What is a Performance Audit or Performance Auditing?

Performance Audit is “… a systematic, purposeful, organized and objective examination of government activities; … designed to promote accountable government; … includes the examination of economy, efficiency, cost effectiveness and environmental effects of government activities...” “A focus on performance covers both the benefits accomplished for [citizens] and due process and fairness in the delivery of services”.

“Do more with less!” ‘Managing for Results’ Demands on governments and their agencies (school committees and school districts) to provide programs and deliver services and to be accountable for results Demands on private entities to perform better : both financially and socially (ethically and responsibly) Demand for innovation and much more results- focused management

Evaluating whether an agency (school district or school), or the operations or activities of any part of the agency, is: achieving its objectives effectively; and doing so: economically; efficiently; and in compliance with all laws, regulations and standards.

The “3Es” – what do they mean? Effective? Achieving objectives or other intended results (outcomes) of programs, services, operations or activities, i.e. spending effectively. Example: Whether preschool program provided by the School Department improves outcomes for preschool children

The “3Es” – what do they mean? Efficient? Maximizing output for any given input and/or minimizing input for any given level of output, i.e. spending well. Example: per pupil expenditures and student performance results

The “3Es” – what do they mean? Economical? Purchasing appropriate resources (inputs) at least cost, i.e. spending less Example: Whether construction of a school is completed on time, at least or best cost.

Identifying potential performance audit projects or areas Strategic Planning process at district, school or program level Consultative process using advisory committees and broad community participation Annual Plan review and progress toward goals Review of prior Performance audit findings and recommendations

Audit Selection Criteria Potential financial, environmental and social risks to the community High public interest and/or use of public resources Potential for improved resource/financial management Potential for enhanced accountability

Planning the Audit Develop a: Detailed audit plan Risk management strategy ( to minimize risks to the audit and findings) Communications strategy (to manage discussions with the auditors and the entity being audited and other shareholders during the audit process). CIPP Context, Input, Process, Product model for program evaluation NEASC SALT School Support System

Fieldwork: Gathering Data The evidence gathering phase of the project, may involve a variety of methods, including: file/document reviews focus groups and surveys data analysis interviews of key staff and shareholders onsite direct observation Use of Advisory or other standing committees

Reporting Reports will address: Context in which the audited entity operates Criteria applied in assessing entity performance Evidence supporting audit conclusions Analysis of the evidence Conclusions dervied against the audit intent and objectives Recommendations for improvement

Post-audit Once a report is completed and presented: Brief School Committee on audit report. Brief staff and community at large Place report on the District/ School Website. Formal follow up and review within prescribed time frame and written reports of progress Results reported to school committee and the public.