Washington State Auditors Office Troy Kelley Independence Respect

Washington State Auditor’s Office Troy Kelley Independence • Respect • Integrity 2014 Performance Audit Progress Report Joint Legislative Audit and Review Committee December 10, 2014 Troy Kelley, State Auditor Chuck Pfeil, CPA, Director of State & Performance Audit

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

Results from performance audits Since voters passed I-900: ü 71 reports ü More than 100 state agencies and local governments ü More than 1, 700 recommendations made ü 86 percent of recommendations adopted or in progress ü More than $1 billion in actual savings and revenue Washington State Auditor’s Office 3

Performance audit progress report 2014 Progress Report § Summarizes audit results since program started § Follows up recommendations made in 2013 audits § Summary of 2014 and 2015 audits § Highlights work by the Local Government Performance Center Washington State Auditor’s Office 4

Implementation of recommendations Since 2007, 86 percent of recommendations adopted or in progress Implemented or In Progress 86% Not Implemented 14% Self-reported by agencies; we do not independently verify recommendation status or cost savings Washington State Auditor’s Office 5

Cumulative cost savings Millions Since 2007, agencies have reported an average $187 million in annual cost savings or new revenue, totaling more than $1 billion $946. 5 $1, 019. 9 $843. 6 $739. 9 $251. 5 $166. 7 $83. 3 6/30/1905 7/1/1905 7/2/1905 7/3/1905 7/4/1905 7/5/1905 7/6/1905 12: 00: 00 AM 12: 00: 00 AM 12: 00 AM Washington State Auditor’s Office 6

Performance audits continue to effect change • Improving data disposal security • Reducing wait times for developmental disabilities services • More permit information available online • Best practices applied to ferry construction • Enhanced controls in Medicaid managed care contracts • Consolidation and standardization efforts • Reduced mail volumes Washington State Auditor’s Office 7

Highlights of performance audits released in 2013 § 520 Tolling Program delays § Developmental Disabilities Program access to services § Regulatory reform: Permit timeliness § Developmental Disabilities payment errors and client safety § Financial Management System § Ferry construction § I-1163: Long-term care worker certification § Background checks Washington is one of four states to adopt statewide all-electronic tolling Washington State Auditor’s Office 8

Highlights of performance audits released in 2013 § 520 Tolling Program delays § Developmental Disabilities Program access to services § Regulatory reform: Permit timeliness § Developmental Disabilities payment errors and client safety § Financial Management System § Ferry construction § I-1163: Long-Term Care Worker Certification § Background checks Washington State Auditor’s Office 9

Performance audits in 2014 § Columbia River Crossing Project Audit, Completed § Post-Adoption Services, Completed § Safe Data Disposal, Completed § Electronic Benefit Transfer (EBT) Cards, Completed § State Debt Offset Program, Completed § Higher Education Performance-Based Funding, Completed § Medicaid Managed Care, Completed § Economic Development Performance Reporting, Completed Washington State Auditor’s Office 10

Performance audits in 2014 § Columbia River Crossing Project Audit, Completed § Post-Adoption Services, Completed § Safe Data Disposal, Completed § Higher Education Performance-Based Funding, Completed § Medicaid Managed Care, Completed § Economic Development Performance Reporting, Completed Washington State Auditor’s Office § Electronic Benefit Transfer (EBT) Cards, Completed § State Debt Offset Program, Completed § State IT Security, December 2014 § I-1163: Home Care Aide Certification, December 2014 § Long-Term Care Programs, December 2014 11

Performance audits in 2015 Spring • Workforce development • Regulatory reform III • Criminal records completeness Summer • DSHS Office of Fraud and Accountability • Medical discipline • Prison staff safety and security Fall • WSDOT toll collection system • Alternative Learning Experience programs • WSP narrowbanding project Washington State Auditor’s Office 12

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 overwhelmingly positive Washington State Auditor’s Office 13

Local Government Performance Center Since the launch of the Local Government Performance Center, we have compiled 212 tools and links on the website To date: ü 147 training classes ü 588 classroom training hours ü 4, 920 students trained ü 18 Lean Academy events ü 7 Open Government & Transparency classes ü NSAA 2014 Excellence in Accountability Award Recipient Washington State Auditor’s Office 14

Contacts Troy Kelley State Auditor (360) 902 -0360 Auditor@sao. wa. gov Chuck Pfeil Director of State and Performance Audit (360) 902 -0366 Chuck. Pfeil@sao. wa. gov Website: www. sao. wa. gov Washington State Auditor’s Office 15