1.2.9 Accountability Performance measurement, reporting, monitoring&evaluation

Transcription

1 1.2.9 Accountability Performance measurement, reporting, monitoring&evaluation Week 3: Reporting & Monitoring of the agencies Mr Petri Huovinen, State Treasury of Finland

2 Day 12

3 Assessment and confirmation statement on internal control

4 The legal basis Central Government Budget Decree section 65 subsection 1 paragraph 7: An assessment of the appropriateness and adequacy of internal control and of the risk management entailed therein and a statement of the status and the most essential developmental needs of internal control

5 About internal control and annual report The management of an agency is responsible for the appropriateness and adequacy of internal control and risk management The annual report includes a specific internal control assessment and confirmation statement, in which the senior management of the agency addresses the status and most essential developmental needs of internal control

6 The statement The statement includes a conclusion as to how well internal control and risk management attains its targets and how it should be developed It constitutes the management s opinion as to what the status of internal control and risk management in the agency is The statement must give a true view of this status regardless of whether the conclusion is positive or negative

7 The statement must also The statement detail any shortcomings in internal control and risk management and contain a description of the framework or assessment model employed The frameworks used should be models contained in standards and recommendations on the procedural quality of internal control How the assessment is carried out should be proportioned to the duties and operating environment of the agency and the inherent risks

8 An example about information security The uninterrupted running and credibility of an agency depends on sufficient information security The importance of information security in managing an organization, ensuring its operating capacity and safeguarding its uninterrupted running and performance is constantly increasing Information security guarantees the integrity, usability and confidentiality of the information handled in the organization From the perspective of citizens and service users, the task of agencies is to produce online services whose security the customer can rely on and in whose production the fundamental rights of citizens are respected

9 Results of assessments / evaluations The most important information regarding assessment of the impact and effectiveness of activity if a more extensive assessment of the impacts and performance of the activity within the sphere of the accounting office was made during the budget year

10 Summary information concerning errors and misuse A summary of abuse and crime relating to State assets or assets for which it is responsible, and of preliminary investigation and legal proceedings as well as of other procedures initiated due to abuse and crime (summary information concerning errors and misuse) A summary of the recovery of government support or central government transfers to local government (summary information on recovery)

11 Group discussion The role and contents of the annual report in Finland as a whole? Compare it to the accountability/performance reports in Turkey Try to find best practices What about the role of the assessment and confirmation statement on internal control can it be significant?

12 Collecting data - data quality and consistency

13 Data quality / consistency Data are of high quality if they are fit for their intended uses in operations, decision making and planning (J. M. Juran)

14 Reasons for poor data quality / inconsistency Kilde: Taking Data Quality to the Enterprise through Data Governance, Philip Russom, TDWI, March 2006

15 The quality of data Is the stored data in the allowed format? Validity Timeliness Completeness Accuracy Does the data illustrate the real world? Integrity Data quality Consistency The data must be stored in uniform and consistent way

16 Remarks on data collection The data is formed in processes. The ownership of the data must be defined and the responsibility of the quality of the data must be unambiguous Avoid manual procedures in data collection Avoid situations where same data is maintained in several places Controlling procedures are important when transferring data Common definitions and terms must be determined and communicated - good instructions are needed

17 Netra-reporting

18 What is Netra? Netra is the internet reporting service of the central government administration which caters in particular to the Government, ministries, agencies and institutions Which contains data on the finances, performance and staff of the central government administration (all the State s administrative sectors and government agencies) Which contains a selection of planning and monitoring documents (concerning economic and operational planning and monitoring) of the ministries and their agencies and institutions Where all the information is in an easy and organised dynamic form All information is accessible through a single portal All information is public, Netra is open to all Internet users

19 The main objectives of the Netra Support the planning, monitoring and management of the Government, ministries and agencies. Support decision-making. The information provided by Netra helps perform various kinds of analyses on the connections between operational performance, finances, staff and other resources Promote the quality thinking and quality management Especially promote the utilization of the basic performance criteria Improve the effectiveness of the performance management system Performance management information (plans, targets, performance outcomes and analysis of them) of the administrative sectors and government agencies will be more comparable Information can be used for best practices The quality and usability of the reporting information improves e.g. for preparation of annual reports and other monitoring reports

20 The main objectives of the Netra Improve the transparency and publicity of public administration and operations of public servants All the information is accessible through one portal and the information is in an easy and dynamic form Open for everyone, both citizens and all interest groups (just an internet-connection and web browser are needed)

21 Customers Council of state Ministry of Finance Other ministries and agencies Parliament State audit office Citizens, media etc.

22 Basic structure Financial data in Netra Accounting organisation Commercial accounting Budget accounting The State Budget Economy The State Fund Economy Main titles (or revenues) Adminstrative sector State Fund Account Chapter / Class Accounting agency Five hierarchy levels Item Budget account - The Financial data is centrally derived from the central bookkeeping system - Ministries and agencies can monitor, for instance, the use, budget data and accrued expenditure in commercial accounting concerning all appropriations - Monthly Bulletin: The monthly bulletin for Central Government Finances reports the realization of the state budget, and the state income, expenses, assets, liabilities, and cash flow

23 Data on staff in Netra The data is transferred from the personnel data system for government employers (Tahti) Data on staff numbers and structure of administrative sectors and agencies The number of employees and man-years can be grouped as follows male/female, part-time/all-day, fixed-term/permanent, age-group, level of education, occupational group

24 Performance information in Netra Performance data in Netra is maintained by ministries and agencies ministries and agencies can utilize Netra during performance negotiation and reporting processes Performance data are collected from ministries and agencies and placed in the Netra repository The performance data available in Netra includes preliminary performance targets for administrative sectors and agencies (budget proposal) targets agreed in performance agreements performance outcomes and analyses of them In Netra performance reporting, administrative sectors and agencies can use those indicators that they ordinarily use in performance measurement

25 Performance information in Netra Reports can be based both on measurable indicator data and on verbal qualitative performance targets and outcomes Performance description of the agency is measured using indicators, and thus indicators must be used in reporting on performance too. The information in the indicators can be augmented with verbal descriptions and evaluations. Verbal performance data should be as concise and to the point as possible. Achieved performance is analysed and conclusions and development proposals based on the analysis are presented. All data are stored in a single central database from which the program retrieves the data requested by the user.

26 Performance information in Netra In the reporting performance data is organised on the basis of the basic performance criteria Performance data are also grouped according to groupings in the budget (main title, class, item) and the Government strategy document Performance data can also be viewed by various kinds of functional grouping (task areas, policy sectors, etc.) or according to the perspectives of agency or ministry scorecards, depending on the needs of the administrative sectors and agencies. All reporting functions are governed by user needs.

27 Main objectives of performance reporting in Netra All performance information in one data base Better accessibility to information Benchmarking Support performance management process (between ministry and agency) Standardised report-templates for performance agreement, biannual reports and annual reports Improve the quality of performance information Develop performance metrics and targets presented

28 Netra stipulation All the agencies and ministries in the central government had to publish their performance information in Netra by the end of the year 2007 at least all the performance targets confirmed by the ministry for the year 2007 had to be published by the end of the year For year 2008 onwards each organization must publish as performance information Preliminary targets (according to the budget proposal, voluntary) Targets confirmed by the ministry Performance outcomes (results, progress towards the targets) Analysis outcomes General performance description of the agency Targets are always set yearly (e.g. for year 2009, year 2010 ), Reporting is obligatory yearly but biannual (or e.g. quarterly) reporting is also possible

29 The process Final Performance Targets of the Ministries and Agencies PERFORMANCE AGREEMENT December January November February Preliminary Performance Targets of the Ministries and Agencies BUDGET PROPOSAL October September August July June May March April Outcomes and Analysis from the Agencies ANNUAL REPORT Outcomes and Analysis from the Ministries CENTRAL GOVERNMENT FINAL ACCOUNTS REPORT (Bi-annual outcomes BI-ANNUAL REPORT) 29

30 Performance management process supported by Netra (Year N-2) / Actor Parliament Government MoF Year N-1 - Gov. program - Gov. Strategy doc. - Spending limits Year N Year N+1 III VI IX III Budget proposal of the Mof Negotiations Government Bill Budget Central gov. Final accounts report VI Ministry Preparation of the operational and econ. plans Agency Definition / Specification of the strategy of the Ministry and its admin. sector Definition of the policy effectiveness targets and the most essential operational targets of the admin. sector Definition of the performance targets of the agency Budget proposal of the Ministry Budget proposal of the Agency Report of the preliminary targets Budget process Performance negotioations Exploitation and updating the information Performance agreement Report Analysis Outcomeinformation and analysis from the ministries Collecting the outcomeinformation and the analysis of the information Annual report Reports NETRA 30