INTERNAL AUDIT REPORT
TRANSFORMATION PROGRAMME DELIVERY
2013-14
Issue Date: 21st May 2014 Issued to: Bev Jolly Corporate Director - Resources
Author: Jonathan Nulty Simon Riley Head of Financial Services & Section 151 Officer
Jenny Stephens Business Development & Transformation Officer
TRANSFORMATION PROGRAMME DELIVERY 2013-14
EXECUTIVE SUMMARY
1. INTERNAL AUDIT OPINION
The risks associated with Transformation Programme Delivery about which the client sought assurance are around project expenditure, managing risks to delivery of the transformation programme, project manager experience and training, and governance for the overall programme. The Council’s managers were able to demonstrate that they have put in place a framework of controls for effective cost and risk management, with tried and tested methodologies and appropriate roles. Testing identified some areas for improvement – including project manager/sponsor roles and benefits realisation. It is, therefore, the Auditor’s Opinion that the design and operation of controls provides Sufficient
Assurance. The audit was carried out in line with the scope set out in the approved APR.
The Opinion is based upon testing of the design of controls to manage the four risks about which the Client sought assurance and testing to confirm the extent of compliance with those controls is summarised below.
Internal Audit Assurance Opinion Direction of Travel
Sufficient Assurance
N/ARisk Design Comply Recommendations H M L
Risk 1. Failure to ensure that project expenditure is contained
within budget Sufficient Sufficient 0 0 1
Risk 2. Failure to identify and manage risks to programme
delivery Sufficient Sufficient 0 0 0
Risk 3. Failure to ensure that project managers have sufficient
knowledge, training and experience Sufficient Sufficient 0 2 1 Risk 4. Failure to ensure that satisfactory governance
structures and processes are operated for key projects Sufficient Sufficient 0 1 1
Total Number of Recommendations 0 3 3
2. ISSUES REQUIRING MANAGEMENT ATTENTION
Although there is a clearly defined budget for each project (as well as for the dedicated post of Business Development & Transformation Officer) – outlining the additional costs relating to carrying out the project or service review, costs relating to officer time spent on projects are not always included, so the true cost of the project is not fully apparent. More work on upfront allocation of internal and external resources, as well as monitoring these estimates is needed – this could be incorporated into the regular Highlight Reports that are currently produced.
Managers could see how their project fitted into the whole Transformation Programme and they felt that their teams knew what the Programme was about and what it is aiming to achieve. There are, however, mixed feelings on the question of whether the Programme is fully embedded and “owned” by Harborough staff or whether it is a process “being done to them”. An objective assessment of this situation is needed.
For Benefits Realisation, the revised Benefits Card currently being used is simpler to use and is being completed more successfully. Whilst this helps projects to identify, visualise and predict benefits, it does not focus on quantifying those benefits. There is no detailed financial modelling for expected benefits - though this would require support from the Finance team to do this effectively. It is acknowledged that the Finance team are in the throes of their own Service Review and this could
be a stretch on resources. Benefits Realisation is an identified topic for an additional audit in 2014-15 and this will include a focus on support and capacity.
Governance structures, including Member Advisory Panels, have worked well for the Transformation Programme. Other structures in other local authorities should be investigated and assessed, to ensure that Harborough’s model is as streamlined and effective as possible.
3. AREAS WHERE CONTROLS WORKED AS DESIGNED
There is a clearly defined budget for each project within the overall Programme – outlining the additional costs relating to carrying out the project
Risk is given proper and robust consideration in projects and the Programme as a whole, with each project having its own risks identified, monitored and reported on. A consistent methodology and format is used and risks are identified in the initial gateway review process for larger projects.
The use of Member Advisory Panels for major projects, has proven useful and of benefit, particularly where there has been continuity of Panel membership across a number of projects
4. EXAMPLES OF GOOD PRACTICE
The overall process, methodologies and approach to project management is to be commended. Highlight reports are seen to be a very useful tool in reporting issues and keeping stakeholders up to date on project progress.
The use of dedicated house resources, rather than external support has allowed flexibility, an in-depth knowledge of the Transformation Programme and good sense of ownership. Similarly, the development of “champions” among managers who have been involved in the Programme is to be commended.
5. LIMITATIONS TO THE SCOPE OF THE AUDIT
The Auditor’s work does not provide any guarantee against material errors, loss or fraud. It does not provide absolute assurance that material error; loss or fraud does not exist.
ACTION PLAN
Rec No.
ISSUE RECOMMENDATION
It is recommended that the...
Management Comments Category Officer Responsible
Due date 01.01 Projects do have allocated
budgets, but not enough detail on resources (both external and internal staff) – this aspect is rarely monitored.
Corporate Director – Resources considers the upfront allocation and estimation of staff time/costs (both internal and external) when transformation projects are at their initial stage (progress can be monitored through Highlight Reports)
Agreed Low Corporate
Director - Resources
30/11/14
03.01 Not all projects have been baselining data/performance at the initial stages of a project, leading to a lack of clarity on whether project objectives have been achieved.
Head of Financial Services develops and issues clear guidance on baselining – including methodologies on data capture, benchmarking and customer satisfaction
Agreed Medium Head of
Financial Services & Section 151 Officer
30/09/14
03.02 Through interviews, it appeared that there was a mixture of managers/staff who felt they were a part of the
Transformation Programme and others who felt it had been “done to them”.
Business Transformation Manager undertakes an assessment of how the Programme is perceived by staff
(including their views on ownership of the process)
Agreed Low Corporate
Director - Resources
30/11/14
03.03 The Benefits Realisation approach for the overall Programme has been through several iterations and has not been applied consistently.
Corporate Director – Resources leads the senior managers in a review of the Benefits Realisation approach and undertakes any recommendations that may arise from the upcoming audit of Benefits Realisation
Agreed Medium Corporate
Director – Resources
Rec No.
ISSUE RECOMMENDATION
It is recommended that the...
Management Comments Category Officer Responsible
Due date 04.01 There have been instances of
confusion between the roles of Project Sponsor and Project Manager.
Business Development & Transformation Officer implements mentoring and guidance mechanisms for Project
Sponsors and Project Managers to ensure these roles are fully understood
Agreed
A session on this topic is scheduled to take place on 15/05/14 with CMT
High Corporate Director - Resources
30/06/14
04.02 Decision-making could be made more timely and streamlined.
Business Development & Transformation Officer investigates the Member decision-making processes in other local
authorities currently going through a transformation initiative to compare processes and mechanisms with best practice
Agreed Low Corporate
Director - Resources
