Bhutan, April 27-29, 2005 The experience of the Accounts Chamber of the Russian Federation in application of the Data Envelopment Analysis methodology and CAATs for non-financial audits A.A.Piskunov, the Auditor of the Accounts Chamber of the Russian Federation Accounts Chamber of the Russian Federation

Forming a complex assessment of the efficiency of bodies, objects and management processes (Figure 1) Процессы управления Parliament Government Controlled objects Administration bodies Objects under management Corrective effects Efficiency estimation of Controlled objects Results of financial audit Evaluation of Performance audit indices DEA Estimation of Performance audit criteria Efficiency indices Financial audit efficiency Results of financial audit DB Performance audit

The Data Envelopment Analysis (DEA) methodology The benefit of this approach consists in the possibility of system correlation of dissimilar factors affecting entity management decision making, thus essentially improving the evaluation of its performance The essence of the DEA technology consists in studying the object with multiple input and output parameters and analyzing its activities in the interaction with functioning environment

Sections of production potentialities set in 3D space ( Figure 2) Variable 1 Variable 2 Variable 3 Production function Object, relatively to which the projection planes are built up объект Object located outside the projection plane variable 2 + variable 3 = constant

X Y X5 Y5X5 Y5 X 1 Y 1 X 2 Y 2 X 3 Y 3 X 4 Y 4 Efficiency index Factors Pareto optimal objects Pareto optimal efficiency surface Optimization trend Object under study Objects set Analysis of companies efficiency in a model with one input and one output index (Figure 3)

The DEA technology allows: To determine the quantitative measure of the object efficiency, i. e. the distance from the efficient boundary To determine the reference objects for each inefficient object To find the optimal directions of efficiency improvement To determine the stability zones of an object, i. e. the areas of parameters (X,Y), where the regarded object does not change its status (either efficient or not) To monitor the dynamics and reveal the trends in the object development

Dynamics of ratio between the volume of collected revenues and primary factors, affecting the revenue potential, Volgograd Region (Figure 4) Pareto maximum function, 2000 Pareto maximum function, 2003 Volgograd Region The Southern Federal District Production volume of basic industries of the economy per capita; average monetary incomes (monthly mean) per capita Revenue collected in the Region into the budgets of all levels, per capita

Dynamics of ratio between the volume of collected revenues and primary factors, affecting the revenue potential, Kabardino-Balkarian Republic (Figure 5) Pareto maximum function, Pareto maximum function, 2003 Kabardino- Balkarian Republic The Southern Federal District Production volume of basic industries of the economy per capita; average monetary incomes (monthly mean) per capita Revenue collected in the Region into the budgets of all levels, per capita

Section of the function of maximum collected revenues for Volgograd Region (Figure 6) Pareto maximum function, 2000 Pareto maximum function, 2003 Volgograd Region Line of constant sum of production output of basic industries of the economy and population income (per capita) Revenue collected in the Region into the budgets of all levels, per capita 0,50 11,522,533,544,5 0 0,5 1 1,5 2 2,5 3 3,5 4

Section of the function of maximum collected revenues for Kabardino- Balkarian Republic (Figure 7) Pareto maximum function, Pareto maximum function, 2003 Kabardino- Balkarian Republic Line of constant sum of production output of basic industries of the economy and population income (per capita) Revenue collected in the Region into the budgets of all levels, per capita 0,50 11,522,533,544,5 0 0,5 1 1,5 2 2,5 3 3,5 4