Presentation on theme: "United States Treasury Office of Technical Assistance."— Presentation transcript:
United States Treasury Office of Technical Assistance
Program Budgets Focus on Results
Course Definition: A program is a group of activities designed to achieve certain purposes or results (goals and objectives) usually defined by a planning process.
Programs Connect Plans and Priorities to Budget Resources
OECD: results-focused budgets are the wave of the future
Classification: the ways in which budget information may be presented or classified generally, there are six ways to classify:
by source of revenue Where is the money coming in from? Taxes? Grants? Sale of Assets?
source of financing User fees? International Financial Institutions? Debt Issue?
economic classification Personnel (Labor) Materials (Goods) Services Transfers Capital
by function COFOG –General public services –Defense –Public order and safety –Economic affairs –Environmental protection –Housing & community amenities –Health –Recreation, culture and religion –Education –Social protection
by program (or result)
Multiple classifications are being used by most countries EU The EU uses a mixture of program and function, called Activity-Based Budgeting
Keys to Good Program Budgets: Measurable Goals and Objectives
Three Ways to Measure Results: Outputs Outcomes Efficiency
Outputs Generally measures of physical things, services or events. You simply count them.
Output Examples: The budget might fund the construction of two new schools or fund 1,000 research projects in a given year
Output Examples: These countable results could be documented on paper or in an electronic form.
Output Examples continued Physical objects (or units of workload) represent output measures, such as: 3 computer systems installed
Output Examples continued 2,500 students graduated
Give an example of an output measure that does NOT involve education
Outcomes. This is a technical term for an effectiveness measure. Outcomes show qualitative, measurable progress towards a major goal or objective, or the completion of the goal.
Example of a National Goal: Constructing schools within a one hour traveling distance for 90% of Oravian students.
% of a Solution or Outcome Think in terms of percentages or fractions of a solution when you are looking for an outcome measure.
Outcome Example: The Oravian Education Ministry can certify that "70% of the population now lives within 1 hour of a local school". It has achieved major progress toward an important, measurable outcome. 70%
Outcome Example 2: 90% of the population lives within 1 hour of a local school. The goal has been completed
Efficiency Efficiency measures are often expressed as the unit cost of producing or purchasing an item or a service.
Efficiency Example: Unit Cost It might cost $10 to buy one textbook. It is essential to assure that all of the costs associated with the production of an item or service have been identified. Perhaps the delivered cost is $ 11.
Productivity Example: Efficiency can also be measured by looking at the productivity of resources for example the number of student class hours taught per professor.
Time Efficiency Example Another example would be the time it takes to accomplish a certain task such as 1 hour per class or 1 year per research study
Performance Measures or Performance Indicators The devices we use to calibrate results
Performance Measures Examples: The Goal is: to make university education available to 20% of the population by 2010 (An outcome) Measure: % of population able to attend
The Objective is: to expand the number of university seats/places/enrollments by 10,000 in (An output) The measure is: the number of seats available.
Program Budgets are the best format for good analysis because: They have clear statements of purposes and expected results
Program Budgets are the best format for good analysis because: Additional data is produced for analysis
Program Budgets are the best format for good analysis because: They emphasize value for money
Program Budgets are the best format for good analysis because: Accountability is assigned to specific agencies or managers