Financial Sustainability and PerformanceAvoiding pitfalls and getting the most bang for your buck

Washington State Association of CountiesJune 6, 2013

Larisa Benson, Director of Performance Audit

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• As performance auditors, we conduct research and use tools that, if shared more broadly, could help many local governments reduce their costs and improve performance.

• Sometimes an independent perspective and expertise from outside the organization can help you see and do things differently.

• We believe that by sharing what we know through this project, we can reach more governments faster and cheaper than by doing one local government audit at a time.

Why the State Auditor’s Office?

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Auditor roles in Performance Management

Source: Framework of Auditor Roles and Practices, www.auditorroles.org (Paul Epstein, Stuart Grifel, Stephen Morgan)

1) Audit performance or performance management systems

2) Assess performance information and reports

3) Define or measure performance

4) Encourage or assist management

5) Assist elected officials or citizens

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The Local Government Performance Center within the State Auditor’s Office offers tools and training to help local leaders who want their governments to work better, cost less, and improve the value of their services to citizens.

1) An online resource center with tools and examples.

2) Training on how to improve government services.

3) Customized on-site training sessions (on request and within available resources).

Our goal: better results for citizens and customers at lower cost to government and taxpayers

Improved government performance: A shared goal

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Where to find us on the website

www.sao.wa.gov/performancecenter

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County Finances – What you pay for

Expenditures - General Fund

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How you pay for it: declining financial conditions

More governments are experiencing more signs of financial trouble

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Declining Financial Conditions

Source: State Auditor’s Office local government audits 2006-2011.

Number of governments with declining financial condition by type

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Declining Financial Conditions

Source: State Auditor’s Office local government audits 2006-2011.

Indicators of declining financial conditionReported by type since 2006

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Ideas and tools for learning more about your government services, making them work better

and cost less:

• Setting priorities

• Engaging citizens – communication and transparency

• Performance measures and “return on investment”

• Leaning and streamlining

• Learning from what other governments have done

What Can Be Done?

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• We provide tools and training that help cities and other organizations communicate with their residents.

• Training on citizen engagement strategies:

• Citizen-driven prioritization of resource allocation and process improvement efforts help governments focus on “what matters most.”

• Citizen surveys:

• Helping the City of Walla Walla develop and analyze a citizen survey.

• Developing a survey template other governments can use.

• Guidance using the results to inform decisions.

Helping governments engage citizens

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Priority areas of state government based on citizen workshops in 2007

10%

15%

18%

22%

27%

38%

51%

SAFETY

ENVIRONMENT

TRANSPORTATION

SOCIAL SERVICES

ECONOMY

HEALTH CARE

EDUCATION

Citizens weigh in on priorities (state government example)

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EDUCATION:1. High School Graduation Rate*2. Low Income Student Achievement Gap*3. Graduates in High Demand Fields* 4. Test Scores: Reading & Math

HEALTH:1. Health Insurance Coverage* 2. Infant Mortality*3. Adult Obesity* 4. Tobacco Use – Teen5. Tobacco Use - Adult

ECONOMY:1. Job Growth 2. Business Survivability*3. Household Income*4. Employment Rate*5. Median Hourly Wage6. Median Home Price

SOCIAL SERVICES:1. Child Re-victimization* 2. Population Above Poverty*3. Long-term Care4. Employment for the disabled

TRANSPORTATION:1. Condition of Highways* 2. Condition of State Bridges* 3. Travel Times in Major Corridors*4. Projects Completed On-Time and On-Budget*

ENVIRONMENT:1. Toxic Releases* 2. River & Stream Water Quality* 3. Air Quality 4. Puget Sound Water Quality5. Endangered Wildlife*

SAFETY:1. Re-Offense Rate* 2. Crime Rates* 3. Emergency Responder Communication

Citizens ranked these measures in order of priority in the 2007 workshops:

How do we know if we are delivering results?

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Engaging citizens in setting priorities

Source: Elway Research, Inc.

City of Walla Walla services: Importance by performance

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What matters most to citizens?

Source: Elway Research, Inc.

City of Walla Walla:Relative gaps between

importance and performance

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Performance Measures and Return on Investment

Public Safety “Logic Model”

We investigate crimes

• # burglaries

• # cases assigned

We solve cases…

• % cases cleared with arrest

We prosecute criminals…

• Conviction rate

…so that…

Degree of program influence/co

ntrol

Output (Primary Product or Service)

Immediate Outcome

Intermediate Outcome

Ultimate Outcome

…so that…

Importance to th

e public

…so that…

Communities are safer.

• % residents who feel safe in their communities

• # crimes per resident

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Measuring Public Safety

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Burglaries per month by sector

Before

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Burglary data presented another way

After

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Questions local government leaders ask:

How do we know if we have the right number of staff to cover a post on a 24/7 schedule?

• Calculating an appropriate relief factor

• Anticipating and budgeting for hidden costs

How do we know if we’re paying too much in overtime?

• Analyzing overtime data: who is using it, and why?

• Correctly calculate and compare the costs of overtime vs adding another full or part-time employee

• Tips for monitoring and managing overtime pay

Staffing analysis tools & training

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Staffing analysis tools

Determining coverageIn our workshops, we review ways to calculate leave to factor into evaluation.

Downloadable templateThis example uses the average leave per law enforcement officer to calculate how many FTEs are required.

Using available dataThese tools use data governments already have.

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Staffing analysis – Overtime management

Reevaluating overtimeManaging overtime is important for assessing staffing levels and needs.

Two page online tool highlights the difference between “good” and “bad” overtime use.

Elected official audienceThe format is designed to help elected officials and decision makers ask the right questions.

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• Kitsap County redesigned their permit process for Single Family Residences using lean management techniques

• Front line employees involved in redesign effort

• Extensive on-site training assistance

• The employees cut out steps that didn’t make sense and kept them busy doing work that had less value

• Now they have the time to address some of the more interesting and challenging work.

• Better employee environment, happier customers, better service, and helps the local economic outlook.

Using lean principles to free up resources

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Kitsap County single family residence permit intake and review process

Kitsap County’s Permitting Process: BEFORE

Before

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Kitsap County’s Permitting Process: AFTER

Kitsap County single family residence permit intake and review process

After

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• The new process reduces the time it takes to make a permitting decision from 30 days to 6 (a 77% reduction)

• Kitsap County inspired us to offer our “Lean Academy.”

• Four other counties are now trying out the lean process on their permitting systems: Clark, Island, Douglas and Whatcom

• Case studies and “how-to” tools are posted on our website, with a short video coming this summer.

• More training will be offered in 2013 and 2014. Suggestions and requests are welcome.

• Priority will be given to counties where leadership is committed to seeing the entire lean process through, and where more than one county can train and practice together to share lessons learned with others on selected service areas.

Replicating and Sharing Good Results

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• The Center is funded through the state performance audit program, which was established in the Auditor’s Office following voters’ approval of Initiative 900 in 2005.

• A small fraction of the performance audit budget is dedicated to this effort.

• There is no charge to governments.

• This is a pilot effort – we will be evaluating whether it’s working or not, and whether we can meet demand.

What does it cost?

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Our vision is to create a place where government leaders who are committed to achieving cost savings and better results can learn from and support one another.

By participating, local governments can:

• Learn new ways to deliver better results and give citizens a better return on their tax dollars.

• Receive information and technical assistance from performance experts at no cost to their organization.

• Share ideas, challenges, and resources with other government leaders who face similar challenges.

Why should we do this?

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Contacts

Sheri SawyerAssistant Director, Local Government Performance Center

(360) 725-9745Sheri.Sawyer@sao.wa.gov

Website: www.sao.wa.govTwitter: www.twitter.com/LocalGovPerform

Larisa BensonDirector of Performance Audit

(360) 725-9720Larisa.Benson@sao.wa.gov

Brian WillettPerformance Analyst

(360) 725-9731Brian.Willett@sao.wa.gov