NSW Audit Office - Awareness - Issue 2003 05 - June 2003

AWARENESSccounting and Auditing Developments Issue 5 JUE 2003AUDIT OFFICE 1AUDIT OFFICE UPDATEUPDATEAUDITOR-GENERAL’S REPORT TO PARLIAMENT 2003, VOLUME ONEACCOUNTING 5The report was released on the 1 May 2003. Significant issues in this UPDATEvolume include:AUDITING UPDATE 7Sydney Water Corporation-Review of Implementation of Customer URGENT ISSUES 7Information and Billing System (CIBS) GROUP UPDATEOur audit found many unsatisfactory aspects in the areas of project INTERNATIONAL 9governance, project specification and management, cost estimation and UPDATErisk management. Examples included:MISCELLANEOUS 11Sydney Water spending approximately $61.0 million up to project PUBLICATIONStermination and another $18.6 million on related hardware and software. We believe most of the $61.0 million will be written offLEGISLATIVE 11CHANGES UPDATEmanagement not always reporting important issues to Sydney Water’s Board of Directors in a clear, complete and timely mannerTREASURY 12the Board not overseeing the project as effectively as it might have. UPDATEIts understanding of the project, in light of its complexity, was limitedPREMIER’S 18project planning and specifications were inadequate, contributing to DEPARTMENT many change requests and significant additional costs and delays UPDATErisk management not being effective at the corporate and project levels.AUDIT OFFICE 19Our recommendations included: BETTER PRACTICEGUIDESGovernment to consider ...