1. Performance Measurement & Performance Auditing Gary Blackmer Oregon Audits Director

2. Presentation overview A discussion of performance auditing and its relationship between measurement systems

3. 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

4. An idea has no momentum No piece of information, including measures, can induce change

5. “Newtonian” physics Change = Ideas + Social Force

6. Social Forces Comparables (Competitiveness, Shame) −Audit Commission Executive Order (Championing) −MFR −Progress Board (early years) Advocacy groups (Public/Political pressure) −Children’s Report Card

7. Laws and courts −Traffic code, Land Use, Criminal, Civil sanctions Public accountability −Performance Auditing

8. Performance Auditing Induces change with reason and social force, using measures for guidance

9. Three Measurement Systems Performance measures Performance management Performance auditing.

10. Dashboard measures Performance measures: status and change

11. Performance Management Performance management: Improving with Measures

12. Performance Auditing Performance auditing: Problem Diagnosis Measures

13. Performance Audit Structure Condition Criteria Effect Cause Recommendation

14. Strong criteria Strong criteria examples −Lagging against past performance −Lagging against peers −Violation of statutes

15. Compelling Effects Money savings More timely services Improved quality of services Mission accomplishment

16. 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

17. 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

18. Goal and Measures Hierarchy STATEMISSION AgencyMission Goals Programs GOALS Activities

19. Breadth + Depth Program I Performance Activity A Activity B SubActivity A1SubActivity A3 SubActivity A2 SubSub A1a SubSub A1b SubSub A1c SubSub A1d SubSub A1e SubSub A2a SubSub A2b SubSub A2c SubSub A2d SubSub A3a SubSub A3b SubSub A3c SubSub A3d SubSub A3f SubSub A3e SubActivity B1 SubActivity B3 SubActivity B2 SubSub B1a SubSub B1b SubSub B1c SubSub B1d SubSub B2a SubSub B2b SubSub B2c SubSub B2d SubSub B3a SubSub B3b SubSub B3c SubSub B3d SubSub B3f SubSub B3e Cause Effect

20. Auditors advocating for measurement Service Efforts and Accomplishments reporting −Government Finance Officers Association versus −Government Accounting Standards Board

21. Auditors learn the “immeasurable” Non-quantifiable issues Unending questions / unlimited measures Political forces The story behind the change…

22. Measures as accountability Auditors advocate for measures

23. Lamarckian Evolution of Measures Using a measure makes it better

24. During lean times…. Accountability is the first cut

25. “Economic” theory The value produced by a measure must exceed the cost to track it. Modern corollary: Information should be free.

26. Measurement cost declines Legacy information systems Cheaper computing power Cheaper desktop publishing Internet A new generation

27. Benefit comparisons Benchmarks Service Efforts and Accomplishments Performance Audit measures

28. 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

29. Questions & Comments