Gold Standard Meetings for State and Local Governments: Paving the Way for Enhanced Collaboration
During the course of the pandemic, an innovative collaborative approach known as “Gold Standard” meetings emerged at the federal level. These meetings, which fostered transparent and proactive communication between Federal Inspectors General (IG), agency leaders, and the Office of Management and Budget (OMB), became instrumental in shaping new and expanded programs under the American Rescue Plan. The primary motive was simple yet powerful: incorporate the expertise of the IGs at the inception stage, thereby striking the right balance between efficient results and risks related to fraud, waste, and abuse. All the while still respecting the independence of the IGs. This innovative strategy, having proven its worth, was institutionalized by OMB M-22-04, solidifying its importance in government operation.
Given the demonstrated success at the federal level, it is imperative that state and local governments consider adopting this approach. Here's why:
Striking the Balance Between Efficiency and Oversight: At the heart of the Gold Standard meetings lies the core principle of achieving outcomes without compromising on accountability. As state and local governments grapple with the challenges of delivering services efficiently, especially in times of crises, incorporating the expertise of their audit organization from the outset can help ensure that public funds are used judiciously.
Leveraging Expertise: Audit organizations possess a deep understanding of the intricacies of government operations, potential pitfalls, and best practices. By engaging them during the program construction phase, agencies can benefit from this knowledge, which can help in foreseeing challenges and formulating strategies to address them.
Reducing Post-implementation Hurdles: Often, significant challenges arise post-implementation, leading to inefficiencies, public criticism, and sometimes, the need for restructuring. Engaging in proactive collaboration can reduce the likelihood of such challenges, ensuring smoother program rollout and operation.
Adapting to Changing Realities: In today's rapidly changing world, governments at all levels need to be agile and adaptable. By having a framework that promotes early-stage collaboration, state and local governments can ensure they are better equipped to pivot as required, incorporating feedback and making adjustments in real-time.
Respecting Independence: The Gold Standard meetings, while promoting collaboration, do not compromise the independence of IGs. This balance ensures that while IGs offer their expertise, they can still maintain their role as objective overseers, providing unbiased assessments and recommendations.This same level of respect must carry forward to heads of state and local audit organizations.
As we endeavor to deepen our commitment to transparency, accountability, and collaborative governance, it's essential to equip ourselves with the right tools to facilitate meaningful dialogue. Gold Standard meetings have emerged as a beacon of proactive collaboration between agency leaders and IGs. To maximize the efficacy of these meetings, having a robust set of guiding questions is paramount. The following list of questions is designed to stimulate comprehensive discussions, ensuring that the collective expertise in the room is harnessed to its fullest potential during the program design phase.
Gold Star Meeting Discussion Questions
What controls/mitigation strategies are being used to mitigate fraud and improper payments?
What are the statutory or regulatory eligibility requirements of the program/funding, and how will the requirements will be verified prior to payment?
What mechanisms will you employ to authenticate the identities of fund recipients?
What risks have been accepted to achieve the goal of quickly reaching recipients that could potentially lead to fraud, waste, abuse, or mismanagement after distribution of funds?
How have the program's primary objectives been defined to both guide its design and measure its efficacy?
What controls are the agency putting in place for recipient monitoring and accurate financial reporting?
Post-disbursement, what kind of program performance assessment will be conducted, and who bears the reporting responsibility — the recipient or the agency?
What steps is the agency planning to take if the program performance assessment indicators show risks?
The Gold Standard meetings, while born out of immediate necessity at the federal level, offer a blueprint for enhanced collaboration, transparency, and efficiency for state and local governments. As these governments often operate closer to the public, ensuring the judicious use of funds, rapid response to changing realities, and fostering public trust is paramount. By adopting such a model, state and local agencies can pave the way for a governance model that is both efficient and accountable.
To learn more about innovative ways to promote collaboration and efficient governance, please check out our video course on agile oversight for government auditors where we discuss how to implement agile practices in an audit office and look at case studies of offices who have done so successfully.