1. Program Performance Reporting and Evaluation in Australia Mark Nizette Department of Finance and Administration October 2001

2. The Reform Agenda n Introduction of a new financial management framework. n Introduction of workplace reform n Introduction of an outcomes and outputs accrual based budgeting and reporting framework (the framework).

3. Finance’s Changing Role n Finance sets policy direction and standards. n Agencies are now more accountable for their own resource management and reporting. n from central control to guidance n greater strategic input to Government

4. Australia’s Framework

5. Performance Reporting Under Outcomes & Outputs PLANNED (Portfolio Budget Statement) ACTUAL (Annual Report) Performance Information

6. Performance Reporting to Parliament 2000-01 Appropriation Bill Annual Report 2000-01 outcome 1 $ outcome 2 $ outcome 3 $ Portfolio Budget Statement 2000-01 PLANNED outcome 1 $ Q # output a output b output c outcome 2 $ outcome 3 $ ACTUAL outcome 1 $ Q # output a output b output c outcome 2 $ outcome 3 $

7. Key Performance Features n Reporting against OUTCOMES n Accrual Accounting n ADMINISTERED ITEMS and OUTPUTS contribute to outcomes n Costing and Reporting information systems are critical

8. Elements of Performance Reporting: Efficiency n Characteristics of outputs n Quality –e.g., timeliness, performance to specs n Quantity –e.g., number of contracts n Price –full price agreed with government

9. Elements of Performance Reporting: Effectiveness n Contributions/impact of outputs and/or administered items on the outcome n Expressed in terms that relate directly to the outcome statement n Integral to outcomes to reflect overall performance

10. Performance Management Principles n Purpose well formed conclusions sound decision making n Balance and Clarity concise basket of information n Strategic Focus with early warning signals n Targets benchmarks, stretching

11. Performance Management Principles n Outcomes impact on the community n Outputs quality, quantity and price n Administered Items more difficult to measure n Continuous Improvement evolve with experience and knowledge

12. Conclusions n No easy solutions n Direct link between appropriation and outcome n Look for similarities as well as differences n One size does not fit all n Information systems are vital