This study investigates the factors that impact successful performance management in government internal audit units. Studies show that besides formal compliance with statutory and administrative mandates such as compilation and reporting, public sector performance measures are not utilized for managerial decision making, budgetary allocation and accountability. The National Performance Management Advisory Commission has identified in the Performance Management Framework for State and Local Government, activities that constitute key factors for sustaining performance management. Using 2012 benchmarking data from the Association of Local Government Auditors, this study analyzed the extent to which the uses of government internal audit performance reports, as well as audit performance of the activities identified as key factors in the above-mentioned framework, impact successful audit performance management. Results show that successful performance management is a function of audit oversight body’s commitment, audit staff accountability, availability of adequate resources, as well as the use of audit performance report to monitor achievement against performance objectives, and to coordinate efforts within government. The results also generally confirm both the literature on the low utilization of performance measures and many key factors outlined in the performance management framework.
Voluntary Implementation of Performance Measures: The Case of Japanese Local Government