Beruflich Dokumente
Kultur Dokumente
Analysis
Dr Ravikant Joshi
Local Government Financial
Management
Accounting Managing Performance Asset Management
Performance Measurement
Framework
Evaluating Financial Financing of Managing
Procurement
Financial Policy
Making
Financing of Managing
Capital Capital
Investment Investment
Financial Planning
Plan Plan
Citizens’ Participation
Conceptual Framework of
Performance Measurement
Need to be based on a consistent and universally
accepted set of definitions of
various resources that go into the process of service
delivery entities that are involved in the delivery process,
(input)
the work that is to be done (workload)
results that are generated (outputs)
Impacts, consequences or effects that are generated by the
output of the program at the individual and societal level,
in the short run and in the long run, obviously including
side effects (outcomes)
Conceptual Framework of
Performance Measurement
Broad Classification (input, workload, output,
outcome) differs from entity to entity, program
to program
Output of one becomes input of others
Ratio of input to output = efficiency
Ratio of output to input = productivity
But these ratios to be used with caution as
they can enhanced or reduced
Performance Indicators
Definition
The word indicator means ‘pointer’ to a desirable
outcome.
“Systems of quantifiable elements or numerical
ratios to measure certain aspects of the input of
public entities, their operation and their results”.
Indicator is a way to measure, indicate, point out or
point with more or less exactness.
Indicator is something used to visualize the
condition of the system.
Uses of Performance Indicator
Systems
Respond to officials’ and public’s demand for accountability.
Help to articulate and demand for budgetary allocations
Allocate resources efficiently and raise funds
Examine reasons for failures and successes and suggest
remedies
Motivate personnel to continue improvement
Monitor the role of contractors and other grantees
Support strategic and other long term planning (by providing
initial information and later tracking the process)
Evaluate programs
Most importantly help to provide better services.
Build public trust and communication
Types of Indicators
Input
Amount of resources within the Efficiency
program
Input ratio by output
Output produced
Amount of goods and services
rendered Efficacy
Out put ratio by results
Results/Outcome unit
Direct results amount
Relevance
Results ratio by impact
Impact unit
Debt Service Net direct debt service / Net OpIncrease indicates excessive
Rev fiscal strain on LG
Overlapping Long-term overlapping bonded Increase indicates dependence
Debt debt / Assessed valuation on other repayment sources
Examples- Unfunded Liabilities
“An unfunded liability is one that has been incurred during the current or a
prior year, that does not have to be paid until a future year, and for which
reserves, or funds, have not been set aside.”
Median Age Median Age Increasing median age of population indicates greater
expenditure
Personal Income per Capita Personal Income/ Population Decline indicates drop in purchasing power
Poverty Households Poverty Households/ Households in Increase indicates greater public assistance receipts
thousands
Property Value Change in property value/ property value in Decline indicates drop in market value
prior year
Residential Development Market Val of new residential dev/ Mkt val Increase indicates greater expenditure demands
of total new dvpt
Vacancy Rates Vacancy Rates Increase indicates sluggish economy
Employment Base Local unemployment rate Increase indicates overall economic decline