Guide to the Performance Management Framework

March 2011
 Contents
Guide to the Performance Management Framework .....................................................1
Contents .........................................................................................................................2
1. Introduction........................................................................................................4
1.1 Purpose of the guidelines ...........................................................................4
1.2 The performance model .............................................................................4
2. Performance Model............................................................................................7
2.1 Who must use the performance model?.....................................................7
2.2 Role of Government...................................................................................7
2.3 Role of agencies .........................................................................................7
3. Outcomes ...........................................................................................................9
3.1 What are outcomes? ...................................................................................9
4. Performance Measurement ..............................................................................10
4.1 Why measure performance? ....................................................................10
4.2 Attributes of good performance measures ...............................................10
4.3 Multiplicity of users .................................................................................11
4.3.1 Community ..........................................................................................11
4.3.2 Government..........................................................................................11
4.3.3 Ministers ..............................................................................................11
4.3.4 Agencies...............................................................................................12
4.3.5 Legislative Assembly...........................................................................12
4.3.6 Managers..............................................................................................12
4.3.7 Treasury ...............................................................................................12
4.4 Summary ..................................................................................................12
5. Strategic Indicators ..........................................................................................13
5.1 What are strategic indicators? ..................................................................13
5.2 Selecting strategic indicators ...................................................................14
5.3 No amendments to strategic indicators ....................................................14
6. Output Classes .................................................................................................15
6.1 What are output classes? ..........................................................................15
6.2 Appropriations and output classes ...........................................................15
6.3 Review of output classes..........................................................................16
6.4 Defining output classes ............................................................................16
6.5 Budget papers and output classes ............................................................16
6.5.1 Define the output class.........................................................................16
6.5.2 Define the outputs ................................................................................16
6.5.3 Total cost and government payment for outputs – output class...........16
6.5.4 Total cost and government payment for outputs – output ...................16
6.5.5 Output description................................................................................17
7. Defining the Output .........................................................................................18
7.1 What are outputs? ....................................................................................18
7.2 Key stakeholders in defining outputs.......................................................18
7.3 Defining the output in the Budget papers ................................................18
8. Accountability Indicators.................................................................................19
8.1 What are accountability indicators?.........................................................19
8.2 Selecting accountability indicators ..........................................................19
8.3 Amendment of accountability indicators .................................................20
9. Output Measurement........................................................................................21

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 9.1 The purpose of output measurement........................................................21
9.2 Output costing..........................................................................................21
9.3 Stages of costing ......................................................................................21
9.4 Setting targets...........................................................................................22
10. Strategic Indicator Reporting.......................................................................23
10.1 Reporting requirements............................................................................23
10.2 Statement of Performance........................................................................23
10.3 Annual report ...........................................................................................23
11. Output Reporting .........................................................................................24
11.1 What is the Statement of Performance?...................................................24
11.2 Legislative requirements - departments ...................................................24
11.2.1 Financial Management Act 1996 .........................................................24
11.2.2 Audit scrutiny.......................................................................................25
11.2.3 Annual Report Directions ....................................................................25
11.3 Legislative requirements – territory authorities .......................................26
11.3.1 Financial Management Act 1996 .........................................................26
11.3.2 Audit scrutiny.......................................................................................26
11.3.3 Annual Report Directions ....................................................................26
11.4 Model Statement of Performance – departments and territory authorities
prescribed for outputs ..........................................................................................27
11.4.1 Overview of the model.........................................................................27
11.4.2 Output information...............................................................................27
11.4.3 Accountability indicators .....................................................................28
11.5 Territory authorities not prescribed for outputs .......................................29
11.5.1 Territory authority Statement of Intent indicators ...............................29
Attachment 1 – Glossary of Terms ..........................................................................30
Attachment 2 – Output Costing ...............................................................................31
Output costing......................................................................................................31
Criteria for apportionment ...................................................................................31
Attachment 4 – Output Classes in the Budget Papers..............................................33
Attachment 5 – Accountability Indicators in the Budget Papers .............................34
Attachment 6 – Model Statement of Performance for Departments and Territory
Authorities................................................................................................................35

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1. Introduction
1.1 Purpose of the guidelines
The Guide to the Performance Management Framework (Guide) has been prepared to
assist agencies with the process of developing meaningful and useful performance
measures in line with the performance measurement framework.

Performances indicators are used by the agencies for the delivery of outputs to
achieve the Government’s vision under The Canberra Plan and its three sub-plans –
the Canberra Social Plan, the Canberra Infrastructure Plan and the Canberra Spatial
Plan – as well as strategic plans relating to specific service-delivery priorities.

To help agencies to develop performance measures that meet the Government’s long
term vision for the Territory, the Chief Minister’s Department (CMD) has released a
framework policy “Strengthening Performance and Accountability: A Framework for
the ACT Government”. The following is a link to this policy -
www.cmd.act.gov.au/__data/assets/pdf_file/0020/184601/Strengthening_Prefromance_and_Accountability_-_A_Framework_for_the_ACT_Government.pdf (The
ACT Performance and Accountability Framework). This high level framework builds
upon the performance and accountability already built into Government operations by
consolidating and identifying measures and opportunities to strengthen existing
processes and structures. When agencies are developing and reporting on their
performance measures, they must refer to the framework policy and this Guide.

The purpose of this Guide is to assist agencies develop their performance measures
for the Budget papers and reporting requirements in the annual report. The Guide
brings together the minimum requirements for effective performance measurement
and reporting. It is not intended to be a detailed manual that covers every agency
situation.

1.2 The performance model

The Government, Chief Executives (CE) of departments and Chief Executive Officers
(CEO) of prescribed territory authorities1 are all responsible for delivering outcomes
and for the provision of outputs.

Each CE / CEO is responsible to their Minister for delivering outcomes and for the
provision of outputs as specified in the agency’s budget papers. The Comparison
Model (Figure 1.1) and the Output Model (Figure 1.2) clarify the Government’s role
of channelling resources for the development of the community through the budget
process. The performance model, discussed further in Section 2, is connected with
the Comparison Model and the Output Model as it provides the guidance agencies
require to develop, measure, and report on the delivery of outcomes and outputs to the
Government and the community.

The Comparison Model at Figure 1.1 provides agencies with the link between the
ACT Performance and Accountability Framework and this Guide. Whilst the
framework provides a high level view of how the Government will strengthen its
1
A “prescribed territory authority” means a territory authority prescribed for section 12A (1) (b) of the Financial
Management Act 1996. Disallowable instrument DI2006–82 provides a list of Territory Authorities prescribed for
outputs.

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performance and accountability, the Guide is intended to focus on the performance
model including its delivery and reporting. This Guide forms one part of achieving
the Government’s vision.

Figure 1.1 – Comparison Model

The comparison model below helps agencies to refer to the appropriate sections when
reviewing the Guide and the framework policy. It is important to note the Guide is
mainly focused on the performance model.

Guide Framework Policy

Informing Planning
Government Policy

Direction Setting
Budget Process

Government strategic planning

Informing Planning
Performance Model
Direction Setting

Out of scope Managing

Delivery Reporting

Out of scope Reviewing

Explained below is each step in the Output Model at Figure 1.2.

1) Government policy: incorporates the development of a vision for the

Government of the day and Government outcomes based on community’s needs.

2) Budget process: incorporates Government budget decisions on the distribution of

appropriation to agencies in line with Government policy.

3) Performance Model: incorporates information on agency outputs, the measures

of performance under accountability indicators and strategic indicators.

4) Delivery: incorporates information on the progress towards achievement of

agency outcomes through the delivery of services.

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 5) Reporting: incorporates information on the reporting requirements as required
under the Financial Management Act 1996 (FMA) and the Chief Minister’s
Annual Report Directions.

Figure 1.2 – Output Model for the Territory

1. Government Policy VISION

Outcomes

2. Budget Process

Budget Decisions
Appropriation

3. Performance Model

Strategic Indicators Outputs

Accountability
Indicators

4. Delivery
Delivery

Annual Reports

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2. Performance Model

Performance Model
Performance Measurement

Strategic
Outcomes Strategic Indicators Indicator
Reporting

Output Classes
Accountability Indicators
Output
Defining the Output
Reporting
Output Measurement

2.1 Who must use the performance model?

The performance model applies to departments and prescribed territory authorities.
The performance model provides a framework for agencies to report to Ministers, and
provide information to the Government on delivering the strategic outcomes under
The Canberra Plan and its three sub-plans – the Canberra Social Plan, the Canberra
Infrastructure Plan and the Canberra Spatial Plan – as well as strategic plans relating
to specific service-delivery priorities.

2.2 Role of Government

The key role of Government under this model is to:
• set societal outcomes for the Government. Refer to the “Measuring our Progress”
website www.measuringourprogress.act.gov.au which is aligned with the seven
strategic themes of The Canberra Plan: Towards Our Second Century - the ACT
Government' s plan to help create an even better place to live;
• set long term, intermediate and short term outcomes that the Government can
directly influence through its decisions and measure the cost to provide goods and
services to the community;
• approve outputs which deliver the required outcomes efficiently and effectively;
and
• monitor the results achieved to make more informed future fiscal decisions.

2.3 Role of agencies

The key role of agencies under the model is to:
• set strategic indicators to monitor agency progress towards the Government’s
vision for the Territory;
• set outputs;
• establish the full cost of outputs;
• deliver the specified outputs within budget and in a sustainable manner;

7
• effectively measure and report their performance in providing the required
outputs; and
• actively use performance information to improve future service delivery.

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3. Outcomes

Performance Model
Performance Measurement

Strategic
Outcomes Strategic Indicators Indicator
Reporting

Output Classes
Accountability Indicators
Output
Defining the Output
Reporting
Output Measurement

3.1 What are outcomes?

Outcomes are the impacts and consequences for the community as a result of the
decisions of Government. Desired outcomes are the basis for Government action for
which policy decisions are made concerning the outputs which agencies produce to
achieve the desired outcomes.

The choice of outcomes is the prerogative of the Government and the Ministers. The
outputs needed to achieve the outcomes are the focus of policy and strategic planning,
and the monitoring and management of outputs, is the business of each agency.
Outputs must be measurable, manageable and ideally sustainable.

Agencies putting forward business cases2 as part of the annual budget process must
specify the outputs that the business initiative will fall under plus the expected
outcomes of the initiative. The relationship that exists between outcomes and outputs
must be able to be demonstrated. This can be done through the completion of the
following statement: “The Government should fund this output (output class) because
it will assist in the achievement of Government policy objectives (outcomes) in the
following way...”

An example using the above statement is – “To meet each student’s academic, social,
emotional and physical needs (outcomes) by ensuring all ACT public schools provide
positive and success oriented learning environments (outputs)”.

The outcomes of an agency will be influenced by the corporate plan, business plans,
resource management plans, strategic asset management plan, strategic service
delivery plan and priorities forwarded by the agency to its Minister.

2
Refer to 2010-11 Budget Process: Budget Initiatives and Attachments.

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4. Performance Measurement

Performance Model
Performance Measurement

Strategic
Outcomes Strategic Indicators Indicator
Reporting

Output Classes
Accountability Indicators
Output
Defining the Output
Reporting
Output Measurement

The objective of the performance measurement framework is to provide the

Government with well-developed and meaningful performance indicators that allow
agency outcomes and agency outputs to be measured.

4.1 Why measure performance?

Performance can be described as how well a service meets its objectives, recognising
the influence of external factors. Measuring the performance of government services
is important for a number of reasons.
• The services are vital to the community’s wellbeing and improving them will
result in major social and economic benefits.
• The Government is continually re-evaluating whether the community is receiving
the appropriate service mix and whether the services are getting to those most in
need.
• The Government needs to know whether its policies are effective and whether
they are being implemented efficiently.

Performance measurement can:

• make performance more transparent;
• allow for an assessment of whether program objectives are being met;
• help clarify government objectives and responsibilities;
• inform the wider community about the Government’s performance;
• encourage ongoing performance improvement; and
• encourage efficient service delivery.

4.2 Attributes of good performance measures

In developing individual performance measures, the following attributes should be
considered and used as a checklist.
• Measures should be quantifiable and measurable to a reasonable degree of
accuracy (particularly for auditable measures).
• Measures should be reported in a timely manner and with reasonable frequency,
ensuring information is not out of date.

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• Measures should have a community focus, rather than focusing on internal or
technical processes.
• Measures should be independently verifiable (evidence will be required).
• Benefits derived from collecting and reporting information should outweigh costs.
• Measures should be relevant and fit for the intended purpose, for the information
of Ministers, the Assembly and the community.
• There should be a focus on overall performance and key deliverables. Measures
(where possible) should not be focussed on one single aspect of performance.
• Setting of measures should be impartial, ensuring that a balanced perspective is
evident.
• Measures should be clearly defined and easy to understand.
• Where possible, performance measures ought to be sustainable.
• Measures should, as far as possible, maintain continuity and comparability of
reported results across years.

4.3 Multiplicity of users

The performance measurement framework provides useful and valuable information
for a variety of users. The main users of the information are provided below.

• The Community • Agencies • Managers

• The Government • The Legislative Assembly • Treasury
• Ministers

Each of the above users has different needs and requirements for the use of
performance measurement information. These needs and requirements are detailed
below.

4.3.1 Community
Performance measures provide the community with information on the performance
of the Government and the delivery of the outputs and progress towards desired
outcomes. Agencies must take into consideration the needs of the community when
developing performance measures. Agency selected measures must provide concise
information so the community can easily determine the outcomes of the goods and
services they are receiving.

4.3.2 Government
The Government is accountable to the community for the delivery of outcomes and
outputs efficiently and effectively. Within Government, the following parties have an
interest in the production of outputs:
• the relevant Minister; and
• the agency in producing the outputs efficiently and effectively.

4.3.3 Ministers
Ministers are accountable for the provision of goods and services to the community,
i.e. outputs and delivering the Government’s desired outcomes. Ministers’ key
interests include:
• the outcomes to be delivered by the agencies;
• the outputs to be provided by agencies; and
• the performance measures for each output.

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Therefore, it is in the interest of the portfolio Minister to be provided with timely
information on the efficiency and effectiveness of the outputs being produced and
tracking the delivery of outcomes.

4.3.4 Agencies
Agencies must take into consideration the needs and requirements of the Government
and the community when developing performance measures. Well developed and
meaningful performance measures are integral to the Government and the community
to determine the performance of agencies. Therefore performance measures can be
seen as a management tool to ensure that goods and services are delivered in
accordance with the measures set by agencies.

4.3.5 Legislative Assembly

The Legislative Assembly, as representative of the ACT community, has a strong
interest in the information provided on the performance of outputs and progress
towards outcomes.

This information allows the Assembly to:

• scrutinise the performance of Government in achieving outcomes;
• scrutinise the performance of agencies in the provision of outputs;
• scrutinise the performance or impact of outputs; and
• analyse the more significant outputs on a regular basis.

4.3.6 Managers
Managers may use the performance measures as a way to manage the performance of
their teams in the delivery of goods and services. They must have an overall
understanding of the needs and requirements of the other users of the measures, as
well as an understanding of the outcomes required by Government.

4.3.7 Treasury
Treasury’s role is to ensure agencies understand and effectively implement the
performance management framework which mainly occurs during the budget process
and annual financial reporting.

4.4 Summary
Each performance measure should be developed with the needs and requirements of
the various users in mind. It is important that the measures be developed in a way that
promotes commitment to the realisation of targets and ultimately to the achievement
of the outcomes sought by Government.

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5. Strategic Indicators

Performance Model
Performance Measurement

Strategic
Outcomes Strategic Indicators Indicator
Reporting

Output Classes
Accountability Indicators
Output
Defining the Output
Reporting
Output Measurement

5.1 What are strategic indicators?

When an agency undertakes its strategic planning, the focus is on the individual
contribution the agency will make towards Government priorities and long-term
goals. For an agency to meet these priorities it is important to understand what the
strategic objectives and strategic indicators are, and the associated strategies required
for achieving these objectives. Therefore the key outputs of strategic planning are:

Strategic Objectives - the effect or difference the agency aims to make in the
community in the short to medium term.

Strategic Indicators – the measurement of an agency’s achievement in meeting the

strategic objectives through assessing the progress of outcomes on the community.
The intention is to track an agency’s performance in meeting the Government’s
priorities and long-term goals.

High Level Strategies – the strategies used to achieve the strategic objectives.

An agency’s strategic objectives and strategic indicators are set as part of the Budget
process and appear in the Budget papers. The details provided in the Budget papers is
a summary of what an agency would include in its corporate plan, business plans,
resource management plans, strategic service delivery plans and asset management
plans. Government policy requires agencies to report on their performance against
these indicators in the agency’s annual report3. Attachment 3 provides an example of
a strategic indicator prepared for the Budget papers.

3
Chief Minister’s Annual Report Directions

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5.2 Selecting strategic indicators
During the budget process, agencies, in consultation with the relevant Minister and
Treasury, choose strategic objectives and strategic indicators by referring to the
Government’s strategic priorities, Strategic objectives and strategic indicators
compare actual performance against the projected performance contained in the
agency’s Budget papers for the year. This comparison will provide the details of the
extent to which the projected performance measures contained in the agency’s budget
papers are being achieved.

When selecting strategic indicators, agencies are to refer to Section 4 “attributes of

good performance measures” along with taking the following into consideration.

Strategic objectives

• Short, concise statement.

• Focused on results (not activities).
• Contribute to Government priorities and goals.
• Can be influenced by the agency over the medium term.
• Measurable or verifiable through strategic indicators.

Strategic indicators

• Relevant and objective.

• Reliable and verifiable.
• Informative.
• Attributable to agency actions.

5.3 No amendments to strategic indicators

Government policy does not allow strategic indicators to be amended during the
financial year. Once strategic indicators are finalised in the Budget papers, they are to
remain the same until the next Budget.

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6. Output Classes

Performance Model
Performance Measurement

Strategic
Outcomes Strategic Indicators Indicator
Reporting

Output Classes
Accountability Indicators
Output
Defining the Output
Reporting
Output Measurement

6.1 What are output classes?

Outputs are grouped into similar categories known as output classes. It is an FMA
requirement4 that agencies provide in their Budget papers a statement of output
classes, outputs and the performance criteria to be met in providing the outputs during
the year.

6.2 Appropriations and output classes

Section 6 of the FMA states: “no payment of public money must be made otherwise
than in accordance with an appropriation”.

Appropriations are provided to agencies by the Legislatively Assembly to output

classes. Schedule 2 of the Appropriation Act specifies the classes of outputs for each
agency for which appropriation is provided. The Budget papers specify the amount of
appropriation for each output class.

As a result, it is important agencies regularly review their output classes to ensure

they are relevant.

An FMA instrument is required for all appropriation transfers between output

classes5. If the transfer is larger than 3% of the appropriation for affected output
classes, or $150,000, whichever is larger, then the Treasurer must present a copy of
the direction and a statement of the reasons for the reallocation to the Legislative
Assembly within 3 sitting days after a direction is given6.

4
Section 12(1)(b) and 12A(1)(b) of the FMA.
5
Section 15(1) of the FMA.
6
Section 15(2) of the FMA.

15
6.3 Review of output classes
When agencies are reviewing output classes each year, it is important that any
proposed amendments, deletions or additions of an output class are discussed with
Treasury.

6.4 Defining output classes

Classes of outputs should be defined against the following principles:
• each class of outputs should comprise only outputs that are of a similar nature and
have similar characteristics;
• the level of aggregation of similar outputs should reflect a level at which it is
efficient for Government to link outputs to desired outcomes. This enables
Government to hold an agency accountable for the efficiency of each class of
outputs;
• the level of aggregation should be material, either because of the relative
magnitude of the amounts of money involved or because of the essential nature of
the output to the work of the agency or the achievement of outcomes; and
• each component of the output class must be capable of being costed, priced, and
reported through an auditable financial management information system.

6.5 Budget papers and output classes

As part of the Budget process each year, agencies are required to prepare a statement
that sets out the classes of outputs and the outputs that the agency proposes to provide
during the year7.

6.5.1 Define the output class

Output classes should be explicit with clear, unambiguous and informative statements
of the nature of outputs.

6.5.2 Define the outputs

Refer to Section 7.3 “Defining the output in the Budget papers”.

6.5.3 Total cost and government payment for outputs – output class
Agencies are to provide the Estimated Outcome for the current financial year and the
Budget year for the Total Cost and Government Payment for Outputs. Refer to
section ‘Output Measurement’ for further details on determining the costs.
It is important that the “Total Cost” and “Government Payment for Outputs” for an
Output Class equals the addition of the “Total Cost” and “Government Payment for
Outputs” of each individual Output within that Output Class.
6.5.4 Total cost and government payment for outputs – output
Agencies are to provide the Estimated Outcome for the current financial year and the
Budget year for the Total Cost and Government Payment for Outputs for the class.
Refer to Section 9 ‘Output Measurement’ for further details on determining the costs.

7
Sections 12(1)(b) and 12A(1)(b) of the FMA.

16
6.5.5 Output description
Output descriptions are required to provide users with more information in relation to
the outputs and services provided by the agency. An example of an output class is
provided at Attachment 4.

17
7. Defining the Output

Performance Model
Performance Measurement

Strategic
Outcomes Strategic Indicators Indicator
Reporting

Output Classes
Accountability Indicators
Output
Defining the Output Reporting
Output Measurement

7.1 What are outputs?

Outputs are the goods produced or services provided by, or on behalf of, an agency to
the community. Outputs allow agencies to measure the cost to provide goods or
services to the ACT community.

When agencies are defining outputs, the goods and services must be identified as
tangible and valued products by Ministers and the community. Care should be taken
to minimise the inclusion of intermediate products or stages of production. These
often relate to internal processes or activities which tend to obscure perceptions of the
main products serving to meet the Government’s outcomes.

7.2 Key stakeholders in defining outputs

The key stakeholders in defining the outputs of an agency are the Minister, the
CE / CEO and the ‘output team’ in the agency.

7.3 Defining the output in the Budget papers

Defining the output should be a cooperative activity between all sections of the
agency as input from all stakeholders provides a more accurate description for output
reporting. Agencies are responsible for providing advice to Ministers on what
outcomes are targeted by each output.

Agencies must then seek formal sign-off from their respective Minister on outputs and
output class descriptions that form the basis for appropriation for the relevant budget
year. For the most efficient results, outputs should be constantly reviewed, especially
in the early stages of the budget process.

Agency outputs must be consistent with achieving longer-term agency objectives and
Government priorities. Consistency of outputs across the forward years is required,
where possible, not only for reporting requirements, but also for comparative
purposes.

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8. Accountability Indicators

Performance Model
Performance Measurement

Strategic
Outcomes Strategic Indicators Indicator
Reporting

Output Classes
Accountability Indicators
Output
Defining the Output
Reporting
Output Measurement

8.1 What are accountability indicators?

Accountability indicators measure the agency’s effectiveness and efficiency in
delivering its outputs and may be measures of outcomes, outputs or inputs. Where
appropriate, they may also include input measures that report on the quantum and/or
costs of individual services.

As part of the Budget process each year, when agencies prepare their statement that
sets out the classes of outputs and the outputs and that the agency proposes to provide
during the year, agencies are also required to provide the accountability indicators to
be met by the agency in providing the outputs.8

8.2 Selecting accountability indicators

Accountability indicators are subject to audit9, and must be appropriately measurable
to quantify achievement. When selecting accountability indicators, agencies are to
refer to Section 4.2 “Attributes of good performance measures”, along with taking the
following into consideration.
• Accountability indicators often link to strategic indicators. Accountability
indicators relate to outputs agencies produce through activities, whereas strategic
indicators relate to outcomes that the Government is trying to achieve or influence
through providing these outputs.
• Usually accountability and strategic indicators should be different and agencies
should seek to avoid overlaps between the two. However, there may be limited
circumstances where some indicators may be presented as both strategic and
accountability indicators. This allows for discussion of longer-term targets and
provides a strategic context for the agency’s performance, as well as providing an
annual target which will be subject to audit.

8
Sections 12(1)(b) and 12A(1)(b) of the FMA.
9
Financial Management (Statement of Performance Scrutiny) Guidelines 2008.

19
• Agencies need to consider both quality and quantity aspects when setting the
accountability indicators and must present a balanced picture of the agency’s
performance.
• Rather than having a proliferation of indicators, agencies should select a smaller
number of key indicators which would be the most useful to stakeholders.

8.3 Amendment of accountability indicators10

Section 19D of the FMA allows the responsible Minister of an agency to amend the
agency’s accountability indicators provided in the Budget papers.

Section 19D(3) lists some of the reasons why the responsible Minister would amend
the accountability indicators, such as when a change occurs in Administrative
Arrangements.

When an accountability indicator is amended, the annual report will:

• explain why the accountability indicator was amended;
• the date when the accountability indicator was amended;
• the notifiable instrument number confirming the amendment; and
• report percentage variance explanations between the actual result and the amended
target.

Attachment 6 Statement of Performance – Output 1.2 Children Rehabilitation

Management provides an example of an amended accountability indicator and the
necessary details that need to be reported.

10
Also known as performance criteria (Section 19D of the FMA).

20
9. Output Measurement

Performance Model
Performance Measurement

Strategic
Outcomes Strategic Indicators Indicator
Reporting

Output Classes
Accountability Indicators
Output
Defining the Output
Reporting
Output Measurement

9.1 The purpose of output measurement

The purpose of output measurement is to provide agency management, the
Government and the community with meaningful information on determining whether
agencies have provided goods and services in an efficient and effective manner and
are achieving Government priorities. Output measurement provides:
• the output costing for each output class; and
• accountability indicators with appropriate measurability to quantify achievement.

9.2 Output costing

Agencies are to attribute the full costs of services to outputs, including accrued
expenses and other non-cash costs such as depreciation. The costing methodology
should conform to accepted accounting practice and be based on logical and
defensible grounds.

9.3 Stages of costing

1) The first step is to decide exactly what output(s) is being costed and determine the
activities contributing to that output(s). Outputs being costed might not
necessarily be well defined, for instance:
• the cost of all resources consumed in the production of an output must be
recognised. Without this, a performance assessment of budget decisions will rely
on incomplete data and analysis;
• the full cost of an output comprises direct and indirect costs; and
• the costs should be measured using an accrual accounting framework, a
fundamental principle of which is the recognition of costs for the period in which
they are incurred.

2) The next step in the costing process is to allocate the identified costs to the output.
Some delivery cost centres will align to a single output. Some cost centres will
need to be apportioned to multiple outputs.

21
 One of the key principles to keep in mind when determining methods of cost
allocation is not to make them overly complex, and to apply a general
cost / benefit test to ensure that undue effort is not put into detailed cost driver
analysis and usage analysis. The costing process only needs the rigor sufficient to
be reasonable and to meet the needs of management, and to be independently
verifiable.

3) Finally, after the direct and indirect costs have been allocated and calculated for
each output, add them together to calculate the full service cost for each output.

All costs should be accurate and confirmable.

Attachment 2 provides further information on costing outputs.

9.4 Setting targets

Once agencies have defined and costed their outputs, targets need to be set to gauge
the agency’s level of performance.

The following provides guidance for how agencies set targets.

• For each output, determine what goods and/or services are required to achieve the
output.
• The goods and / or services identified leads to the targets to be achieved. The
level of achievement is a combination of the outcomes specified in the
Government strategic planning documents, the Ministers expectations of the
agency, the community requirements and expectations, what is achievable by the
agency based on the level of appropriation received etc.
• The targets set must follow Section 4 “Attributes of good performance measures”.

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10. Strategic Indicator Reporting

Performance Model
Performance Measurement

Strategic
Outcomes Strategic Indicators Indicator
Reporting

Output Classes
Accountability Indicators
Output
Defining the Output
Reporting
Output Measurement

10.1 Reporting requirements

The Chief Minister’s Annual Report Directions states that departments and prescribed
territory authorities must report their performance against strategic indicators in the
annual report.

10.2 Statement of Performance

Departments and prescribed territory authorities are not to include strategic indicators
in their Statement of Performance. The Financial Management (Statement of
Performance Scrutiny) Guidelines 2008 clarifies that the Statement of Performance
reports on an agency’s accountability indicators only and does not include strategic
indicators.

If a prescribed territory authority includes strategic indicators in its Statement of

Intent, the Statement of Performance must also address the performance of the
strategic indicators.

10.3 Annual report

The strategic indicators section in the annual report must quantify the results for the
financial year against the strategic objectives and strategic indicators set in the Budget
papers. The format of the section ideally should be similar to the format presented in
the Budget papers.

Along with providing an explanation of the financial year results, the section is also to
provide the reader with a means of comparing results or progress through either
comparison with a benchmark or with previous results. By agencies providing a
comparison, the community will be able to track an agency’s performance over time
in achieving the objectives and outcomes.

23
11. Output Reporting

Performance Model
Performance Measurement

Strategic
Outcomes Strategic Indicators Indicator
Reporting

Output Classes
Accountability Indicators
Output
Defining the Output
Reporting
Output Measurement

11.1 What is the Statement of Performance?

The Statement of Performance is the report used to compare actual performance in
providing each class of outputs with the Budget or revised Budget or a supplementary
Budget for the year, and state the extent to which the output performance criteria set
out in the Budget, were met. The Statement of Performance is to be completed by all
departments and territory authorities as soon as practicable after the end of the
financial year11.

11.2 Legislative requirements - departments

11.2.1 Financial Management Act 1996

Sections 30A to 30E of the FMA provides the requirements relating to a department’s
Statement of Performance.

In summary the requirements are:

• To compare actual performance in providing each class of outputs with the
original budget or revised budget12 where amended by Section 19D of the FMA or
a supplementary budget for the year, and state the extent to which the output
performance criteria set out in the budget, were met13.

• A department’s Statement of Performance must have endorsed on, or attached to

it, a Statement of Responsibility signed by the responsible CE. The Statement of
Responsibility14 must state that, in the CE’s opinion, the Statement of
Performance fairly reflects the performance of the department in delivering each
class of outputs during the financial year. Attachment 6 provides an example of a
Statement of Responsibility.

11
Section 30A and Section 68 of the FMA.
12
That is, the last budget estimates approved by the Legislative Assembly and/or under section 19D of the FMA.
13
Section 30A of the FMA.
14
Section 30B of the FMA.

24
• A department’s CE must give the ACT Auditor-General the agency’s Statement of
Performance for the financial year with a signed Statement of Responsibility, as
soon as practicable after the statement is prepared. The ACT Auditor-General
must provide a report about the Statement of Performance to the CE as soon as
practicable after the ACT Auditor-General has received it. This report will be a
“Report of Factual Findings”15.

• An Annual Report of a department must include or have attached to it:

o the department’s Statement of Performance for the year; and
o the ACT Auditor-General’s report regarding the Statement of
Performance.16

• A department must also prepare a half yearly performance report which is

required to be provided to the Members of the Legislative Assembly within 30
days after 31 December17. The half yearly report provides information relating to
the progress on the delivery of outputs for the relevant department. The report
includes:
o the half yearly performance against the Budget Outputs as listed in Budget
Paper No. 4 and/or as amended by Section 19D or a supplementary
budget;
o the annual and year to date targets; and
o the department’s progress against these targets.

Notes on variances greater than or equal to +/- 5 per cent between targets and
results should be included.

The Financial Management (Statement of Performance Scrutiny) Guidelines 2008

clarifies that the performance criteria to be included in the Statement of Performance
are the accountability indicators listed in the budget for the agency for the year.
Strategic indicators are not to be reported in the Statement of Performance.18

Attachment 6 provides an example model of a Statement of Performance for an

agency.

11.2.2 Audit scrutiny

Accountability indicators are subject to an annual Report of Factual Findings by the
ACT Auditor-General to ensure an appropriate level of accountability.

11.2.3 Annual Report Directions

The Chief Minister’s Annual Report Directions requires an agency to include its
Statement of Performance for the year in its annual report. The Statement of
Performance must be accompanied by the respective ACT Auditor-General’s report of
factual findings for the year.

15
Section 30C of the FMA.
16
Section 30D of the FMA.
17
Section 30E of the FMA
18
Except when a prescribed territory authority includes strategic indicators in their Statement of Intent.

25
Although an agency does not include its strategic indicators in its Statement of
Performance, an agency’s performance against its strategic indicators listed in its
budget for the year is to be included in an agency’s annual report.

11.3 Legislative requirements – territory authorities

11.3.1 Financial Management Act 1996

Territory authorities must prepare a Statement of Performance as soon as practicable
after the end of the financial year. Sections 68 to 71 of the FMA outline the
requirements relating to a territory authority’s Statement of Performance.

Territory authorities are required to produce a Statement of Performance that

addresses the performance measures included in its Statement of Intent for the year.
If an authority includes strategic indicators in its Statement of Intent, then the
Statement of Performance must also address these performance measures.

Territory authorities that are prescribed for outputs, in addition to reporting on their
Statement of Intent performance measures, must also report against the accountability
indicators presented in the Budget papers and / or as revised by section 19D of the
FMA or a supplementary budget. The Financial Management (Statement of
Performance Scrutiny) Guidelines 2008 clarifies that strategic indicators listed in the
budget for the authority for the year, but not in the authority’s Statement of Intent, are
not to be reported in the Statement of Performance.

Where an authority has a governing board, the chair of the board must sign the
Statement of Responsibility. Alternatively, where an authority does not have a
governing board, the CEO must sign the Statement of Responsibility.

11.3.2 Audit scrutiny

For a territory authority that is not prescribed, the ACT Auditor-General will provide
a Report of Factual Findings on the performance of the authority against the
performance criteria and other measures included in an authority’s Statement of
Intent.

For a prescribed territory authority, the ACT Auditor-General will provide a Report of
Factual Findings on the performance of an authority against the performance criteria
in the authority’s Statement of Performance and other measures included in an
authority’s Statement of Intent.

11.3.3 Annual Report Directions

The Chief Minister’s Annual Report Directions requires an authority to include its
Statement of Performance for the year in its annual report. The Statement of
Performance must be accompanied by the respective ACT Auditor-General’s report of
factual findings for the year.

For a prescribed territory authority: where the authority does not include its strategic
indicators in its Statement of Performance, the authority is required to report on its
performance against those strategic indicators listed in its budget for the year in its
annual report.

26
11.4 Model Statement of Performance – departments and territory
authorities prescribed for outputs

11.4.1 Overview of the model

The Statement of Performance is only to report against the accountability indicators.

To assist agencies and territory authorities prescribed for outputs with improving the
content and format of the Statement of Performance, a model Statement of
Performance has been prepared (refer to Attachment 6). The information contained
in the model Statement of Performance is for illustrative purposes only and is not
representative of any agency or territory authority.

The model covers the essential components of the Statement of Performance and
should be tailored to suit the agency’s situation. As the analysis is an overview, it
needs to be concise and needs to convey the main performance messages without
becoming too detailed.

11.4.2 Output information

The Statement of Performance should include the following information for each
output.

• Description of the output - output descriptions are included to provide users with
more information in relation to the outputs and services being provided by
agencies.

• Output cost – the following information is required:

o the original cost of the output as provided in the original budget papers;
o the amended cost of the output, where the cost has been amended by either
a Supplementary Appropriation Act (section 13A ‘Amendment of Budgets
for Supplementary Appropriation’) or a section 19D19 instrument
(‘Amendment of Performance Criteria’);
o where a target has been amended, the reason for the amendment should be
disclosed by way of note;
o the actual cost of the output at the end of the financial year;
o the percentage variance from the amended cost of the output; and
o an explanation of material variances from the amended cost.

• Government Payment for Outputs (GPO) – the following information is required:

o the original GPO as provided in the original budget papers;
o the amended GPO, where GPO has been amended by either a
Supplementary Appropriation Act (section 13A ‘Amendment of Budgets
for Supplementary Appropriation’) or a section 19D instrument
(‘Amendment of Performance Criteria’);
o where a target has been amended, the reason for the amendment should be
disclosed by way of note;
o the actual GPO received for the output at the end of the financial year;

19
Section 19D enables GPO of an output to be reallocated between outputs within an output class. However, the
sum of the GPO for outputs within an output class MUST equal the total GPO for that output class as provided in
the latest budget (that is, the original budget, or where the budget has been amended, the supplementary budget).

27
 o the percentage variance from the amended GPO; and
o an explanation of material variances from the amended GPO.

11.4.3 Accountability indicators

Accountability performance indicators measure an agency’s effectiveness and
efficiency in delivering its outputs, and may be measures of outcomes, outputs or
inputs. Accountability indicators should be presented in a table that is consistent with
the format included in the budget papers.

Accountability indicators should report against the original target or if relevant, the
amended target for each output. Where actual performance differs materially from the
relevant target, an explanation of the reasons for, and nature of, that variance is to be
included in the statement.

The Statement of Performance should include the following for each output when
reporting against Accountability Indicators.

• Accountability measures - the measures provide users with an indication of an

agency’s performance in delivering its outputs.

• Original target - the original target is the amount specified in the original budget
papers for the year.

• Amended target - a target can be amended by either a Supplementary

Appropriation Act (section 13A ‘Amendment of Budgets for Supplementary
Appropriation’) or a section 19D instrument (‘Amendment of Performance
Criteria’). Where a target is amended, the reason for the amendment should be
disclosed by way of note.

• Actual result – the actual result is the actual amount at the time of the report, i.e.
31 December (for the half yearly statement of performance) and at 30 June (for
the annual statement of performance).

• Percentage variance from amended target - the percentage variance is calculated

by subtracting the ‘amended target’ from the ‘actual result’ and dividing this
difference by the ‘amended target’. For example, where an amended target is 75%
and the actual result is 60% the variance would be calculated as follows:

(60% - 75%) / 75% = -20%

• Explanation of material variances - where there is a material variance, agencies

must explain the reason for the movement from the amended target to the actual
result. A material variance is determined by agencies based on the nature of each
measure and the size of the variance. As a general guide, a variance of more than
10% is considered to be a material variance. Where variances are between 5%
and 10% an explanation is only required where it is considered significant.

28
• Explanation of Measures - to assist readers in understanding the measures, it is
useful to provide an explanation of measures where:
o the terms are difficult to comprehend;
o it is difficult to determine how the measure has been calculated; and / or
o a sample size is used. The actual sample size is to be noted in the
explanation.

11.5 Territory authorities not prescribed for outputs

11.5.1 Territory authority Statement of Intent indicators

Territory authorities that are NOT prescribed for outputs, the Statement of
Performance should include the following for each Statement of Intent Indicator.

• Description of objectives for the year - the description of the authority’s

objectives20 are included to provide users with more information in relation to the
services being provided by agencies.

• Statement of Intent Measures - the measures21 provide users with an indication of

an authority’s performance in delivering its services.

• Original Target - the original target is the amount specified in the original budget
papers for the year.

• Actual result – the actual result is the actual amount at the time of the report, i.e. at
30 June (for the annual statement of performance).

• Percentage variance from Original Target - the percentage variance is calculated

by subtracting the ‘original target’ from the ‘actual result’ and dividing this
difference by the ‘original target’. For example, where an original target is 85%
and the actual result is 60% the variance would be calculated as follows:

(60% - 85%) / 85% = -29%

• Explanation of Material Variances - where there is a material variance authorities

must explain the reason for the movement from the original target to the actual
result. A material variance is determined by authorities based on the nature of
each measure and the size of the variance. As a general guide, a variance of more
than 10% is considered to be a material variance. Where variances are between
5% and 10% an explanation is only required where it is considered significant.

• Explanation of Measures - to assist readers in understanding the measures, it is

useful to provide an explanation of measures where:
o the terms are difficult to comprehend;
o it is difficult to determine how the measure has been calculated; and/or
o a sample size is used. The actual sample size is to be noted in the
explanation.

20
Section 61(5)(b) of the FMA.
21
Section 61(5)(d) of the FMA.

29
Attachment 1 – Glossary of Terms
Accountability - the ability to be held responsible for performance under the
management framework and appropriate legislation.

Accountability indicators – a measure of an agency’s performance in providing each

class of the outputs. These indicators are subject to audit and may be measures of
outcomes, outputs or inputs.

Accrual accounting - involves the recognition of revenue, expenses, assets, liabilities

and equity when the economic transaction giving rise to the movement of resources
occurs, irrespective of the timing of any related movement of cash.

Appropriation – the maximum amount of public money authorised by the ACT

Legislative Assembly under a legislative authority for transfer from the Territory
Banking Account to an agency.

Appropriation Act – an Act to appropriate money for the purposes of the Territory
for the current financial year.

Financial Management Act 1996 (FMA) - sets the legislative framework within
which the Government can operate in governing the Territory.

Government Payment for Output (GPO) – the appropriated revenue that agencies
receive to produce outputs from Government. The Legislative Assembly approves the
appropriation as part of the annual budget.

Inputs – resources that an agency uses in the production of its outputs.

Outcomes - the effects on the community of an output or class of outputs. e.g. a

reduced number of smokers, a decrease in rates of crime etc.

Output – goods produced or services provided by, or on behalf of, an agency to the
community. Outputs allow for the measurement of the cost of an agency to provide
goods or services to the ACT Community.

Output team - is the ACT Government employees responsible for the goods
produced or services provided by, or on behalf of, a department to the community.

Output class – a collection of a set of outputs within an agency.

Performance indicator – is an accountability indicator or strategic indicator.

Performance measure - quantifiable units of measurement used to determine and

assess the delivery of outputs.

Strategic indicator - a performance indicator that measures Government’s

performance against longer-term and strategic objectives and outcomes that impact
upon the community.

30
Attachment 2 – Output Costing
The following provides agencies with guidance on the methodology to be used to cost
outputs.

Output costing
1) Direct costs are expenses that directly contribute to agencies outputs. They may
include “intermediate” outputs within an agency.

2) Overhead costs (or Indirect Costs) are expenses that contribute to the environment
in which outputs are created but are not directly related to an output. They may
include: administration services; stationery, rent and repairs and maintenance.

Criteria for apportionment

Agencies may need to apportion expenditure / costs for the following.

• “Direct” budget allocations may not be output specific, but in fact be expended
upon a number of outputs.
• “Overhead” costs will invariably relate to more than one output, and in some cases
(e.g. administration services) may relate to all of the outputs of an agency.

The criteria or formula used for cost allocation and apportionment should be selected
so as to provide the most accurate result, consistent with minimising the
administrative effort involved. The best test of suitability should be whether the
apportionment provides a true reflection of the cost of providing this output and can
be justified for internal and external audit, and possible Assembly scrutiny.

Some methods that can be adopted include:

• survey of staff activity levels;

• number of employees;
• volume of transactions;
• size of budget;
• number of users; and
• asset information (e.g. property occupied, vehicles, computers).

The first cut of the allocation exercise by an agency may not provide the most
accurate result. Only with the benefit of practice will the costing systems become
more robust and reliable.

31
 Attachment 3 – Strategic Indicator in the Budget Papers

Strategic Indicator 1
Decreasing Type 2 Diabetes for Children

Lowering Type 2 Diabetes for Children Under 13 Years

Using prevention strategies, early intervention initiatives and campaigns to educate

the public, parents and children of type 2 diabetes and how to avoid being diagnosed.

Type 2 Diabetes ACT Rate National Rate

Children under 13 years 5.2% 6.6%
Source: National Diabetes Survey 2009-10

This strategic indicator measure intends to benchmark the department’s performance

against the national rate. The table demonstrates the indicator is quantifiable. The
strategic indicator provides a description to allow users to understand exactly what is
being measured and how it will be measured.

32
Attachment 4 – Output Classes in the Budget Papers⊗
The following is an example of Department XYZ statement of output classes in the
budget papers. Total cost is full costs of services to outputs, including accrued
expenses and other non-cash costs such as depreciation.
Output Classes

Total Cost Government Payment for

Outputs
2010-11 2011-12 2010-11 2011-12
Est. Outcome Budget Est. Outcome Budget
$’000 $’000 $’000 $’000
Output Class 1:
ABC Services 41,077 55,315 37,131 49,741
Output 1.1: Children Fitness Classes 5,623 8,065 5,525 7,814

Output Description
Provision of fitness classes to children under the age of 13 years.
GPO is the amount of
The key outputs to be delivered in 2011-12 include: appropriation provided by
the Legislative Assembly
for the delivery of the
• ensuring children are attending the free fitness classes each week; outputs in the output class.
• each child is provided with a fitness plan to do exercise at home; and
• ensure fitness classes are conducted in each suburb with appropriate access.

Total Cost Government Payment for

Outputs
2010-11 2011-12 2010-11 2011-12
Est. Outcome Budget Est. Outcome Budget
$’000 $’000 $’000 $’000
Output 1.2: Children Rehabilitation
35,454 47,250 31,606 41,927
Management

The addition of the outputs must equal the output class total. For example
Output Description $5,623 + $35,454 = $41,077.

The provision of an integrated, effective and timely response to children less than
13 years who require rehabilitation services in inpatient, outpatient, emergency
department, sub-acute and community based settings.
The key outputs to be delivered in 2011-12 include:

• reducing waiting times for admission to a qualified staff member through

physiotherapy agencies;
• improving rehabilitation planning to minimise the likelihood of readmission;
• ensuring that children with rehabilitation care needs receive the care at the right
time and in the right place.
The output description must provide users with the details of the
services to be provided under the output within the output class.
⊗ Ideally it should include the key outputs to be delivered for the
This is a fictitious example.
budget year.

33
Attachment 5 – Accountability Indicators in the Budget
Papers⊗
Department XYZ has nominated the following accountability indicators that will be
used to measure and report upon its performance in delivering Children Fitness
Classes and Children Rehabilitation Management.

2010-11 2010-11 2011-12

Targets Est. Outcome Targets

Output Class 1: ABC Services

Output 1.1: Children Fitness Classes

a. Children attend at least 2 fitness classes each week 70% 68% 70%
b. Each child receives a fitness plan 90% 91% 92%
c. Each suburb has one fitness class each week 85% 86% 85%

Accountability indicators are subject to audit – therefore the

targets and estimated outcomes must be measurable.

2010-11 2010-11 2011-12

Targets Est. Outcome Targets

Output 1.2: Children Rehabilitation Management

Patient activity
1
a. Percentage of children seen within 5 hours of 85% 86% 92%
attending the physiotherapy department
b. Percentage of readmission with same condition 9% 12% 9%
c. Number of rehabilitation plans issued within 24 95% 96% 95%
hours of qualified staff meeting with the child
d. Parent satisfaction as measured by annual survey 85% 85% 85%

Notes
1
The increase in the 2011-12 target for children seen within 5 hours is the result of new funding for
qualified staff through the Health for Children Agreement.

Accountability indicators must be self explanatory. The indicator

must be clear and users understand what is being measured. Where it
is considered useful, additional explanations of performance measures
may be provided below the measure or as a note.

⊗
This is a fictitious example.

34
Attachment 6 – Model Statement of Performance for
Departments and Territory Authorities

Departments

The following provides an example of Department XYZ Statement of Performance

for the year ended 30 June 2011-12.

The Statement of Performance will include:

• Independent Report of Factual Findings

• Statement of Responsibility
• Statement of Performance

Territory Authorities

The following provides an example of Territory Authority XYZ Statement of

Performance for the year ended 30 June 2011-12.

The Statement of Performance will include:

• Independent Report of Factual Findings

• Statement of Responsibility
• Statement of Performance

35
 Independent Report of Factual Findings

[Insert the Statement form the ACT Auditor-General’s office.]

36
 Department XYZ
Statement of Performance
For the Year Ended 30 June 2012

Statement of Responsibility

In my opinion, the Statement of Performance is in agreement with the Department’s

records and fairly reflects the service performance of the Department in providing
each class of ouputs during the financial year ended 30 June 2012 and also fairly
reflects the judgements exercised in preparing them.

Arthur Ant
Chief Executive
Department XYZ
August 2012

Territory Authority XYZ

Statement of Performance
For the Year Ended 30 June 2012

Statement of Responsibility

In my opinion, the Statement of Performance is in agreement with the Authority’s

records and fairly reflects the service performance of the Authority for the year ended
30 June 2012 and also fairly reflects the judgements exercised in preparing them.

Gemma Jones
Chief Executive
Department XYZ
August 2012

37
 Department XYZ / Territory Authority XYZ⊗
Statement of Performance
For the Year Ended 30 June 2012

Output Class 1: ABC Services

Output 1.1: Children Fitness Classes Under 13 Years
Description: This output covers childrens fitness through fitness classes and home exercising.

Original Amended Actual Result % Variance Explanation of Material Variances

Target Target 2011-12 from Original /
2011-12 2011-12 Amended Target

TOTAL COST ($'000) $8,065 n/a $7,956 -1% The $0.1 million variance lower than budget is in part due to the deferral of expenditure associated
with delayed introduction of fitness classes due to approvals required.

($’000)
GOVERNMENT PAYMENT FOR OUTPUTS $5,525 n/a $5,161 -7% The $0.3 million variance lower than budget is in part due to the delay in beginning fitness classes
to allow further time to sign children up to begin classes ($0.1 million) and under expenditure on
corporate costs ($0.1 million).

Accountability Indicators

a. Children attend at least 2 fitness classes each week 70% n/a 72% 3% Due to the delay in fitness classes starting it allowed further time to sign children up to begin
classes.
b. Each child receives a fitness plan 92% n/a 90% -2%
c. Each suburb has one fitness class each week 85% n/a 84% -1%

The above Statement of Performance should be read in conjunction with the accompanying notes.
Explanation of Measures
a. Percentage of children aged between 5 and 12 years old and reflects the average per week while the classes were run.
b. Fitness plan is provided by a registered trainer for exercises to be conducted at home by the children.
c. Fitness classes were only run in suburbs that had public access to a community hall or school hall.

The above Accountability Indicators were examined by the ACT Auditor-General's Office in accordance with the Financial Management. Act 1996.

⊗
This is a fictitious example.

38
 Department XYZ / Territory Authority XYZ
Statement of Performance
For the Year Ended 30 June 2012
Output Class 1: ABC Services
Output 1.2: Children Rehabilitation Management
Description: This output covers rehabilitation services in inpatient, outpatient, emergency department, sub-acute and community based settings for children.

Original Amended Actual Result % Variance Explanation of Material Variances

Target Target 2011-12 from Original /
2011-12 2011-12 Amended Target

TOTAL COST ($'000) $47,250 n/a $45,555 -4% The $2 million variance lower than budget is in part due to under expenditure on corporate costs and
administration costs.

GOVERNMENT PAYMENT FOR OUTPUTS ($’000) $41,927 n/a $40,921 -2%

Accountability Indicators

a. Percentage of children seen within 5 hours of admission 92% 95%¹ 95% 0%

b. Percentage of readmission with same condition 9% n/a 8% -11% The variance is largely due to improvements in rehabilitation treatments.
c. Number of rehabilitation plans issued within 24 hours of qualified 95% n/a 95% 0%
staff meeting with the child
d. Parent satisfaction as measured by annual survey 85% n/a 86% 1%

The above Statement of Performance should be read in conjunction with the accompanying notes.
Explanation of Measures
a. Percentage of children aged between 5 and 12 years old.
b. Percentage of children aged between 5 and 12 years old who required further management for their condition.
c. A rehabilitation plan outlines the exercises to be performed by the child and if further specialist advice will be required. It is an action plan to help the child recover.
d. 300 calls were made to parents who attended with their child to obtain rehabilitation services. Of the 300, only 220 participated in the survey. Survey asked for a yes or no response to whether they experienced high quality
service in the children rehabilitation management area.

Explanation of Amended Target

1. The target increased by 3% as the final Commonwealth funding received was higher then what was budgeted for. The target was amended on 1 December 2011 (notifable instrument 112233)

The above Accountability Indicators were examined by the ACT Auditor-General's Office in accordance with the Financial Management. Act 1996.

39