When audits fall short
Weak audits will damage voter trust

Not everything that goes by the name “performance audit” deserves the title. No matter what legislation is called, if it does not provide for true accountability it will do more to damage voter trust than improve it.

HB 1053 (general performance audits) and SHB 1121 (transportation-related performance audits) are two reactions to the resounding failure of Referendum 51 and its obvious message from taxpayers: no more taxes without accountability. Unfortunately, neither measure meets independent auditing standards.

We agree with the state auditor that the critical elements of a successful performance audit are independence, employee participation, citizen and private sector involvement, publicly reported results, and effective evaluation of a program’s worth to citizens. Furthermore, an effective audit cannot be completed unless state agencies have clear goals based on clear mission statements.

A good audit does not just follow a money trail and make a de facto report. It evaluates the economy, efficiency and effectiveness of a program so service can be improved. It triggers immediate consequences for any wrongdoing or mismanagement uncovered, and it acknowledges and rewards good performance. Under such a system, the state auditor would also be responsible for reporting on best practices so they could be replicated in other state agencies. Legislative committees would hold hearings to make sure agencies corrected identified weaknesses.

Instead, the new measures approved by legislators would leave control of the audits in the hands of a legislative committee or a citizen board appointed by state officials. This amounts to allowing the folks being audited to determine the criteria for the audit.

The weaknesses in this approach are obvious, even in its initial stages. Representative Deb Wallace, sponsor of the transportation-related audit bill, is also an employee of the Department of Transportation. No audits have been completed yet, but as someone on “the inside” who can see some changes that need to be made, Rep. Wallace is clear in advance what her approach will be: “I would say [DOT is] actually efficient. I would say that, absolutely.”

Across the country, true, comprehensive performance audits have resulted in savings and more efficient and effective delivery of services. In Texas, successful performance audits have allowed the state to save $9 billion over the last ten years.

Legislators in Washington can find savings for taxpayers as well if they implement independent, comprehensive performance audits.

Prepared by Bob Williams, President and Senior Research Analyst (360) 956-3482

Evergreen Freedom Foundation P.O. Box 552, Olympia, WA 98507 Phone: (360) 956-3482, Fax: (360) 352-1874 Email: effwa@effwa.org