In addition to accurate reporting of actual performance, agencies should also report explanations when actual performance of key measures varies 5 percent or more from targeted performance. These explanations are intended to describe the circumstances that cause the agency's actual performance to deviate from its performance targets. Explanations of variance should include information on how an agency intends to address the variance from targeted performance. Variance explanations provided by operational staff often contain important details that are missing if the explanations are drafted solely by budget or performance data staff. Explanations of variances are permitted and are sometimes useful even when the variance is less than 5 percent.
Management reviews help ensure the accuracy and relevance of variance explanations.
Agencies are encouraged to update reported performance information as often as necessary. Agencies are asked to provide explanations of updates to explain the reasons for any change in previously reported data. There is no limit on how long actual data can be updated after it has been reported or how many times it may be updated. The GOBP and other entities use variance data to analyze the agency's performance or assess risk within the agency. Performance data assessments are reported regularly by the LBB to oversight bodies.