Performance Measures for Internal Audit Presentation to the State - PowerPoint PPT Presentation

Performance Measures for Internal Audit Presentation to the State Agency Internal Audit Forum May 18, 2012

Agenda  IALDP  Project Objectives  Performance Measures Defined  Four Categories of Performance Measures  Results of Survey  Best Practices

Project Objective Determine what performance measures are used by Internal Audit functions and identify best practices

Performance Measure A quantifiable indicator of entity achievement that includes the specific types: Outcome  Output  Efficiency  Explanatory/Input 

Survey Institute of Internal Auditors Austin  Chapter Research Committee December 2011  76 Responses  Six Countries 

Respondents by Industry

Four Categories of Performance Measures Performance  Cost / Efficiency  Customer Satisfaction  Employee Development 

Performance Included in this category were: Percentage of Audit Plan projects completed;  Results of external quality assurance review;  Annual performance appraisal of the Chief  Audit Executive; Number of recommendations implemented;  and Planned for the future. 

Cost / Efficiency Included in this category were: Percentage of overall time spent on  assurance and consulting services; and Audit report released within required  timeline .

Customer Satisfaction Included in this category were: Results of client satisfaction surveys;  Responsiveness to Board and Audit  Committee requests; and Leadership in providing information on  governance, risk, and controls.

Employee Development Included in this category were: Percentage of audit staff with professional  certifications; and Percentage of audit staff meeting  continuing professional education requirements

Respondents With Metrics in Multiple Categories

Performance Metrics Respondents with "Performance" Metrics 30 25 4 20 No Metrics 15 Has Metric(s) 22 - 3 10 - 1 10 5 - 8 7 1 5 4 3 - 1 - College or Federal For profit Local Non-profit Other State Undefined University government government government

Cost/Efficiency Metrics Respondents with "Cost/Efficiency" Metrics 30 25 9 20 No Metrics 15 Has Metric(s) 10 3 17 8 1 3 5 - 7 1 6 4 3 3 3 1 - College or Federal For profit Local Non-profit Other State Undefined University government government government -

Customer Satisfaction Metrics Respondents with "Customer Service" Metrics 30 25 7 20 15 No Metrics Has Metric(s) 19 10 4 2 0 2 5 8 7 1 7 2 4 3 2 1 0 College or Federal For profit Local Non-profit Other State Undefined University government government government

Employee Development Metrics Respondents with "Employee Development" Metrics 30 25 11 20 No Metrics 15 Has Metric(s) 2 10 6 15 - 8 4 5 7 1 2 5 3 2 2 - 1 - College or Federal For profit Local Non-profit Other State Undefined University government government government

Best Practices  Measure performance  Measure different categories  Measure what matters  Monitor progress

Best Practices (cont.)  Engage the workforce  Maintain flexibility  Assess the measures periodically  Report the measures  Keep it simple

Conclusion  Different shops use different measures  Only you can determine what performance measures are best for your audit shop  One size does not fit all

Questions?

Betsy Schwing – betsy.schwing@tdhca.state.tx.us Scott Mattingly – scott.mattingly@dps.texas.gov Mike Hardison - michael.hardison@tceq.texas.gov Eleazar Garcia – eleazar.garcia@tjjd.texas.gov