1. SAFEGUARDING PROJECTS THROUGH INDEPENDENT PROGRAMME ASSURANCE
Cathy du Plessis
Global Manager Independent Programme Assurance Audit
PMI AFRICA CONFERENCE 2015

2. Safe-guarding Projects through Independent Programme Assurance
Introduction to SABMiller Internal Audit
Why do we need independent programme assurance (IPA)
What is independent programme assurance
How we provide IPA in SABMiller – Global Virtual Teams
Our methodology
Africa Capital Projects case study
PMI AFRICA CONFERENCE 2015

3. Introduction to SABMiller Global Internal Audit
We are one of the world's largest brewers with 70,000 employees.
We have brewing interests and distribution agreements across six continents and presence in 75 countries. 
Our wide portfolio of brands includes premium international beers such as Pilsner Urquell, Peroni Nastro Azzurro, Miller Genuine Draft and Grolsch along with leading local brands such as Hero, Mosi, Castle, Miller Lite and Club Premium Lager. 
We are also one of the world's largest bottlers of Coca-Cola products

4. Introduction to SABMiller Global Internal Audit
Our primary brewing and beverage operations in Africa cover 17 countries including Botswana, Mozambique, Nigeria, South Africa, Tanzania, Uganda and Zambia.
We bottle soft drinks for The Coca-Cola Company in 23 of our African markets

5. Safe-guarding Projects through Independent Programme Assurance
Introduction to SABMiller Internal Audit
Why do we need independent programme assurance (IPA)
What is independent programme assurance
How we provide IPA in SABMiller – Global Virtual Teams
Our methodology
Africa Capital Projects case study
PMI AFRICA CONFERENCE 2015

6. Key risks per the 2014 Annual Report
Independent Programme Assurance purpose:
To provide an independent opinion on the risks to the business based on the project status, to give assurance to executives to support decision making.
Our reports are a formal record and require specific audit evidence.
Stakeholders include the Audit Committee, Executive Board, Programme Sponsors, Regional and Country MD’s.

7. For most companies, investing in technology is a significant cost that is made with associated risks.
68%
2 out of 3 projects
of all IT projects fail or are challenged, come in over budget or run past the original deadline...
(Source: The Standish Group CHAOS report, 2009).
50%
Nearly half of all application development projects cost 70%
more than originally budgeted.
of businesses in 2013 had an IT project fail. (Source: CIO magazine, Innotas, 2013)
28%
of projects fail altogether
*19% in 2006

8. Safe-guarding Projects through Independent Programme Assurance
Introduction to SABMiller Internal Audit
Why do we need independent programme assurance (IPA)
What is independent programme assurance
How we provide IPA in SABMiller – Global Virtual Teams
Our methodology
Africa Capital Projects case study
PMI AFRICA CONFERENCE 2015

9. What is Independent Programme Assurance?
Programme governance:
A working definition
The UK Office of Government Commerce (OGC) defines governance as:
The control framework through which programmes deliver their change objectives and remain within corporate visibility and control.
The Stage Gates and Check Points, strategies and approaches, tools and reporting are the control framework used to govern our implementations.

10. What is Independent Programme Assurance?
Source: National Audit Office, Assurance for high risk projects, June 2010
Assurance provides information to those who sponsor, govern and manage a project…
to help them make better informed decisions
which reduce the causes of project failure,
promote the conditions for success
increase the chance of delivering the required outcome cost-effectively.
It helps ensure the disciplines around delivering projects are followed and highlights where they have not been.

11. Safe-guarding Projects through Independent Programme Assurance
Introduction to SABMiller Internal Audit
Why do we need independent programme assurance (IPA)
What is independent programme assurance
How we provide IPA in SABMiller – Global Virtual Teams
Our methodology
Africa Capital Projects case study
PMI AFRICA CONFERENCE 2015

12. How we provide Independent Programme Assurance?
Independent programme assurance is a function within Group Internal Audit.
We work through a globally integrated team of internal auditors and subject matter experts, with specific qualifications such as PMP, Prince2, CISA, SAP credentials and proven practical experience with programmes / projects.
The Programme Assurance Team provides independent assurance over major change and capital programmes in SABMiller globally.
We align with other assurance providers such as external audit, internal controls, PMOs.

13. How we provide Independent Programme Assurance?
Successful global / cross cultural teamwork:
Two annual face to face team meetings: 1. planning and 2. goal setting;
Monthly team telepresence;
Bi-Weekly team calls – with check in;
Weekly one on one calls with my staff;
Daily review calls close to gates;
Strong Regional relationships (local language)

14. How we provide Independent Programme Assurance?
Health Check
On Going
Stage gate review
Deep Dives

15. Safe-guarding Projects through Independent Programme Assurance
Introduction to SABMiller Internal Audit
Why do we need independent programme assurance (IPA)
What is independent programme assurance
How we provide IPA in SABMiller – Global Virtual Teams
Our methodology
Africa Capital Projects case study
PMI AFRICA CONFERENCE 2015

16. Internal Audit’s Involvement Project’s Involvement
Our Methodology
Programme Assurance
Sign-off
Delivery Management
Methodology
Deliverable Responsibility
Matrix
Milestones & Plans
Progress Tracking
Stage Gate Report
Stage Gate Criteria
Programme Assurance Report
Stage Gate Management
Governing layer
Internal Audit’s Involvement
Project’s Involvement
Programme controlling and enabling layer
Programme delivery layer 16 16

17. Our Methodology example 3
Deep-dive Review examples
Data Validation
Solution Design Review
ITGC Security Review
Training Approach Review
Testing
Technical Review
Post Implementation Review
Business Continuity Planning Review for go-live

18. Our Methodology: Ratings
© SABMiller plc

19. Safe-guarding Projects through Independent Programme Assurance
Introduction to SABMiller Internal Audit
Why do we need independent programme assurance (IPA)
What is independent programme assurance
How we provide IPA in SABMiller – Global Virtual Teams
Our methodology
Africa Capital Projects case study
PMI AFRICA CONFERENCE 2015

20. Africa Capital Projects Case Study
600 Million USD spend in F15 on capital expansion in Africa:
Four IPA reviews completed by Country Internal Audit and Hub Internal Audit Leads
Greenfield Brewery
Greenfield Maltings Plant
Brewery Expansion: Project Super Hero
Brewery Expansion: Project Enthrone

21. Presentation information in footer
Africa Capital Projects Case Study
Objective of Review:
The objective of the audit was to ensure that the elements fundamental to successful project delivery are in place and operating effectively, which includes material compliance to the SABMiller Capital Projects Way as outlined within the scope below.
Scope of Review:
The audit scope was limited to the following:
SABMiller: Capital Projects Way : Adherence to stage gate process;
SAB Accounting Policies and Treatments
Project Governance
Communication and Change Management
Supplier Selection, Monitoring and Contract Management
Presentation information in footer

22. Africa Capital Projects Case Study
Detailed Recommendations
Audit Issue
Section 1: Project Governance and compliance with the SABMiller Capital Projects Way 1
Lack of explicit stage gate approvals 2
Approval of design change not appropriately
formalised with a Decision Supported Note (DSN) 3
Project information not kept up to date in Capital Projects Tracker (PPO)
Communication and Change Management 4
Lack of a formalised project communication plan
Supplier Selection, Monitoring and Contract Management 5
Unsigned supplier contract

23. Questions?