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State audit finds Commerce lacks statewide economic development strategic plan; recommends stakeholder-driven targets and contract performance provisions
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Summary
The Washington State Auditor—s office told JLARC that the Department of Commerce—s Office of Economic Development and Competitiveness lacks a statewide economic development strategic plan and shows inconsistent performance management across programs.
The Washington State Auditor—s office told JLARC that the Department of Commerce—s Office of Economic Development and Competitiveness (OEDC) lacks a statewide economic development strategic plan and that performance management across its 16 programs is inconsistent.
"We found the division has opportunities to better plan for and measure progress on its economic development efforts," Carolyn Cato, senior performance auditor, said during the presentation. Auditors examined six programs in detail (one from each of OEDC—s six units) and reviewed vendor contracts and grant agreements.
Auditors identified four areas of leading practice: develop a statewide strategic plan with stakeholder engagement and an assessment of internal and external factors; monitor and communicate progress toward goals and revise plans as conditions change; ensure program-level goals and performance measures align with the strategic plan; and include performance provisions in contracts and actively monitor contractors.
The audit found most programs had goals and many set objectives, but only about half clearly outlined performance measures and targets; only three of six reviewed programs tracked outcomes and published high-level results. Auditors recommended Commerce involve stakeholders (including regional economic development organizations and higher-education and workforce partners), establish measurable objectives and targets, adopt a performance management framework, and include measurable deliverables, payment ties to outcomes and tracking tools in contracts.
Keith Swenson, deputy assistant director for OEDC, told JLARC the division agrees with the findings and has already begun work. Swenson said Commerce plans to hire an assistant director to oversee development of a statewide economic development strategic plan and aims to complete the division-level plan by mid next year, aligning it with the agency-wide strategic plan. "We are very much in support of this," Swenson said, and described stakeholder engagement and a living-plan approach that can be updated regularly.
Auditors cited examples from other states (including Oregon and New Mexico) that provide concrete models: New Mexico aligned program-level training goals to the statewide plan with clear measures and targets; Oregon used SWOT analysis and a broad engagement process. The auditors recommended Commerce use these examples to design a plan with short- and long-term outcomes, communication milestones, and an annual review process.
JLARC members responded positively and suggested Commerce return with progress updates as the plan is developed and implemented. The auditors recommended Commerce—s program-level changes include standard performance measures, contract language tying payments to deliverables, and an online monitoring tool to track contractor compliance and outcomes.
