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REPORT SUMMARY <br />GOVERNMENT AUDITING <br />RESPONSIBILITIES <br />Local State <br />govemmenLs government <br />Financial audiLs Slate Auditor Legislative <br />Auditor <br />PerfonnanaV 9 Legislative <br />program Auditor <br />evaluation # <br />This office would assemble data produced by <br />local units and develop comparative statistical <br />profiles. These would make "Truth in Taxation" <br />hearings a much more meaningful exercise <br />because citizens would have reliable information <br />comparing their local uniLs with others. <br />The office would also conduct in-depth studies. <br />For example, one year it might examine how well <br />local governments are operating their hospitals <br />and nursing homes or diversion programs for <br />juveniles. We think that directing an existing <br />office to expand its role into local government <br />performance reviews would provide invaluable <br />assistance to the Legislature, local governments <br />and the citizens of the state. <br />The Audit Commission of Great Britain provides <br />a model for how a program of performance <br />auditing can be valuable. The Commission’s <br />philosophy is to help local units improve "value <br />for money." <br />Each of our recommendations for redesigning <br />services assumes that citizens and their local <br />officials will have good information about what <br />services arc provided, the costs of services and <br />the quality of the outcomes, and are able to <br />compare that information with what is done in <br />other cities or counties. For example: local <br />governments maintain thousands of miles of <br />streets, and their crews patch thousands of <br />potholes each year. Information will be needed to <br />determine when a neighborhood-based propos.il <br />to manage street maintenance should be <br />approved, or to help a local government compare <br />proposals from pothole patching enterprises. <br />We recommend: <br />n The Legislature should direct devel­ <br />opment and implementation of a <br />performance accounting system to be <br />used by local governments. <br />Soon after a local government performance <br />auditing function is launched, we expect that Uic <br />auditors will find that the information generated <br />by local governments on how they pcrfoim ilicir <br />functions is inadequate to make the useful <br />comparisons that we want to sec. School districLs <br />and counties have long used uniform, multi­ <br />dimensional financial accounting and reporting <br />systems with a standard chan of accounts. Thev <br />now need to build on to that stmciure i standard <br />method of measuring spending on inputs (labor, <br />tracks, blacktop, etc.) and linking that informa­ <br />tion with results (500 square feet of potholes <br />patched) and quality - the patches lasted six <br />months. <br />We think that citizens ha\e a basic right <br />to know how public funds arc spent, to <br />have measures of the quality of local <br />services and to be able to compare local <br />government performance. When progra.m <br />results are known, the public won't have to"wait <br />for sporadic invc.stigative repons in tlie n.?ws <br />media to find out liow well treatment programs <br />for sex offenders arc working, or whether job <br />training programs are placing clients in well- <br />paying jobs. Programs that are demonstrated to <br />be effective should have an easier time getting <br />their budget requests approved. <br />Turning the quality spotlight on local govem- <br />.Tients means identifying problems but also <br />celebrating .successes. We suggest that <br />Minnesota establish an award for local govern­ <br />ments that achieve excellence in delivering or <br />arranging local services. Like the Malcolm <br />Baldridge award given for excellent quality in <br />private industry Firms, a state award could be a <br />powerful external incentive for local governments <br />to excel. <br />In addition, it would be desirable for the state to <br />actively disseminate information about high- <br />quality operations. Working with the various <br />associations of local govemments, it could c.stab- <br />lisb a clearinghouse for sharing ideas and for <br />providing technical assistance to help local <br />goyemmenLs improve their u.se of comraciinv <br />options, develop better outcome me;Lsurcmcnt and <br />evaluation systc.ms.