1. Organising for Success - The UK National Audit Office From paternalism to professionalism Presentation by Bill Burnett Regional Workshop, Addis Ababa, May 2003

2. The Good Old days - the NAO in the 1970s NAO predecessor is a Government Department Staff highly regarded and feared but known only within the Civil Service Work is optional Most staff join for a life-time career Focus on clear point-hunting role Clear criteria for measuring success - an individuals contribution to the annual report

3. Key dates 1973 - Crown Agents Scandal 1976 - Adoption of Professional training 1978 - Management Review 1988 - John Bourn appointed Auditor General

4. 1978 Management review NAO’s Peer review with expert advice New Policy Division - NAO’s twinning project with long term advisers from Arthur Andersen (!) l Change the audit law l Develop new approaches to Financial Audit including training all staff l Develop new audit manual and documentation system

5. The NAO Act 1983 Created the NAO as a separate non government organisation Gave legal backing to Value for Money Reports Allowed NAO to publish VFM reports separately from the accounts Gave Parliament the responsibility to fund the office

6. The NAO in 1988 faced many problems Poor internal efficiency Excessive delays presenting reports Limited use of IT Lack of appropriate skills Unknown outside Whitehall Lack of follow up of work

7. The NAO in 1988 faced many problems Very hierarchical structure Compartmentalised audits Poor internal communication Inward Looking organisation - we know best and are the best Poor Management of people

8. Obstacles to change Awareness of the problem Organisational structure Control and reporting system Professional conservatism & culture l Middle and senior managers l Staff Legal responsibilities

9. How to respond to these problems? Change model l Evolution rather than revolution l Adaptation rather than transformation A long-term perspective to change l People l Process l Technology

10. Actions taken - People Early retirement of staff Influx of new staff from outside the organisation New organisational structure Reduction of layers of Management New performance appraisal system

11. Actions taken - People Reduction in permanent staff & increased use of consultants Greater team working Investment in people l Training l Personal Development l Self Appraisal Outward secondments

12. Actions taken - Processes Introduction of job costing Internal and external accountability processes l targets set for direct and indirect work l focus on efficiency and timeliness l Who audits the auditors? l External review Focus on quality

13. Actions taken - Technology Introduction of office-wide IT systems Use of Computer Assisted Audit Techniques Migration to mobile computing Team 21 software

14. Actions Taken - Relationships Parliament Clients Media Public

15. Has it worked? Improved efficiency, effectiveness, timeliness and quality Increased public profile and professional recognition Better qualified and motivated staff

16. But more work is needed Audit is dynamic and must keep up with changes in Government Constant pressure to retain high quality staff Communication and staff management a constant problem Culture changes very slowly

17. Questions?