Working Smarter By Using Performance Audits Bruce W. McClendon, FAICP
	Session: Working Smarter with Performance Auditing (March 11, 10:15 am)

Abstract: The author provides a summary of the benefits commonly derived from conducting management audits of local government operations. His findings are based on a representative review of audits conducted over the past two years for local governments in Texas, Louisiana, Nevada, Utah, Washington and Oregon. WHAT IS A PERFORMANCE AUDIT? The U.S. General Accounting Office, in their publication Government Auditing Standards, states that a performance audit is an objective and systematic examination of evidence for the purpose of providing an independent assessment of the performance of a government organization, program, activity, or function in order to provide information to improve public accountability and facilitate decision-making by parties with responsibility to oversee or initiate correction action." In auditing the performance of planning and community development departments for local governments, the auditors usually focus on management practices, customer service, fee methodology and organizational culture. BENEFITS OF PERFORMANCE AUDITS The following is a summary of the eight most common benefits that are derived from performance audits: Alignment: An audit ascertains the extent to which the organization is aligned with the needs and expectation of their customers and provides an opportunity to reconnect with their department’s customers. Working Smarter: Managers do things right, leaders do the right things. The audit evaluates the overall leadership skills, and the capabilities of the managerial staff. Re-engineering: Audits should lead to the value engineering of all regulatory processes and procedures. Benchmarks: What gets measured is valued and gets done. Benchmarks are established, measured, and compared to the productivity and performance of other similar organizations during the auditing process. Reliability: Accuracy, reliability and dependability provide the foundation of customer satisfaction. The audit will evaluate the adequacy of staff training, organizational structure, customer satisfaction, and the overall professional competency of staff. Cost Comparisons: The audit will measure how the department’s fees compare relative to other similar organizations at local, state, regional and national levels. Technology: The audit will evaluate the extent to which the latest available technology is being used to increase productivity and improve customer satisfaction. Empowerment: The final benefit of the audit is that it will leave a reporting system in place that can be monitored and updated on a continuous basis by in-house management. Author and Copyright Information Copyright 2001 by Authors Bruce W. McClendon is the director of Growth Management and Environmental Resources for Orange County, Florida. He is President of the American Planning Association and author or editor of five books. As a consultant, he provides management audits for local governments. Mr. McClendon can be contacted at the following email address: mcclendon@smartgrowth.cc.