Make an Audit Report for this case Friendly Assisted Living Facility Case - 8 as shown here for another case

Friendly Assisted Living Facility Case-8 contractor that Friendly Medical Center would pay overIt was a beautiful day in mid-May 20X8. The Friendly time to catch up, but the speed-up was temporary, and the Medical Center Assisted Living Facility project was near-_ job continued to be late. Kyle was not quite sure why. ing completion. As usual, the construction project man-_ Progress just seemed to be in slow motion. He decided to ager, Kyle Nanno, was thinking about the construction meet with Fred Splient, the President and CEO of Friendly project's schedule. It seemed to him that work on finishing Medical Center, to discuss the problems. the interior of the building was slowing down a bit. He Fred suggested that Kyle call in someone to audit the knew that the final weeks of a project always seemed to project, in particular to examine the project schedule caretake forever, but he also knew that the project was running fully. Fred also wanted the auditor to look at the project almost 2 weeks late as a result of a problem encountered expenses to date. Fred had just received a crude spreadduring the excavation phase of the construction project. sheet from the CFO, and it did not reflect the progress he During March and April, it appeared that they were thought should have been made as this project was coming catching up. Kyle had discussed with the construction ALF Program Expenses as of 5/24X8 Fred asked Kyle to find out if anyone in the hospital's and it appeared that they were concerned about their next accounting department had experience with projects and work assignment. They told her that in the past as projects project-management software. Kyle knew instantly who to were coming to a close they were told of their next call. Caroline Stevens had once helped him on other hos- scheduled job. They had not heard anything yet, and they pital projects. Kyle trusted her to act impartially and to be were worried. She also reported that the interior designer able to figure out what was happening. had added seven extra days to complete the interiors (Task Caroline agreed to function as the Project Auditor. She #6 of the project) because the carpet and wall coverings began by examining the most recent project schedule from might arrive a week late from the manufacturer. They the construction company. She then created a progress-to- actually arrived on schedule. The estimated remaining date report with MSP. She also did a complete analysis of duration for the interiors to be completed was 34.6 days. the CFO's report. The expense report she reviewed and The designer did tell her that the furniture had not all updated is found below. arrived, so they were withholding about 30 percent of the Using MSP, Caroline created a graphical progress payment until it all arrived. report on the project as of May 24. She marked the actual Caroline also reported to Fred that it appeared that the progress of each unfinished activity by placing a diamond expenses that were allocated to pay back Friendly Medical embedded in a circle on the project's Gantt chart. If the Center for such things as preliminary marketing efforts, symbol was to the left of the May 24 line, that activity was legal support, and so on had not yet been expensed to the late; the amount of lateness was indicated by the distance project budget. The only thing that was expensed was the of the symbol to the May 24 line. The symbol for on-time original project construction budget. That budget seemed activities rested on the May 24 line. If there had been early to be right on track. Kyle reported that he intended to activities, their symbols would have been to the right of spend the rest of the contingency budget for overtime the May 24 line. Caroline's chart is shown above. work by the construction crews. He also intended to use Caroline then scheduled a meeting with Kyle and Fred the rest of the IS budget to purchase computers for the Splient. She reported that she did see a work slowdown. common areas of the facility and to wire those areas for She conducted interviews with the construction team, access to the Internet. In addition, he was waiting for bills *Please note MSP calculates the duration variance for each step of the action plan by subtracting the actual from the baseline. The summary task baseline and actual duration are then rolled up to the summary tasks' baseline and actual duration figures. The summary tasks' duration variance is then calculated by adding the summary task actual duration plus the remaining duration and then subtracting that sum from the baseline duration. from some of the companies that supplied the required Caroline and Fred praised Kyle for his management of medical equipment. He was planning to spend all that was the Construction budget. allocated for that budgeted item. He was over budget on As soon as Caroline and Kyle left Fred's office, Fred the site improvements and under budget for the kitchen called his CFO to find out why the other items were still equipment. not reflected in the project budget. AUDIT REPORT Auditor: George Johnson Date of Audit: January 11 Project Audited: Tour Guide App Development Project Manager: Roger Gilbert INTRODUCTION The purpose of this project is to develop a proprietary heuristic algorithm and then embed the algorithm in a mobile app that people can use to plan trips involving multiple destinations. The app would provide directions to each destination and would end at the starting location. CURRENT STATUS The project is significantly behind schedule. The deadline for the project is 2 months from the date of this audit, and several significant technical challenges related to developing the algorithm remain to be resolved. Furthermore, it is likely that numerous other significant challenges will arise as the project team attempts to integrate the algorithm with the mapping database. FUTURE PROJECT STATUS Given the known technical challenges and likely challenges to arise, there is virtually no chance the project will meet its original due date. Furthermore, the longer the project is delayed, the more it will go over budget. Given the nature of the current and likely future technical challenges, it is not possible to estimate what changes should be made to the project's schedule or budget. CRITICAL MANAGEMENT ISSUES The project has been mismanaged from the start. While Mr. Gilbert has a solid technical background in computer science, he has no prior background or experience in leading a project. One team member confidentially communicated to me that because of his background, Mr. Gilbert spends almost all of his time trying to solve the technical problems related to developing the algorithm and spends little time actually managing the project. I personally found Mr. Gilbert to be very abrasive and unwilling to share key project documents. After meeting with Mr. Gilbert, I believe there is a good chance that his reluctance to share project-related documents stems from the fact that they simply do not exist. FINAL COMMENTS There is virtually no chance that the project will finish on schedule and on budget. I recommend that a new project manager be immediately appointed and Mr. Gilbert reassigned as a project team member. Alternatively, senior management may decide to terminate the project