1. Washington State Auditor’s Office Troy Kelley Independence Respect Integrity 2014 Performance Audit Progress Report Joint Legislative Audit and Review Committee December 10, 2014 Troy Kelley, State Auditor Chuck Pfeil, CPA, Director of State & Performance Audit

2. Washington State Auditor’s Office 2  Approved by Washington voters in 2005  First audits began in 2006  Authorizes performance audits of state agencies and local governments, including programs that cross agencies  Performance audits evaluate government efficiency, effectiveness and economy Initiative 900

3. Washington State Auditor’s Office 3 Results from performance audits Since voters passed I-900: 71 reports More than 100 state agencies and local governments More than 1,700 recommendations made 86 percent of recommendations adopted or in progress More than $1 billion in actual savings and revenue

4. Washington State Auditor’s Office 4 2014 Progress Report  Summarizes audit results since program started  Follows up recommendations made in 2013 audits  Summary of 2014 and 2015 audits  Highlights work by the Local Government Performance Center Performance audit progress report

5. Washington State Auditor’s Office 5 Implementation of recommendations Since 2007, 86 percent of recommendations adopted or in progress Self-reported by agencies; we do not independently verify recommendation status or cost savings Implemented or In Progress 86% Not Implemented 14%

6. Washington State Auditor’s Office 6 Cumulative cost savings Since 2007, agencies have reported an average $187 million in annual cost savings or new revenue, totaling more than $1 billion

7. Washington State Auditor’s Office 7 Improving data disposal security Reducing wait times for developmental disabilities services More permit information available online Best practices applied to ferry construction Enhanced controls in Medicaid managed care contracts Consolidation and standardization efforts Reduced mail volumes Performance audits continue to effect change

8. Washington State Auditor’s Office 8 5520 Tolling Program delays DDevelopmental Disabilities Program access to services DDevelopmental Disabilities payment errors and client safety FFerry construction RRegulatory reform: Permit timeliness FFinancial Management System II-1163: Long-term care worker certification BBackground checks Highlights of performance audits released in 2013 Washington is one of four states to adopt statewide all-electronic tolling

9. Washington State Auditor’s Office 9 5520 Tolling Program delays DDevelopmental Disabilities Program access to services DDevelopmental Disabilities payment errors and client safety FFerry construction RRegulatory reform: Permit timeliness FFinancial Management System II-1163: Long-Term Care Worker Certification BBackground checks Highlights of performance audits released in 2013

10. Washington State Auditor’s Office 10 Performance audits in 2014 CColumbia River Crossing Project Audit, Completed PPost-Adoption Services, Completed SSafe Data Disposal, Completed HHigher Education Performance-Based Funding, Completed MMedicaid Managed Care, Completed EEconomic Development Performance Reporting, Completed  Electronic Benefit Transfer (EBT) Cards, Completed  State Debt Offset Program, Completed

11. Washington State Auditor’s Office 11 Performance audits in 2014  Columbia River Crossing Project Audit, Completed  Post-Adoption Services, Completed  Safe Data Disposal, Completed  Higher Education Performance-Based Funding, Completed  Medicaid Managed Care, Completed  Economic Development Performance Reporting, Completed  Electronic Benefit Transfer (EBT) Cards, Completed  State Debt Offset Program, Completed  State IT Security, December 2014  I-1163: Home Care Aide Certification, December 2014  Long-Term Care Programs, December 2014

12. Washington State Auditor’s Office 12 Performance audits in 2015 Workforce development Regulatory reform III Criminal records completeness Spring DSHS Office of Fraud and Accountability Medical discipline Prison staff safety and security Summer WSDOT toll collection system Alternative Learning Experience programs WSP narrowbanding project Fall

13. Washington State Auditor’s Office 13  Created in 2012  Taking best practices and lessons learned to local governments  A virtual resource center for all local governments  Trainings, tools and technical assistance  Feedback from local governments overwhelmingly positive Local Government Performance Center

14. Washington State Auditor’s Office 14 Since the launch of the Local Government Performance Center, we have compiled 212 tools and links on the website To date: 147 training classes 588 classroom training hours 4,920 students trained 18 Lean Academy events 7 Open Government & Transparency classes NSAA 2014 Excellence in Accountability Award Recipient Local Government Performance Center

15. Washington State Auditor’s Office 15 Contacts Troy Kelley State Auditor (360) 902-0360 Auditor@sao.wa.gov Chuck Pfeil Director of State and Performance Audit (360) 902-0366 Chuck.Pfeil@sao.wa.gov Website: www.sao.wa.govwww.sao.wa.gov