Performance Audit:
‘Managing for Results’ to ‘Value for Re$ources’
ICGFM Miami Conference & Training 2008
May 22, 2008
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Jean-Baptiste Sawadogo
Strategic & Results-Based Management Consultant
Leader One Inc
Tel. +1 613 721 8087; E-mail: JeanBSaw@aol.com
“The one people call when they really want results”
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Performance Audit:
The Wave of the Future
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‘Performance Audit’ is about audit on ‘Value for
Re$ources’ (VfR); it is a paradigm shift in Public
Financial Management
Early forms of performance reviews (Assessments,
Evaluations and Audits) have put the spotlights on
“Spending” vs. “Results”, leading to ‘Managing for
Results’
In turn, ‘Managing for Results’ is now driving the
rising wave of ‘Performance Audits’
The leadership of ‘Public Finance’ functions is key in
‘Managing for Results’ to get ‘Value for Re$ources’
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Global Realities and Milestones
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Finance is finite AND “Do more with less!”
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Finance is not everything
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Starting with the global recession of the early 1990s
CIDA’s Strategic Review and Renewal Exercise (1990+)
Results-Based Management (RBM) at CIDA (1993+)
Office of the Auditor General of Canada Report (1993+1995)
Aid Effectiveness Principles adopted by DAC-OECD (1996)
Assessing Aid: a World Bank report (1998)
Results for Canadians - a Government-wide RBM Policy (2000)
Many OEDC countries have adopted a results-focus (+ - 2000)
The Millennium Declaration on the MDGs at the UN (2000)
‘Managing for Development Results’ – WB and OECD (2002)
Paris Declaration on Aid Effectiveness DAC-OECD-led process (2005+)
Beyond Finance, there is a global consensus on the focus on results
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A New Global Imperative:
‘Managing for Results’
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Demands on governments and their agencies to
deliver and to be accountable for results
Demands on international organizations to “focus
on results” (UN; Multilaterals; NGOs; etc.)
Demands on private firms to perform better : both
financially and socially (ethics; responsibility)
Demand for innovative results-focused
management approaches
Increasing demand for a new type of audit >
Performance Audit
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What is ‘Performance Audit’?
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Performance Audit is “… a systematic, purposeful,
organized and objective examination of government
activities; … designed to promote accountable
government; … includes the examination of
economy, efficiency, cost effectiveness and
environmental effects of government activities ...”
“A focus on performance covers both the benefits
accomplished for [citizens] and due process and
fairness in the delivery of services”.
(Excerpts adapted from the Performance Audit Manual,
Office of the Auditor General of Canada - June 2004; pages 13 and 17)
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What is ‘Managing for Results’?
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A deliberate, systematic, rigorous pursuit of results
through the practice of Management; it is a way of
thinking; a way of doing business:
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Designing/planning; implementing; monitoring; reporting;
evaluating; auditing; managing risks; communicating
Linking of ‘Re$ources’ with ‘Results’ committed to
Two “brands” of results-focused Management
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Original: ‘Results-Based Management’ (‘RBM’)1 - Inputs
vs. Results (Results are outputs, outcomes, and impacts)
Consensus: ‘Managing for Development Results’ (‘MfDR’)2
1Original
“brand”: Canadian International Development Agency (CIDA); 1993+
2Subsequent consensus “brand”: DAC-OECD-led consultative process 2002+
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A Seven-Point Overview
of ‘Managing for Results’
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‘Misconceptions’
Principles
Words
Tools
Crosscutting Issues
Functional Stakeholders
‘Rewards’
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1. Top ‘Misconceptions’
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‘Managing for Results’ is ‘Monitoring &
Evaluation’
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Attribution of ‘Results’ is impossible
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The ‘impact’? Don’t bother!
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2. Top Principles
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Partnership/Participation
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Transparency
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Broad application (even to Audits)
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3. Top Words
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‘Result’: an expected or actual achievement (i.e. an
output, an outcome or an impact)
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‘Activity’: it is NOT a ‘Result’; it IS the ‘doing’ that
supports the achievement of a result
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‘Indicator’: it is ONLY a measure to assess progress
towards or achievement of a result
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4. Top Tools
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The Logical Framework Analysis (LFA) or a simpler
Logic Model at the very least
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The Performance Measurement Framework (PMF)
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The Implementation Plan (including Work
Breakdown Structure/activities; budgets; reporting;
risk management; operations strategy;
communication strategy)
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5. Top Crosscutting Issues
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Gender Equality Mainstreaming : responding to the
specific issues for girls, boys, women and men
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Sustainable Environment Mainstreaming: not only
dealing with regulatory compliance, but also, with
developmental sustainability
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Knowledge Management & Sharing - addresses a 4th
RBM principle: ‘Learning by Doing’
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6. Top Functional Stakeholders
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Managerial functions - corporate and line
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Performance review functions (Monitoring,
Reporting and Evaluation)
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Financial functions (Budgeting, Accounting;
Control; Procurement; Audit)
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7. Top ‘Rewards’
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‘Guaranteed’ ‘Value for Re$ources’: right results at
the right efficiency (effectiveness and cost
optimization for results vs. a potentially costly strict
‘lowest cost’ approach)
Capacity to demonstrate relevance and communicate
performance - ‘Results’ vs. ‘Re$ources’ (both the
good news and the bad news)
‘Rewards’ – recognition; access to more funding;
competitive funding is an emerging practice
(excellent illustration by GAVI’s DQA1)
1GAVI Alliance’s Data Quality Audits
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Summary and Conclusion
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‘Performance Audit’ is the wave of the future in
Public Financial Management
‘Managing for Results’ is the road to ‘Value for
Re$ources’ (VfR) in Public Service
Performance review functions (M&E) have been
promoting MfR; Financial functions need to catch up
with MfR for a greater VfR
Audit professionals’ acumen and leadership,
especially with ‘Performance Audit’, is crucial in
keeping Public Financial Management’s focus on
getting ‘Results’ with public ‘Re$ources’.
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So, Exercise Your
Results-Focused Leadership!
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For additional Information:
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Office of the Auditor General of Canada; Performance
Audit Methodology: http://www.oagbvg.gc.ca/internet/English/oag-bvg_e_859.html
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OECD-World Bank; Managing for Development Results:
www.mfdr.org
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Leader One Inc: e-mail to: JeanBSaw@aol.com
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