4 Types of Audits u Financial and compliance u Management (economy and efficiency) u Policy analysis u Investigative
5 Audit Outcomes u Increased accountability over the expenditure of public funds u Change u Findings leveraged by the agency u A long-term view
6 Process: Methods for Audit Topic Selection u Statutory requirement u Direction by Joint Audit Committee u Required by public or private granting agencies as a condition of receipt of funds u Initiated independently by Audit Bureau
7 Process: Audit Bureau Professional Staff u Program evaluators u Financial auditors u Information system specialists
8 Process: Audit Findings Model u Background Statement – Why an audit? u Criteria – What should be? u Condition – What is? u Effect – So what? u Cause – Why are criteria & condition different? u Recommendation – How do we address the effect?
9 Process: Report Preparation u Audit team prepares draft u Internal review includes the State Auditor u Confidential exit draft reviewed with the agency
10 Structure: Statutory Audit Authority u The Bureaus authority extends to executive, legislative, and judicial branches. u The Bureau may audit any county, city or school district when requested by the Joint Legislative Audit Committee. u The Bureau may not infringe upon academic freedom in the University of Wisconsin.
11 Structure: Statutory Expectations of Staff u Strictly non partisan u Observant of the confidential nature of any audit currently being performed
12 Structure: Joint Legislative Audit Committee u 10-member Committee, created by Chapter 224, Laws of 1975 u Co-chairpersons of the Joint Committee on Finance are members u Two majority party members from the Senate and the Assembly u Two minority party members from the Senate and the Assembly
13 Wisconsin Legislative Audit Bureau Organizational Structure LEGISLATURE STATE AUDITOR Janice Mueller DEPUTY STATE AUDITOR FINANCIAL AUDIT DIVISION PROGRAM EVALUATION DIVISION INFORMATION SYSTEMS SUPPORT UNIT ADMINISTRATIVE SERVICES SPECIAL ASSISTANT TO THE STATE AUDITOR Joint Committee On Legislative Organization Joint Legislative Audit Committee
14 Contact with the Legislature u Legislative leadership appoints the State Auditor u State Auditor and audit staff meet with requestors and other interested legislators u Audit staff and State Auditor conduct briefings with individual legislators u State Auditor and audit staff present testimony at public hearings
15 Examples of Value-Added via Program Evaluation u Assessment of compliance with non-financial statutory requirements u Variation among service delivery sites can be detected u Case file reviews add descriptive, programmatic information to the legislative process
16 Additional Resources u NCSL u NLPES Website u Selected States: Idaho, Nebraska, Wyoming, and Wisconsin u Ensuring the Public Trust update