This is the accessible text file for CG Presentation number GAO-07- 598CG entitled 'Measuring the Performance of Audit Organizations: GAO's Evolving Experiences' which was released on April 3, 2007. This text file was formatted by the U.S. Government Accountability Office (GAO) to be accessible to users with visual impairments, as part of a longer term project to improve GAO products' accessibility. Every attempt has been made to maintain the structural and data integrity of the original printed product. Accessibility features, such as text descriptions of tables, consecutively numbered footnotes placed at the end of the file, and the text of agency comment letters, are provided but may not exactly duplicate the presentation or format of the printed version. The portable document format (PDF) file is an exact electronic replica of the printed version. We welcome your feedback. Please E-mail your comments regarding the contents or accessibility features of this document to Webmaster@gao.gov. This is a work of the U.S. government and is not subject to copyright protection in the United States. It may be reproduced and distributed in its entirety without further permission from GAO. Because this work may contain copyrighted images or other material, permission from the copyright holder may be necessary if you wish to reproduce this material separately. United States Government Accountability Office: Measuring the Performance of Audit Organizations: GAO's Evolving Experiences: The Honorable David M. Walker: Comptroller General of the United States: 19th UN/INTOSAI Seminar: Vienna, Austria: March 28-30, 2007: Presentation Outline: The importance of performance measures and targets for the United States government: How GAO assesses its performance: Why performance measures and targets are important for all SAls: Upcoming seminars: Why are Performance Indicators Critical for the U.S. Government? Federal spending expected to exceed $2.7 trillion: federal revenues reduced by more than $800 billion in tax preferences: Agencies produce reams of regulations: Most federal government policies and programs were created years ago: The U.S. has no key national indicators: GAO's Performance: Compared with a set of standards: * Yellow Book and GAO policies/performance indicators: Examined overtime: * Annually, 5-year trend, rolling averages: Assessed by peer group: * Peer reviews of our performance and financial auditing practices: Compared with A Set of Standards: GAO's Audit Practices: Our annual internal inspection program: indicates whether we are conducting our engagements according to the Yellow Book and GAO policies: identifies audit practice improvements and best practices: uses GAO managers as inspectors of engagements they did not work on: Internal inspection findings for engagements completed-in CY 2005: * GAO's engagement teams materially followed key controls necessary to assure quality audit products: * No instances where work was unreliable or contained material errors: Internal inspection for CY 2006 engagements - currently in process: GAO's Performance Measures: Results: Client: People: Internal Operations: Source: GAO. Results Measures: Outcome Measures: * Financial benefits: * Nonfinancial benefits: "Pipeline" Measures: * Past recommendations implemented: * New products with recommendations: * Congressional testimonies: Measures: Financial benefits(dollars in billions); Actual 2003: $35.4; Actual 2004: $44.0; Actual 2005: $39.6; Actual 2006: $51.0*; Target 2007: $40.0. Measures: Nonfinancial benefits; Actual 2003: 1,043; Actual 2004: 1,197; Actual 2005: 1,409; Actual 2006: 1,342; Target 2007: 1,100. Measures: Past recommendations implemented; Actual 2003: 82%; Actual 2004: 83%; Actual 2005: 85%; Actual 2006: 82%; Target 2007: 80%. Measures: New products with recommendations; Actual 2003: 55%; Actual 2004: 63%; Actual 2005: 63%; Actual 2006: 65%; Target 2007: 60%. * $51 billion in financial benefits represents a $105 return on every dollar the Congress invested in us. Source: GAO. [End of table] Major Selected Financial Benefits in Fiscal Year 2006: * Ensured monetary benefits from federal spectrum auctions for licensing commercial wireless communications services: $6.1 billion: * Reduced unobligated funds in the military services' operations and maintenance budget: $3.9 billion: * Recommended payment method that cut Medicare costs for durable medical equipment and other devices: $2.9 billion: * Helped to ensure that retirement-related benefits for postal service workers would be funded: $2.2 billion: Nonfinancial Benefits: Selected Public Laws GAO Contributed to in FY 2006: Deficit Reduction Act of 2005, Pub. L. 109-171: * Strengthening the integrity of the federal health program for the poor: * Improving oversight of states' performance under the federal welfare program: * Improving oversight of schools that serve as lenders of funds for educational loans: Safe and Timely Interstate Placement of Foster Children Act of 2006, Pub. L. 109-239: Our Evolving Audit Work - Positive Impact on Outcome Measures: Early focus on financial auditing: * Result: greater awareness/accountability; some financial benefits: * Indicator: ability to identify fraud, waste, and abuse: Increased expertise in performance auditing: * Result: significant financial and nonfinancial benefits: * Indicator: ability to enhance the economy, efficiency, effectiveness, ethics, and equity of federal government: Accountability Organization Maturity Model: Figure: [See PDF for Image] Pyramid designed figure, beginning with with facilitating foresight at the top and cascading down. Facilitating Foresight: Increasing Insight: Enhancing Economy Efficiency, Ethics, Equity, and Effectiveness: Assuring Accountability: Combating Corruption: Source: GAO. [End of figure] Client Measures: To judge how well we serve our client we: count the number of congressional hearings where we are asked to testify: determine whether our products were delivered in a timely manner: Client Measure: Testimonies: [see PDF for Image] Bar graph. Actual 2003: 189; Actual 2004: 217; Actual 2005: 179; Actual 2006: 240; Target 2007: 185. Source: GAO. [End of figure] Examples of Issues on which GAO Testified in FY 2006: * Strategy to rebuild Iraq; * Reducing the tax gap; * Hurricane Katrina response/recovery; * Improper payments; * Long-term fiscal challenges; * Immigration enforcement at worksites; * Defense acquisition practices; * Federal crop insurance; * Information security; * Passenger rail security; * Nursing home care for veterans; * Worldwide AIDS relief; * United Nations procurement controls; * Pay for federal executives and judges. [End of table] Client Measure: Timeliness: Delivering our products when our clients need them increases the chances that our work will be used: Our electronic client feedback survey helps us determine whether requesters of our work believe they received our testimonies and significant written products on time: Client Measure: Timeliness: [See PDF for Image] Bar graph. Actual 2003: N/A; Actual 2004: 89; Actual 2005: 90; Actual 2006: 92; Target 2007: 95. Source: GAO. N/A - Not applicable: [End of figure] Client Measure: Timeliness: FY 2004 - Began collecting actual data on our clients' satisfaction with the timeliness of our products: * Previous measure - % of products issued by the date we agreed to with the requester: FY 2006 - client satisfaction is high, but survey response rate is low (28%): We also supplement our client measures with direct feedback: The Comptroller General's discussions with congressional Leadership and Members: Continuous outreach to congressional committees by GAO team leaders and Congressional Relations staff: People Measures: Indicate how well we are: * attracting and retaining staff: * developing, using, leading, and listening to staff: People Measures: Attracting and Retaining Staff: Measures: New hire rate; Actual 2003: 98%; Actual 2004: 98%; Actual 2005: 94%; Actual 2006: 94%; Target 2007: 95%. Measures: Acceptance rate; Actual 2003: 72%; Actual 2004: 72%; Actual 2005: 71%; Actual 2006: 70%; Target 2007: 72%. Measures: Retention rate with retirements; Actual 2003: 92%; Actual 2004: 90%; Actual 2005: 90%; Actual 2006: 90%; Target 2007: 90%. Measures: Retention rate without retirements; Actual 2003: 96%; Actual 2004: 95%; Actual 2005: 94%; Actual 2006: 94%; Target 2007: 94%. Source: Information from an external database that handles GAO's payroll and personnel data. [End of table] People Measures: Developing, Using, Leading, & Listening to Staff: Measure: Staff development; 2003 Actual: 67%; 2004 Actual: 70%; 2005 Actual: 72%; 2006 Actual: 76%; 2007 Target: 75%. Measure: Staff utilization; 2003 Actual: 71%; 2004 Actual: 72%; 2005 Actual: 75%; 2006 Actual: 75%; 2007 Target: 78%. Measure: Leadership; 2003 Actual: 78%; 2004 Actual: 79%; 2005 Actual: 80%; 2006 Actual: 79%; 2007 Target: 80%. Measure: Organizational climate; 2003 Actual: 71%; 2004 Actual: 74%; 2005 Actual: 76%; 2006 Actual: 73%; 2007 Target: 76%. Source: Responses to questions from our annual employee feedback survey. [End of table] Internal Operations Measures: Indicate how well our internal operations help staff: * do their jobs: * improve their work lives: Help us to continuously improve GAO's business and management processes: Internal Operations Measures: Measures: Help get job done; 2003 Actual: 3.98; 2004 Actual: 4.01; 2005 Actual: 4.10; 2006 Actual: 4.10; 2007 Target: 4.0. Measures: Quality of work life; 2003 Actual: 3.86; 2004 Actual: 3.96; 2005 Actual: 3.98; 2006 Actual: 4.0; 2007 Target: 4.0. Source: Responses to our annual customer satisfaction survey. GAO staff were asked to rate 21work-related services and 10 quality of work life areas on a 5-point scale. Baseline data reported in 2003 and 2004. [End of table] Assessed by Our Peers: GAO's Performance Audit Practices: An external team of international auditors reviewed our 2004 performance auditing practices and process controls: Found: * GAO's quality control system was suitably designed and operating effectively for 2004: * Other national government audit offices should emulate several GAO practices: Next peer review - examine our practices for engagements completed in 2007: Assessed by Our Peers: GAO's Financial Audit Practices: An external team of experienced auditors: * reviewed our financial auditing practices for 2004 and 6 selected financial audit engagements: * followed applicable AICPA peer review standards and government auditing standards: * tested compliance with GAO's financial management quality control policies and procedures: * concluded that the 2004 quality control system for financial audits was designed to meet standards: Performance Indicators Are Important for All SAls: SAIs must strive to develop indicators that: * help to determine their strength and value: * are consistent with the SAI's mission: * help to gauge progress towards SAI goals: * include output and outcome metrics: * are reexamined periodically for relevance: * promote economy, efficiency, effectiveness, ethics, and equity: Upcoming Key Seminars in 2007: UN - Vienna, Austria, June: OECD - Istanbul, Turkey, June: INCOSAI - Mexico City, Mexico, November: GAO/World Bank/INTOSAI - Washington, DC, November: On the Web: Web site: [Hyperlink, http://www.gao.gov/cghome.htm]: Contact: Paul Anderson, Managing Director, Public Affairs AndersonP1 @gao.gov (202) 512-4800: U.S. Government Accountability Office 441 G Street NW, Room 7149 Washington, D.C. 20548: Copyright: This is a work of the U.S. government and is not subject to copyright protection in the United States. 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