# Presentation: 131001

## Budget and Performance Integration

- DOI Business Management Conference Plenary Session
- May 24, 2006
- Dr. Richard Beck, Director of Planning and Performance Management
- John Trezise, Director of Budget

## Agenda

- Overall goal
- OMB-specified objectives
- Status
- Value for us
- Our efforts
- Your role

## Overall Goal

**Practice & Demonstrate:**
**Consideration of achieving greater performance and efficiency in decision making**
**Achievement of results (performance) and increased efficiency**

## OMB-specified objectives

- Promote a more accountable, transparent, and managerially effective government
- Efforts are posted publicly
- _[www.Results.gov](http://www.results.gov/)__ describes progress being made across all the Presidential Management Agenda initiatives_
- _[www.ExpectMore.gov](http://www.expectmore.gov/)__ provides a description of the performance assessment (PART) of government programs; posted as achieving results or not_

## OMB-specified objectives

- Report the full cost of achieving performance goals and accurately estimate the marginal cost of changing performance goals
- Use PART evaluations to direct program improvements, hold managers accountable for those improvements; no more than 10% of programs rated Results Not Demonstrated
- Use PART ratings findings and performance information  consistently to justify funding requests, management actions, and legislative proposals
- Have at least one efficiency measure for all PARTed programs
- Use marginal cost analysis to inform resource allocations
- Improve efficiency each year/achieve efficiency targets

## Status

- Rating
- Progress: Green
- Overall: Yellow
- Shortcomings
- Unable to adequately link incremental changes in performance with changes in funding
- Need to reduce number of Results Not Demonstrated programs to less than 10% (presently 35%)
- lack of performance measures and /or data
- Lack of programs employing efficiency measures

## Value for Us

- Demonstrates our expertise
- planning, managerial, and technical
- concerted effort to reach pre-determined, defined goals
- ability to achieve results with commitment to achieve more
- Conveys information about our pursuits/challenges
- Justifies funding requests in terms of what you produce, not just what you buy
- Quantifying the funding used to accomplish a level of achievement provides a historical justification for future funding requests
- Provides insight into challenges, differences in prices or need
- Provides a basis for comparisons
- Look for efficiencies among regions, programs, etc.
- Compete in tight fiscal environment

## Value for Us

- Increases Credibility
- Demonstrates that we have a organized process for determining our future goals, regularly tracking if we are getting there, and deciding on what we need to adjust to ensure success
- Results, not just activity, is the focus of our efforts
- OMB and other oversight organizations (e.g. GMU Mercatus Center) are interested in the magnitude of our success and understanding the costs of specific achievements

## Our Efforts

- Constructing the framework that brings financial and performance information together
- Activity Based Costing being extended to relate work activities to performance measures
- provides incremental cost/performance information
- Integrate budget and performance planning processes
- Goal performance table requests total-cost and per-unit-cost for each performance measure
- Examine trends for performance-based explanations of funding decisions
- Working to provide funding of performance measures and cost-per-unit of performance from ABC/M

## Our Efforts

- Track progress of bureaus in completing PART follow-up actions and increasing PART scores
- Future
- Bring ABC/M financial and performance module information together with budget formulation information into a single automated system

## Your Role

- Success is dependent upon the involvement of bureaus and programs in
- participating in integrated process-formulation activities
- Financial community
- Activity Based Costing Oversight Team (AOT)
- Performance Management Council
- Budget Officers
- establishing the internal routine processes that collect, examine, assess, and utilize this information during the year
- ensuring accuracy and traceability of financial, performance, and budget information
- ensure programs use performance and efficiency measures, and actively participate in PART process especially follow-up actions
- making this information useful to managers and decision makers
- Make budget and performance integration concepts a part of our everyday business in planning and implementing our programs to better ensure effectiveness and to help ensure the future for our program pursuits