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Providing Solutions for Army Challenges

29 September 2006

Message From The Auditor General

I am pleased to present U.S. Army Audit Agency’s Strategic Plan for FYs 07-12. The plan outlines our goals and strategies for providing timely, value-added products and services to our Army clients for the next several years. Strategic planning is an ongoing process, and we update our plan every 2 years to remain relevant in our operational environment. We continually reassess our goals and strategies and refine our measures, working toward a balanced scorecard that evaluates performance based on three key perspectives: our clients, our people, and our internal operations.

This plan replaces the plan developed for FYs 05-10. We made significant progress in executing that plan since its publication in June 2005. To increase the value of our services, we further refined our strategic audit planning process and aligned our corporate audit plan with the Army’s overarching strategies and focus areas. We also fully staffed the Strategic Audit Planning Office to help our senior leaders get the information they need to effectively plan audit coverage. During FY 06 we completed an organizational assessment to ensure that the Agency is well-positioned in the future to provide relevant audit services to the Army. We reexamined our workload distribution, teaming, and field office structure to better align ourselves with future Army needs. This effort is ongoing, and as physical space and resources becomes available, we will transition to our new structure. Our success in meeting our strategic goals and objectives is contingent on the talent and dedication of our employees. We will continue to foster a culture that recruits, develops, and maintains a professional workforce that is empowered to be entrepreneurial and accountable for results. During FY 07 we will implement the pay-for-performance methodology of the National Security Personnel System. To ensure accountability for results, we are well on our way toward creating a clear line-of-sight between individual performance contracts and our strategic goals and objectives. To increase organizational effectiveness and efficiency, during FY 06 our audit teams began holding in-process reviews with senior level Agency managers early in the audit process to make needed adjustments to milestones and resources. We also developed several new performance measures to complement the alignment of the strategic plan with individual job objectives to ensure accountability for results. Additionally, we developed a Business Transformation Plan and began applying Lean Six Sigma techniques to our audit and support processes to increase effectiveness and efficiency and maximize our value to the Army. Our strategic plan uses a three-level scoring system similar to the President’s Management Agenda. Although level II is satisfactory performance, our organizational goal is to achieve level I, or exceptional, performance for every measure. Please become familiar with the performance levels in this plan for a full understanding of Agency strategic expectations. Although we have achieved much, significant challenges lie ahead, and I ask for your full support and initiative as we execute the Agency strategic plan. PATRICK J. FITZGERALD The Auditor General

i

“To catch the reader's attention, place an interesting sentence or quote from the story here.”

Contents Page About Army Audit Agency Our Strategic Goals ............................................................................................... 1 Our Vision and Mission.......................................................................................... 2 Our Core Values ..................................................................................................... 3 Statutory Responsibilities ....................................................................................... 4 Organizational Structure......................................................................................... 4 Situational Assessment............................................................................................... 6 Strategic Goals, Objectives, Performance Goals and Strategies Valued Service ...................................................................................................... 9

Be a highly sought after and integral part of the Army by providing timely and valued services that improve the Army by doing the right audits at the right time and achieving desired results.

Professional Workforce........................................................................................ 12

Foster a culture that recruits, develops, and maintains a highly professional and diverse workforce that is empowered to be entrepreneurial and accountable for delivering value-added services.

Organizational Effectiveness and Efficiency...................................................... 15

Operate a highly effective and efficient audit organization that continuously evaluates and improves audit and support processes to deliver timely, value-added services.

Summary of Performance Measures ................................................................... 18

1

Our Strategic Goals:

Valued Service

1

Be a highly sought after and integral part of the Army by providing timely and valued services that improve the Army by doing the right audits at the right time and achieving desired results.

Professional Workforce

2 Foster a culture that recruits, develops, and maintains a highly professional and diverse workforce that is empowered to be entrepreneurial and accountable for delivering value-added services.

Organizational Effectiveness and Efficiency

3 Operate a highly effective and efficient audit organization that continuously evaluates and improves audit and support processes to deliver timely, value-added services.

2

Our Vision and Mission

Vision Statement We will be a world-class audit

organization of respected

professionals that anticipates

change and exceeds client

expectations. As an integral part

of the Army team, we will improve

the Army by providing timely,

value-added services and fostering

employee growth, innovation,

integrity, and accountability.

Mission Statement We serve America’s Army by

providing objective and

independent auditing services. We

help the Army make informed

decisions, resolve issues, use

resources effectively and

efficiently, and satisfy fiduciary

responsibilities.

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Quality of Life Encourage a culture that promotes the well-being, job satisfaction, and high morale of all employees and a quality work environment that improves efficiency and productivity. Progress Anticipate and adapt quickly to change, exploit new technologies, and institute innovative approaches and techniques. Professionalism Maintain a diverse workforce that is highly dedicated, ethical, and committed to professional advancement through education and active participation in professional organizations.

Quality Services Provide high-quality, client-focused service that is useful, timely, responsive, and in keeping with professional standards. Independence Maintain the freedom to perform our mission. Personal Growth Provide fair, equal, and stimulating opportunities for all employees to flourish and express themselves in an environment that supports empowerment, risk-taking, and innovation. Teamwork Communicate openly at all levels and work as a team to accomplish the Army’s and the Agency’s mission, goals, and expectations. Ethics Demonstrate integrity, credibility, and commitment to accountability.

Our Core Values

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Statutory Responsibilities At the request of the Under Secretary of War, Army Audit Agency was established on 12 November 1946 with the issuance of General Order No. 135. The Agency was placed under the jurisdiction of the Chief of Finance and tasked with maintaining appropriation and fund accounting, maintaining military property accountability, and auditing the accounts of the American Red Cross. With implementation of the DOD Reorganization Act of 1986, the Agency was placed under the sole jurisdiction of The Secretary of the Army. Subsequent General Orders made The Auditor General responsible for internal audit services throughout the Department of the Army, including audit policy, training, followup, and liaison with external audit organizations.

Today, we examine the full spectrum of Army operations and programs to assist the Army in accounting for and managing the public resources entrusted to it. Our goal is to maximize our value through timely engagements that focus on the evolving needs of Army leadership.

Organizational Structure The Auditor General of the Army, the Principal Deputy Auditor General, and three Deputy Auditors General lead Army Audit Agency. The Principal Deputy Auditor General oversees the development and execution of the Agency’s strategic audit plan to ensure that our audit services meet the needs of Army leadership. Two of the Deputy Auditors General oversee audits of various Army functions, and the third deputy is responsible for the Agency’s internal operations. To achieve our strategic goals and objectives, we maintain a workforce of highly trained professionals, many with advanced degrees and certifications. Our staff of more than 600 employees is organized into 17 functional audit teams and 6 smaller divisions that support our audit mission. About 70 employees are based at our operations center in Alexandria, Virginia. The rest are located at 23 field offices—20 in the continental United States and 3 overseas (Germany, Hawaii, and the Republic of Korea).

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Agency Organizational Chart

Agency Field Office Locations

Operations Center

Ft. StewartFt. Hood

Detroit

Ft. Bragg

Ft. Bliss

Ft. Carson St. Louis

Huntsville

Ft. Lewis

Ft. Shafter, Hawaii

Ft. Knox

Mainz-Kastel, Germany

Ft. Huachuca

Ft. Meade

Ft. MonmouthRock Island

San Antonio

Seoul, Korea

Indianapolis

Ft. Belvoir

Aberdeen

Ft. MonroeAtlanta

Operations Center

Ft. StewartFt. Hood

Detroit

Ft. Bragg

Ft. Bliss

Ft. Carson St. Louis

Huntsville

Ft. Lewis

Ft. Shafter, Hawaii

Ft. Knox

Mainz-Kastel, Germany

Ft. Huachuca

Ft. Meade

Ft. MonmouthRock Island

San Antonio

Seoul, Korea

Indianapolis

Ft. Belvoir

Aberdeen

Ft. MonroeAtlanta

The Auditor General

Principal DeputyAuditor General

Intelligence & Security

Office of Counsel

Deputy AuditorGeneral

Acquisition & LogisticsAudits

Deputy AuditorGeneral

Forces & FinancialAudits

Deputy AuditorGeneral

Policy & OperationsManagement

Contract Audits

Installation OperationsAudits

Force Logistics Audits

Infrastructure Audits

Logistics SystemsAudits

Research, Development& Acquisition Audits

Environment & CivilWorks Audits

Financial ManagementAudits

Force Protection Audits

Human Capital Audits

Information TechnologyAudits

Medical & MWR Audits

Information & FacilityManagement

Policy, Oversight &Audit Support

Resource Management

Strategic Planning &Special Studies

Sustainment Audits

Theater Operations,Pacific Audits

Executive Officer

Strategic Audit Planning

Theater Operations,Europe Audits Force Structure Audits

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Situational Assessment In charting the Agency’s work over the next several years, we analyzed both internal and external environmental factors to identify the challenges we face in meeting our strategic goals and objectives. This plan takes into account issues affecting the international climate, the Federal Government, DOD, the Army, and the accounting profession, as well as the Agency’s role in that environment.

Valued Service As America remains a nation at war, the Army is deployed worldwide defending democracy and fighting the Global War on Terror. The Agency deploys alongside our Soldiers to assist in many efforts “downrange,” or in areas where hostilities are occurring or may occur. These locations have included Bosnia, Kosovo, Macedonia, Turkey, and Uzbekistan. We now have auditors in Afghanistan, Iraq and Kuwait to respond to requests for audit support from senior Army leaders. We expect this workload to remain constant for the foreseeable future. Consequently we must continue to build the capacity to accommodate these high-priority requests while executing the rest of our audit program. As the Army supports continued global deployments, it also faces major transformation of its units. Transforming while at war requires the Army to carefully balance investments in the future force while maintaining a relevant and ready current force. The Army has engaged in several broad initiatives, including restructuring from a division-based to a brigade-based force, rebalancing the Active and Reserve Components, promoting business transformation, and implementing base realignment and closure actions, to ensure its preparedness for the 21st century security environment. The Agency must respond accordingly when planning and executing audit workload to help the Army meet these global strategic challenges. We must also continue to actively participate in the Army’s Strategic Management System and develop a corporate audit plan that is responsive to the Army’s evolving needs. While maintaining our performance, we are also positioning our infrastructure for the future. We organized into functional audit teams during 1999, but the Army’s focus has changed considerably since then as a result of transformation and the Global War on Terror. During FY 06 we completed an organizational assessment to reexamine our workload distribution, teaming, and field office structure, and we developed and published a transition plan for implementing the new organization. As physical space and resources become available, we will transition to the Agency’s new structure and allocate audit resources to the field office locations where the Army is growing and our work will be.

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Professional Workforce Achievement of our strategic goals can only occur through the talent and commitment of our diverse and highly professional workforce. In charting our human capital plan, we identified several workforce challenges the Agency is facing or will face in the coming years:

• The Agency will transition to the National Security Personnel System during

FY 07. We must successfully implement a new appraisal system that encompasses the tenets of pay for performance and individual accountability for results.

• More of our workforce is becoming eligible to retire. Therefore we must expect a

higher than normal rate of turnover, which will increase requirements for recruiting, training, and succession planning.

• Competition for a finite pool of employees will continue. We must work hard to

recruit and retain a skilled workforce of auditors and other professionals by offering job opportunities that are challenging and rewarding and by providing a quality of life that our current and future employees expect.

• We operate in a continuous training environment. We must continuously update

our training to accommodate changes in automation and Army systems we are responsible for evaluating. Additionally, our workforce must maintain functional expertise in the myriad of missions and functions the Army performs every day.

Organizational Effectiveness and Efficiency The Agency must continuously seek to improve the effectiveness and efficiency of our operations so that we have enough resources to fulfill our operational requirements and meet Army needs for audit services. As the Army experiences mounting expenses related to transformation and the Global War on Terror, the Agency must do its part to conserve resources. At the same time our operational requirements and the complexity of our audits will continue to increase because of changing

Army priorities. Therefore we must look for ways to save resources while still executing the same volume of quality audit work in the coming years. In line with other Army, DOD, and Federal Government agencies, we will continue to review various aspects of our business processes to ensure maximum efficiency using process improvement techniques such as Lean Six Sigma and activity-based management. Emphasis on the expansion of E-Government and automated processes will also continue. We expanded the Agency information available to our Army clients on AKO and made it easier to locate and navigate. This effort is a work in progress with more enhancements planned.

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GOAL 1 – Valued Service: Be a highly sought after and integral part of the Army by providing timely and valued services that improve the Army by doing the right audits at the right time and achieving desired results. The intent of this strategic goal is to ensure that Agency services and infrastructure are aligned with the Army’s highest priority focus areas to maximize our return on investment to the Army. We want to maximize our partnerships with Army clients by being responsive to requests for audits, providing solutions to Army challenges, increasing communications and interactions, and continuing our participation in Army task forces, events, and community service activities. Our strategic objectives and performance goals in this area focus on strengthening our partnerships with our Army clients and on providing timely and valued services that improve the Army by doing the right audits at the right time and achieving desired results.

Strategic Objectives and Performance Goals

Goal 1.1.1. Apply 40 to 60 percent of our audit resources to audits requested by Army leadership. Goal 1.1.2. Align our strategic audit plan with the Army’s overarching strategies and focus areas, and Secretary of the Army priorities.

Objective 1.1. Strategic Audit Plan: Focus our resources on areas that are important to our clients.

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Goal 1.2.1. Identify formal and additional monetary benefits in at least 20 percent of our audit and attestation reports and achieve a return on investment of at least $20 to 1.

Goal 1.2.2. Confirm through our annual followup review that at least 80 percent of our recommendations fixed the problem and that the Army realized at least 75 percent of reported benefits covered by the 6-year Program Objective Memorandum.

Goal 1.2.3. Achieve a favorable rating of at least 80 percent on client and stakeholder satisfaction surveys.

Goal 1.2.4. Develop an additional tool to assess the satisfaction of top Army leadership with our products and services by FY 08. Goal 1.2.5. Publish the Annual Performance Report by 15 December each year.

Goal 1.3.1. Spend at least 1,500 hours annually (Agencywide) participating in key Army and joint task forces, working groups, and committees and supporting Army-sponsored events and ceremonies.

Goal 1.3.2. Provide Army leadership with weekly reports of ongoing, to start, and completed audits by the Agency and external audit organizations that affect the Army. This effort includes providing executive summaries and information papers.

Goal 1.3.3. Monitor the Agency’s most significant audits—the top 10 as determined by the Principal Deputy Auditor General—and ensure that the audit teams update the client at least every 60 days and deliver the audit results by the agreed-to date.

Objective 1.3. Corporate Integration: Strengthen partnerships with our clients.

Objective 1.2. Value of Services:Provide timely, value-added products and services to our clients.

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Strategies for Goal 1 Strategic Audit Plan. To make sure we do the right audits at the right time, we will actively participate in the Army’s Strategic Management System and link our strategic audit plan to the Army’s overarching strategies and focus areas. Our strategic audit plan is a living document we use to guide our audit selection process. As we receive requests for audits and Army priorities change, we will revise our plan and shift our resources to remain responsive. During FY 06 we completed an organizational assessment to evaluate our workload distribution, teaming, and field office structure, and how well they align with our strategic audit plan and the transforming Army. As physical space becomes available, we will complete the transition to our new structure and allocate audit resources to field office locations where the Army is growing and our work will be. The new structure will also allow us to collocate supervisory units and provide a greater degree of flexibility in executing our strategic audit plan. Our Strategic Audit Planning Office will continuously gather, analyze, and translate Army strategic information into usable data for Agency senior leaders. Agency Program Directors will use this information to develop and refine their audit coverage in direct support of the Army's overarching strategies and strategic initiatives.

Value of Services. We routinely survey our Army clients to measure how well we are meeting their needs. By FY 08 we will develop additional tools to assess the satisfaction of top Army leadership and selected mid-level managers with Agency services and their use of our services. By 15 December each year, we will publish an Annual Performance Report that details our progress toward achieving the goals in our strategic plan and illustrates the Army’s return on its investment in the Agency. Corporate Integration. We will continually look for opportunities to strengthen our partnership with our clients and deliver timely, pertinent information to Army leaders. Agency employees will serve on Army task forces, working groups, and committees, and support Army-sponsored events and ceremonies. We will continue strategic communications and liaison functions with our Army clients by providing weekly reports of ongoing, to start, and completed audits by the Agency and external audit organizations that affect the Army. We will also monitor the Agency’s most significant audits—the top 10 as determined by the Principal Deputy Auditor General—and ensure that the audit teams keep our clients informed and deliver the audit results by the agreed-to date.

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GOAL 2 – Professional Workforce: Foster a culture that recruits, develops, and maintains a highly professional and ethical workforce that is empowered to be entrepreneurial and accountable for delivering value-added services.

The intent of this strategic goal is to ensure that the Agency maintains a talented, professional workforce and implements the President’s Management Agenda initiative on Strategic Management of Human Capital. We will continue work on our Human Capital Management Plan. Two key initiatives in the plan are implementing pay for performance through the National Security Personnel System, and developing and implementing a new training module for our information management system. Our strategic objectives and performance goals in this area focus on maintaining a high-performing workforce by attracting and retaining the right people with the right skills and by developing employee skills and competencies. High-performing employees with the right skills and competencies improve our ability to respond to the Army’s needs on a daily basis and during challenging times.

Strategic Objectives and Performance Goals

Goal 2.1.1. Fill at least 90 percent of the entry-level auditor requirements identified in our annual staffing plan. Goal 2.1.2. Retain at least 92 percent of our workforce (minus retirements and involuntary separations).

Objective 2.1. Recruiting and Retention: Recruit and retain a high-quality workforce.

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Goal 2.1.3. Achieve an overall favorable rating of at least 80 percent on the annual workforce survey. For survey categories achieve a favorable rating of at least:

o Leadership and Management (80 percent). o Performance and Recognition (80 percent). o Training and Development (80 percent). o Empowerment, Motivation, Accountability, and Teamwork (80 percent). o Communications (80 percent). o Information Technology (80 percent). o Equal Employment Opportunity (95 percent). o Sexual Harassment Prevention (95 percent). o Work Environment (80 percent).

Goal 2.2.1. Achieve an 80 percent favorable rating on student and supervisory assessments of Agency-sponsored training courses. Goal 2.2.2. Make sure Agency auditors obtain 80 hours of continuing professional education every 2 years in compliance with Government Auditing Standards. Goal 2.2.3. Maintain world-class levels of employees with advanced degrees (25 percent), professional certifications (35 percent), and membership in professional organizations (45 percent). Goal 2.2.4. Rotate at least 95 percent of junior audit staff in accordance with Agency policy to ensure varied work experience. Goal 2.2.5. Implement the new training module in AAAsist during FY 08 to streamline processes for individual development plans and training requests.

Objective 2.2. Training and Development: Encourage professional development and optimize workforce capabilities.

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Strategies for Goal 2 Recruiting and Retention. To fill our entry-level auditor positions, we use a number of recruiting tools, such as the Federal Career Intern Program and college job fairs. In locations with a competitive job market, such as the National Capital Region, we also use recruiting bonuses. Implementation of the National Security Personnel System will give us flexibilities to hire the most qualified candidates at competitive salaries. We conduct an annual workforce survey to better understand our workforce and its needs. The results assist our senior leadership team with developing or revising policies and programs that will improve the workplace for our employees. Each year The Auditor General issues a report to all Agency personnel discussing the survey results and planned actions to resolve the issues identified. We maintain a work environment conducive to employee retention by offering quality of life options such as flexible work schedules, telework, and business casual dress. We monitor employee satisfaction with these options through the annual workforce survey and revise our policies as needed. During FY 07 we will reinstate the Agency Advisory Board—a representative group of elected and appointed Agency employees. One of the main objectives of the board is to solicit input from Agency employees and make sure the Agency provides fair, equal, and stimulating opportunities for all employees to grow and succeed.

Training and Development. During FY 07 we will develop new student and supervisory assessment tools to measure the effectiveness of Agency-sponsored training courses. We will use the survey results to make the revisions necessary to improve Agency training courses. Agency leadership recognizes that rotating auditors among teams makes for more well-rounded employees. We will rotate our junior audit staff in accordance with the Agency policy to ensure that auditors have the opportunity to benefit from varied experiences. To retain a world-class workforce of highly trained professionals, we will continue to offer our employees financial assistance for obtaining professional certifications and advanced degrees, and to promote employee membership in professional organizations. The Agency will complete the development of the new AAASIST training module to streamline the process of generating individual development plans and training requests by using information already populated in the system. The module will allow for easier viewing of individual training records and will create a reporting capability currently not available. We plan to implement the module during FY 08.

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GOAL 3 – Organizational Effectiveness and Efficiency: Operate a highly effective and efficient audit organization that continuously evaluates and improves audit and support processes to deliver timely, value-added services. The intent of this strategic goal is to ensure that internal Agency operations are as effective and efficient as possible. Our goal is to maximize our value to the Army and implement the President’s Management Agenda initiatives on Expanded Electronic Government and Budget and Performance Integration. This area increases our focus on implementing activity-based management throughout the Agency, furthering our use of automated systems and techniques, and applying Lean Six Sigma techniques and methodologies to audit and audit support processes. Our strategic objectives and performance goals in this area are aimed at continuous process improvement of our internal business processes and maximizing our resources. The Agency must continuously seek to improve effectiveness and efficiency in all operations so that we have enough resources to fulfill our operational requirements and meet Army needs for audit services.

Strategic Objectives and Performance Goals Goal 3.1.1. Conduct in-process reviews with senior level Agency managers in a timely manner (within 30 percent of staff days expended) for at least 90 percent of audit engagements.

Objective 3.1. Process Improvement: Maintain an environment of continuous process improvement

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Goal 3.1.2. Issue draft reports on or before the date agreed to at the 60-percent review for at least 70 percent of audit engagements during FY 07 and for at least 90 percent of engagements by FY 11.

Goal 3.1.3. Complete audits within staff days agreed to at the 60-percent review for at least 70 percent of audit engagements during FY 07 and for at least 90 percent of engagements by FY 11.

Goal 3.1.4. Achieve a favorable rating of at least 80 percent on the annual workforce survey for questions related to Agency support processes.

Goal 3.1.5. Devote at least 80 percent of Agencywide available time to direct support of audit activities (audits, followup audits, and other engagements).

Goal 3.1.6. Increase the use and effectiveness of applied technology techniques by involving the Applied Technology Branch in the planning phase of audits.

Goals 3.1.7. Continue to emphasize adherence to Government Auditing Standards. Take prompt corrective action and follow up on weaknesses identified during internal and external quality assurance reviews.

Goal 3.1.8. Apply Lean Six Sigma methodology to our audit and support processes to eliminate non-value added steps and increase productivity. Complete three projects by 30 Sep 07.

Goal 3.1.9. Formally staff and finalize AR 36-2 (Audit Services in the Department of the Army) by 30 Sep 07.

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Strategies for Goal 3 Process Improvement Reviews. We will use lessons learned from peer reviews, annual followup reviews, internal quality assurance engagements, and internal control reviews to make sure we identify and correct any noted weaknesses in our audit and support processes. The Deputy Auditor General for Policy and Operations Management will issue a memorandum to all agency personnel discussing the results of our 2008 external peer review and outlining the areas needing emphasis. Audit teams will have timely in-process reviews (within 30 percent of staff days expended) with the involvement of senior level Agency managers to focus the effort and adjust milestones and resources early in the audit process. Beginning in FY 07, audit teams will also review milestones and resources when 60 percent of staff days have been expended. The milestones and resources agreed to at these reviews will be used to ensure accountability for results. Agency leadership will assess organizational performance and progress toward associated performance goals at least quarterly using performance review and analysis results and Agency leadership meetings. We will increase efficiency and reduce cycle time to complete engagements by involving personnel from the Applied Technology Branch during the planning phase of audit engagements to identify opportunities for using advanced audit techniques.

Process Improvement Tools. To support the Army’s Business Transformation initiative and foster an environment of continuous process improvement, the Agency has incorporated the principles of activity-based management and Lean Six Sigma. Activity-based management is a process improvement method for planning, controlling, and improving labor and overhead costs. Activity-based management is based on the principle that “activities consume costs.” We will use activity-based management to monitor our direct and indirect activities with the goal of the decreasing time spent on indirect activities and redirecting the savings toward accomplishing more audits. Lean Six Sigma combines two process improvement methods. While Lean focuses on eliminating non-value-added steps in a process, Six Sigma focuses on reducing variation from the remaining value-added steps. We will use Lean Six Sigma techniques to review our audit and support processes, eliminate non-value-added steps, and increase productivity. We will complete three Lean Six Sigma projects by 30 Sep 07. We will also enhance our AKO Web site to improve access to Agency information.

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Summary of Performance Measures This plan incorporates a three-level scoring system—similar to the method used for the President’s Management Agenda—to measure progress toward meeting organizational goals and objectives. Our strategic goal is to achieve the exceptional level (level I) for all performance measures. Here are definitions for each level: Level I – Exceptional. Performance is exceptional. Level II – Satisfactory. Performance is satisfactory. Level III – Unsatisfactory. Performance is unsatisfactory and improvements are needed to get performance back on track.

Performance Levels Measure

Level I Level II Level III Valued Service

Strategic Audit Plan 1.1.1.1. Requested Audits Staff days devoted to requested audits. 40 - 60% 25 - 39%

61 - 75% Less than 25%

Greater than 75%

Value of Services

1.2.1.1. Reports with Potential Monetary Benefits Audit and attestation reports issued that identified formal or additional monetary benefits.

At least 20% 10% Less than 10%

1.2.1.2. Return on Investment Formal and additional benefits resulting from audits compared with Agency budget expended.

$20 to $1 $10 to $1 Less than $10 to 1

1.2.2.1. Recommendations Fixed the Problem Implemented recommendations that fixed the problem.

At least 80% 70% Less than 70%

1.2.2.2. Benefits Realized Formal monetary benefits the Army realized. At least 75% 65% Less than 65%

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Performance Levels

Measure Level I Level II Level III

Value of Services (Continued) 1.2.3.1. Overall Client Satisfaction

1.2.3.2. Subject Matter

1.2.3.3. Timing of Engagement

1.2.3.4. Benefits of Engagement

1.2.3.5. Timeliness of Information Delivery

1.2.3.6. Effectiveness of Audit Team

1.2.3.7. Repeat Requests and Referrals

1.2.3.8. Comparison With Audit Organizations

1.2.3.9. Stakeholder Satisfaction Favorable responses on client and stakeholder surveys.

At least 80%

80%

80%

80%

80%

80%

80%

80%

80%

70%

70%

70%

70%

70%

70%

70%

70%

70%

Less than 70%

70%

70%

70%

70%

70%

70%

70%

70%

Corporate Integration

1.3.1.1. Army Integration Activities Hours charged to Army integration activities.

At least 1,500 hours 1,000 hours Less than

1,000 hours

Professional Workforce Recruiting and Retention

2.1.1.1. New Hire Rate Ratio of personnel hired to the number of planned hires.

At least 90% 75% Less than 75%

2.1.2.1. Retention Rate Onboard strength at the beginning of the rating period minus retirements and involuntary separations.

At least 92% 85% Less than 85%

2.1.3.1. Overall Employee Satisfaction

2.1.3.2. Leadership and Management

2.1.3.3. Performance and Recognition

2.1.3.4. Training and Development

2.1.3.5. Empowerment, Motivation and Teamwork

2.1.3.6. Communications

2.1.3.7. Information Technology

2.1.3.8. Equal Employment Opportunity

2.1.3.9. Sexual Harassment Prevention

2.1.3.10. Work Environment Favorable responses on the annual workforce survey.

At least 80%

80%

80%

80%

80%

80%

80%

95%

95%

80%

70%

70%

70%

70%

70%

70%

70%

85%

85%

70%

Less than 70%

70%

70%

70%

70%

70%

70%

85%

85%

70%

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Performance Levels Measure

Level I Level II Level III Training and Development

2.2.1.1. Agency-Sponsored Training Assessments Favorable responses on student and supervisory training assessments.

At least 80% 70% Less than 70%

2.2.2.1 Continuing Professional Education (CPE) Requirements CPE requirements completed in accordance with Government Auditing Standards.

Within reporting period.

Within grace

period. Not accomplished.

2.2.3.1. Advanced Degree(s)

2.2.3.2. Professional Certification(s)

2.2.3.3. Professional Membership(s) Percentage of Agency workforce.

At least 25%

35%

45%

20%

30%

40%

Less than 20%

30%

40%

2.2.4.1. Auditor Rotations Junior auditors onboard three years who rotated in accordance with Agency policy.

At least 95% 85% Less than 85%

Organizational Effectiveness and Efficiency

Process Improvement

3.1.1.1. Audits with Timely In-Process Review Audits with an in-process review held with senior level involvement within 30% of staff days expended.

At least 90% 80% Less than 80%

3.1.2.1. Report Timeliness Draft reports issued to command on or before the date agreed to at the 60% review.

At least 70% 60% Less than 60%

3.1.3.1. Staff Days to Closeout Audits completed within staff days agreed to at the 60% review.

At least 70% 60% Less than 60%

3.1.4.1. Satisfaction With Support Processes Favorable responses on the annual workforce survey.

At least 80% 70% Less than 70%

3.1.5.1. Direct Time to Available Time Ratio of Agencywide direct time to indirect time (minus leave and holidays).

At least 80% 70% Less than 70%

PPrroovviiddiinngg SSoolluuttiioonnss ffoorr AArrmmyy CChhaalllleennggeess

COPIES OF THIS PUBLICATION ARE AVAILABLE FROM:

U.S. ARMY AUDIT AGENCY

STRATEGIC PLANNING AND SPECIAL STUDIES DIVISION

3101 PARK CENTER DRIVE

ALEXANDRIA, VA 22302-1596

OR ONLINE AT:

https://www.aaa.army.mil