Group

Responsibilities

Infrastructure NSW

Responsible for IIAF administration, performance and reporting to Cabinet, including:

■ Provides a dedicated Assurance Team including Gateway Review Managers to coordinate Reviews.

■ Establishes and maintains an appropriate Expert Reviewer Panel.

■ Monitors the performance of individual expert reviewers.

■ Determines appropriate expert reviewers, and manages scheduling, commissioning and administration of Gateway Reviews and Health Checks. Infrastructure NSW is independent of the expert Review Team.

■ Monitors Tier 1 - High Profile/High Risk projects, Tier 2 and Tier 3 (if required) project performance through independent Gateway Reviews and Health Checks.

■ Provides independent analysis and advice on key risks and any corrective actions recommended for Tier 1 - High Profile/High Risk, Tier 2 and Tier 3 projects.

■ Escalates projects to IIAC and Cabinet where projects present 'red flag issues'16 and where corrective action is needed.

■ Works with delivery agencies to register all capital projects with an ETC greater than $10 million and ensures they are risk profiled and assigned a risk-based project tier with an endorsed Project Assurance Plan.

■ Prepares forward looking annual Cluster Assurance Plans.

■ Maintains and continuously improves the IIAF process.

■ Reports to IIAC, Cabinet and Infrastructure NSW Board on:

- Forward-looking Cluster Assurance Plans;

- Assessment of Expert Reviewer Panel capability;

- Performance of closing out recommended actions for all projects undergoing a Review;

- Trends and analysis of the key issues; and

- Overall performance of the assurance framework.

■ Reports to IIAC and Cabinet on:

- Proposed Project Tier and corresponding Project Assurance Plan;

- Gateway Reviews, Health Checks and Close-out Plans17 for Tier 1 - High Profile/High Risk projects (monthly) and Tier 2 projects (quarterly);

- Project status and mitigation strategies for red flag issues; and

- Gateway Reviewer Performance

■ Reports to Infrastructure NSW Board on:

- Operational management of assurance with a focus towards systems and controls, and not project-specific data; and.

- Red or deteriorating status for Tier 1 - High Profile/High Risk projects, by exception.

■ Regularly reports to NSW Treasury on the performance of the IIAF.

Infrastructure NSW Board

The primary role for the Infrastructure NSW Board is to ensure the adequacy of Infrastructure NSW's operational management of assurance. This means that the Board's focus is towards systems and controls, and not project-specific data.

For the Board to discharge these functions, its assessment and assurance of Infrastructure NSW's functions should be guided by the reports available to it, as outlined later in this report.

By exception, the Board also considers red or deteriorating status for Tier 1 - High Profile/High Risk projects and may provide advice to Cabinet through the Board Chair.

Infrastructure Investor Assurance Committee

The remit and provenance of the IIAC is to support the achievement of best-for-Government outcomes from the development and delivery of capital projects. In carrying out its functions the Committee:

■ Endorses recommendations for Project Tier and corresponding Project Assurance Plan for noting of Cabinet;

■ Endorses Tier 1 - High Profile/High Risk project reports for scrutiny by Cabinet;

■ Monitors capital projects endorsed for scrutiny by Cabinet to avoid project failure and support success; and

■ Provides Cabinet high-level guidance and/or advising the need to escalate the levels of scrutiny and/or interventions.

The Committee ensures all capital projects being considered by Cabinet are accompanied by investor-level assurance advice and risk mitigation strategies.

Decisions, informed by the IIAC's advice, would remain with Cabinet as at present.

Accountability for the development and delivery of projects would remain with delivery agencies as at present.

Additional functions of the Committee include:

■ Ensuring that strategic infrastructure planning and project development/delivery are being appropriately coordinated; and

■ Promoting consistency and good practice in relation to economic appraisals, whole of life asset management and governance.

NSW Treasury

Overarching policy responsibility for NSW Gateway Policy, Economic Appraisals and Business Cases. As Policy Owner the role includes:

■ monitoring the application of the NSW Gateway Policy;

■ confirming the applicable GCA Framework and informing the concerned parties where there is dispute or confusion as to the appropriate GCA to deliver Gateway

■ determining the appropriate GCA Framework a mixed project should follow (i.e. where it contains a material combination of more than one element of different frameworks).

■ reporting on the performance of the NSW Gateway Policy, including the performance of the GCA Frameworks, after one year of operation and annually.

For projects being delivered by Infrastructure NSW (Projects NSW), the Policy Owner (NSW Treasury) will allocate the responsibility to the appropriate GCA. This GCA will undertake the following elements of the IIAF¹⁸:

■ Determines appropriate expert reviewers, and manages scheduling, commissioning and administration of Gateway Reviews and Health Checks. NSW Treasury is independent of the expert Review Team.

■ Monitors project performance through independent Gateway Reviews and Health Checks.

■ Provides independent analysis and advice on key risks and any corrective actions recommended for projects.

■ Escalates projects to IIAC and Cabinet where projects are at risk and where corrective action is needed.

■ Reports to IIAC and Cabinet on:

- Gateway Reviews, Health Checks and Close-out Plans

- Project status and mitigation strategies for red flag issues.

Expert Reviewer Panel; Expert Review Teams

The Panel comprises independent highly qualified Expert Reviewers established to cover all aspects of Gateway Review needs. A Review Team, for Gates 1 through 6, is drawn from the panel. A Review Team conducts high performing Gateway Reviews and Health Checks. Panel members can also be drawn upon to provide advice to Infrastructure NSW on projects and to the various assurance committees on an as needs basis. Panel member performance is to be reviewed regularly and membership updated.

Expert Reviewer Advisory Group

The Group provides advice on the Expert Reviewer capability, gaps and requirements to support a high performing Expert Reviewer Panel. The Group also considers Expert Reviewer Panel member nominations and recommendations as well as the performance of individual panel members.

Risk Review Advisory Group

The Group provides advice to IIAC on the Project Risk Profiles and Project Assurance Plans provided by delivery agencies and reviewed by Infrastructure NSW.

Project Justification (Gate 0) Review Committee

The Committee performs Gate 0 Reviews which includes providing advice and recommendations on delivery agency submissions on the project need, strategic alignment and the planning to take the project to strategic and final business cases.

Department of Finance, Services and Innovation

May be called upon to provide guidance and expertise on capital projects/programs with major ICT elements as part of the assurance process within the IIAF.

Delivery Agency

The delivery agency must identify the appropriate GCA Framework for a project/ program and to adhere to the approach in the relevant GCA.

For Capital projects, the delivery agency is responsible for meeting IIAF requirements, including:

■ Registration and risk profiling of projects:

- Registers all capital projects over $10 million (ETC). This applies to new projects and existing projects not yet operational;

- Self-assesses Project Tier and prepares corresponding Project Assurance Plan.

- Updates Infrastructure NSW on changes of project risk criteria that may affect the Project Tier; and

- Updates Infrastructure NSW on proposed changes to Project Assurance Plan requirements.

■ IIAF Gateway Reviews and Health Checks19:

- Registers in a timely manner for Gateway Reviews and Health Checks;

- Provides in a timely manner all relevant information to support Gateway Reviews and Health Checks;

- Ensures SRO participation in Gateway Reviews and Health Checks;

- Responds to requests for fact checks of the draft Reports in a timely manner;

- Provides a delivery agency endorsed response to recommendations in a timely manner;

- Prepares formal Close-out Plan, for endorsement by Infrastructure NSW, for each Gateway Review or Health Check; and

- Provides regular updates to Infrastructure NSW on status of Close-out Plans.

■ Regular reporting:

- Provides timely and comprehensive project reports consistent with Project Tier frequency reporting requirements and agreed format.

The delivery agency is responsible for paying20 any direct costs of Gateway Reviews and Health Checks. This includes time and expenses relating to the engagement of independent reviewers, as well as disbursements relating to a Review such as venue hire, catering and administrative support services (e.g. scribe).