Our performance audits provide systematic, independent evaluations of operations to assess resource efficiency and effectiveness. For over four decades, we have established ourselves as leaders in delivering comprehensive, results-driven performance audits that meet our clients’ expectations and government auditing standards.

Our audits encompass virtually every functional area of government operations, including enterprise services (ports, airports, utilities, transit systems, hospitals) and core services (finance, public safety, human services, information technology, human resources, public works). All audits are conducted in strict accordance with Generally Accepted Government Auditing Standards (GAGAS) established by the U.S. Government Accountability Office.

Performance or management audits incorporate:

• Cost effectiveness assessments
• Organization structure analysis
• Program performance and workload evaluations
• Process reengineering
• Assessment of compliance with applicable Federal, State, and local laws and policies
• Service level assessments
• Space utilization analysis
• Information technology assessments
• Internal control assessments

The benefits of performance and management audits include:

• Reduced operating costs
• Increased productivity
• Reduced process cycle time
• Improved service levels
• Improved management controls and performance measurement
• Better use of information technology
• Appropriate staffing levels
• Enhanced internal controls

Budget analysis provides a comprehensive, independent assessment of proposed expenditures and revenues. We conduct multi-year analyses by cost center and line item to deliver objective evaluations of fiscal requirements, budget proposals, and provide cost-effective alternatives for executive and legislative consideration.

Our financial analyses assess organizational financial position, including fund balances, reserves, cash flow projections, and revenue forecasting to support informed fiscal decision-making.

Budget and financial analyses include:

• Budget analysis
• Assessments of financial condition, financing plans and debt management
• Internal service fund analyses
• Activity cost analyses
• Financial modeling and projections
• Prospective financial analyses
• Revenue enhancement analyses
• User fee/cost recovery analyses
• Utility rate analyses
• Analyses of contracting for services

The benefits of budget and financial analyses include:

• Evaluation of appropriateness of planned expenditure levels
• Identification of revenue enhancement opportunities
• Assessment of financial position before embarking on a multi-year capital project, program expansion, or a change to labor agreement
• Identification of excess fund balances or reserves
• Identification of inadequate reserves for future costs

HMR provides arbitration support and expert witness services for law firms and local government jurisdictions. We leverage our expertise to provide operational and fiscal analyses of local government operations. Our work may also support criminal proceedings in cases involving alleged embezzlement and fraud involving public funds.

HMR has served counsel and local government jurisdictions in matters including:

• Property tax impacts of annexations and reconfigured jurisdictions
• Department staffing needs and costs
• Municipal incorporation property tax transfer analyses
• Assessing the financial condition of government entities
• Retirement funding analysis
• Analysis of appropriateness of user fees
• Assessing compliance and fiscal impact of state mandates

Pension studies evaluate the overall financial condition of public pension and retiree health plans and assess key plan attributes in order to identify: opportunities for improved financial stability; mechanisms for reducing costs for both plan sponsors (e.g., cities and counties) and members; and, strategies for modifying plan design to lessen the impact of dramatic fluctuations in resource demand.

Pension studies incorporate:

• Assessments of current and historic assets, liabilities, funded ratios and other key indicators of financial status
• Analysis of plan sponsor funding policies and practices
• Evaluation of plan features and options, including comparisons with best practices of other public pension plans
• Review of plan actuarial assumptions, which are key to estimating the value of plan assets and future liabilities
• Analysis of compensation and retirement benefit components of memoranda of understanding with employee organizations

The benefits of pension studies include:

• Identifying strategies for achieving long-term financial stability
• Identifying options for reducing costs to plan sponsors and members
• Identifying options for more equitable cost sharing between the plan sponsor and employees
• Conducting comparative benchmarking of plan attributes and performance

Policy and legislative analyses can include the independent review of proposed legislation, the implementation of existing policies, and general policy questions. For proposed legislation, these reviews can assess the fiscal impact to jurisdictions, analyze the comprehensive proposal behind the legislation, and provide sensible recommendations for improvement. The analysis of implemented policies can evaluate the implementation of ordinances, laws, and regulations for efficiency and effectiveness.

Policy and legislative analyses may include:

• Fiscal analysis of legislation and of related contracts, financing plans, and debt management
• Comprehensive evaluation of prospective revenue and expenditures associated with proposed legislation
• Analysis of implemented policies, such as evaluating program goals and outcomes and cost-benefit analysis
• Analysis of general policy questions or ideas, including surveys or benchmarking, if appropriate

The benefits of policy and legislative analyses include:

• Verification of the appropriateness of the expenditure levels associated with proposed legislation
• Confirmation of the thoroughness of the proposed legislation and recommendations for improving efficiency and effectiveness
• Assessment of a project’s financial position before committing funds
• An understanding of the efficiency and effectiveness of existing policies with recommendations for improvements

We provide expert analysis on staffing levels and mix, staff allocation, compensation, turnover, training, vacancies, and recruitment efforts. Our assessments address high turnover, excessive overtime costs, and service delivery gaps. A HMR human resource assessment can help agencies make decisions regarding: the level and mix of staffing; staff allocation; compensation; turnover; training; vacancies; and the employer’s recruitment efforts, performance evaluation systems, and administration of benefits.

Human resource assessments can include:

• Staffing analyses
• Turnover and vacancy analyses
• Compensation surveys
• Employee surveys
• Benefits and retirement assessments
• Review of personnel policies, systems and procedures

The benefits of human resource assessments include:

• More efficient use of existing staff
• Improved staff retention
• Identification of market rate salaries and benefits
• Updated personnel policies and procedures
• More meaningful performance evaluation systems

Strategic planning clarifies an organization’s mission, mandates, and values and vision for the future. HMR can help your agency assess internal strengths and weaknesses, as well as external opportunities and impediments. We will work with you to develop an action plan to achieve your organization’s objectives.

Strategic planning engagements can include:

• Development of organizational strategic plans
• Information systems strategic planning
• Review of strategic plans and monitoring systems
• Financial modeling and projections

The benefits of strategic planning include:

• Developing a vision of the organization shared by management, staff, governing bodies, and other stakeholders
• Developing a specific plan for the future with concrete measurements in place
• Better measurements of management performance
• A link between organization objectives and the allocation of funding and other resources