Internal Control Checklist/Questionaires/Assessment On Project Management

July 2nd, 2009 Comments off
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General

  • Polices and procedures for project initiation, planning, procurement planning, execution and performance reporting should be clearly documented and communicated.

Initiation

  • Project managers should be identified and assigned early in project planning, but not later than at the start of project execution.
  • Contractual requirements should be analysed and, where significant, catered for in the project planning stage.

Planning

  • Formally approved project plans should be used to manage and control project execution.
  • Project plans include the following:

Definition of objectives, scope and boundaries
Allocation of responsibilities and authorities
Work breakdown structure (tasks)
Cost estimated
Performance measurement baselines or schedule and cost
Key risks, and responses to mitigate them
Milestones, checkpoints and approvals
Technical documentation, such as requirements, specifications and designs
Project quality plan
Adequacy of insurance coverage
Documentation or reference to relevant standards

  • Standard checklists of required steps for project monitoring should be available and used.
  • Applicable delegation of authority guides should be used to document project approval requirements.
  • Cost contingency reserves should be determined at project inception.
  • All contractual agreements entered into should be reviewed by the Functional Manager prior to commencement of the projects.

Procurement Planning

  • Standard documents such as bid documents, purchase orders and contracts should be used.
  • Standard terms and conditions in the purchasing documents should have been explicitly approved by Divisional Manager.
  • Terms and conditions appearing in the purchase documents should be updated annually in order for account changes in the business environment to be taken into.
  • Procurement bid documents should have been structured to facilitate accurate and complete responses from vendors by including:

Statement of work
Statement of desired form of response
– Copy of model contract

  • Explicit criteria should have been defined to evaluate vendor proposals:

Demonstrated understanding of need
Overall or lifecycle cost of product or service (not just lowest price)
Technical and managerial capabilities
Financial capacity needed to fulfil the contract

Execution

  • There should be a work authorisation system to ensure that work is performed at the right time and correct sequence.
  • Approvals to proceed at each appropriate stages of the project should be documented.
  • Status review meetings should be held weekly and documented.
  • Project records and information should be stored in a manner that facilitates easy retrieval. Such records should include:

Project management software and data
Computer Aided Design (CAD) systems and files
Engineering and technical drawings
Minutes of status review and/or other project meetings
Correspondence and memos
Reports and schedules
– Variation order requests

  • Contract variations (approved and unapproved) should be communicated through appropriate project planning and procurement process and plans updated accordingly.

Performance Reporting

  • Schedules meetings should be held monthly to assess project status.
  • Action items and accountabilities arising from meetings should be documented and followed up by the relevant project managers.
  • Budgeted project milestones and costs versus actual costs should be monitored and reported to the Functional Manager throughout every major project phase.
  • Project milestones and costs in excess of budgeted timeframes and amounts should be required to be approved by Department Senior Management.

Closing

  • A final set of indexed records should be assembled and archived.
  • There should be a mechanism for capturing, documenting and communicating the lessons learned in projects (post implementation review).

Segregation of Duties

  • There should be segregation of duties between the following functions:

Approving authority for project commencement
Approval of project requisitions
Receipt of goods and services

Delegation of Authority (DOA)

  • The documented DOA should cover the authority to:

Project requisitions
Exceptions to competitive bidding and tendering requirements
Exceptions to approved project contract terms and conditions
Procurement of stocks required for the project
Approval of vendor and sub-contractor invoices

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Financial Accounting

 
 

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