Ronald Balbe - Minerva Presentation - Performance audit and program evaluation

Minerva Program

Ronald da Silva Balbe

Advisor: Dr. Frederick Lindahl

How performance audit and program evaluation together can improve the public

administration

Spring 2013

Change?

Have the audit and evaluation institutions also changed?

StatePublic Administration

GovernmentWelfare State

New Public Management Accountability

Brief history of public administration: The US and Brazil

Politico-administrative system: The US and Brazil




Brief history of public administration: US and Brazil

Politico-administrative system: US and Brazil

How …together can improve the public

administration?

Performance audit &Program evaluation






How audit and evaluation can

improve the public administration?






Brief history

Dua

l fed

eral

ism

(1

789-

1933

)

Coop

erati

ve fe

dera

lism

(1

933-

1960

)

The

devo

lutio

n (1

993-

pres

ent)

Crea

tive

fede

ralis

m (1

960-

1968

)

New

fede

ralis

m

(196

8-19

80)

New

new

fede

ralis

m

(198

0-19

93)

Central Government

States and local governments

Total Outlays for grants to state and local governments1940–2018 (% GDP)

Central Government

19401942

19441946

19481950

19521954

19561958

19601962

19641966

19681970

19721974

19761977

19791981

19831985

19871989

19911993

19951997

19992001

20032005

20072009

2011

2013 estimate

2015 estimate

2017 estimate

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

Cooperative

CreativeNew Federal.

New New Fed The Devolution

Cent

rifug

al m

odel

(188

9-19

29)

Era

Varg

as(1

930-

1945

)

Fede

rativ

e co

ordi

natio

n (1

994-

pres

ent)

Bala

nce

(194

6-19

64)

Uni

onis

t-au

thor

itaria

n m

odel

(1

964-

1982

)

Esta

dual

ista

- N

ew fe

dera

lism

(198

2-19

94)

Central Government

States and municipalities






Comparision

Defense

1 2 4 5 6 Homeland

8

10

16

119Veteran Affairs

12 13 14

Federal: 2,8 million employees – 3 branches

Federal: 1,13 million employees – 3 branches

Defense

1 3 4 5 8 9

Education

127

1415 16 18 19

Health

22 23

11

13

2

17

20

24

$1.17 trillion

8%

9%

39%

44%

Deficit

Excise taxes, estate and gift taxes, other

Corporate income taxes

Payroll taxes

Individual income taxes

Where it comes fromTotal revenue: U$2.381 trillion

5%

20%

19%

16%

20%

20%

Interest on the debt

Nonmiliatar or what many people

consider “government”

Militar and domestic security

Other

Medicare and Mediaid

Social Security

How it is spentTotal spending: U$3.552 trillion

9%

27%

26%

19%

17%

Interest on the debt

Social Security

Discretionary expenditures

Civil Servants

Transfers for States and Municipalities

How it is spentTotal spending: U$528 billion

3% Others

$28 billion

13%

51%

Deficit

Equity revenue (dividends)Tax on goods

Income taxes (individual)

Social Contribution (Payrolls)

Where it comes fromTotal revenue: U$500 billion

8%

Income taxes (corporation)

7%6%

15%Other

U.S.OutlaysDeficit

BrazilDebt/GDP

Brazil has 1.6 more ministries

U.S. has 2.5 more employees

Brazil Budget is 7 times lower

U.S deficit is 42 times higher

Both countries needmore efficiency,

higher quality services, greater transparency






The interaction of aPerformance Audit

and Program evaluation

What is performance audit?

What is program evaluation?

An evaluative activity which produces assessments regarding performance with reliable degree and freedom, that serve to

accountability

Application of systematic methods to address questions about program operations and results.

A: Financial audit

B: Performance audit

C: Cross-cutting performance audit

D: Evaluation externally Commissionned

E: Evaluation internally Commissionned for advocay purposes

G: Evaluation internallly comissionedfor learning and is published

G: Evaluation internallly comissionedfor private learning purposes and not published

Learning

A c c o u n t a b i l i t y0 100

0

100

Accountability for learning

A: Financial audit

B: Performance audit

C: Cross-cutting performance audit

D: Evaluation externally Commissionned

E: Evaluation internally Commissionned for advocay purposes

G: Evaluation internallly comissionedfor learning and is published

G: Evaluation internallly comissionedfor private learning purposes and not published

Learning

A c c o u n t a b i l i t y0 100

0

100

Accountability for learning

Roles

Researcher/

scientist

Judge/

magistrate

Public

accountant

Management

consultant

legal

knowledge

engineering and scientific skills

application of the

cost-benefit framework

Expertise in

accounting principles

Tools

According to the law

Scientific truth,

explanation

According to the rules and the

official statements

Whatever helps the clients ‘improve’

Criteria

Multi-role professional






The Institutions

Office of Inspector GeneralOffice of Management and Budget

Department of Labor

Office of Comptroller GeneralPlanning and Strategic Investments Secretariat

Institute for Applied Economic ResearchMinistry of Education






Interactions for more improvements

3 Interviewees 2 evaluator and 1 auditor

2 in person and 1 by phone

5 Interviewees 2 evaluator and 3 auditor

1 in person and 4 by phone

Do you interact?

The respondents said "no", the interactions were not happening

between the areas of performance audit and program

evaluation

What are the reasons?

Auditors: The problem lies in the lack of legal framework and

scarce timeEvaluators: agree and add other “main focus” on investigations

and legal aspects

What is challenge?•Demonstrate the work is

relevant and not an unproductive waste of time;

•Establishment more clearly the roles of the actors;

•Measure and consolidate the outcomes;

Suggestions• Normative functioning and

providing the interface between the two activities;

• Join forces to demonstrate what are the differences, goals, and

expected outcomes;

Thank you

One more thing

Thank you again

Dreamed itDid it

WeWe

Technology

Ronald Balbe - Minerva Presentation - Performance audit and program evaluation