Remerciez-le!

Remerciez @Admin pour avoir partagé cet document gratuitement, de la manière la plus simple, en partageant sur les réseaux sociaux.

Guide to Performance Measure Management 2006 Edition August 2006 Report No. 06-

Guide to Performance Measure Management 2006 Edition August 2006 Report No. 06-329 John Keel, CPA, State Auditor State Auditor's Office John O'Brien, Deputy Director Legislative Budget Board Mike Morrissey, Director Governor's Office of Budget, Planning, and Policy Table of Contents Introduction ………………………………………… 1 What is the Purpose of this Guide? ………………………………………… 1 What’s New in the 2006 Edition? ………………………………………… 2 Section 1: Performance Measures in the Strategic Planning and Performance Budgeting System ………………………………………… 3 Defining the Strategic Planning and Performance Budgeting System ………………………………………… 3 Using Performance Measures in the Strategic Planning and Performance Budgeting System ………………………………………… 3 Progress in Implementing Strategic Planning and Performance Budgeting System Objectives ………………………………………… 6 Section 2: Oversight of Performance Measurement Systems ………………………………………… 9 Expectation of the Governor and the Legislature for Agency Management’s Involvement with Performance Measures ………………………………………… 9 Importance of Performance Measures to Agency Management ………………………………………… 9 Section 3: Performance Measures and Supporting Data ………………………………………… 11 Characteristics of a Good Performance Measurement System ………………………………………… 11 Characteristics of Performance Measures Used in the Strategic Planning and Performance Budgeting (SPPB) System ………………………………………… 11 Process for Developing, Maintaining, and Using Performance Measures Information ………………………………………… 12 Section 4: Performance Monitoring by Oversight Entities ………………………………………… 19 What Agencies Are Expected to Report for Performance Monitoring ………………………………………… 19 How the Legislative Budget Board (LBB) and the Governor’s Office of Budget, Planning, and Policy (GOBPP) Assess Reported Performance Measures Data ………………………………………… 19 How Other Agencies Monitor Performance ………………………………………… 20 How the LBB and the GOBPP Use Performance Measures to Make Funding Recommendations ………………………………………… 20 How Performance Measure Data Is Used to Assess Performance Rewards and Penalties ………………………………………… 21 Section 5: Auditing Performance Measures ………………………………………… 23 State Auditor’s Office’s (SAO) Role in the Strategic Planning and Performance Budgeting (SPPB) System ………………………………………… 23 How Are Agencies Selected for an Audit? ………………………………………… 23 What Are the Steps in the SAO Audit of Performance Measures? ………………………………………… 23 Appendices Appendix 1-Glossary ………………………………………… 41 Appendix 2-Calendar of Performance Measurement Events ………………………………………… 43 Appendix 3-Performance Measure Types, Uses, and Examples ………………………………………… 44 Appendix 4-Performance Rewards and Penalties Provision ………………………………………… 45 Appendix 5-Performance Measures Alternative Certification Process with Internal Auditor Involvement ………………………………………… 47 Appendix 6-Ideal Controls for a Performance Measurement System ………………………………………… 48 Model of Performance Measurement System with Ideal Control Structure ………………………………………… 51 Appendix 7-Selected Online Resources for Performance Measurement-Related Information ………………………………………… 52 Appendix 8-Examples of Performance Measure Definitions ………………………………………… 54 GUIDE TO PERFORMANCE MEASURE MANAGEMENT 2006 EDITION AUGUST 2006 1 z Introduction z 2 20 00 06 6 E Ed di it ti io on n What is the Purpose of this Guide? This Guide has been developed primarily to help agencies gain an overall understanding of the State’s performance measurement system as a part of Texas’s Strategic Planning and Performance Budgeting (SPPB) System. (For purposes of this Guide the term “agencies” includes state agencies, universities, or health-related institutions with statewide jurisdiction in the executive branch of government, unless otherwise noted.) This Guide seeks to: Identify the Governor’s and Legislature’s expectations for agency management’s involvement in performance measures. Explain the role of performance measures within the SPPB System: strategic planning, performance budgeting, and performance monitoring. Provide basic information about performance measures, such as: • How and when changes to measures can be made. • What roles the Legislative Budget Board (LBB); Governor’s Office of Budget, Planning, and Policy (GOBPP); and State Auditor’s Office (SAO) play in performance measurement. • How the Legislature uses measures when developing the General Appropriations Act. Help agencies prepare for SAO measure certification audits by explaining the audit process. Provide agencies with information regarding the importance of using performance measures. The State’s performance measurement system is an integral part of agency and statewide planning and budgeting structures, evaluation and decision-making processes, and accountability systems. As such, it requires close, consistent, and coordinated attention to maintain its integrity and usefulness over time. GUIDE TO PERFORMANCE MEASURE MANAGEMENT 2006 EDITION AUGUST 2006 2 What’s New in the 2006 Edition? The SAO, LBB, and GOBPP released the second version of the Guide to Performance Measurement in 2000. The original version was released in 1995. The 2006 Edition has been updated with the latest information, and it contains expanded sections to give agencies additional guidance on controls over automated systems. The 2006 Edition also includes a new section regarding a performance measure certification process in which agency internal audit departments can choose to participate. Executive management should take special note of Section 2, Oversight of Performance Measurement Systems. Appendix 7 contains a reference list of Web sites that agencies may use to obtain additional information about issues related to performance measurement. GUIDE TO PERFORMANCE MEASURE MANAGEMENT 2006 EDITION AUGUST 2006 3 Section 1: z Performance Measures in the Strategic Planning and Performance Budgeting Systemz Defining the Strategic Planning and Performance Budgeting System The Strategic Planning and Performance Budgeting (SPPB) System is a mission- and goal- driven, results-oriented system that combines strategic planning and performance budgeting into the State’s appropriations process. The SPPB System is used in making state funding decisions based on whether state agencies are accomplishing expected results. The SPPB System has three major components: strategic planning, performance budgeting, and performance monitoring. Strategic planning refers to the process by which an agency develops its strategic plan––a five- year planning document that contains the mission, goals, and objectives the agency seeks to accomplish and the measures with which success is tracked. The General Appropriations Act (GAA) and the agencies’ operating budgets comprise the performance budgeting component of the SPPB System. The GAA functions as the State’s budget by allocating resources and setting performance targets based on the strategies identified by agencies in the strategic plans. The agencies’ operating budgets show a more detailed level of the funds allocated in the GAA and present the agencies’ projected performance. Performance monitoring refers to each Agency’s monitoring of its own performance and submission of performance measure reports to the Legislative Budget Board (LBB) and the Governor’s Office of Budget, Planning, and Policy (GOBPP). Using Performance Measures in the Strategic Planning and Performance Budgeting System Each of the components of the SPPB System is interrelated and involves performance measures as a critical element. Performance measures serve several purposes: They are part of each agency’s strategic plan, indicating how progress toward agency goals and objectives is measured. They are used by decision-makers when allocating resources and determining appropriation levels. They are intended to help focus agency efforts on achieving priority goals and objectives. They are monitoring tools to help guide government and make it accountable to the taxpayer. GUIDE TO PERFORMANCE MEASURE MANAGEMENT 2006 EDITION AUGUST 2006 4 Strategic Planning and Performance Budgeting Develop / Revise Measures and Definitions Develop Performance Projections / Targets Report and Assess Performance Revise Targets and Estimate Performance Budget Implementation Budget Development Performance Monitoring Strategic Planning The three major components of the SPPB System are implemented across four interrelated phases, as shown in Figure 1: strategic planning, budget development, budget implementation, and performance monitoring. Figure 1 SOURCE: Legislative Budget Board The activities listed in the circle represent primary activities related to performance measurement that occur during each phase of the SPPB System. Activities that occur during these phases are discussed next, and the timeline for these activities is shown in Appendix 2. Strategic Planning Phase During this phase, agencies develop their five-year strategic plans, which include performance measures. As part of the plan development process, all modifications to agency performance measures and budget structures must be jointly approved by the LBB and the GOBPP. These budget structures are used as major components of agency strategic plans and form the basis for agency appropriations. Agencies may propose revisions to their strategic planning and budgeting elements, including revisions to performance measures and definitions (e.g., additions, deletions, name changes, and content/definition changes). Agencies with similar operations, universities, health-related institutions, or regulatory agencies use many of the same GUIDE TO PERFORMANCE MEASURE MANAGEMENT 2006 EDITION AUGUST 2006 5 measures. Changes may be collectively proposed by all affected regulatory agencies, universities, or health-related institutions that report performance for the same measure. The strategic plan has been routinely used as a starting point for development of an agency’s budget structure (e.g., goals, strategies, measures, measure definitions, and other items of appropriation). Agencies are encouraged to develop budget structures that are useful and provide sufficient detail to be understandable. The LBB and the GOBPP review requested changes and either accept them or propose alternatives and negotiate with agencies regarding the changes. The LBB and the GOBPP approve negotiated budget structure changes and changes to performance measures and measure definitions prior to agencies’ submitting their Legislative Appropriations Requests (LAR). Other entities also develop additional performance measures for specific purposes during this period. For instance, the Texas Higher Education Coordinating Board (THECB) updates information on performance measures for use by all universities to be included in the master plan for higher education. Performance Budget Development Phase During the performance budget development uploads/Management/ performance-measure-management-guide-to.pdf