IT investments in the Norwegian Armed Forces

1
IT investments in the Norwegian Armed Forces
the case of GOLF

• Presentation at the 6th Performance auditing
  Seminar in Beijing, 12-13 April 2010

2
Outline

• Background
• The IT projects
• Methodological challenges
• Performance indicators and audit conditions
• Main findings
• Lessons to be learned

3
Background

• Performance Audit
• Document no 37 (2002-2003) The Office of the
  Auditor General's investigation into the
  efficiency in planning and management of joint
  management and control systems in the Norwegian
  Armed Forces
• The main objectives of the IT investment
• Underpin the restructuring of the Armed Forces
• A new management concept oriented towards
  outcomes and efficiency through better public
  budget management
• Requirements in the New Financial Management
  Regulations
• Improving the administrative management of the
  Armed Forces

4
The projects

• The early projects (1996 - 2000)
• The accounting and procurement information system
  project
• The salary information system project
• The salary and accounting information system
  project
• Project GOLF (2000 - 2001)
• Program GOLF (2001 - ?)

5
Methodological challenges

• The complexity of the projects under audit
• Auditing ongoing projects
• Applying IT auditing tools to a performance audit

6
IT investment performance indicators

• The Norwegian Armed Forces' directive for the
  administration and development of joint project
  management systems (PRINSIX)
• COBIT framework
• Val IT (Value from IT investments)

7
Audit conditions / critical factors

• Responsibility and roles
• Organisational and management foundation
• Coordination of IT projects
• Measures to prevent overspending and delays
• Competence

8
Main findings the early projects

• Weak overall control of the projects
• Internal opposition
• Repeated discussions about the scope of the
  projects
• Unclear division of roles
• Disagreements concerning the project organisation
• Decision-making authority was not delegated
• IT activities lack of coordination
• Delays
• Uncertainty as to whether the new information
  system was technically possible

9
Findings Project / Program GOLF

• Lack of realism in project planning
• Poor risk management
• Lack of sufficient expertise in project
  management
• 2002 costs had reached EUR 35 million

10
Audit conditions / critical factors

• Responsibility and roles
• Organisational and management foundation
• Coordination of IT projects
• Measures to prevent overspending and delays
• Competence

11
Lessons to be learned?

• IT investments are often challenging and complex
  and thus dependent on certain critical factors in
  order to succeed
• Methodological frameworks that normally applies
  to IT auditing can also prove fruitful in
  performance auditing

12
Later developments

• 2010 the objectives set forth in Program GOLF
  have yet to be attained
• Joint performance and financial audit on GOLF
  (now Project LOS)