Distance Learning Assignment. Ministry of Finance Working Group
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1 1.2.7 ORGANIZATION and PROCESS PERFORMANCE MANAGEMENT Distance Learning Assignment Ministry of Finance Working Group 10 February
2 Ministry of Finance Strategic Management System Strategic goal Strategic target Strategic target Strategic Plan Performance target Performance target Performance target Budget Based on Performance Performance indicator Performance indicator Monitoring Evaluation Review Activity Report Performance indicator 2
3 Ministry of Finance Strategic Management Model -1 In the SYS Model of the Ministry of Finance, Strategic Plan which includes mid and long term policies of the Ministry and which is a high level policy document takes place at the top. Performance based budget is prepared in relation with the strategic plan and annually. Services included in the Performance Based Budget are the outputs of the units of the Ministry showing how they contribute to the relevant strategic targets. Furthermore through performance indicators, the monitoring and the evaluations of those service are carried out. 3
4 Ministry of Finance Strategic Management Model -2 As a part of the accountability, the results of monitoring and evaluation are announced to the public with the activity report. This process is monitored through SGB.net within the framework of management information systems. 4
5 Monitoring and Evaluation System Monitoring is the systematic follow up of the performance based budget practice, its reporting regularly and submission for consideration of the relevant parties as well as the in house authorities and other institutions. Evaluation is the measurement of application results compared to the goal and targets as well as the analysis of consistency and relevancy of mentioned goals and targets. 5
6 Why Monitoring & Evaluation? Performance is a method enabling; Monitoring and analysing the status of performance goals realization which are in the budget, Right resource allocation, Top managers to take good decisions and More importantly to stimulate the responsibility of accountability. 6
7 Monitoring / Evaluation Methods Surveys Detailed research with question lists Getting information from the relevant department / unit Research based on document Cost benefit analysis 7
8 But how? Performance budget practice monitoring process is done by the Finance SGB.net system. This system enables to monitor electronically performance indicators target realization. Therefore; The system is designed with an ability to receive instant data from other systems of the Ministry. Even though this is the main principle, some information will be entered directly to the system by expenditure unit. 8
9 Monitoring and Evaluation Reports Performance indicators which are in the performance budget are monitored by the SGB. To that end, the realization values of performance indicators are quarterly received by the expenditure units and monitoring reports are also prepared quarterly. At the end of the year, the evaluation report is prepared to compare target realizations and to make a general performance evaluation. 9
10 Activity Reports Activity Report, prepared by top managers and expenditure officials provided with subsidy, is a report prepared regularly each year within the framework of financial transparency and accountability Activities and projects as per the strategic plan and performance programme of the administration, Realization status of targets and indicators which are in the performance programme and the reasons of the variations, Other performance information and relevant evaluations appear in the activity reports. 10
11 Year: 2010 Unit: / Legal Affairs Management and Law Procedures General Directorate (Center) Strategic Goal Protecting state s rights by providing an efficient law service Strategic Target Carrying out state law services rapidly, effectively and efficiently Performance Indicator Target Realized End of year realization Realization rate of the target (%) Deviation rate of the target (%) 1. Quarter 2. Quarter 3. Quarter 4. Quarter Rate of won (court) case Description Resource of the indicator Analysis of performance results Reason of the deviation Measures to be taken against the deviation 62,00 67,00 61,00 64,00 68,00 68,00 109,68 9,68 It represents the number of won (court) cases out of total court cases. Statistical Branch Office The target is surpassed. Even though the rate of won (court) case is more than expected this is for the public interest. Even though the deviation is for the public interest, predictions shall be reviewed in order to determine targets in a better way. 11
12 Distribution of Realization Values of Performance Indicators Year: 2010 Unit: General Directorate of Public Accounts N o Performance Indicator Target End of year realization Target surpassed Target reached 1 Rate (Percentage) of total IPSAS standards to be harmonized 75,00 80,00 x 2 Rate (Percentage) of statistical compilation of public administrations within 100,00 98,00 x the scope of General Administration. 3 Rate (Percentage) of COFOG tables of public adminstrations within the scope 80,00 60,00 x of General Administration. 4 Number of tables prepared on GFSM 2001 format / Total table number 100,00 80,00 (percentage) 5 Number of people who received accounting officer certificate training (unit) 600,00 802,00 x Target not reached Data inaccessible 6 Rate of realizaton of custom revenue collection via KBS (Public Accounts Information Systems) through electronical money cards. 7 Number of administrations within the central administration whose movable registries are included into the Public Accounts Information Systems / Number of administrations within the scope of central administration 8 Public administration number within the scope of general administration whose fiscal tables are inspected except administrations with general budget / total public administration number (percentage) within the scope of general administration except administrations with general budget 9 Number of account units serving inspected administrations with general budget / total number of account units serving administrations with general budget (percentage) 25,00 32,00 x 25,00 14,00 x 10,50 7,59 x 7,00 8,40 x 12
13 Ministry of Finance Annual Evaluation Table (Summary) Unused subsidy TL KBÖ: TL Strategic Target 1: forming expenditure policies pursuing financial discipline and orienting publick resources accourding to the public priorities TL expenditure Expenditure: TL Harcama Kullanılmayan Ödenek Performance Indicator 2006 Realizatio n Value 2007 Realization Value 2008 Realization Value 2009 Realization Value 2009 Realization Value Rate of reaching the target (%) Rate of central administration budget balance on the gross domestic product (%) (BÜMKO) -0,6-1,6-1,8-1,2-5,5 - Rate of central administration primary surplus on the gross domestic product (%)(BÜMKO) 5,4 4,2 3,5 4,0 0,1 - Number of reports published within the scope of economic analysis (SGB)
14 Lessons Learnt/ Problems Strategic goals shall not be intendet to the same service domain. Strategic goals shall not consist of matters easy to reach and cost free. One has to target that one unit shall serve one target; it should not exceed two or at most three targets. One expenditure unit shall not serve too many strategic targets. A close relationship shall be ensured between strategic targets and top level policy documents (Development Plan, EU Programme, Annual Programme, etc). Since the redundancy of top parameters causes high number of Performance Target (PG) and Performance Indıcator (PI) goals and targets shall be kept in a limited number. If not the cost of monitoring and evaluations increases. Similarly, this causes that activities and projects serve at the same time to more than one top PG. The high number of activities aggravates the costing. 14
15 Thank you 15
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