In 2005 we added a new category of audits: Performance Measure Validations. In these audits we will validate the County departments accomplishment of key outcome indicators as stated in their Business Plans by reviewing their documentation supporting achievement.
Each year the County departments prepare business plans for the next fiscal year. The annual business plan process provides each department with the opportunity to define its mission, establish its goals, and develop strategies to achieve goals and to measure and report on performance. The business plan has two primary purposes: (1) Communicate the value that the department brings to the community and clients; and (2) Report on the department’s performance.
The business plan will communicate the value that the department brings to the community by describing why it exists. This is accomplished by stating the department’s vision, mission and goals in support of carrying out its mission. Goals describe a value created or a desired improvement in a condition, outside the department or program itself that is of direct importance to clients and the public. Strategic goals are those department goals considered of greatest significance to the department and that directly relate to its mission.
The business plan will report on the department’s performance by first outlining the key outcome measures that will be used to determine whether the department has been successful in achieving its goals and carrying out its mission. The plan will then report on the actual results of those measures. Key Outcome Measures: The three to five outcome indicators that relate to the department’s strategic goals. These indicators are listed in the County’s Budget Book for each department.
The following are two examples of a strategic goal and related Key Outcome Indicator:
Strategic Goal (value)
Key Outcome Indicators (performance)
DEPT: John Wayne Airport Provide a positive aviation experience to travelers and tenants.
A majority of respondents in the “Airport Tenant” and “Air Transportation User” surveys rate JWA “Excellent” or “Good” overall.
DEPT: Integrated Waste Management Dept. Maintain a competitive rate for waste disposal in Orange County.
Comparison of disposal rate charged to users of the Orange County landfill system compared with that of other landfills in the region.
Internal Audit's Approach to PMV Audits
Our audit scope is limited to reviewing the documentation that supports the departments’ assertion as to the achievement of their key outcome indicators. We issue audit reports that state the key outcome indicators, the department’s reported results, and whether Internal Audit found adequate documentation that supports the reported results.