ROLE 1: Audit Performance or PM Systems:
Practice 1b. Audit performance management systems: Audit or assess existing performance management systems or practices.
Washington State Auditor [Profile]
In November 2005, Washington State voters approved Initiative 900 (I-900), giving the State Auditor authority to conduct independent performance audits of state agencies and local governments. The initiative also dedicated 0.16 percent of the current state sales tax to support the program. I-900 requires performance audits to include nine elements. Element number eight requires an analysis of the entity’s performance data, performance measures and self-assessment systems. For each entity that undergoes a performance audit, the Auditor’s Office reviews the current measures and how the agency uses the data to assess and improve performance. This review helps the auditor recommend ways the entity can improve its accountability and transparency to the public, and its use of performance information.
As part of a performance audit, auditors review an entity’s performance management systems and current performance measures to ensure they are relevant. Auditors ask if the measures are aligned with the entity’s mission and goals. The auditors also assess the reliability of the measurement data by reviewing source data. Based on their findings, auditors may recommend that the data collection methodology be changed. Auditors also look at how the information is being used for decision-making and may recommend areas the agency should be measuring or criteria to be considered for developing new measures.
Many state agencies have incorporated Washington State Quality Award criteria into their operations. The award uses the Baldrige Criteria for Performance Excellence, which encourages agencies to incorporate performance measurement into fact-based decision-making for aligning organizational directions and resources; using benchmarking and competitive comparisons; and ensuring that the performance measurement system is sensitive and responsive to organizational and external changes. Auditors review the self-assessment systems an agency has in place for internal performance reviews. Auditors check whether organizational performance reviews are informed by relevant performance measures and that performance results are reviewed by senior leaders. These organizational performance reviews should be guided by agencies’ strategic objectives and action plans. Finally, the auditors review whether the organizational performance reviews are translated into organizational priorities for continuous improvement and opportunities for innovation.
To help prepare for incorporating element eight into performance audits, Washington State performance auditors attended training on the “New Service Model: Auditor Roles in Government Performance Measurement” and “Auditing Performance Management Systems.” These courses, part of the Auditor Roles project training program, were delivered by Stephen Morgan, City Auditor of Austin, Texas, and Richard Tracy, former director of audits for the City of Portland, Oregon.
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