Post on 11-Jan-2016
description
Performance Measurement & Performance Auditing
Gary Blackmer
Oregon Audits Director
Presentation overview• A discussion of performance auditing
and its relationship between measurement systems
Recruiting for Performance Auditors!• Deadline is July 20
• www.sos.state.or.us/employment/
• 3-4 smart people wanted for performance auditors
• 4 smart people wanted for financial auditors
An idea has no momentum• No piece of information, including
measures, can induce change
“Newtonian” physics
Change = Ideas + Social Force
Social Forces• Comparables (Competitiveness,
Shame)−Audit Commission
• Executive Order (Championing)−MFR−Progress Board (early years)
• Advocacy groups (Public/Political pressure)−Children’s Report Card
• Laws and courts−Traffic code, Land Use, Criminal, Civil
sanctions
• Public accountability−Performance Auditing
Performance Auditing• Induces change with reason and
social force, using measures for guidance
Three Measurement Systems• Performance measures
• Performance management
• Performance auditing.
Dashboard measures
Performance measures: status and change
Performance Management
Performance management: Improving with Measures
Performance Auditing
Performance auditing: Problem Diagnosis Measures
Performance Audit Structure• Condition
• Criteria
• Effect
• Cause
• Recommendation
Strong criteria• Strong criteria examples
−Lagging against past performance−Lagging against peers−Violation of statutes
Compelling Effects• Money savings
• More timely services
• Improved quality of services
• Mission accomplishment
Measurement in Auditing• 9-1-1 Emergency Communications: Calls
answered on time but improvements possible−% of calls answered in 20 seconds or less
• 9-1-1 Emergency Communications: Employee retention and turnover problems affect Bureau performance and cost−Tenure and turnover rate
• Street maintenance: Substandard paving work−Pavement density
• Community Corrections: Intensive Case Management has not improved recidivism and revocations−Recidivism rates
• Library Department: Current branch staffing is sufficient to open an extra day−Full Time Equivalency hours
• Building permits: Timeliness remains a problem−% of permits issued within target
timeframes
• Development Review: Fees follow State guidelines and compare favorably with surrounding jurisdiction−Fee charges
Goal and Measures Hierarchy
STATE MISSION
Agency Mission
Goals
Programs
GOALS
Activities
Breadth + Depth Program I Performance
Activity A Activity B
SubActivity A1 SubActivity A3SubActivity A2
SubSub A1a
SubSub A1b
SubSub A1c
SubSub A1dSubSub A1e
SubSub A2a
SubSub A2b
SubSub A2c
SubSub A2d
SubSub A3a
SubSub A3b
SubSub A3c
SubSub A3d
SubSub A3f
SubSub A3e
SubActivity B1 SubActivity B3SubActivity B2
SubSub B1a
SubSub B1b
SubSub B1c
SubSub B1d
SubSub B2a
SubSub B2b
SubSub B2c
SubSub B2d
SubSub B3a
SubSub B3b
SubSub B3c
SubSub B3d
SubSub B3f
SubSub B3e
Cause
Effect
Auditors advocating for measurement• Service Efforts and Accomplishments
reporting−Government Finance Officers
Associationversus −Government Accounting Standards
Board
Auditors learn the “immeasurable”• Non-quantifiable issues
• Unending questions / unlimited measures
• Political forces
• The story behind the change…
Measures as accountability• Auditors advocate for measures
Lamarckian Evolution of Measures• Using a measure makes it better
During lean times….• Accountability is the first cut
“Economic” theory• The value produced by a measure
must exceed the cost to track it.
• Modern corollary: Information should be free.
Measurement cost declines• Legacy information systems
• Cheaper computing power
• Cheaper desktop publishing
• Internet
• A new generation
Benefit comparisons• Benchmarks
• Service Efforts and Accomplishments
• Performance Audit measures
Recruiting for Performance Auditors!• Deadline is July 20
• www.sos.state.or.us/employment/
• 3-4 smart people wanted for performance auditors
• 4 smart people wanted for financial auditors
Questions & Comments