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TRANSCRIPT
Presentation to the
State Agency Internal Audit Forum
May 18, 2012
Performance Measures for Internal Audit
IALDP
Project Objectives
Performance Measures Defined
Four Categories of Performance Measures
Results of Survey
Best Practices
Agenda
Determine what performance measures are used by Internal Audit functions and identify best practices
Project Objective
Performance Measure
A quantifiable indicator of entity achievement that includes the specific types:
Outcome
Output
Efficiency
Explanatory/Input
Institute of Internal Auditors Austin Chapter Research Committee
December 2011
76 Responses
Six Countries
Survey
Respondents by Industry
Performance
Cost / Efficiency
Customer Satisfaction
Employee Development
Four Categories of Performance Measures
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.
Performance
Included in this category were:
Percentage of overall time spent on assurance and consulting services; and
Audit report released within required timeline .
Cost / Efficiency
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.
Customer Satisfaction
Included in this category were:
Percentage of audit staff with professional certifications; and
Percentage of audit staff meeting continuing professional education requirements
Employee Development
Respondents With Metrics in Multiple Categories
Performance Metrics
-
5
10
15
20
25
30
College or
University
Federal
government
For profit Local
government
Non-profit Other State
government
Undefined
7
4
8 10
3 5
22
1
-
-
3 -
1
1
4
-
Respondents with "Performance" Metrics
No Metrics
Has Metric(s)
Cost/Efficiency Metrics
-
5
10
15
20
25
30
College or
University
Federal
government
For profit Local
government
Non-profit Other State
government
Undefined
6 4 3
7
3 3
17
1
1
-
8
3
1 3
9
-
Respondents with "Cost/Efficiency" Metrics
No Metrics
Has Metric(s)
Customer Satisfaction Metrics
0
5
10
15
20
25
30
College or
University
Federal
government
For profit Local
government
Non-profit Other State
government
Undefined
7
3
7 8
2 4
19
0
1
4 2
2
2
7
1
Respondents with "Customer Service" Metrics
No Metrics
Has Metric(s)
Employee Development Metrics
-
5
10
15
20
25
30
College or
University
Federal
government
For profit Local
government
Non-profit Other State
government
Undefined
7
3 5
8
2 2
15
1
-
1
6 2
2 4
11
-
Respondents with "Employee Development" Metrics
No Metrics
Has Metric(s)
Measure performance
Measure different categories
Measure what matters
Monitor progress
Best Practices
Engage the workforce
Maintain flexibility
Assess the measures periodically
Report the measures
Keep it simple
Best Practices (cont.)
Different shops use different measures
Only you can determine what performance measures are best for your audit shop
One size does not fit all
Conclusion
Questions?
Betsy Schwing – [email protected] Scott Mattingly – [email protected] Mike Hardison - [email protected] Eleazar Garcia – [email protected]