Performance Measurement and Service Efforts and Accomplishments 15% Flashcards
What is the object of the government?
Provide goods and services that will aide its citizens.
Example State and Local government Performance Measurement
The lane mines of roadway paved
Example Federal government performance measurement
The amount of people who no longer smoke tobacco
Reasons for Performance Measurement
2 Primary reasons
A. Legislative requirements that enforces the goods must be performed using quantifiable measures. This data will be recording into a report.
B. enforces government accountability when delivery of goods and services to its citizens.
Secondary
C. Ability to communicate with its citizen ( via internet) for approval, request services and complaints.
The Three uses for Performance Measurement
- Demonstrate Accountability
- Inform the Budget Process (Political Influences)
3.Drive Performance Improvement
A. Economy- using less resources (cost) to get the job
done right.
B. Efficiency- using less resources (to produce the
goods and services) to get the job done right.
C. Effectiveness- achieving desired outcomes with the
use of resources.
D. Equity- its citizen can full and fair opportunity to
obtain the government resources
The three major performance measures categories
- Service Efforts- Inputs Financial and Non-financial efforts.
- Service Accomplishments- Outputs and outcomes
- Measurement that relate the service accomplishments to the service efforts included efficiency (or Cost-efficiency)
Measures of Service Efforts
Inputs measures (efficiency measure)- the amount of resources used to provide a service, good or a government program.
Financial Efforts- expressed in total dollars
Ex. Cost per pupil in the public school system
Non-Financial Efforts- expressed in the number of resources needed to provide a service or to create a program.
Ex. The number of teacher per public school classroom
Measures of Service Accomplishments
Output measures (Cost-effectiveness)- measures the amount of services provided to a good, service, produced to create a program. (total and population) Ex. Number of students graduated from high school
Output should be confused with activity or a workload measures. ex. Number of crimes reported
Outcome measures- measures of the results associated with the outputs or other provision of services or goods. (expressed in percentages, and the benefit)
Ex.Number of public school children graduate high and college and is gainfully employed after 1 year after obtain a degree.
Outcome are complicated because its measures are hard to calculate when the outcome is depended on personal and economically reasons that does not have government control. ex. its up to the student to go class to receive the government benefits that will allow then to graduate from high school.
Interim Outcome Measures
Outcome that is expected to lead to a desired end but its not real end result of the measurements. ex. Interm- The goal is the ensure the children go to class and pass to obtain the high school diploma.
Surrogate Outcome Measures
Situational when actual outcomes is too difficult and too far in the future to measure.
ex. The number of student took the SATs and number of students passed 12th grade English.
Customer Satisfaction Outcome Measures
measurement to obtain the true feelings/reaction from the citizens and how they feel about the goods and services. This measurement is only valid if done randomly and scientific.
ex. random and scientific paper, internet and telephone surveys,
Logic Models
Graphic representation or picture of an idea how a program should work.
model:
Planned work:
1. Resources/ Inputs (Money per student for the school books, supplies, food ect. and number teachers)
2. Activities (teaching students and establishing benchmarks- high and post high requirements)
Intended results
- Outputs (Student graduates from highschool)
- Intermediate Outcomes ( completes benchmark which includes college, military and workforce training)
- Final Outcomes. (student graduates from high school and satisfied post high school requirements to obtain a job with six months after graduations
Measures that relate service accomplishments to service efforts ( cost efficiency)
Inputs (cost efficiency measures)
ex. cost per student graduate
the number of hours student are require in school to graduate high school that obtain passing grades.
Outcomes( cost effectiveness measure)
cost per student that graduate high school and college and are gainfully employed for a year. Direct and indirect cost is a major factor in determining cost effectiveness other factor must be taken in consideration.
Context or environment measures
Identifies the number of the government’s population that needs a certain government service.
Ex. The population of children from the age of 3 to 18 that needs education in the government school system.
workload measure ( amount services needed)- number of children enrolled in the government school system.
Process measure(how the resources will be executed) -class size and student to teacher ratio
Activity measures(report card)- number of children received proficient reading and math scores.
Explanatory Information
Is a quantitative narrative ( internal and external factors) that aids users understand the reported measures and results to understand the entities performance. The information must be UNDERSTANDABLE!
Seven Characteristics of Performance Information
- Relevant- measurement must be logical relationship to the entity performance goals and objectives ( mission and purpose). Must be related to the program. Surveys from the public can place where the potential issues are relevant.
- Understandable- requires that the number of measures used be balanced between conciseness and comprehensiveness that is readily understandable by any reasonably informed and interested person.
- Reliable- system generate data that is verifiable or obtain sourcing from government approved credible sources. This information should be free from bias.
- Comparable- the ability to compare time period within the program and program with related goals to measure performance.
- Consistent- measuring and reporting the same performance data in the some form and same period. changes can happen but they need to be communicated in advance to users.
- Timely- Measuring the measurements frequently on time and able available in a timely matter.
- Actionable- able to pin point whether corrective actions/ outputs are needed that can affect the outcome of the goals.
Sources of Performance Data
The sources of performance data should be evidence based using citizen surveys, third party data, accounting system, routine record keeping and management reporting system, physical testing and trained observer surveys.
Limitations of performance measurements
The three limitations of performance measures are the following:
- Need for More Than One Indicator- Balance score card.
- Cause and Effect not always evident- reason for the positive or negative results of a outcome is easy identify. Outputs and outcomes must link.
- Performance Measures are still in the formative stage.
Service Efforts and Accomplishments
The FASB recognized non quantified and quantified and non financial to measure an entity performance. This information concluded that classifying the measures as service efforts measures, service accomplishments measures, and measures that related the service efforts to the service accomplishments.
GASB Issuance Service efforts and accomplishments reporting concepts number 2
Linking financial reporting and government accountability. GASB suggests State and local governments track performance. However, its not mandatory unless is mandatory in statue.
GASB issued (2003) Suggested Criteria for Effective Communication with the public and elected officials
- Purpose and scope
- Major goals and objectives
- Involvement in establishing goals and objectives
- Multiple levels of performance details
- Analysis of results and challenges
- Focus on key measures
- Reliable Information
- Relevant Measures
- Resources used and efficiency
- Citizen and customer perceptions
- Comparisons for assessing performance
- factors affecting results
- Aggregation and Disagregation
- Consistency
- Easy to find, access and understand
- Regular and timely reporting
What is service efforts and accomplishing reporting according to GASB?
Service efforts and accomplishments (SEA) reporting is a form of general purpose external
financial reporting that is intended to include information about the services provided and the
effect of those services to assist users in assessing the degree to which the government is
achieving its program or government-wide goals. The objective of SEA reporting is to assist
citizens, elected officials, and other interested parties (collectively referred to as “users”) in
assessing the performance of services provided.
Why is SEA reporting important for governments and their constituents according to GASB?
The primary purpose of a government is to help maintain and improve the well-being of its
citizens by providing services. Traditional financial statements provide financial performance
information about a government’s fiscal and operational accountability. However, those
financial statements do not provide all of the information necessary to determine the degree to
which the government was successful in helping maintain or improve the well-being of its
citizens. Without SEA performance information, it is difficult to know how efficiently government
services were provided and how effective those services were in helping the government to
achieve its goals. The objective of SEA reporting is to provide users of governmental financial
reports with just this kind of information.
What has the GASB done regarding suggested guidelines?
The Suggested Guidelines describes the four essential components of an effective SEA report
and the six qualitative characteristics that SEA performance information needs to possess, and
includes a section on how to effectively communicate SEA performance information.
The four essential components of an SEA report identified in the Suggested Guidelines are:
Purpose and scope—Why is SEA performance information being reported and what portion
of a government does it relate to?
Major goals and objectives—What are the major goals and objectives of the programs and
services being reported or what is government intending to accomplish?
Key measures of SEA performance—What are the key measures most important to readers
that reflect the governments achievement, or lack thereof, of their major goals and
objectives?
Discussion and analysis of results and challenges—What factors affected the level of
achievement of results, and what is the government’s plan for addressing the challenges of
the future?
The six qualitative characteristics—comparability, consistency, relevance, reliability, timeliness,
and understandability—are those expected of all information in general purpose external
financial reports according to GASB Concepts Statement 1and Concepts Statement 2.
The section on how to effectively communicate SEA performance information recognizes the
importance of considering the intended audiences of an SEA report, the level of reporting
necessary to meet the needs of the intended audience, and the forms of communication most
appropriate for the intended audience.
In addition, the document offers an appendix with illustrations for each of the essential
components and qualitative characteristics, which are designed to enhance the understanding
of the Suggested Guidelines. The illustrations are included for demonstrative purposes and do
not represent the endorsement by the GASB of any particular measure or method of
presentation.
