Performance measurement is receiving increased focus from organizations such as ICMA, GASB, GFOA, etc. In support of these initiatives, members of VLGAA have reviewed their budget documents and identified some standard performance measures that can be used among localities. These measures can be included in budget documents and can be compared among different organizations in the Commonwealth.
Standard performance measures were identified for audit measures and fraud, waste and abuse measures. Naming conventions for the measures and a brief description for calculating those measures are described below.
1. Percent of audit recommendations implemented
Formula: Total audit recommendations implemented / Total audit recommendations
a. Total audit recommendations includes total open recommendations at beginning of year + total recommendations written in final reports during fiscal year
2. Percent of time spent on billable audit hours
Formula: Direct Time / Total Time
Direct Time + Indirect Time = Available Time
Available Time + Benefit Time = Total Time
a. Direct Time includes all time spent on audits, follow-up audits or other engagements.
b. Indirect Time includes time used for general management, unassigned time, training and other indirect activities.
c. Benefit time includes vacation, holiday and sick leave, and other paid leave.
3. Cost per billable audit hour
Formula: Total budget / Direct Time
4. Average years of experience for professional staff
Formula: Number of professional staff / Total Years of Experience of all staff
Fraud, Waste and Abuse Measures
1. Percent of Full Time Staff Trained
Formula: Number of full time staff receiving fraud training / Total full time employees
2. Number of complaints received
Includes count of fraud complaints received via hotline, web sites or any measure outlined by localities’ policies and procedures to report fraud.