Performance audit background

1. Annual Performance Audit Progress Report Joint Legislative Audit and Review CommitteeJanuary 7, 2014Chuck Pfeil, Director of Performance AuditJennine Griffo, Project Manager

2. Performance audit background Initiative 900 • Approved by Washington voters in 2005 • First audit began in 2006 • Authorizes performance audits of state agencies and local governments, including programs that cross agencies • Evaluates government efficiency, effectiveness and economy

3. Performance audit progress report Annual Progress Report • Began in 2009 • Summarizes audit results: • How governments took action, generated savings, and improved services • Allows agencies 6 to 18 months to address recommendations before follow up • Self-reported by agencies; we do not independently verify recommendation status or cost savings

4. Performance audit progress report 2013 Progress Report • Highlights 2012 audits • Summarizes audit results since program started • Highlights other efforts • Local Government Performance Center • Lean process

5. Results from performance audits Since voters passed I-900: • More than 60 reports published • Over 1,600 recommendations • 100+ state agencies and local governments • More than 80% of recommendations adopted or in progress • Nearly $1 billion in actual savings and revenue

6. Implementation summary In last four years, 84% of recommendations adopted or in progress and nearly $780 million in savings Self-reported by agencies; we do not independently verify recommendation status or cost savings

7. Cost savings summary Over the last four years, agencies reported nearly $780 million in actual cost savings or new revenue and almost $1 billion since performance audits began

8. 2012 audits Highlights of performance audits released in 2012 • Regulatory reform: Communicating Regulatory Information and Streamlining Business Rules • Protecting Children from Sex Offenders in Child Care, Foster Care and Schools • Local Government Performance Audit Construction Change Order Pricing • K-12 Education Spending

9. Continuing to effect change Cost savings Improved efficiencies • K-20 Educational Network outlines plans for the future • Port of Seattle takes initiative to improve transparency • Fleet managementaudit prompts review of agency policies

10. Local Government Performance Center • 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 very positive

11. Local Government Performance Center Since the launch of the Local Government Performance Center, we have compiled 182 tools and links on the website 2013 numbers at a glance: • 57 training classes • 235 classroom training hours • 2,373 students trained • 4 Lean Academy events

12. Using Lean to expedite our processes Evaluating our own performance • In 2013, over 30 Auditor’s Office staff received Lean Six Sigma training and received Green Belt certification • Lean projects included: • Streamlining audit planning and reporting • Audit topic selection • Audit status

13. Looking ahead to 2014 What’s coming next • Adoption Services • Medicaid Managed Care • Higher Education Performance-Based Funding • State Debt Offset Program • Electronic Benefit Transfer (EBT) Cards • Local Government Performance Center – ongoing efforts

14. Contacts • Troy Kelley • State Auditor • (360) 902-0360 • Auditor@sao.wa.gov • Chuck Pfeil • Director of Performance Audit • (360) 902-0366 • Chuck.Pfeil@sao.wa.gov • Jennine Griffo • Project Manager • (360) 725-9742 • Jennine.Griffo@sao.wa.gov Website:www.sao.wa.gov