1. 1 VLGAA Telling Your Story Measure What You Manage thru Performance Reporting Julie V. Bryant, MBA, CPA, CGFM AGA: Director of Performance Reporting May 2, 2006

2. 2 AGENDA Historical Perspectives Putting it all together Performance Reporting Issues AGA’s Role in Performance Reporting

3. 3 Historical Perspective Countries first 250 years focused on Budget Execution Now Budget Execution is supplemented with reliable financial and program information Now not only managing cash flow Managing for program results

4. 4 Historical Perspective (cont.) Program managers always worked hard to achieve results Financial managers always worked hard to record financial events Budget managers always worked hard to fund programs that were consistent with President’s Management Agenda

5. 5 Putting It All Together By merging all of this hard work and reliable information managers can make informed decisions Moving from anecdotal evidence to solid verifiable evidence Leading towards working as a management team

6. 6 What really is Performance and Accountability Reporting Performance and [SEA] Accountability [end game] Reporting [CEAR] Federal Government got right –Completeness –Reliability or Auditability GASB got right –Relevance –Readability

7. 7 AGA’s Role Strong proponent for accountability –Mission Statement: AGA serves government accountability professionals by providing quality education, fostering professional development and certification, and supporting standards and research to advance government accountability. CFO Council initially requested AGA to review Federal agency Performance and Accountability Reports—CEAR Program Sloan Foundation request to consider similar program for state and local governments

8. 8 Service Efforts and Accomplishments Reports SEA

9. 9 Suggested Criteria for Service Efforts & Accomplishments Report GASB’s Focus on Managing for Results –Strategic Planning (planning for results) –Program Planning (planning operations) –Developing meaningful performance measures –Budgeting for Results –Collecting/using information to manage –Evaluating and responding to results –Reporting Results (accountability)

10. 10 Three Categories of Suggested Criteria The external report on performance The performance information to support Communication of the performance information

11. 11 External Report on Performance Purpose and scope Major goals and objectives statement Involvement in establishing goals and objectives Multiple levels of reporting Analysis of results and challenges Focus on key measures Reliable information

12. 12 Relevant Performance Information Relevant measures of results Resources used and efficiency Citizen and customer perceptions Comparisons for assessing performance Factors affecting results Aggregation and disaggregation of information Consistency

13. 13 Communication of the Performance Information Easy to find, access, and understand [AGA guidelines are broken into two parts A and B] Regular and timely reporting

14. 14 Additional Guidance Primarily for Preparers GASB’s suggested criteria and AGA program are intended for reports of performance issued to the public. If a report is not made available to the public, it can be reviewed and recommendations provided, but a Certificate will not be awarded. Reports submitted for review should be complete, final copy of the report as issued to the public. Parts of reports or photocopies cannot be reviewed effectively. Summary reports can be reviewed in conjunction with the full report, provided reports refer to each other. Reports that are available only on the Internet can be reviewed, provided organization submits the report on a CD-ROM. Reports prepared by organization’s auditor, rather than management, will be reviewed using the same criteria and guidelines. Organizations submitting a report for review can, but are not required to submit a completed copy of the Guidelines noting pages on which each criterion has been addressed.

15. 15 Noteworthy Features Summary each year of positive items raised by reviewers –By Criteria –By submitting entity

16. 16 Recognition from the Two Certificate of Excellence Programs One program for Federal reports –CEAR –Certificate of Excellence –Presented at Ceremony—black tie dinner Another program for state and local reporting –SEA –Certificate of Achievement (for now) –Presented at Annual Performance Management Conference Awards Luncheon

17. 17 Performance Reporting Issues Preparers Readers Analytics Availability Accuracy or precision Cost/Benefit

18. 18 Preparers Who can prepare the most balanced and credible reports –Agency Head [tone from the top] –CFO –Program Managers [managing for results] –Budget office [setting public policy] –Independent Office –Auditors [appraisal]

19. 19 Readers Program Managers [MFR] Division Directors [MFR] Agency Head [MFR] OMB [public policy] Congress [Authorizers, Appropriators] Citizens [interest varies by demographics] Others [other countries, regulators]

20. 20 Analysis So what does it mean? –Federal government No comparables, Relies on trends and targets No citizen input –State and Local Some comparable jurisdictions No one size fits all, defining measures i.e. college town versus coal town

21. 21 Availability Internal Management: ad hoc External –Newspapers –Official printed reports –Web [easily found not buried] –Soft copies

22. 22 Accuracy vs Precision Results stated as point estimate Results stated as high-low Results stated as range Results disaggregated Use of estimates in performance data

23. 23 Cost/Benefit Currently at fairly high cost What are the benefits? –Program managers: operating decisions and personnel appraisals –Budget managers: justifications –Citizen Accountability???????

24. 24 Accountability Answering to taxpayers/citizenry May lead to public debate Understanding of consequences of public policy and operating decisions Implementing elected officials’ decisions made on their behalf…compliance with laws and regulations

25. 25 Open for discussion Guidelines available on www.agacgfm.org/performance Or Contact Julie V. Bryant jbryant@agacgfm.org jbryant@agacgfm.org or 703-684-6931 ext 307