12 April 2006
AUDITOR GENERAL’S REPORT OUTLINES
FULL COST OF TRELIS PROJECT
TRELIS, the Department for Planning and Infrastructure’s new computerised
vehicle registration and licensing system, two years late and plagued by
a host of problems when launched in 2004, will have cost taxpayers an estimated
$82.2 million by 2009 when all acquisition, development and operational
costs (the project life cycle cost) are taken into account.
The calculation of that cost and the chequered progress of the project
are outlined in WA Auditor General Des Pearson’s report ‘Management
of TRELIS Project’, tabled in Parliament today.
The report finds that the project’s initial contracting activities
were well managed and adequate controls established over certain aspects
of project management; however, other key areas of the project were managed
poorly.
Mr Pearson was unable to locate an approved business case for TRELIS – the
unsigned draft business cases that were found lacked estimates for ongoing
maintenance and support, but indicated that the anticipated development
and implementation cost of TRELIS in 1999 was $24.5million.
The accumulated cost of the project when launched was $32.6 million.
A further $2.8 million was spent in 2004-05 strengthening the system,
however the costs relating to rewriting poor software could not be recovered
from the contractor under the agreed warranty plan.
Approved funding for the continuing development and enhancement of TRELIS
will bring the total capital cost to $44.8 million at June 2009, with
life cycle costs totalling $82.2 million.
The report also reveals that although the TRELIS project team tracked
project costs for the duration of the project through the Department
for Planning and Infrastructure’s general ledger, it ceased reporting
actual costs versus budgeted figures to the TRELIS Steering Committee
after June 2003.
This was not consistent with good governance arrangements, said Mr Pearson.
Commenting today Mr Pearson said that TRELIS was now realising its purpose
and running satisfactorily and could be relied on for accurate financial
reporting and raising of fees and charges.
“TRELIS is a critical system for government, not only for efficient
vehicle licensing and registration but also because it interfaces with
other key computer systems at WA Police, the Department of Justice and
the Department of Consumer and Employment Protection,” he said.
“Hence, whilst my report details how this project could have been
far better managed and contains lessons for public sector agencies currently
involved in planning or implementing large-scale computer systems, it
is now vital to look beyond past project management and funding issues
and the teething problems, and ensure the TRELIS system runs efficiently
and effectively and ultimately to the benefit of the public.”
Also tabled today was Mr Pearson’s first Audit Results Report
for the year, primarily detailing the results of financial statement,
controls, and performance indicator audits at the WA’s public universities
and TAFE colleges.
Clear audit opinions were issued for all universities, three of their
subsidiaries, and the 10 TAFE colleges, with all substantive issues identified
during the audits satisfactorily resolved.
This provided a reasonable assurance that effective financial management
procedures and practices are operating, said Mr Pearson.
However, computer security at the universities and colleges remained
a concern.
Although work had been done to improve security controls, moderate to
significant weaknesses continued to be found in the areas of access and
password controls, security policies and procedures, and physical and
network security.
The weaknesses identified could compromise the integrity of the network
and financial and student management systems, the report says.
Business continuity planning was also a concern as the need for improved
planning and testing of business continuity in the tertiary education
sector had been previously reported but continued to be a significant
weakness at the universities and colleges in 2005.
Business continuity plans identify the key
business services and the procedures required and tested to ensure that,
in the event of disruption to computer systems, the agency can continue
to deliver its key services.
Ends/.
Media Contact: Peter Villiers,
Manager Reporting and Communications
Tel: (08) 9222 7558. Mobile:
0417 936 171 Fax: (08) 9322 5664
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Street West Perth
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