IBRAHIM AMMAR

MN:106967
Measuring and reporting performance

CPA Congress Annual research Lecture

Andrew Greaves , Victorian Auditor- general summary of Lecture

An audit discovered a substantial information gap concerning whether government

services in Victoria are producing any results. After noting "severe and chronic" flaws in
performance reporting by government agencies over the previous 20 years, the
Victorian auditor general has called for a "root and branch review."

According to Auditor General Andrew Greaves, there is a major vacuum in essential

information regarding whether government service delivery is meeting expectations.
"Without information on result attainment, the government lacks a credible basis for its
future investment and policy decisions," he adds.

The audit looked at the state government's eight departments, which oversee a budget
of more than $78 billion, and focused on treasury and finance (DTF), Education, and the
old DHHS as case studies. It discovered that departments do not completely comply
with the DTF's Resource Management Framework, do not monitor service efficiency or
effectiveness, and do not offer performance information in a meaningful way.

The analysis discovered hazy objectives, a lack of baseline data, and a proclivity to
assess services supplied rather than what those services achieve. It also discovered
flaws in how departments report their results in Budget papers, such as data gaps and a
lack of explanations for variance in outcomes. “Departments do not measure or report
on their performance well,” Mr Greaves said.

“This diminishes accountability for departmental service delivery and makes it difficult
for parlia“We continue to find the same issues whenever we examine departments’
performance reporting. This indicates that there is a need for a substantial review of the
performance reporting framework.”mentarians and Victorians to identify what is working
and what needs to improve.
Performance reporting has good practice

According to the Western Australian Auditor General, key performance metrics of

agencies are typically properly managed and reported, although there is space for
improvement. The audit reviewed the present government structure of 155 agencies
with various functions and objectives, ranging from those with up to 20000 employees to
those with only one employee.