ISRAEL'S AUDITOR AS POLICY-MAKER

Supreme audit institutions claim to avoid directly criticizing government policy. However, their assertions do not reflect reality. Israel's State Comptroller is explicit in criticizing government policy, and suggesting other policies in their place. The US General Accounting Office, the UK National Audit Office, and the Philippines Commission on Audit also criticize policy, but with styles that are more subtle and indirect than the Israeli auditor's. A review of the responses to Israel's audit reports reveals the extent of policy influence and the constraints that limit the auditor's role as a policy-maker.     

On The Nature Of Audit Judgements: The Case Of Value For Money Studies

The National Audit Office (NAO) undertakes Value For Money (VFM) studies, which are used as the basis of evidence in hearings of the House of Commons Committee of Public Accounts. VFM studies are therefore integral to the process of accountability of public bodies to Parliament for their use of resources. This paper examines the production of VFM studies by the NAO, and in particular the ways in which audit teams arrive at their judgements. It introduces a theoretical frame-work which highlights: (i) the interplay of intuitive and analytical thinking as VFM teams assemble and interpret data and, (ii) the ways in which teams use three distinct types of judgement criterion in studies, based on the use of multiple empirical indicators about some event, the logical coherence of the auditee's behaviour, and consensus about 'what actually happened'.     

AUDIT OR EVALUATION? A NATIONAL AUDIT OFFICE VFM STUDY

This article presents a case study of an important but relatively neglected aspect of the British policy process - the Value for Money (VIM) studies undertaken by the National Audit Office. It analyses in detail the conduct of one particular study, including the reactions of the audited bodies and the parliamentary activity which followed the publication of the NAO report. The case is then used to illuminate what appear to be some more general characteristics of the NAO's approach. It is concluded that NAO VFM work marks an important step beyond traditional audit for regularity and/or economy, and that it significantly enhances democratic accountability. Yet at the same time this work falls short of a full-blooded evaluation. Indeed, it appears to take place within quite prominent constraints, some of which were built into the legislation setting up the NAO but others of which could conceivably be eased, even without new statutory authority.     

Audit Committees and Accountability in Local Government: A National Survey

Abstract

Financial scandals in city governments have received increased publicity in recent years. Audit committees have been suggested as a way review and improve standards and procedures for financial accountability. Audit committees assist local government managers in overseeing and monitoring the financial accounting and auditing process. They provide a communication link between elected officials, municipal managers, and independent auditors. This study relies on national survey data to examine the prevalence, role, and composition of audit committees in cities with populations over 65,000 and the conditions affecting their use and effectiveness. Interviews and a brief case study supplement survey data to provide richer detail regarding the performance of audit committees in ensuring improved accountability.     

Defense System in Israel: The State Comptroller's Perspective

The compliance of audited bodies to the recommendations published by the State Comptroller is very important while evaluating the effectiveness of the state audit process. To measure the effectiveness of the State Comptroller's audit the rate of deficiencies' rectification has been taken into account. Audit frequency is defined as the number of audits in audited bodies in a given period. The effectiveness of the State Comptroller's audit carried out in the Israeli Defense Forces (IDF) characterized by a rigid hierarchy was compared with that of the State Comptroller's audit carried out in the Ministry of Defense (MOD) characterized by a less rigid hierarchy.     

MANAGEMENT AUDIT IN THE MINISTRY OF DEFENCE

In 1981 the Ministry of Defence brought together the capabilities of staff inspection, internal audit and central management services under a Director General of Management Audit (DGMA) with the objectives of achieving greater co-ordination of these functions and of developing the concept of management audit, i.e. the bringing to bear of a'total audit' approach on selected departmental organizations or activities. This article comments on the progress made so far in developing this concept and describes changes which have taken place in the conduct of the individual disciplines which have had the effect of concentrating their attention on wider questions of efficiency, economy and effectiveness. The article goes on to describe the parallel development in the Ministry of Defence of new resource management machinery — responsibility budgets, a new management information system for ministers and top management (MINIS), management principles and, most recently, a re-organization of the Ministry itself — and the place which the management audit capability occupies within this.     

POLITICAL ACCOUNTABILITY AND PERFORMANCE AUDIT: THE CASE OF THE AUDITOR GENERAL IN NORWAY

Performance audit is widely used in public administration, but, at present, little empirical evidence exists on its usefulness and contribution to accountability. Based on survey data from 353 civil servants in Norway, this article analyzes the auditees' perceptions of the audit. Performance audit was seen as useful by a majority of the auditees. If auditees agreed to audit criteria and assessments, were allowed to influence the process, had favourable opinions of the reports, and believed that the State Audit Institution contributed to accountability and improvement, then they regarded it as useful. Reports used for accountability purposes were not perceived as less useful. The auditees' administrative level, the use of the report to further interests, and attention from politicians, the media, and the Parliament impacted on the accountability dimension. These results indicate that performance audit can influence civil servants, but the influence is contingent on how the audited civil servants perceive the performance audit.     

The growing challenges of providing pensions to state and local civil servants in an aging society

Much hope has been placed in the ability of Supreme Audit Institutions (SAIs) to enhance public accountability. SAIs' independence and professionalism lend promise to the chance that they might succeed where program budgeting, program evaluation, performance measurement and strengthened legislative oversight have failed. Little attention has been paid in the literature to political and organizational constraints on the ability of SAIs to enhance public accountability. The article examines the contribution of Israel's State Comptroller to enhanced accountability across three measures: audit coverage; type of audit coverage; and use of audit reports by the Knesset (Israel's parliament). Programs connected with crisis situations, large programs and direct provision programs are found to receive significantly more audit attention. The Comptroller conducted few audits of program effectiveness. The few reports used by the Knesset were almost all connected with crisis situations. Exploration of the reasons for these patterns reveals that: organizational politics considerations limit the willingness of state auditors to conduct effectiveness audits and relate to controversial issues; logistical and political considerations of Members of Knesset limit their interest in using audit reports; and the paucity of audit resources relative to the scope of government means that much activity is not scrutinized.     

Reform: the audit system

This study discusses the reform of the Italian audit system initiated by law in 1990 and subsequently regulated by the Executive branch through delegation from Parliament. Despite the redundancy of the regulations, the new system appears to be coherent with the wider design of public administration reform. Audit is no longer limited to preventing illegal acts issued by public administrations, but it is also directed to detect anomalies and inconsistencies of public management and propose corrections to improve performance. The real challenge of the reform lays in its implementation.     

AUDIT IN THE HUMAN RESOURCES FIELD

The Whitehall machine is a fascinating phenomenon. It is vast in scale, complex in structure and second only to mothers-in-law as a source of cheap jokes. My job, as head of the Human Resources Division in the National Audit Office until earlier this year, was to look at the way in which it works and spot the places where a drop of oil would make it work more smoothly.     

Auditee Strategies: An Investigation of Auditees’ Reactions to the Norwegian State Audit Institution’s Performance Audits

This article contributes to theory on accountability—how it is played out and responded to. It uses the Norwegian State Audit Institution as an illustration. The responses of the audited entities to the SAI’s institutional pressure were identified through an analysis of four different cases. Four auditee strategies were identified. They indicate that the performance audit has impact when the auditees agree with the conclusions of the SAI. Sanctions from the control committee and the Parliament are equally important. Even though the extent of sanctions and conflict of opinion matter for the auditees’ responses, the effects are context dependent.     

Reportlng of performance measures for federal agencies: the initial impact of the chief financial officer act of 1990

The Chief Financial Officer Act of 1990 requires the preparation and audit of financial statements for many federal government programs and agencies. The first comprehensive set of financial statements prepared to meet the provisions of the CFO Act were for the fiscal year ended September 30, 1991 and were published in CFO Annual Reports due in August of 1992. This paper presents the results of a study of performance measurement in the fiscal year 1991 financial statements of the sixty-three reporting entities filed as part of the 1992 CFO Annual Reports. The purpose of the analysis of performance measures included in the fiscal year 1991 financial statements was to determine to what extent the financial statements of each of the reporting entities included the various types of performance measures identified in the framework developed for this project. The paper also includes an in-depth analysis of the performance measures reprted by the Social Security Administration and the Department of Labor.     

Reflexive Watchdogs? How Supreme Audit Institutions Account for Themselves

Supreme Audit Institutions (SAIs) such as the UK National Audit Office and the French Cour des Comptes play important roles within the institutional mechanisms of the democratic state. They are given high independence in order to secure public accountability for, first, the probity and legality of public spending and, second, economy, efficiency and effectiveness. During the last twenty years several SAIs’ mandates have been adjusted to reflect the latter, more managerialist, concerns. This article asks two questions: first, what evidence do these SAIs offer as to the quality and effectiveness of their activities in carrying out their mandates and, second, to what extent does their self–reporting appear to have been influenced by the precepts of the ‘New Public Management’ (NPM)? To address these questions an analysis is carried out of the annual reports and other relevant documents of the Finnish, Swedish, French and UK SAIs, and of the European Court of Auditors. The analysis shows considerable differences of approach. These may well be related to the differing constitutional positions and administrative cultures of the SAIs concerned. In conclusion we identify different concerns which are associated with either a fervent embracing of NPM criteria by SAIs or, alternatively, with an apparent rejection of those approaches.     

From Corporate Governance to Local Governance: Stakeholder‐Driven Community Score‐Cards for UK Local Agencies?

Abstract

This paper compares the methodology of the “comprehensive performance assessment”, recently proposed by the Audit Commission for all UK local authorities, with the “community score‐card” approach which has been used in the United States of America for a number of years. It suggests that the Audit Commission approach should be altered to take on board some of the more imaginative aspects of the community score‐card, particularly in relation to the inclusion of those quality of life measures, which local people regard as important, and measures of the quality of local governance.     

Recrganizing fiscal assistance for criminal justice the justice system improvement act of 1979

Although reorganizing the Law Enforcement Assistance Administration had been repeatedly proposed in the past seven years, it was not until January 29,1979 that Senator Edward Kenndy (D-Mass.) introduced the "Justice System Improvement Act" designed to do just that. An examination of this bill, and a comparison of the present LEAA structure and function with that proposed in the Act illustrates that the legislation will serve to improve the effectiveness and efficiency of criminal justice fiscal assistance pro- grams. The suggested course is to separate the research and statistics components from purely assistance functions and giving LEAA the latter responsibility on an exclusive basis. Research and Statistics would be housed in their own individual organizational structures, but within the perview of the Department of Justice.

Two shortcomings, however, could serve to defeat the proposed bill. Although the legislation gives priority to fiscal assistance to state/local jurisdictions, there is no corresponding increase in financial commitment on the part of the Federal Government. In fact, the FY 1980 budget allocates LEAA its lowest funding level since 1972. At a time of growing concern over crime rates, this would certainly serve to soften the impact of the reorganization effort. In addition, maintaining the research function within the,Department of Justice could well prove prejudi- cial to research findings. The recommended course of action is to adopt the proposal which calls for an indepen-dent "National Institute of Justice, to be organized along similar lines as the National Science Foundation.     

Observations on American administrative reform

This article discusses four types of administrative reform: those connected to fundamental political change, structural reforms, process reforms, and cultural change. It analyses some aspects of the National Performance Review and the Government Performance and Results Act of 1993. It concludes by suggesting that reformers should use a diagnostic model.     

Evaluating the 'New Public Management' Reforms in the UK: A Constitutional Possibility

Far-reaching managerial changes to the public sector in the UK have been occurring in the last few years. Broadly described as the 'new public management' (Hood 1991, 1995) these changes have reached new levels of intensity ever since the Conservative Government came to power in 1979. The article argues that the government should be accountable for these changes but not in a way which simply justifies its actions to the body politic but rather by going beyond this to a complete critical evaluation to assess their merit and worth. It is this exposure which will provide its real accountability. This article addresses the contextual factors surrounding the possibility of conducting such a wide-ranging evaluation. It traces a range of different examples which highlight the resistance of the previous government to an open-ended evaluation tracing the sizeable investment in implementation rather than careful policy experimentation and evaluation that has occurred. Finally, and most importantly the article explores the constitutional position of the Comptroller and Auditor General (C&AG) and the National Audit Office (NAO) who could conduct the wide-ranging evaluation which is deemed necessary. The conclusion of the article is that there is a need for an evaluation and any resistance of the government could be overcome if the C&AG and NAO exercised their constitutional right to conduct an evaluation of the reforms.     

Local authority performance indicators: Dousing the fire of campaigning consumers?

Much criticism has been levelled at the reliability of the Audit Commission's measures of local authority performance, but less attention has been paid to the reality of their empowering effect on consumer groups. This article reports on the impact of the policy on one consumer group, ALL MOD CONS, a national charity which campaigns for more and better public toilets. It argues that, far from empowering the group, the annual publication of performance indicators has diverted its energies and resources into disseminating the Audit Commision's statistics to their members and drawing misleading conclusions from them which risk undermining the group's credibility. The case raises questions about the role of performance indicators in the democratic process.     

Abolishing the Audit Commission: Framing,Discourse Coalitions and Administrative Reform

The abolition of the Audit Commission in England raises questions about how a major reform was achieved with so little controversy, why the agency lacked the institutional stickiness commonly described in the literature on organisational reform and why it did not strategise to survive. In this paper, we apply argumentative discourse analysis to rich empirical data to reveal the pattern and evolution of storylines and discourse coalitions, and the ways in which these interact with and affect the practices of Parliament, the media and the Audit Commission itself. Our analysis shows that the politics of administrative reform are as much about discursive framing and the ability of pro-reformers to gain discursive structuration and institutionalisation as they are about the material resources available to a newly elected government and its ministers. Questions of technical feasibility are unlikely to derail a reform initiative once its promoters gain discursive ascendency.     

Perceptions Of Federal Management In The Clinton Era

This article examines aspects of planning, budgeting and reorganization in order to evaluate what improvements have been undertaken during the Clinton presidency to improve government performance in the United States national government 1 . The authors develop a model of government reform based upon a series of escalating steps. These are: (1) internal government improvements; (2) fundamental restructuring and reorganization of agency operations; (3) programme reforms, driven by internal management; (4) programme reforms – driven by policy and political change; (5) reform of the political system itself. The authors conclude that while the National Performance Review and Government Performance and Results Act are the centre-pieces of this effort, reform will continue in the US after NPR
and GPRA wither away because the time is right for reform for a variety of reasons discussed in the article. The findings are then focused in a broader context in terms of their applicability to western democracies which could result in smaller more successful governments in the twenty-first century.