Performance Audit Definition:
Performance audits are an independent and systematic assessment of a program’s performance against objective criteria. Performance audits encompass a wide variety of objectives for a given program, including an assessment of effectiveness, efficiency, results, compliance with legal or policy requirements, and management controls.
Critical features of a Performance Audit:
- Audits are to be performed by an independent third party.
- Address areas required by Legislation or Citizen Initiatives
- Performance audits must follow professional standards contained in the Generally Accepted Government Auditing Standards (pdf 5.2mb).
JLARC, TPAB, and OFM have all conducted multiple performance audits of WSDOT prior to those that the State Auditor is currently conducting. A history of WSDOT performance audits with links to each report is described in the following document:
WSDOT Audit History (pdf 150kb)
State Auditor’s Performance Audits Currently Underway:
The links below contain overviews of the four audits currently underway at WSDOT, and also provide updates on agency activities in support of each audit.
External Links:
Government Auditing Standards (aka the Yellow Book):
http://www.gao.gov/govaud/yb2003.pdf
State Auditor’s Office:
http://www.sao.wa.gov/PerformanceAudit/default.asp
Guidance from the Governor’s Office on Performance Audits:
http://www.governor.wa.gov/gmap/operations/2006august/Tips_Best_Practices.pdf
Audit Authority:
- Legislation: The 2005 Legislature granted the State Auditor the authority to audit transportation agencies. The enabling legislation (ESSB 6103, amended by ESSB 6839) states that:
“Citizens demand and deserve accountability of transportation-related programs and expenditures. Transportation-related programs must continuously improve in quality, efficiency, and effectiveness in order to increase public trust.”
The Legislature provided $4 million for the State Auditor to conduct these audits in the 2005-07 biennium. Under this legislation, the State Auditor intends to complete four (4) audits covering at least 10 areas by June 30, 2007. However, the State Auditor has indicated that it will conduct more audits if funds permit by June 30, 2007.
- I-900: SAO received extensive performance audit authority by the voters’ approval of Initiative 900 in November 2005. The Auditor estimates they will receive $17 million for the 2005-07 biennium and $25 million for the 2007-09 biennium for audits under this Initiative.