Performance Audits

Enabling Government and Nonprofit Agencies to Assess Risk and Do More with Less

The goal of government and nonprofit agencies is to effectively serve the people. However, agencies are often challenged with growing demands and limited resources to achieve their goal. These challenges present risk, pressures, and the need to align resources in an efficient and effective manner.

Performance audits are objective and systematic engagements, guided by Generally Accepted Government Auditing Standards (GAGAS), often referred to as the “Yellow Book”. These independent audits of programs, functions, operations, or the management systems and procedures of a governmental or nonprofit entity will assess whether an organization is addressing risk and achieving economy, efficiency, and effectiveness in the employment of available resources.

Understanding the Foundational Risks, Controls, and Governance

Assessing and improving agency functions and operations, and appropriately addressing risk requires a strong foundation, and is rooted in the three Es.

  • Economy: Is the organization appropriately controlling costs?
  • Efficiency: Is the organization getting the most from available resources?
  • Effectiveness: Is the organization meeting its objectives while addressing risk?

Benefits of Independent Performance Audits

  • The application of a proven, structured, and risk-based performance audit methodology guided by GAGAS
  • The elimination of threats to independence compared to internal reviews (e.g.: self-interest, bias, familiarity, undue influence, etc.)
  • Integration of trained, professional IT and non-IT audit resources
  • Improved organizational performance by focusing on effectiveness, economy, and efficiency
  • Strengthened governance by providing leadership and governing boards with an independent assessment of the organization
  • Promotion of fraud, waste, and abuse prevention and detection
  • Increased public trust and transparency

Our Performance Audit Methodology

SC&H’s proven performance audit methodology consistent of the following components:

  1. Risk Assessment: We evaluate the organization’s processes, risks, and controls within the in-scope functions.
  2. Criteria Evaluation: We develop a detailed work plan aligned with audit risk and the three Es; which includes detailed testing, performance measure evaluations, data analytical reviews, and more.
  3. Results Report: We deliver an audit report with practical and actionable conclusions—providing organizations with strategic and tactical opportunities for risk mitigation and improvement.

How We Can Help

  • Co-Sourcing: Provide our experienced, professional audit staff to execute your organization’s planned performance audits.
  • Outsourcing: Manage the planning and execution of your performance audits—from start to finish—utilizing our proven methodology and experienced audit professionals.
  • Staff Augmentation: Lead planned performance audits by providing our experienced, professional audit staff to augment your organization’s existing audit team.
  • Executive Advisory and Guidance: Offer independent guidance to audit and executive teams to assist with audit strategy and opportunities to enhance the audit function.

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