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Performance Audit: µManaging for Results¶ to µValue for Re$ources¶ ICGFM Miami Conference & Training 2008 May 22, 2008


Jean-Baptiste Sawadogo
Strategic & Results-Based Management Consultant Leader One Inc Tel. +1 613 721 8087; E-mail: ³The one people call when they really want results´
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Performance Audit: The Wave of the Future   

µPerformance Audit¶ is about audit on µValue for Re$ources¶ (VfR); it is a paradigm shift in Public Financial Management Early forms of performance reviews (Assessments, Evaluations and Audits) have put the spotlights on ³Spending´ vs. ³Results´, leading to µManaging for Results¶ In turn, µManaging for Results¶ is now driving the rising wave of µPerformance Audits¶ The leadership of µPublic Finance¶ functions is key in µManaging for Results¶ to get µValue for Re$ources¶
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Global Realities and Milestones 

Finance is finite AND ³Do more with less!´

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) µManaging for Development Results¶ ± WB and OECD (2002) Paris Declaration on Aid Effectiveness DAC-OECD-led process (2005+)

Finance is not everything
o o o o o o o o o o 

Beyond Finance, there is a global consensus on the focus on results
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A New Global Imperative: µManaging for Results¶ 

Demands on governments and their agencies to deliver and to be accountable for results Demands on international organizations to ³focus 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 µPerformance Audit¶?  

Performance Audit is ³« 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 ...´ ³A 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 µManaging for Results¶? 

A deliberate, systematic, rigorous pursuit of results through the practice of Management; it is a way of thinking; a way of doing business:

Designing/planning; implementing; monitoring; reporting; evaluating; auditing; managing risks; communicating 

Linking of µRe$ources¶ with µResults¶ committed to Two ³brands´ of results-focused Management
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Original: µResults-Based Management¶ (µRBM¶)1 - Inputs vs. Results (Results are outputs, outcomes, and impacts) Consensus: µManaging for Development Results¶ (µMfDR¶)2


³brand´: Canadian International Development Agency (CIDA); 1993+ 2Subsequent consensus ³brand´: DAC-OECD-led consultative process 2002+
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A Seven-Point Overview of µManaging for Results¶
1. 2. 3. 4. 5. 6. 7.

µMisconceptions¶ Principles Words Tools Crosscutting Issues Functional Stakeholders µRewards¶

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1. Top µMisconceptions¶ 

µManaging for Results¶ is µMonitoring & Evaluation¶ Attribution of µResults¶ is impossible The µimpact¶? Don¶t bother!
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2. Top Principles 

Partnership/Participation Transparency Broad application (even to Audits)  

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3. Top Words 

µResult¶: an expected or actual achievement (i.e. an output, an outcome or an impact) µActivity¶: it is NOT a µResult¶; it IS the µdoing¶ that supports the achievement of a result µIndicator¶: it is ONLY a measure to assess progress towards or achievement of a result
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4. Top Tools 

The Logical Framework Analysis (LFA) or a simpler Logic Model at the very least The Performance Measurement Framework (PMF) The Implementation Plan (including Work Breakdown Structure/activities; budgets; reporting; risk management; operations strategy; communication strategy)
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5. Top Crosscutting Issues 

Gender Equality Mainstreaming : responding to the specific issues for girls, boys, women and men Sustainable Environment Mainstreaming: not only dealing with regulatory compliance, but also, with developmental sustainability Knowledge Management & Sharing - addresses a 4th RBM principle: µLearning by Doing¶
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6. Top Functional Stakeholders 

Managerial functions - corporate and line Performance review functions (Monitoring, Reporting and Evaluation) Financial functions (Budgeting, Accounting; Control; Procurement; Audit)
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7. Top µRewards¶   

µGuaranteed¶ µValue for Re$ources¶: right results at the right efficiency (effectiveness and cost optimization for results vs. a potentially costly strict µlowest cost¶ approach) Capacity to demonstrate relevance and communicate performance - µResults¶ vs. µRe$ources¶ (both the good news and the bad news) µRewards¶ ± 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 

µPerformance Audit¶ is the wave of the future in Public Financial Management µManaging for Results¶ is the road to µValue for Re$ources¶ (VfR) in Public Service Performance review functions (M&E) have been promoting MfR; Financial functions need to catch up with MfR for a greater VfR Audit professionals¶ acumen and leadership, especially with µPerformance Audit¶, is crucial in keeping Public Financial Management¶s focus on getting µResults¶ with public µRe$ources¶.
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So, Exercise Your Results-Focused Leadership! 

For additional Information:

Office of the Auditor General of Canada; Performance Audit Methodology: OECD-World Bank; Managing for Development Results: Leader One Inc: e-mail to:
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