1. 0 © 2013 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International. Machinery of Government Key Issues for Program Management Tony Hof Partner 11September 2013

2. 1 © 2013 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International. Machinery of Government Impacts Key Issues in Program Management Context 1.Program implementation 2.Program closure 3.Due diligence Focus areas Workforce (Skills and knowledge) Planning and Implementation Monitoring (Performance and Conformance) Records Financial Management Approvals / Delegations Risk Management Funds Control and Cash Forecasting Systems and Data Policies and Procedures Customer Compliance

3. 2 © 2013 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International. Program Implementation Context No time Lack of design certainty or detail Policy announced ahead of design Often involves ‘innovative’ program design elements Starting from scratch (no team, no system, no delivery arrangements) Potential issues Planning and implementation Risk management (understanding and documentation) Workforce planning / skills and capacity requirements Stakeholder communication and management Records management and knowledge retention Lack of Quality Assurance (no time) No documented procedures (done on the run) FMA compliance Good practices Critical Path analysis Leverage off lessons learnt Independent assurance / health check review

4. 3 © 2013 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International. Program Closure Context Sometimes known well in advance, sometimes not Program has an end date but often activities continue on for some time Some programs will be re- born, re-badged, re-designed but others not Team is disbanded with not clear accountability for ongoing issues Potential issues Planning for program closure Stakeholder communication Ongoing functions or financial commitments Knowledge management Data management / legacy systems Performance measurement Ability to recommence if and when required Legacy issues (e.g. complaints, AAT cases) No one identified to have ongoing accountability Good practices Closure checklist Early and ongoing stakeholder engagement Lessons learnt analysis / evaluation

5. 4 © 2013 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International. Program health check Program Due diligence Program attributes and context Policy drivers Program maturity Level of complexity Nature and value of benefit provided Funding mechanism Customer profile Delivery model Contractual arrangements Resources Focus areas Financial Management Risk management Stakeholder analysis and relationships Policies and procedures Customer compliance Customer satisfaction Legacy systems / data quality Records (completeness / accuracy) Knowledge / skills retention Issues identified No single source of truth (program ‘genesis’ file) Lack of accurate financial commitment profile Lost of corporate memory Key control gaps (e.g. lack of compliance focus, FMA breaches) Lack of performance information (or ability to demonstrate performance) Useful resources Internal audits ANAO BPG and CGG better practice principles Other: Patricia Scott’s 91 questions

6. The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International. QUESTION AND ANSWER SESSION © 2013 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International.