NSW Audit Office - Better Practice - 2001 - Monitoring and reporting on perf. audit recommendations

Monitoring and reporting on
performance audit recommendations

The Audit Office regularly undertakes follow-up audits to examine whether agencies have implemented accepted recommendations from earlier performance audits and whether any changes in practice or performance have occurred in response to these audits.

A recent follow-up study found that the current review and reporting arrangements adopted by agencies provide only limited assurance that recommendations in performance audit reports are being addressed.

Agencies should consider using the better practice guide (below) to establish appropriate mechanisms to monitor progress and report on changes following a performance audit.

Following a performance audit, agencies should:
	Assign responsibility for the implementation of recommendations accepted to a single person or branch
	Develop an action plan which includes a timetable for implementation and clearly outlines roles and responsibilities for the implementation of each recommendation accepted
	Include in the plan mechanisms to monitor and report on results against key indicators where they have been identified in the audit
	Allocate sufficient resources to implement the plan and set realistic and achievable timeframes and targets
	Have the plan endorsed by the CEO and where appropriate, the Board and the Minister
	Incorporate the plan in other planning documents such as the corporate plan, business plans or performance agreements
	Nominate or establish a committee to monitor and report on progress (some agencies use their audit committee or risk management committee to do this)
	Provide regular reports on the progress of implementation of the recommendations to the CEO and where appropriate, the Board and the Minister
	Raise staff awareness of the outcomes of the performance audit and invite feedback on how best to implement the recommendations
	Regularly review and monitor the plan and make amendments, where necessary, to maintain relevance and appropriateness
	Report progress and actions taken to address issues raised in the performance audit in the annual report (reporting progress each year until implementation is complete).