Washington State Auditors Office Troy Kelley Independence Respect

Washington State Auditor’s Office Troy Kelley Independence • Respect • Integrity Annual Performance Audit Progress Report Joint Legislative Audit and Review Committee January 7, 2014 Chuck Pfeil, Director of Performance Audit Jennine Griffo, Project Manager

Performance audit background Initiative 900 § Approved by Washington voters in 2005 § First audit began in 2006 § Authorizes performance audits of state agencies and local governments, including programs that cross agencies § Evaluates government efficiency, effectiveness and economy Washington State Auditor’s Office 2

Performance audit progress report Annual Progress Report § Began in 2009 § Summarizes audit results: q q How governments took action, generated savings, and improved services Allows agencies 6 to 18 months to address recommendations before follow up § Self-reported by agencies; we do not independently verify recommendation status or cost savings Washington State Auditor’s Office 3

Performance audit progress report 2013 Progress Report § Highlights 2012 audits § Summarizes audit results since program started § Highlights other efforts q Local Government Performance Center q Lean process Washington State Auditor’s Office 4

Results from performance audits Since voters passed I-900: ü More than 60 reports published ü Over 1, 600 recommendations ü 100+ state agencies and local governments ü More than 80% of recommendations adopted or in progress ü Nearly $1 billion in actual savings and revenue Washington State Auditor’s Office 5

Implementation summary In last four years, 84% of recommendations adopted or in progress and nearly $780 million in savings Self-reported by agencies; we do not independently verify recommendation status or cost savings Washington State Auditor’s Office 6

Cost savings summary Over the last four years, agencies reported nearly $780 million in actual cost savings or new revenue and almost $1 billion since performance audits began Washington State Auditor’s Office 7

2012 audits Highlights of performance audits released in 2012 § Regulatory reform: Communicating Regulatory Information and Streamlining Business Rules § Protecting Children from Sex Offenders in Child Care, Foster Care and Schools § Local Government Performance Audit Construction Change Order Pricing § K-12 Education Spending Washington State Auditor’s Office 8

Continuing to effect change Cost savings Tax Amnesty increases collections and adds more than 400 businesses to tax registry $348. 5 million Debt Collection practices improved by 26 percent $333 million State consolidation and standardization efforts reduced costs $2. 8 million per biennium State agencies reduce outgoing mail volumes $7. 6 million Improved efficiencies § K-20 Educational Network outlines plans for the future § Port of Seattle takes initiative to improve transparency § Fleet management audit prompts review of agency policies Washington State Auditor’s Office 9

Local Government Performance Center § Created in 2012 § Taking best practices and lessons learned to local governments § A virtual resource center for all local governments § Trainings, tools and technical assistance § Feedback from local governments very positive Washington State Auditor’s Office 10

Local Government Performance Center Since the launch of the Local Government Performance Center, we have compiled 182 tools and links on the website 2013 numbers at a glance: ü 57 training classes ü 235 classroom training hours ü 2, 373 students trained ü 4 Lean Academy events Washington State Auditor’s Office 11

Using Lean to expedite our processes Evaluating our own performance § In 2013, over 30 Auditor’s Office staff received Lean Six Sigma training and received Green Belt certification § Lean projects included: q Streamlining audit planning and reporting q Audit topic selection q Audit status Washington State Auditor’s Office 12

Looking ahead to 2014 What’s coming next § Adoption Services § Medicaid Managed Care § Higher Education Performance-Based Funding § State Debt Offset Program § Electronic Benefit Transfer (EBT) Cards § Local Government Performance Center – ongoing efforts Washington State Auditor’s Office 13

Contacts Troy Kelley State Auditor (360) 902 -0360 Auditor@sao. wa. gov Chuck Pfeil Director of Performance Audit (360) 902 -0366 Chuck. Pfeil@sao. wa. gov Jennine Griffo Project Manager (360) 725 -9742 Jennine. Griffo@sao. wa. gov Website: www. sao. wa. gov Washington State Auditor’s Office 14