Audit Policies and Practices Committee. Identify and compile internal and external metrics and...
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Audit Metrics and Performance Measures—Survey Results Audit Policies and Practices Committee
Audit Policies and Practices Committee. Identify and compile internal and external metrics and performance measures used in the Federal audit community
Identify and compile internal and external metrics and
performance measures used in the Federal audit community for
evaluating audit quality and timeliness. Compile factors and best
practices used in annual audit planning. 2
Slide 3
Collaboratively developed survey questions on Internal
Reporting 6 questions External Reporting 2 questions Annual
Planning 10 questions Solicited input from FAEC community in May
2013 Received responses from 34 Audit organizations. 3
Slide 4
Answers objectives Provides timely findings and actionable
recommendations Addresses critical and high-risk areas Adheres to
quality assurance guidance (e.g., Yellow Book, internal and peer
reviews) Involves client satisfaction surveys to obtain feedback.
4
Slide 5
5 8 metrics and performance measures surveyed Considerable
feedback provided
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Tracked and monitored Included in employee performance
standards. Performance MetricsPercentage Draft reports issued
within 300 elapsed days 60% Reduction in average elapsed days to
deliver final reports compared to prior year 3% Projects completed
within one year 80% YESNONA Measure Adopted 3030 6
Slide 7
Internal guide to evaluate audits in process Performance metric
and tracking of Timeliness of specific phases Staff workdays Direct
time charges Return on investment YESNONA Measure Adopted 2481
7
Slide 8
Agency strategic goals/priorities GAO high-risk areas IG
management challenges Enterprise-level risk assessment Input from
senior organizational leaders Annual risk-based program assessments
Percentage of planned performance audits address high risk areas
YESNONA Measure Adopted 3040 8
Tracks monetary benefits with specific goals Report at least
$30M in potential monetary benefits each fiscal year Meet a return
on investment goal of at least $10: $1, $8: $1 Ensure 10% of
published reports identify potential monetary benefits Ensure 60%
of performance audits include recommendations leading to
demonstrable cost savings and/or funds put to better use Monitors
benefits via management information system Performance metric based
on the dollar savings identified during the year. Reviews actual
realized benefits during follow-up engagements Reports financial
benefits only as a workload measure; no goal YESNONA Measure
Adopted Reductions, Recoveries, Reallocations 2932 10
Slide 11
Monitors recommendation implementation and follows up when
implementation has not occurred by target date of completion
Discusses audit work in context of organizations qualitative goals
Includes corporate goals such as: 70% of past recommendations
implemented within two years of the fiscal year in which the report
was issued 60% of performance audits should include recommendations
leading to demonstrable cost savings, program efficiencies, and/or
funds put to better use YESNONA Measure Adopted Improved Processes,
Procedures, or Controls 2761 11
Slide 12
Information obtained before the report is issued Information
tracked via internal management system. All open audit
recommendations are discussed monthly with audit resolution
officials Metrics established for receipt of comments and actions
taken Request comments and recommendation responses within 30 days
of the draft report issuance. Achieve a 5-year average
implementation rate of 85% for accepted recommendations. Obtain
final management decisions and/or target implementation dates
within 90 days of report issuance. Write recommendations so
organization can complete them within 6-9 months. Receive action
plans within 60 day of final report issuance. Report twice a year
on all unimplemented recommendations past 6 months of original
target date to agency senior leadership. YESNONA Measure Adopted
Report Issued Within a Specified Number of Days 22111 12
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Weekly exception report for projects that have not met
milestones Communicate status of high impact audits during monthly
senior management meeting Establishes an estimated amount of audits
to complete in the fiscal year Incorporates an organization
milestone goal for deliverables Deliver 60% of audits with draft
reports within 300 elapsed days Issue reports within 270 days of
audit start Complete 80% of projects with a year. Finalize 90% of
assignments within 30 days of established final report milestones
Finish audits within one year from entrance conference Conclude
audits based on audit scope: Standard audit is 11 months from
entrance conference to final report; limited scope is 2.5 to 10
months from entrance to final report YESNONA Measure Adopted 3220
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Slide 14
Try to do a balanced approach for financial, process
efficiency, and program impact, but no formal scorecard YESNONA
Measure Adopted 21130 14
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Total cycle time From initiation to report issuance -- 8 months
for non complex audits to 13 months for complex audits. Total
elapsed days for each project Contract/Grant audits:5 days on-site
& 5 days for survey and report completion. Recommendations
concurred with by Agency 80% are accepted Percent of open
Recommendations implemented 95% of past recommendations are
implemented. Number of Audit reports produced; percentage of
reports containing one or more recommendations Financial Benefits
& Non financial benefits Return on Investment Percentage of
audit completed with established timeframes (90%, 75%) Complete 90%
of audits within 15% of established budget and within 30 days of
report milestones; 75% of audits address high risk activities
YESNONA Measure Adopted3310 15
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No Furloughs this Fiscal year Money is available for travel and
training at a reduced rate. Work plan focused on audits requiring
less travel; on track to meet CPE requirements. Additional funding
from ARRA and Hurricane Sandy relief. YESNONA Measure Adopted 3220
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Measure AdoptedYESNONA Staff Professionalism staff training
2633 Value of Service Provided stakeholder survey/feedback; dollar
value of recommendations; briefing with Agency leadership; briefing
with Congressional staff 2642 Other acceptance of recommendations
1373 17
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Measure AdoptedYESNONA Measures Contained in Semi- Annual
Report 3130 Additional Measures - timeliness; number of reports
issued; percentage of recommendations with management
decision/final action; percentage of audits with high
risk/management challenges 2362 18
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Report Issuance 24 Amounts Agreed to 13 Amounts Agency Agreed
to Collect 1 9 report at issuance and agreed to 19
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One associated this with assessing the risk environment to
develop risk categories Measures AdoptedYESNONA Linked to OIG
strategic goals 3211 Linked through cascading objectives/strategies
18151 20
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Number of intended reviews Timeliness Ratio of requested to
internally-generated audits Coverage of Agency priorities/mission
Coverage of Management Challenges Coverage of GAO High Risk Areas
Amount of Direct Staff time applied to critical and high impact
projects Number of reports issued aligned by Management Challenges
YESNONA Measure Adopted linked though other metrics 20131 21
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Measures AdoptedYESNONA OIG goals linked to Department 2742
Linked to Agency management challenges 3022 Department provides
feedback on plan - input, not approval 2760 22
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Other Factors Considered Congressional or Agency leadership
requests, New programs, Audit history and risk with existing
programs Follow up on prior recommendations Stakeholder input Risk
Assessment Resource Availability Balance of coverage across Agency
programs Timing to ensure most value to client 23
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Other Factors (cont.) Hotline complaints Large grant
recipients/dollar programs OMB A-123 and FMFIA assessments
Government-wide initiatives Statutory requirements Media
interests/emphasis Special funding allocations (e.g., Recovery Act,
Disaster Oversight, etc.) Investigative referrals Impact on the
delivery of services and benefits to recipients Public interest
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Priority12 34 Legislation, Executive Order, OMB Circular (i.e.,
mandatory work)? 302 1 0 Specific requests from Department/Agency
Leadership? 51883 Congressional appropriators or overseers? 16 11
Self-initiated work? 61585 25
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Ad Hoc (as needed) 22 Scheduled update 6 Not Typically Modified
6 26
Slide 27
John Needham, SBA Stephen Dingbaum, NRC Terri Alvarado, Army
Audit Ann Eilers, Commerce Jane Mintz, Commerce Julie Marlowe, SEC
Gil Harden, USDA 27