Procedures

Auditors are interested in process and procedures. Not that every action must be extremely detailed in writing. But that the process used was thoughtful and careful. Government should be held to a higher standard. After all, the resources we use belong to the citizens who trust us to use them wisely.

When I first started auditing I heard a lot about "pass-through" dollars. This was funding that was received from the state or federal government and was contracted out to non-profit services. There seemed to be little understanding that even though these were not dollars derived locally, they were public dollars, and that there was still a responsibility to manage their use well.

Negotiating and signing a contract for services is not all that must be done. Steps must be taken to ensure that the money was well spent. In a recent audit my office completed, we found that the scope of services was described very well and that the competitive process was strong. But the program neglected to plan for how to ensure that the agency received what was paid for.

It seems that when government responds to a crisis or takes on large projects, process breaks down. Here is a audit by Louisiana State Auditors of the emergency response to Katrina. The audit found that Louisiana could have saved millions of dollars if it had directly contracted with staff needed to monitor debris removal and manage grants from FEMA. Instead a consultant was hired who then subcontracted out these services at a 100% mark-up. Granted this was an extraordinary event and there was probably little experience or planning for something of this magnitude. But if the recommendations are followed, it will improve the reponse in the future.