Bhutan , April 27-29 , 2005

1. The experience of the Accounts Chamber of the Russian Federation in application of the Data Envelopment Analysis methodology and CAATs for non-financial audits Accounts Chamber of the Russian Federation A.A.Piskunov, the Auditor of the Accounts Chamber of the Russian Federation Bhutan, April 27-29, 2005

2. Forming a complex assessment of the efficiency of bodies, objects and management processes (Figure1) Estimation of Performance audit criteria Corrective effects Parliament Evaluation of Performance audit indices Government Efficiency indices Administration bodies Results of financial audit Efficiency estimationof Controlled objects DEA Процессы управления Financial audit efficiency Objects under management DB Results of financial audit Controlled objects Performance audit

3. The Data Envelopment Analysis (DEA) methodology The essence of the DEA technology consists in studying the object with multiple input and output parameters and analyzing its activities in the interaction with functioning environment The benefit of this approach consists in the possibility of system correlation of dissimilar factors affecting entity management decision making, thus essentially improving the evaluation of its performance

4. Sections of production potentialities set in 3D space(Figure2) Variable 1 Object, relatively to which the projection planes are built up “Production function” Object located outside the projection plane объект Variable 2 variable 2 + variable 3 = constant Variable 3

5. Analysis of companies’ efficiency in a model with one input and one output index(Figure 3) Efficiency index Y Pareto optimal objects Pareto optimal efficiency surface X4 Y4 X3 Y3 Objects set X2 Y2 X5Y5 Object under study X1 Y1 Optimization trend X Factors

6. The DEA technology allows: • To determine the quantitative measure of the object efficiency, i. e. the distance from the efficient boundary • To determine the reference objects for each inefficient object • To find the optimal directions of efficiency improvement • To determine the stability zones of an object, i. e. the areas of parameters (X,Y), where the regarded object does not change its status (either efficient or not) • To monitor the dynamics and reveal the trends in the object development

7. Dynamics of ratio between the volume of collected revenues and primary factors, affecting the revenue potential, Volgograd Region(Figure 4) Pareto maximum function, 2000 Pareto maximum function, 2003 Revenue collected in the Region into the budgets of all levels, per capita Volgograd Region The Southern Federal District Production volume of basic industries of the economy per capita; average monetary incomes (monthly mean) per capita

8. Dynamics of ratio between the volume of collected revenues and primary factors, affecting the revenue potential, Kabardino-Balkarian Republic(Figure 5) Pareto maximum function, 2000. Pareto maximum function, 2003 Revenue collected in the Region into the budgets of all levels, per capita Kabardino-Balkarian Republic The Southern Federal District Production volume of basic industries of the economy per capita; average monetary incomes (monthly mean) per capita

9. Section of the function of maximum collected revenues for Volgograd Region(Figure6) 4 3,5 3 Pareto maximum function, 2000 2,5 2 Revenue collected in the Region into the budgets of all levels, per capita Pareto maximum function, 2003 1,5 Volgograd Region 1 0,5 0 0,5 0 0,5 1 1,5 2 2,5 3 3,5 4 4,5 Line of constant sum of production output of basic industries of the economy and population income (per capita)

10. Section of the function of maximum collected revenues for Kabardino-Balkarian Republic(Figure7) 4 3,5 3 Pareto maximum function, 2000. 2,5 2 Pareto maximum function, 2003 Revenue collected in the Region into the budgets of all levels, per capita 1,5 Kabardino-Balkarian Republic 1 0,5 0 0,5 0 0,5 1 1,5 2 2,5 3 3,5 4 4,5 Line of constant sum of production output of basic industries of the economy and population income (per capita)