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What is a pellormanceaudit? <br /> A performance audit typically examines the effectiveness, economy, or Auditisk <br /> efficiency of a government program. They can include analyzing the services of Assessment Criteria <br /> an entire department or activity, identifying possible cost savings, identifying <br /> the outcomes achieved by a program, or comparing actual department Using a risk-based audit F <br /> practices against the practices called for in law or policy. Types of questions approach to identify and <br /> we may attempt to answer include: prioritize potential audit topics <br /> that pose the greatest potential <br /> • Is this program accomplishing its goals and objectives? (Are there risk and liability to the County, ` <br /> other ways to achieve this goal?) (Is this goal still relevant?) (How do The Office of the Legislative <br /> other counties achieve this goal or fulfill this need?) <br /> Auditor considers the fallowing <br /> • How well does the program do what it is intended to do? (How risk factors: ti <br /> many are served?) (What does it cost per unit?) (How does the County <br /> of Hawaii compare to other counties in this regard?) •' Size of,Department or <br /> • Is this program complying with all applicable laws and <br /> Operat�o "WAt`ea <br /> regulations? (Does the program meet all federal grant requirements?) i0ioca11J <br /> (Is the program fulfilling any obligations mandated by state or county efb <br /> law? <br /> ) <br /> Performance audits have a broader focus on the organization than more <br /> traditional financial audits. Financial audits are conducted to provide an opinion <br /> about whether an entity's financial statements are fairly presented and in <br /> conformity with generally accepted accounting principles. Financial audits do <br /> not focus on an entity's performance per se, but rather whether it has taken <br /> appropriate actions to control and safeguard its finances and accurately report <br /> on its financial conditions. <br /> Our objective is to improve public services. We do this by recommending <br /> r <br /> specific actions that will address the issues we raise, and by providing valuable <br /> information to the public, program leadership, the Mayor, and the County <br /> Council. ` <br /> Preparing the it Plan <br /> Audits included in the annual audit plan are selected and prioritized using a risk- <br /> based approach. Risk assessment is a process used to identify and prioritize <br /> audits based upon specific risk factors related to the quality of internal controls a <br /> and the estimated potential liability and level of risk exposure to the County of <br /> Hawai'i related to various County departments, programs, activities, and <br /> contracts. The OLA utilizes several techniques to identify and prioritize audits in <br /> the annual plan.These techniques include: <br /> • Analysis of operations and internal controls derived from previous audits <br /> • Assessment of operations and controls derived from previous external <br /> audits including information in the County's Comprehensive Annual <br /> Financial Reports (CAFRs) and Single Audit Reports <br /> • Input from elected officials, operational management, peer audit groups, <br /> and members of the public ° P <br /> • Benchmarking against the audit priorities of other governmental entities <br /> • Consideration of current local events, financial conditions, and public policy <br /> issues <br /> County of Hawaii, Office of the Legislative Auditor Page 11 <br />