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).

Performance Audit History:

• Performance Audit Action Plan Status
• Department of Transportation Results Wrap-Up Special Report (pdf, 1.3 mb)
• Overview of Completed Performance Audits
  
• Washington State Ferries Audit
• Managing and Reducing Congestion in Puget Sound Audit
• Administrative and Overhead Audit
• Highway Maintenance and Construction Management Audit
• Collection of State Debt Audit

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:

NOTE: For 2009, there are currently no performance audits underway. The final list of performance audits scheduled for 2010 has not yet been released by the State Auditor's Office. 

External Links:

Government Auditing Standards (aka the Yellow Book):
http://www.gao.gov/govaud/yb2003.pdf

State Auditor’s Office: information on Performance Audits:  
http://www.sao.wa.gov/EN/Audits/PerformanceAudit/Pages/PerformanceAudit.aspx

Guidance from the Governor’s Office on Performance Audits: 
http://www.accountability.wa.gov/audits/default.asp

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.”
  
• I-900: SAO received extensive performance audit authority by the voters’ approval of Initiative 900 in November 2005. The Auditor estimates they will receive $25 million for the 2007-09 biennium for audits under this Initiative.

Questions? Please Contact:

Steve McKerney
WSDOT Director of Internal Audit
360-705-7004
mckerns@wsdot.wa.gov

Jesse Daniels
External Audit Liaison
360-705-7035
danielje@wsdot.wa.gov