PROJECT MANAGEMENT AND FINANCIAL AUDITS
Community and Government Services of a Canadian Territory
Community and Government Services (CGS) works in partnership with community governments and assists them in building their capacity so that they can meet the needs of their residents. They provide programs and funding that support core municipal operation, infrastructure development, and land development. Support is provided to ensure training for councils and municipal employees is available.
Procept was hired to perform a construction project management and a financial audit of an airport project to investigate the courses of project management actions and investigate financial records that resulted in the after-the-fact approximate $3-5 million budget overrun.
Subsequently, Procept was hired to perform project management and financial audits of each of the four Regional Offices of CGS to examine project management and financial records for recent capital projects and compile a final report on the present project management maturity of CGS.
APPROACH
The project management audit focused on:
The audit findings were outlined in the Audit Report of Oct 2009. Procept was hired in 2010 to implement the recommendations in the Report.
CHALLENGES AND CORRECTIVE ACTIONS
The major challenge encountered was gathering of data and interviewing staff involved in the over the budget projects due to the fear of job loss. The corrective action was to establish credibility through the project sponsors that this project was strategic in nature focussed on improving organizational performance in the long run than pointing fingers on individuals.
Community and Government Services of a Canadian Territory
Community and Government Services (CGS) works in partnership with community governments and assists them in building their capacity so that they can meet the needs of their residents. They provide programs and funding that support core municipal operation, infrastructure development, and land development. Support is provided to ensure training for councils and municipal employees is available.
Procept was hired to perform a construction project management and a financial audit of an airport project to investigate the courses of project management actions and investigate financial records that resulted in the after-the-fact approximate $3-5 million budget overrun.
Subsequently, Procept was hired to perform project management and financial audits of each of the four Regional Offices of CGS to examine project management and financial records for recent capital projects and compile a final report on the present project management maturity of CGS.
APPROACH
The project management audit focused on:
- The project management process that led to the design that was implemented. This investigation did not address technical issues such as suitability of the design.
- The procurement process that was used to select the design consultant and the construction contractor, including selection of the construction contract type.
- The decision making process by the Government staff.
- The communication process between the project team and key project stakeholders.
- Project control processes (scope, quality, schedule, cost, risk).
- Reconciliation of contract and contract change orders.
- Reconciliation of payments.
- Determining the current amount due and payable to the contractor.
- Highlighting possible issues for follow up at a later date.
- Identification of project management weaknesses and issues.
- Identification of financial weaknesses and issues.
- Highlighting possible issues for follow up at a later date.
- Completion of separate reports for the project management audits and financial audits for each of the four regional offices.
- Observations and, where possible, the identification of contributing factors to issues identified; and
- Recommendations including any process revisions, procedural changes or training requirements that may be viewed as desirable or necessary.
The audit findings were outlined in the Audit Report of Oct 2009. Procept was hired in 2010 to implement the recommendations in the Report.
CHALLENGES AND CORRECTIVE ACTIONS
The major challenge encountered was gathering of data and interviewing staff involved in the over the budget projects due to the fear of job loss. The corrective action was to establish credibility through the project sponsors that this project was strategic in nature focussed on improving organizational performance in the long run than pointing fingers on individuals.
PROBLEM
Investigate $3-5 million budget overrun on a large construction project.
SOLUTION
Audit to identify the courses of project management actions that led to budget overrun. By taking a holistic approach and auditing recent capital projects in all the four regions, we published our findings and recommendations in the Audit Report.
Investigate $3-5 million budget overrun on a large construction project.
SOLUTION
Audit to identify the courses of project management actions that led to budget overrun. By taking a holistic approach and auditing recent capital projects in all the four regions, we published our findings and recommendations in the Audit Report.