behind the planning issue was the confrontation
between the ALTRAC and the NSW due to which the completion of the
project delayed for an year. Due to the insufficient information related
to resources and staffing by the ALTRAC resulted in rise in the project
management problems. There was lack of communication among the
two stakeholders of the project related to delay and withdrawal from
the original plan (Audit office, 2018).
Reason 2 According to the audit report key assurance processes were missing
under the audit planning. One of the reason is also the mismanagement
of the time which have happened due to the missing planning protocols.
There was adverse impact on the project value as at the planning stage
third party agreements were not finalized which have led to the increase
in project risk. Planning procurement also failed to get the better value
for the NSW transport because of the absence of independent gateway
assurance reviews.
Issues
related
to
costing
Reason 1 Due to ignoring the designed procedures the CSELR project have faced
the budgeting problems. According to the contractor the published cost
of project was $ 2.9 billion but in accordance to the audit report the
predicted cost of the project was $ 3.1 billion. The cost have been risen
due to the limited business support packages, delay in the execution and
due to the omitted cost (CIO, 2017).
Reason 2 Due to the higher costs execution of the project and the smooth delivery
were hard task to perform. The infrastructure of CSELR would need big
financial assistance from the sponsors and the government. But one of
the reason behind the rise in the cost of the project is because of the
tight deadlines. This have also resulted in the overestimation of the
advantages from project underestimating of the expenses. Financial
aspects of the project were failed due to which risk increased during the
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PROJECT AUDIT& GOVERNANCE REPORT
PROJECT NAME:
preparation of the plan.
The expenses related to capital of the project were also lacked proper
valuation which have resulted on improper scheduling.
3 PROVIDE 2 RECOMMENDATIONS FOR EACH ISSUE (400-500 WORDS)
Issue 1 Recommendation 1 Setting of the KPI
When there is rise in the cost of project as compared to the
budgeted and the risks involved under this can be removed by
the regular monitoring (Legislative Council, 2019). JPI would
assist in the development and the management of the project
in an effective manner. Through the managers would be able
to keep the check on the expenses of the project. Some of the
KPI which can help the management are as follows:
Actual cost
This would help the manager in knowing the amount of money
which is being spent on the project.
Cost variance
This would assist the manager to balance the estimated cost
of project and the actual cost of the project
Earned value
This would further showcase that the agreed budget for the
delivered activities of the project in a particular time.
Planned value
This would display about the projected expenses of the
planned activities in accordance to the present date.
Returns on investments
This can help in knowing the profitability and managers would
be able to anticipate the returns which can be obtained on the
investment.
Recommendation 2 Requirement of the stakeholders
Ambiguity linked to the expectations of the stakeholders can
create the budgeting problems for the project. Proper
evaluation, identification and the handling of the stakeholders
demand and requirements can be helpful for the costing
purpose of the CSELR project. Hence, for the objective of
keeping the project under the budget the expectations of the
stakeholders should be found in careful manner which can be
documented and established with them and further can be
informed to all the stakeholders. Through this project
managers would be able to have the good grip on the costing
of the project (Guardian, 2018).
Issue
related
to
planning
Recommendation 1 Project Scope
The planning have been impacted by the project’s time
schedule. Hence, it becomes crucial to define the project
scope. In accordance to the scope the priorities can be
established. The activities related to collection of information
with the functional managers can be performed in a careful
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PROJECT AUDIT& GOVERNANCE REPORT
PROJECT NAME:
manner. There should be clear and careful draft of the list of
project processes or the list of project deliverables along with
the criteria of acceptance. This would help the management in
getting the control over the activities of the project.
Recommendation 2 Work break down structure
The WBS can be designed in such a way that it would be able
to make sure that the project scope have been decentralized.
This would help in management and handling of the project
members (Guardian, 2018).
4 DESCRIBE HOW THE ABOVE ISSUES AFFECTED MEETING THE SPECIFIED OBJECTIVES
OF THE PROJECT (400-500 WORDS)
The main goal of the project is the decrease the traffic problems and increase the public transport
capacity in the Sydney which is also putting big financial burden on the state each year. The
construction of the big rail project would help the public the using the transport facilities and also
beneficial for the surrounding communities of the project. The project involves the community
team who worked with the big number of stakeholders (Pmi, 2007).
The some of key objectives of the project restricted and delayed due to some of the problems
related to schedule and cost of the project which have put burden on the complete project. The
project was already lacking behind by one year and further the higher costing and the
mismanagement problems have delayed it for another two months. The expenses problems have
made the firm to make changes in the contract with the Acciona and ALTRAC which had negative
impact on the stakeholders of the project.
Because of the poor planning the project have failed in making good communication among the
stakeholders which have resulted in the conflicts among the state and the contractor. According
to the data the rise in the cost of rail project of 2.9 billion had impacted the relation among the
Acciona and the NSW government. On the basis of Audit committee it has been identified that rise
in the cost was not recommended by the Acciona and Acciona have also filed the law suit against
the NSW transport for 2.1 billion (Reich, 2018).
The established budget of the project was 2.1 billion but because of the unsettled claims linked to
the changes of the contract, late penalty and litigation claim among the NSW state and the
Acciona the expenses of the project increased more than the budgeted one. Therefore, it is
important to improvise the NSW in order to solve these kinds of issues.
5 ACTUAL PERFORMANCE: STATE WHETHER FOLLOWING CRITERIA HAVE BEEN
MET/NOT MET/PARTIALLY MET FOR THIS PROJECT AND PROVIDE REASONS OF
NOT MET OR PARTIALLY MET (200-300 WORDS)
Criteria Met/
Not Met/
Partially
Met
Reasons(Not Met / Partially Met) Criteria
Scope Partially met The project scope was narrow due to the underestimation and
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