PPMP20010 Assessment 2 - Project Audit and Governance Reports

This project audit and governance report analyzes the issues discovered in the audit reports, such as exceeding project costs and discrepancies in published data, and identifies reasons including budgeting structure issues, lack of proper planning, and concealment of information. Recommendations are provided for each issue, emphasizing stakeholder identification, key performance indicators, project scope definition, and work breakdown structure implementation. The report assesses how these issues affected meeting the project's objectives, particularly the impact on traffic, cost, and schedule, and evaluates actual performance against criteria like scope, cost, schedule, and quality. It also gives insights into the project governance.

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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enabling control over activities of project. The project costs
are estimated on a real time basis and improvements must
also be implemented on timely basis (PMBOK, 2017).
Recommendation 2 WBS
Work breakdown structure is an effective tool for managing
project. The scope, costs and baseline of schedules are all
decided under the project. It will help in initiating proper
responsiveness in a project. It helps in attainment of
objectives of project. The members of team can easily manage
members of project.
4 DESCRIBE HOW THE ABOVE ISSUES AFFECTED MEETING THE SPECIFIED OBJECTIVES
OF THE PROJECT (400-500 WORDS)
The main objective for which the rail light project is established is issues in traffic and that
hampers the cost increase in economy by $5.1 billion. The establishment of project is done to
make faster, more reliable and comfortable transport for public. The rail project have all
the necessary aspects of quiet, air conditioned, modern and accessible stops. It is
sufficiently fulfil the requirements of general public. It is required by the state since there is
economic pressure on state’s budget due to congestion. The project does not only provide
benefit to public that is actually using the transport but also community surrounding the
project (Audit.nsw.gov.au, 2020).
The problems rose in scheduling project and costs puts pressure on overall development of
projects. It is restricted to key success of project completion. The issues arose hampers the
success of project and delay in transmitting its objectivities to stakeholders. The cost and time
delays of project leads to the delay of additional two months. The issues in costing forced the
officials to delay project, the contract signed between ALTRAC and Acciona also affects the
completion of project (Pearce, 2020).
The improper planning lead to have bad impact on costs of whole structure. The stakeholders
associated with the project are engineers, contractors, supply chain management and general
public that directly get benefitted from the project. The rise of conflict between contractors and
other stakeholders is the main cause of delay. The increase in costs to the levels of $2.9 billion
affected relationship between Acciona and NSW’s government (PMBOK, 2017).
The completion of project could be possible within $2.1 billion budget but poor relations between
contractor and NSW government the time and cost overruns happened. Avoiding such measures
would lead to have impact on company in long term. The main objective behind the project is to
provide economic, financial and social support to whole of the community. Businesses and
residents have adverse impacts on construction of rail route of the project. These are due to
recurring delays in project. Also it has been seen that community people where the construction
work is carried out are relocated at some different place, the noise and dust created by this also
have adverse affects on the objectives of company as a whole (Papke-Shields, 2017).
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PROJECT AUDIT& GOVERNANCE REPORT
PROJECT NAME:
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 is having a narrow scope as the costs are
underestimated and objectives that are required are overestimated.
The non fulfilment of budgetary controls leads to have reduced the
performance of project. Modifications in the project lead to have
spent large amount of money on the project (Papke-Shields,
2017).
Cost Not met The cost objectives are not fulfilled by the project. Cost overruns
are major issue with the objectives of project. The project costs get
exceeded by $549 million to the level of $2.1 billion. This is due to
bad relation between government of NSW and contractor.
Schedule Not met The decided schedule of the project does not met and time
overruns were there. The projects get delayed by two years and
four weeks in total. The structural changes that include additional
spare parts and cable pits, cost of relocation also poses great affect
on schedule of the company (Demirkesen, 2017).
Quality Partially met The requirements of project are met with completion but at the
same time it affects the quality. The community people surrounded
by it faced problems of dust, noise and visibility (Papke-Shields,
2017).
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PROJECT AUDIT& GOVERNANCE REPORT
PROJECT NAME:
PROJECT GOVERNANCE REPORT
1 GOVERNANCE STRACTURE & RESPONSBILITIES
2 GOVERNANCE (APX 500 WORDS)
Chosen governance domain:
How were they handled What could have been done
differently to avoid/mitigate
the problems encountered
Function 1: Alignment The projects must align and
satisfies overall business
objectives. The expectations
of stakeholders must be met
For the purpose of alignment
of objectives, it is required to
evaluate benefits of project
with what has been expected
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The PMI Practice Guide on the Governance of Portfolios, Programs and Projects describes 4 Governance
domains: alignment, risk, performance, and communications. Each domain has the following functions:
oversight, control, integration, and decision making.
Based on the case study provided, discuss two (2) of the above functions of your choice in oneof the
governance domains, how they were handled and how they could have been done differently to avoid the
problems encountered during the life of the project, e.g. performance oversight and decision making.
The project governance report is a vital communication tool that is used as the basis for ensuring that the
project board and other main project stakeholders are provided with timely, relevant, and reliable project
information. Governance report provides a framework whereby issues can be reported, and decisions
made in a transparently accountable manner.
Kerzner (2017) states that governance relates to decisions that define expectations, accountability,
responsibility, the granting of power, or verification of performance. Governance relates to consistent
management, cohesive policies, and processes and decisions-making rights for a given area of
responsibility. Governance enables efficient and effective decision-making to take place.
The PMBOK (2017) discusses project governance and advises that it is a framework that provides the
project manager and team with structure, processes, decision-making models and tools for managing the
project, while supporting and controlling the project for successful delivery.
Directing PRINCE2 Table B.1 lists the principles taken from The Association for Project Management’s
governance of project management principles.
Please complete this report in the context of the case study provided within the Assessment block on Moodle.
PRINCE2 states that the project board should have the overall responsibility for governance of the
projects.
Please provide the governance structure and describe the responsibilities of at least three project board
members in a tabular format in the context of the case study provided.

PROJECT AUDIT& GOVERNANCE REPORT
PROJECT NAME:
well on time (Radujković,
2017).
by the shareholders. There is
need to transmit clarity over
certain important aspects so
that desired objectives are
established in long run. Clarity
in anticipated benefits of each
project are required to be
handled in the project. Data
that is required must be
gathered in order to secure
efficient controls in the
project. Each and every activity
must be aligned with the
desired goals of project (The
guardian, 2019).
Function 2: Direction The corporate governance
must provide strategic
direction to accomplish
desired objectives of the
project. The predefined
parameters of project are
accomplished with time,
scope, quality, action items,
of the project (The
guardian, 2019).
The problems occurred in
organization must be
controlled by directions given
by corporate governance.
There is need to manage these
problems and this could only
be managed by top level
employees of company.
Communication is an
important parameter in
imparting roles and
responsibility. Effective
communication helps in
imparting such level of
knowledge. It leads to have
long term effects on the
performance of project.
In the given case the
government of NSW must
communicate the costs and
time to the public when
calculated the estimate one. It
is important to have
consultation and interaction
with associated parties of the
project. It also ensures
efficient flow of information
from initiation to completion
stage (Radujković, 2017).
3 DESCRIBE 3 GOVERNANCE FAILURESAND REASONS (400-500 WORDS)
Failure 1 Oversight
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PROJECT AUDIT& GOVERNANCE REPORT
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Project does not what shareholders expected from the project. The key failure of this
is gaps in the overview of third party agreement and outsourced that include
commissioning and partnership. It does not measure and evaluate all the activities of
the project. The oversight of activities has adverse affects on performance of the
project as seen from the case. There were no appropriate valuation techniques of the
project that is the main reason of conflict between Acciona and NSW transport.
Inconsistency in the project with the parties associated is the main reason of conflict.
No activities must be overseen by the corporate governance for smooth functioning
(The guardian, 2019).
Failure 2 Transparency
This is an important parameter for every public project undertaken. It is important to
provide all the related information to the stakeholders without any manipulation.
The resources are used to gather an appropriate response so that associated parties
can come to know about need of such information. The requirements of
transparency have not met by the NSW government. It does not disclose the
additional expenditure that has been incurred in project in form of additional funding
on its website. The updating on regular intervals are not provided by governance of
the project (Sydney light rail, 2013).
Failure 3 Control
Appropriate controls on timely basis are important to monitor progress report of
project. It is considered as an important parameter for determining long term
relations in a company. Controls are important in determining need of resources in
fulfilling desired objectives. The delay in meeting the requirements leads to increase
in costs of company. Inappropriate controls by the government of state lead to have
occurrence of failure of targets. Costs could be controlled on time if monitored
properly and projects can incur on time if schedules are prepared properly.
Lack of control and clarity over activities conducted in the project decline the
performance (Sydney light rail, 2013).
4 DESCRIBE 3 LESSONS LEARNT AND REASONS (400-500 WORDS)
Lesson 1 Strategic analysis of project is important
It is important to have detailed analysis of the project. The project manager must
plan the analysis of the project. It is important before initiating project. A blueprint
for the activities that are undertaken must be prepared so that objectives, costs,
resources are well defined. It will provide assurance of taking control of various
activities that are planned in a company. Analysis helps in taking assurance
management performing all the tasks fairly on an appropriate basis. The expectations
from the project must be met with requirements of project. It is important to have
control on essential aspects of company. The people residing near the construction
site faced problems of noise, dust and visibility. The plans must be developed to
mitigate these reasons and community objectives can also be delivered by the
project management team (Pearce, 2020).
Lesson 2 Information flow in adequate direction
The desired information must be communicated with stakeholders associated with
project. It is important to develop environment where transparency in utilising
resources must be there. Resources are also utilized in a control manner on
establishing the same. It is important to seek appropriate controls over the company
by establishing possible reasons. The small businesses in the area must be focused
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while undertaking the establishment of the project. The information on project can
improve transparency and can help in removal of all barriers in fulfilling objectives of
project. It is important to gather necessary information and gather related aspects of
projects. Flow of information is possible with implementing communication decisions
so that resources are established to have keen controls over it.
Lesson 3 Decision Making
The success of every project id depends on the large number of stakeholders
associated with it. Decisions have direct impact on performance of the project. It is
important to ascertain long term efficiency of the project. The decisions must be
taken after fulfilling desired objectives of company. It is important to understand
who will deliver the task, by what time and quality of same must be examined. The
decisions are taken by corporate governance favourable to whole of project. It will
help in accomplishing desired goals of company. Effective decisions are establish to
ascertain whether important aspect is covered or not. The same is required and must
be well implemented. The decisions are also taken keeping in mind the essential
requirements of the company. The reputation of government must be protected so
that desired aspects are undertaken (Pearce, 2020).
5 REFERENCES
 Audit.nsw.gov.au, (2020) CBD and South East Light Rail: follow-up
performance audit, [Online], Available at:
https://www.audit.nsw.gov.au/media-release/media-release-cbd-and-
south-east-light-rail-follow-up-performance-audit, [Accessed on: 24-09-
2020]
 Demirkesen, Sevilay, Ozorhon, Beliz, (2017) Impact of integration
management on construction project management performance,,
International Journal of Project Management 35 (2017) 1639–1654
 Martens, Mauro L., Carvalho,m Marly M., (2017) Key factors of
sustainability in project management context: A survey exploring the
project managers' perspective, International Journal of Project
Management 35 (2017) 1084–1102
 Papke-Shields, Karen E, Boyer-Wright, Kathleen M., (2017) Strategic
planning characteristics applied to project management, International
Journal of Project Management 35 (2017) 169–179
 Pearce, Connor, (2020) Auditor-General calculates cost of Sydney light
rail at $3.1bn, [Online], Available at:
https://www.railexpress.com.au/auditor-general-calculates-cost-of-
sydney-light-rail-at-3-1bn/, [Accessed on: 24-09-2020]
 PMBOK (2017) A Guide to the Project management Body of Knowledge
 Radujković, Mladen, Sjekavica, Mariela, (2017) Project Management
Success Factors, Procedia Engineering 196 ( 2017 ) 607 – 615
 Skatssoon, Judy, (2020) Cost of Sydney light rail blows out, reporting
questioned, [Online], Available at:
https://www.governmentnews.com.au/cost-of-sydney-light-rail-blows-out-
reporting-questioned/, [Accessed on: 24-09-2020]
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 Sydney light rail, (2013) CBD AND SOUTH EAST LIGHT RAIL
PROJECT, [Online], Available at:
http://data.sydneylightrail.transport.nsw.gov.au/s3fs-public/SLR_CSELR
_Project_Update_April_2013.pdf, [Accessed on: 24-09-2020]
 The guardian, (2019) Sydney light rail project blows out to $2.9bn,
almost double original cost, [Online], Available at:
https://www.theguardian.com/australia-news/2019/nov/23/sydney-light-
rail-project-blows-out-to-29bn-almost-double-original-cost, [Accessed on:
24-09-2020]
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