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Program Management Audit Checklist

Article · October 2011

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 Program Management Audit Checklist
Prepared by: Bob Prieto March 27, 2008
Senior Vice President
Fluor
This audit checklist is designed to complement other owner, program manager and
contractually required audit checklists. The purpose of this checklist is to ensure that
continued focus is paid on achieving the strategic business outcomes that the program is
intended to address.

Bob Prieto, Fluor Page 1 11/29/2011

 Program Management Audit Checklist
Audit Element Owner’s Focus Program Manager’s
Focus

Program Plan Does formal program plan Is program plan being

exist? utilizing and maintained up
to date?
Are Owner and Program Are projects and program
Manager efforts aligned management organizational
with this plan? elements aligned with the
program plan?
Is Program Manager Are projects and program
utilizing and maintaining an management organizational
up to date Program Plan in elements utilizing and
the management of his maintaining an up to date
activities? plan?

Bob Prieto, Fluor Page 2 11/29/2011

 Program Management Audit Checklist

Audit Element Owner’s Focus Program Manager’s

Focus

Stakeholder Management Have all Stakeholder’s at Does a Stakeholder

the Program level been Management plan exist; are
identified? responsibilities apportioned
between Owner, Program
Manager and respective
Projects; and being utilized
and maintained up to date?
Does a Stakeholder Do the individual projects
Management plan exist; have stakeholder
responsibilities apportioned management and third
between Owner and party interface plans in
Program Manager; and place, are they being
being utilized and utilized and maintained up
maintained up to date? to date?

Bob Prieto, Fluor Page 3 11/29/2011

 Program Management Audit Checklist

Audit Element Owner’s Focus Program Manager’s

Focus

Communications Plan Does external Is a comprehensive internal

communications plan exist Communication Plan in
and is it being place and being adequately
implemented? implemented across all
projects?
Has Program Manager Have individual projects put
developed and in place and required
implemented a robust project level communication
internal communications plans and taken steps to
plan? implement any
communication
requirements assigned to
them by the internal
program Communication
Plan.

Bob Prieto, Fluor Page 4 11/29/2011

 Program Management Audit Checklist

Audit Element Owner’s Focus Program Manager’s

Focus

Program Management Have key strategic Have program goals and

business objectives been strategic business
clearly communicated in a objectives been
consistent way to the incorporated into each of
Owner’s and Program the framework processes?
Manager’s team?
Have the key elements of a Are framework processes
coherent program providing the Program
management strategy been Manager with the
established? necessary tools and
a. Program monitoring and information to manage and
measurement plan & track overall program
methodology (key metrics) progress; are cross cutting
b. Program status reporting trends being adequately
structure & process identified, analyzed and
c. Change Management managed?
plan
d. Issues Management
process
e. Risk Management Plan
Has the Program Manager Are project level
implemented all required management systems in
framework processes and place and providing
are those processes required programmatic data
producing the desired in a timely way; are project
outcomes? level management systems
being adequately used to
accomplish project level
activities?

Bob Prieto, Fluor Page 5 11/29/2011

 Program Management Audit Checklist

Audit Element Owner’s Focus Program Manager’s

Focus

Program Scheduling & Are external factors Are external factors

Tracking sufficiently reflected in the reflected in the overall
overall program schedule? program schedule being
actively managed by the
Program Management
organization?
Are identified risk factors Are identified risk factors
being actively managed being actively managed
and tracked by the Owner’s and tracked by the Program
organization or Program Management organization
Manager as appropriate? or projects, as appropriate?
Is Program Manager Are the organizational
adequately identifying elements of the Program
systemic program issues Manager adequately
affecting schedule and identifying, analyzing and
recommending corrective or recommending and
risk limiting actions? implementing corrective
action for systemic risks?
Are projects adequately
identifying issues affecting
schedule and taking
corrective actions?
Are program and project
level milestones being
adequately tracked and
managed?
Have activity relationships
and interdependencies
within tasks and across
projects been adequately
identified?
Are changes in deliverable
commitments agreed to by
all affected groups &
individuals?

Bob Prieto, Fluor Page 6 11/29/2011

 Program Management Audit Checklist

Audit Element Owner’s Focus Program Manager’s

Focus

Program Status Is program status reviewed Is project status reviewed

Reporting with Program Manager at with senior management of
appropriate intervals? projects at appropriate
a. Overall status intervals?
b. Program performance a. Overall status
(achievements & b. Project performance
milestones) (achievements &
c. Open issues milestones)
d. Risks c. Open issues
e. Action items d. Risks
f. Cost & time performance e. Action items
against plan f. Cost & time performance
g. Quality metrics against plan
h. Involvement by ALL g. Quality metrics
relevant Owner’s h. Change Impact
organizational elements. Assessment
i. Interface management
j. Involvement by all
relevant Program Manager
organizational elements
Have adequate procedures
been put in place for project
coordination and status
reporting across project
boundaries by the Program
Manager?

Bob Prieto, Fluor Page 7 11/29/2011

 Program Management Audit Checklist

Audit Element Owner’s Focus Program Manager’s

Focus

Program Budget & Do Program estimates Are program activity

Forecast reflect both risks associated budgets clearly assigned
with quantity uncertainties within the Program
as well as possible risk Manager’s organization?
events?
Are risk allocation and Are risk pools
management comprehensively defined
responsibilities between the and actively managed? Are
Owner and Program systemic cost drivers being
Manager clearly defined? adequately tracked?
Is the Program Manager Are projects accurately
adequately managing risk measuring progress and
pools within his purview? adequately forecasting
trends and opportunities for
cost savings?

Bob Prieto, Fluor Page 8 11/29/2011

 Program Management Audit Checklist

Audit Element Owner’s Focus Program Manager’s

Focus

Risk Management Is an up to date Program Is the Program Manager’s

wide risk assessment in risk assessment and
place at the Owner’s level? management process being
adequately implemented
and is it providing timely
actionable information for
the Program Manager and
Owner?
Is the Program Manager’s Are significant changes in
risk assessment and risk posture or the
management process being emergence of new risks
adequately implemented being adequately identified
and is it providing timely across all projects and
actionable information for program management
the Program Manager and activities being actively
Owner? managed and tracked?
Are significant changes in Are significant changes in
risk posture or the risk posture or the
emergence of new risks emergence of new risks
being adequately identified being adequately identified
by the Program Manager, by projects, managed and
managed and tracked? tracked?

Bob Prieto, Fluor Page 9 11/29/2011

 Program Management Audit Checklist

Audit Element Owner’s Focus Program Manager’s

Focus

Quality Management Does the program have a Has the program quality
‘Quality Culture’? culture been adequately
flowed down to projects and
key suppliers?
Does the Program Manager Are quality related policies,
have a Quality Plan guidelines and procedures
covering all Policies, clearly communicated,
Guidelines and trained, implemented and
Procedures? assured?

Quality Assurance Has an overall Quality Has the programmatic

Assurance Plan been quality assurance program
developed and been translated into specific
implemented by the quality plans for all
Program Manager for the elements of the program
program in accordance with management organization
program needs and as well as for individual
contract requirements? projects and key supply
chain activities?
Is the implemented Quality Are quality programs
Assurance program implemented at the project
supporting the meeting of level providing timely
the strategic business identification and mitigation
objectives defined? of quality affecting issues?
Are programmatic quality
findings and lessons
learned being effectively
incorporated into new
planned activities and
transmitted across all
projects in a timely
manner?

Bob Prieto, Fluor Page 10 11/29/2011

 Program Management Audit Checklist

Audit Element Owner’s Focus Program Manager’s

Focus

Management Procedures Does the Program Manager Are all elements of the
have in place and is he program management
implementing a organization implementing
comprehensive and established management
integrated set of procedures? Are these
management procedures procedures providing
that provide assurance of adequate control of
achievement of the program activities and will
program’s strategic they support the delivery of
business objectives? strategic business
objectives?
Are the implemented Have projects and key
procedures being suppliers put in place the
comprehensively applied necessary procedures to
across all framework manage their work efforts
processes? and provide sufficient
management information to
the Program Manager to
facilitate overall program
management? Are the
procedures being
effectively implemented and
are they causing the
required results?
Are resources applied by Are management resources
the program manager applied at the project level
adequately forecast, adequate to manage the
controlled and tracked to assigned tasks
assure program efficiency? successfully?
Have the personnel with the Have the projects been
necessary skills and resourced with the requisite
competence been identified number of skilled personnel
and has agreement for their consistent with overall
participation in the program program and contract
been reached? requirements?
Does the detailed program Is the project work plan
work plan match the sufficiently detailed,
complexity of tasks with the resourced and measured to
capabilities of personnel? assure progress in
accordance with project
requirements is being
achieved?
Has appropriate allowance Has adequate allowance
been made for the effect of been made for mobilization,

Bob Prieto, Fluor Page 11 11/29/2011

 the learning curve on all interfaces and
personnel joining the demobilization?
program who do not have
the required prior project
execution methodology
(program management)
industry, functional &
technical expertise?
Are project team members
committed full-time?

Bob Prieto, Fluor Page 12 11/29/2011

 Program Management Audit Checklist

Audit Element Owner’s Focus Program Manager’s

Focus

Design & Analysis Are requirements & design Have design standards
standards in place? been promulgated and
design changes controlled
to promote the maximum
standardization possible on
a programmatic basis?
Are required design QA Are specifications clearly
programs being traceable from physical
implemented by the design to logical
program manager? requirements?
Have programmatic efforts Do the design specification
related to standardization, documents reference:
modularization and a. Purpose / scope?
increased focus on b. Requirements
constructability been specifications?
sufficiently realized? c. Modularized or other
standard components
d. Technical environment
specification?
e. Constraints and
interfaces?
f. Commissioning, startup
and testing requirements?
Have design elements of
the program utilized
qualified designers and
checkers?
Are design QA and QC
activities sufficiently
documented?

Bob Prieto, Fluor Page 13 11/29/2011

 Program Management Audit Checklist

Audit Element Owner’s Focus Program Manager’s

Focus

Construction Are intermediate Have the

construction milestones interaction/interference
being met? between all projects been
adequately reflected on the
master program schedule?
Is the quality of construction Has due consideration
consistent with the been given to supply chain
program’s strategic delivery times and changing
business objectives? logistical requirements?
Is construction productivity Are construction activities
being enhanced throughout for individual projects well
the program through use of planned, crews adequately
standardization, prepared and equipped for
simplification of details and the tasks to be undertaken
application of programmatic each day and have site or
type contracts? task safety hazards been
adequately communicated
and necessary protective
measures taken?
Is construction productivity
assessed at the project
level and programmatically
assessed across like
activities?
Are lessons learned within
the program being
transferred back across all
projects?

Bob Prieto, Fluor Page 14 11/29/2011

 Program Management Audit Checklist

Audit Element Owner’s Focus Program Manager’s

Focus

Operations & Do adequate operations Have commissioning and

Maintenance procedures exist? over activities been
adequately planned;
Owner’s interfaces clearly
defined and project level
requirement fully
addressed?
Are Maintenance Metrics Are responsibilities for
defined and in place? warranty management pre-
and post-commissioning
well defined and adequately
managed?
Is there an improvement
program in place?
Is there a warranty
management program in-
place for the post
commissioning period?

Bob Prieto, Fluor Page 15 11/29/2011

 Program Management Audit Checklist

Audit Element Owner’s Focus Program Manager’s

Focus

Financial Integrity Are financial management Are financial systems and

controls in place to ensure controls, including external
the integrity of financial audit functions fully in place
operations, disbursement of and adequately staffed with
funds, payment to vendors, qualified staff?
management of escrow and
reserve accounts,
maintenance of insurance,
accounting for capital
assets and in-process
materials, and other
financial activities
conducted by the Owner or
the Program Manager on
behalf of the Owner?
Have required financial Have audits of vendor,
audit activities been fully contractor and other
carried out? supplier pay records and
documentation been carried
out and to the extent
required have similar sub-
tier activities been audited
for compliance with any
such requirements?
Have all audit findings been
communicated as
appropriate and
subsequently satisfactorily
closed out?
Have all identified
corrective actions been
taken?
Has all supporting
documentation required by
the Owner been completed
and archived as
appropriate?
Are open claims and
disputes tracked, resolved
in a timely manner and
closed out?

Bob Prieto, Fluor Page 16 11/29/2011

 Program Management Audit Checklist

Audit Element Owner’s Focus Program Manager’s

Focus

Contract Management Has Owner’s organization Have each of the following

and Program Manager contract management
efficiently all contract activities occurred for
administration processes projects and suppliers
between them so as not to agreements?
impact overall program • Evaluate contractor
performance? performance or
deliverables.
• Verify and document
evidence of actual or
potential performance
problems, constructive
changes, or other
deviations.
• Determine potential
impact of technical issues
on cost, schedule, and
delivery; and
investigate/resolve rationale
for potential or actual
delays.
• Specify technical criteria
for the quality of the
product, in-process test
procedures and test
points, and acceptance
criteria through engineering
analysis.
• Assess performance,
quality, and other technical
issues and provide
technical evaluation
to contracts for adjustment
to, modification of, or
compliance with the
contract.

Bob Prieto, Fluor Page 17 11/29/2011

 Program Management Audit Checklist

Audit Element Owner’s Focus Program Manager’s

Focus

Contract Management Have each of the following

(continued) contract management
activities occurred for
projects and suppliers
agreements?
• Analyze performance data
for trends and issues.
Resolve issues in data
quality and performance
quality.
• Monitor the risk
management process to
identify technical risk, as
well as cost, schedule,
and performance risk.
• Review change proposals
and alterations impacts on
cost and schedule to
ensure that adequate
funding is available and that
schedules imposed in the
contract are not affected.
• Review requests for
waivers and deviations from
contractor and field
activities to determine the
impact on system reliability
and performance, as well
as on cost and schedule.
• Review change proposals
for need, technical
adequacy of design,
consistency with program
objectives, impact on
operations, producibility,
quality and similar
programmatic concerns;
and ensure that proposed
changes are within the
scope of the
contract.
.

Bob Prieto, Fluor Page 18 11/29/2011

 Program Management Audit Checklist

Audit Element Owner’s Focus Program Manager’s

Focus

Contract Management Have each of the following

(continued) contract management
activities occurred for
projects and suppliers
agreements?
• Conduct a cost-benefit
analysis of the Value
Engineering Change
Proposal
• Participate in design
review planning meetings,
in the event of potential
impact to the contract (e.g.,
constructive change
clauses, etc.) and conduct
design reviews.
• Support baseline reviews
process.
• Track corrective actions
and interfaces with the
contractor during project
reviews until they are
complete.
• Ensure compliance with
the configuration
management requirements
of the contract and
consistency with the
acquisition strategy, such
as the decision to buy data
rights or other strategies to
ensure that a second
source can build the
hardware.

Bob Prieto, Fluor Page 19 11/29/2011

 Program Management Audit Checklist

Audit Element Owner’s Focus Program Manager’s

Focus

Have all necessary contract

Contract Management close-out activities
(continued) occurred? These include:
• Assess the impact of stop
work orders on contractor
performance of the
technical and programmatic
requirements. Recommend
stop work when contractor
deficiencies are expected to
result in delivery of
nonconforming technical
products. Evaluate
contractor proposals to stop
work for technical reasons.
• Ensure that engineering
contractors are responsible
for the professional quality,
technical accuracy, and
coordination of all services
required under their
contracts and that
firms are held liable for
costs resulting from errors
or deficiencies in designs
furnished under its contract.
• Settle all outstanding
claims, issues or disputes;
respond to contractor
claims for additional money
or contract adjustment, and
determine if it constitutes a
payable claim.
• Verify that the contract is
physically complete through
physical and functional
configuration audits.

Bob Prieto, Fluor Page 20 11/29/2011

 Program Management Audit Checklist

Audit Element Owner’s Focus Program Manager’s

Focus

Contract Management Have each of the following

(continued) contract management
activities occurred for
projects and suppliers
agreements?
• Obtain all forms, reports,
and clearances required at
closeout from both Owner
and contractor activities,
and ensure that they have
met all applicable terms
and conditions for closeout.
• Make final payment
• Prepare contract
completion documentation.
• Assist Owner in identifying
or settling unresolved
issues, such as
performance issues,
unresolved Value
Engineering Change
Proposals, etc.
• Dispose of surplus
property property that the
Owner does not wish to
retain.

Bob Prieto, Fluor Page 21 11/29/2011

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