Performance Auditing and Improvement

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Performance Auditing and Improvement

• For the Committee on Performance Excellence
• By Gary Blackmer, Audits Director

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Accountability

• Legislators, government officials, and the
  public need to know whether (1) government
  manages public resources and uses its authority
  properly and in compliance with laws and
  regulations (2) government programs are
  achieving their objectives and desired outcomes
  (3) government services are provided effectively,
  efficiently, economically, ethically, and
  equitably and (4) government managers are held
  accountable for their use of public resources.
• Government Auditing Standards Introduction

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Performance Auditing

• Performance audits provide objective analysis so
  that management and those charged with governance
  and oversight can use the information to improve
  program performance and operations, reduce costs,
  facilitate decision making by parties with
  responsibility to oversee or initiate corrective
  action, and contribute to public accountability.
• Government Auditing Standards Introduction

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Measurement in

• Performance Auditing
• Performance Measurement
• Performance Management

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Performance Auditing

• Uses measurement to gauge problems and their
  causes and impacts

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Performance Measures

• The ongoing monitoring and reporting of program
  accomplishments, particularly progress towards
  pre-established goals.
• Performance Measurement and Evaluation
  Definitions and Relationships, GAO

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Performance Management

• An ongoing, systematic approach to improving
  results through evidence-based decision making,
  continuous organizational learning, and a focus
  on accountability for performance.
• A Performance Management Framework for State and
  Local Government, July 2009 Draft, National
  Performance Management Advisory Commission

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Benchmarks

• An indicator is a statistical measure that,
  tracked over time, provides information on
  societal conditions or trends.
• The State of the USA website, www.stateoftheusa.o
  rg

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A bit of my background

• Operations analyst from 1978 to 1985
• Performance auditor since 1985
• Key participant, Multnomah County RESULTS effort
  from 1996 to 1999
• Participated/Managed Portland Service Efforts and
  Accomplishments 1990 and 1999 to 2009
• Initiated/Participated in Portlands Managing for
  Results effort 2001 to 2009
• Administered Portland-Multnomah Progress Board
  from 1996 to 2009

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What I have learned

• Measurement systems fail because
• They cost more than the benefits produced
• They are used to punish, or reward
• They have no leadership support, any longer
• They become more important than management
  practices
• They dont live up to expectations

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What I have learned

• Measurement systems succeed because they
• Inform managers, policy-makers, and the public
• Enrich discussions during decision-making
• Solve problems
• Improve efficiency and effectiveness
• Improve accountability

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How I apply that learning

• The value of a measurement system must exceed
  its costs

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• Focusing on the measures pushes up the cost side
  of the equation, and doesnt necessarily increase
  benefits. By pulling on the benefits side of the
  equation using the measures in management
  decision-making we will create demand for good
  measures. If we build expectations for
  performance management, then measures will
  follow.

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Our audits will support performance management in
these ways

• Use KPMs and benchmarks to help select audit
  areas
• Focus our efforts on aspects that directly
  improve agency outcomes, which should improve
  KPMs and benchmarks
• Develop selected diagnostic measures that track
  key agency internal problems/solutions
• Assess KPM reliability and relevance when related
  to our audit scope
• Craft our recommendations in a performance
  management context
• Recommend Lean-type solutions when we see
  significant opportunities for streamlining

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• Weaknesses in planning and budgeting

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In order to improve the Police Bureaus ability
to estimate resource needs and deploy resources
effectively, management should

• Develop a comprehensive set of goals, objectives
  and performance measures for the investigations
  function.
• Develop a staffing model that incorporates goals,
  objectives, and detective productivity data.
• Strengthen Detective Division case management
  controls by adopting a more detailed set of
  supervisory oversight and assignment procedures.

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• Weaknesses in planning, managing and evaluating

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PDOT needs to take additional action to ensure
that its in-house paving projects produce
acceptable pavement quality. To help achieve high
pavement quality and reduce future maintenance
costs, we recommend that the Street Preservation
Program

• Develop clear and complete specifications for the
  desired quality of asphalt mix.
• Prepare and follow a pavement quality assurance
  plan that outlines procedures and individual
  responsibilities for monitoring asphalt quality
  and taking remedial action when asphalt is found
  to be substandard.
• Increase in-house technical expertise on pavement
  design and quality provide more training of
  Street Preservation personnel and include
  pavement quality in performance measures and
  employee evaluations.

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