Performance Measurement Performance Auditing Gary Blackmer Oregon Audits
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 GOALS Agency Mission Goals Programs Activities
Breadth + Depth Program I Performance Activity A Sub. Activity A 1 Sub A 1 a Sub A 1 c Sub. Activity A 2 Activity B Sub. Activity A 3 Sub. Activity B 1 Sub. Activity B 2 Sub. Activity B 3 Sub A 3 a Sub A 2 a Sub A 1 b Sub A 2 b Sub A 1 e Sub A 1 d Effect Sub A 2 c Sub A 2 d Sub A 3 b Sub A 3 c Sub A 3 d Sub A 3 e Sub B 1 a Sub B 1 b Sub B 1 c Sub B 1 d Sub B 2 a Sub B 2 b Sub B 2 c Sub B 2 d Sub A 3 f Sub B 3 a Sub B 3 b Sub B 3 c Sub B 3 d Sub B 3 e Sub B 3 f Cause
Auditors advocating for measurement • Service Efforts and Accomplishments reporting − Government Finance Officers Association versus − 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
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