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

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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