What is performance auditing?
Compared to many other countries, Sweden’s central government activities are effective and efficient. Nevertheless, there are challenges and risks of shortcomings. Government agencies need to operate as efficiently as possible, make informed decisions and carefully organise their activities to ensure that resources suffice. The purpose of a performance audit is to check if central government efforts really generate effective benefit.
Robin Travis is Deputy Head of the Performance Audit Department at the Swedish National Audit Office. Here, he talks about the activities, typical features of performance audits and how audit subjects are selected.
Robin Travis, Deputy Head of the PA Department
Performance auditing is about examining whether resources are being used efficiently and whether decisions made are leading to improvements. Unlike financial auditing, which examines whether the accounting is correct and whether money is used in compliance with laws and regulations, performance audit focuses more on what we are getting for the money – and whether the outcome was as the Riksdag intended.
We look at effectiveness and efficiency of the central government
The Swedish National Audit Office primarily audits the Government and government agencies under the Government, but also conducts performance audits that concern certain state-owned companies and foundations.
“In performance auditing, we examine the efficiency in the central government. We focus on how the Government and government agencies implement the decisions made by the Riksdag. This may involve examining the effects of political reforms, assessing whether the goals were achieved or analysing how well the central government uses and prudently manages its resources.”
Our task is to help the Riksdag make informed decisions
The task of the Swedish National Audit Office is to give the Riksdag as accurate a picture as possible of how the Government governs state activities and how effective government agencies are. For this task, our independence is key. The Swedish National Audit Office’s assessments and recommendations must be impartial.
“We are the eyes of the Riksdag. We check, analyse results and make recommendations. However, our recommendations only concern performance improvements and actions concerning how the goals can be achieved. We have no opinion of our own as to what needs to be done in terms of policy.”
Performance audits help the Riksdag to make informed political decisions. In this respect, auditing is about achieving improvement. However, it is important to note that, at the Swedish National Audit Office, we do not engage in developing society or accountability. Our task is to produce factual material. It is up to the Riksdag how they wish to use the results of our audits.
“We also form part of the government agencies’ learning. Our auditing helps government agencies to streamline their operations.”
Our audits are based on performance problems
The Swedish National Audit Office focuses on initiatives that are costly or important to citizens, areas that are challenging for the central government to address and where there is a risk of deficiencies. In our selection of suitable areas to audit, we must keep to the Riksdag’s objectives and ambitions. However, the goals are often broad and sometimes abstract. Part of our work in and ahead of an audit involves defining and analysing how the Riksdag’s objectives should be interpreted, to enable measuring the outcome. This is often done in dialogue with the government agencies under audit.
“We operate in a political context, but we are not governed by the political agenda. Our agenda is set by the performance problems that we consider to be the greatest. Naturally, we base our work on an overall risk analysis. However, we always strive to be as close to real problems as possible in our selection of audits. This requires comprehensive external monitoring. We examine inquiries and research findings, or have direct contact with the government agencies before proposing new audits. We must always be able to answer the questions of whether the audit is relevant and provides added value, whether there is a real risk of material deficiencies, whether the timing is right and, above all, whether it is possible to carry out.
“It is difficult to examine past events. This means that it is difficult for us to audit a reform while it is being implemented. Nevertheless, we cannot leave it too long. After all, we want our observations and recommendations to be useful and make a difference while the area we have audited can still be developed."
Your trust in us is important
“The findings and recommendations of a performance audit are compiled and communicated to the Riksdag and the relevant government agencies through our audit reports. When we publish the reports, this information is also made available here on our website, and we produce summaries and press releases that make it easier for citizens to gain insight into how the central government works.
“It is important to emphasise that we are writing our reports for the members of the Riksdag. All of our information is available to you as well. However, we are not looking to shape opinion in support of our recommendations.
“Of course, we have a duty to inform, like all public authorities, and we believe it is important that citizens know what we do within performance auditing. Above all, it is essential for our activities that we have your trust, and that you share our view on the importance of having an independent audit authority in Sweden as a security mechanism in the political chain of command.”
Different methods are used depending on what is being audited. This may range from qualitative methods such as interviews and document studies, to quantitative methods such as data analysis and statistical calculations.