1.  Performance Based Management/Measurement : An Integrated Approach 1

2. “Performance-Based” Management/Measurement 2 CFR 200 Omni-Circular purpose :  Drive performance (and or outcomes) by establishing a reduced or streamlined regulatory process or system for federal aid, and  Reduce the number of improper payments. 2

3. “Performance-Based” Management/Measurement What’s the purpose of the change???  Make current processes function better--causes actions, steps, and transitions to operate seamlessly  Overall Objective—get to the Root Causes of Issues/Outcomes  Transparency - Compliance becomes mutually linked to Implementation—the process, system, or people are primed for performance and subject to general audience reporting (FFATA)  Accountability – demands greater information exchange to comply, from personnel to project, from status of phase to budget  Causes a reexamination or revisiting of the processes, tools, and technologies to get to ‘desired’ results 3

4. “Performance-Based” Management/Measurement Change Demands - E2 (Efficiency and Effectiveness)  Assumes all related programs, projects, and processes coordinated and are functioning optimally (tools, staff, and technology are performing for the intended objective/program)  Integrated System Thinking….assumes internal and external actions linked by design (process and implementation)  Changes the focus on activities and processes from internal advancement and completion to “Universal Impact” 4

5. “Performance-Based” Management/Measurement and MAP-21 Map-21 Background-Performance Elements (SIP) and 2 CFR 200 Omni- Circular:  National Goals- Maintain and improve the national highway system  Measures- System or process of evaluation  Targets- Goals to obtain, “desired results” or outcomes  Actions Plans ( or Scope of Works)  Reports- Non-Federal entity reporting on Scope of Works  Accountability and Transparency- Provide information on progress or lack thereof to the General Public 5

6. “Performance-Based” Management/Measurement  Provides a more robust guidance to Federal and non-Federal agencies to measure performance that will help improve program outcomes, share lessons learned, and spread adoption methods  Agencies must require the recipient to use OMB-approved government-wide information collections to provide financial and performance information ( only applies to 5 USDOT-FHWA Programs; Recreational Trails, Defense Access Roads, Transportation Alternatives, Bike/Pedestrian, and TIFIA)-  Recipients must be required to relate financial data to performance accomplishments, and must also provide cost information to demonstrate cost effective practices 6

7. “Performance-Based” Management/Measurement  Establish actionable Scope of Work- with measurement in mind  Make sure the budget has ‘integrity’ and is reasonable, eligible, and sound allocations amongst Direct Labor, Direct Non-Labor, and or Indirect Costs  Who’s the driver? You must know who the Principal Investigator or Project manager and their capabilities ( particularly for non- construction purposes), as well as the labor on the “Staffing Plan”!  Program Period, Performance Period and Schedule-deliberately linked! 7

8. Financial Reporting 200.327  Report of Federal Cash Transactions and the Financial Status Report has been deleted and replaced with the requirement that federal awarding agencies only use the OMB-approved government-wide data elements for collection of financial information which is currently the Federal Financial Report ( FHWA was granted a reprieve or deviation for most of its programs )  Submission frequency requirements generally remain unchanged (No less frequently than annually, nor more frequently than quarterly)  New language added, however, which permits more the Federal awarding agency to require more frequent reporting where necessary for the effective monitoring of the Federal award or could significantly affect program outcome and preferably in coordination with performance reporting 8

9. Monitoring and Reporting Program Performance 200.328  Non-Federal entity is responsible for monitoring programs for compliance and performance expectations.  Federal entity must use OMB-approved data elements.  Non-Federal entity must submit reports as often as required but no less frequently than annually and no more frequently than quarterly  Exceptions – Unusual Circumstances  Annual Reports due 90 calendar days after reporting period  Quarterly Reports due 30 days after reporting period 9

10. Subrecipient Monitoring and Management  Requirements for Pass Through Entities (PTEs):  Must clearly identify the agreement as a subaward  Must identify all applicable Federal requirements  Must identify all additional requirements imposed by the PTE  Monitor activities of the subrecipient.  With prior written approval from the Federal awarding agency, a PTE may provide subawards based on fixed amounts up to the Simplified Acquisition Threshold (currently $150,000). 10

11. “Performance-Based” Management/Measurement  Assess capabilities of the organization: internal controls (aka “Green Book” or Standards for Internal Controls in Federal Government), staffing (persons listed), expressed work, and previous experience with entity. If past experience, factor in the history of the organization and its ‘risk’ based upon your knowledge  Quantify or document the above in some formalized fashion (NJDOT) Bureau of Research has developed a process and system, which will become automated, for the above activities 11

12. “Performance-Based” Management/Measurement  NJDOT, Bureau of Research has developed a process and system called “ PROMPS” – Project Management and Project Tracking system  Promps has three tools:  Risk Assessment  Monitoring Report Tool  Site Visit/Telephone Survey Form 12

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19. Presentation Speaker 19 Calvin Edghill, CGMS Director of Planning, Environment, Research, and Civil Rights Federal Highway Administration – NJ Division Calvin.edghill@dot.govCalvin.edghill@dot.gov or 609.637.4230

20. Questions 20