Auditor of State Dave Yost recommends performance audits for Ohio local governments, schools, and state agencies to help public-sector managers and elected officials ensure their organizational objectives are successfully met in an economical and effective manner; and to enhance the accountability of government.

Specifically tailored to suit the unique circumstances of each audit client, performance audits objectively and systematically evaluate programs, functions and activities to help governments ensure the right things are done in the best way, maximum value is achieved for each dollar spent, and government makes the best use of the scarce resources available.

Performance audits are invaluable management tools that determine what is working as intended and what is not. Nationwide, state and local governments have saved billions of dollars through the implementation of performance audit recommendations. In Ohio, over a billion dollars in recommended savings has been identified.

What is performance auditing?
Performance auditing, a non-recurring examination of the economy, efficiency and effectiveness of government, program, and functions, differs from the other audits that Ohio governments undergo. It is independent and flexible in its choice of subjects and methods.

The principles guiding performance auditing are often called the “three Es”.

• The principle of ECONOMY is keeping the cost low.
• The principle of EFFICIENCY is getting the most out of available resources.
• The principle of EFFECTIVENESS is meeting the objectives set.

A performance audit can analyze the operations of an entire entity or a particular department; it can examine a function or service that cuts across the operation or a single issue that involves several organizations.

AOS performance audits cover a range of subject areas. Common audit objectives include those evaluating economy and efficiency, program achievement and design, service levels and priorities for resource allocation, and operational costs and workloads. The audit may identify cost savings, duplicative or underused services that could be reduced or eliminated, and gaps and overlaps in services.

What are the benefits of performance auditing?
Performance auditing:

• Results in recommendations that initiate a process of renewal and change, leading to greater efficiency and effectiveness in government administration.
• Helps government achieve more with less through efficient service delivery.
• Illustrates the changes an organization is facing.
• Provides a roadmap for moving forward in achieving goals.

WHY AOS?
We passionately believe in the power of process improvement to better government services and program outcomes for Ohioans.

The AOS Performance Audit Section has a unique, in depth knowledge of the operations of various governments and programs in Ohio. Our audit teams have diverse skills and extensive experience with public sector entities which ensures that audit conclusions are impartial and credibly supported. As a public sector organization, we work for the taxpayers and keep audit costs low, seeking only direct cost recovery. Finally, Ohio governments using AOS services may be eligible for financial assistance by procuring an audit through the LEAP Fund.

How does AOS conduct performance audits?
Performance auditing differs from regular auditing and requires specific skills. Audits are carefully structured around tough, nationally recognized auditing standards. These standards include:

• Being independent and objective.
• Using sufficient, competent, and relevant evidence.
• Evaluating efficiency, economy and effectiveness.
• Using appropriate evaluation criteria including prior performance, peer organizations, and nationally recognized leading practices and recommended practices.
• Publishing comprehensive written reports that are publicly available.

Any public or quasi-public entity in Ohio that receives funds from or through the state may request a performance audit. When circumstances warrant, the Auditor can elect to exercise his statutory authority and conduct a performance audit of an organization.

The performance audit process is collaborative and requires the participation of the government being audited. The process generally takes 4-6 months to complete and follows a series of distinct stages: planning (identifying audit objectives), fieldwork (collecting and analyzing information and comparing performance), and reporting (summarizing audit work and obtaining feedback and input into the report).