Wednesday, February 25, 2009

Curiousity

I've started reading Freakonomics. I thought since I found the blog so interesting that I should read the book that started it all. The drive behind this economist is similar to what I find fascinating about auditing. Many times as you start an audit you hear from the program or service some "truth" that influences operations. You test that "truth" and find out how things really work. That is what Freakonomics is about - how things really work. Sometimes it is just more detail behind the scenes that, although the "truth" still stands, what makes it true is different then you thought. But sometimes the "truth" is really wrong. Things are not as they seem. Whatever the finding, the audit is unraveling the ball of string and then trying to craft recommendations to make the program or service better.

Friday, February 20, 2009

Finding data

Auditors look for data to explain audit findings and make them meaningful, e.g. illustrate effect. Sometimes you have to create your own data. Here is an interesting example of how to think creatively and find new data in the NY Times. They used Twitter chatter to capture the conversation during the Super Bowl. (H/T Community Indicators)

Unflinching transparency

Transparency can be uncomfortable. As auditors we are dedicated to several objectives among them transparency, accountability, and creating change. Sometimes these are in conflict. Creating change requires acknowleging management efforts even though they may have fallen short. Transparency requires factual-based reporting and publication. I like to have audit results covered in the news because a larger audience is reached and transparency is increased. But many times the story is written as a conflict. I cringe a little when I read the article. But in the long run I think this is healthy. The public must know there is oversight and review.

Saturday, February 7, 2009

Public Records Audit

One of the audits I was most proud of was an audit of how accessible public records were at the county. During that audit we discovered that journalists routinely "audit" public records. Now the League of Women Voters has published a toolkit for a public records "audit" that includes resources and state contacts. This makes it easy for an auditor. Best practices and criteria all in one place.

Thursday, February 5, 2009

Strange analogies

Reading my mix of blogs today I was lead to post on a blog that I don't normally read. The blogger describes himself as an "idiot light." He is talking sports and drawing an analogy from the world of car maintenance. He compares himself to the "idiot light" on the dash that reminds you that there are some things that need attention. I couldn't help but think that it was also a good analogy for auditors. So, not only are we "watch dogs" but we're also "idiot lights."

Monday, February 2, 2009

It's the road map thing again!

Two reports have come out recently at the federal level that illustrate one of the biggest weaknesses I have found in government during my career. First, the GAO has issued its second audit on the Troubled Asset Relief Program (financial bailout). I wrote about the first audit here. In summary the audit concludes the Treasury Department should increase efforts to monitor how the financial institutions are using program funds and more clearly articulate and communicate a strategic vision for the program.

The second report is from testimony to the Commission on Wartime Contracting. This Commission is mandated by Congress to study federal contracting for wartime reconstruction and performance in Iraq and Afghanistan. This was after the hard lessons learned in Iraq. In news coverage the deputy special inspector general for Iraq is quoted as saying, "Before we go pouring more money in, we really need to know what we're trying to accomplish" (in Afghanistan)."

It's the road map thing again! The hardest work in solving a problem is establishing the direction you want to go. This includes establishing guideposts, a clear direction to the location you want to arrive at, and a way of knowing when you get there. In almost every audit I've worked on we have findings about lack of clear strategy and performance measures. It's not that management doesn't know that these are important. I think its the lack of resources assigned to these activities. When you're trying to solve a problem, its difficult to spend resources that are indirectly related to that problem. But, again, if you know where you want to go and you have a map to get there, why drive with your eyes closed?