Memoranda 96-18:
Performance Measurement Pilot Projects for 1995

Contents
MEMORANDUM OMB-96-18 Performance Measurement Pilot Projects for 1995
SUBMISSION OF PILOT PROJECT PROGRAM PERFORMANCE REPORTS FOR FY 1995

Submission Date
Report Content
Report Format
Missing or Preliminary Performance Data
Including Performance Data for FY 1994
Threshold for Explaining Non-Achievement
Use of an Annual Financial Statement
Time-period Covered

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MEMORANDUM OMB-96-18 Performance Measurement Pilot
Projects for 1995

March 22, 1996

M-96-18

MEMORANDUM FORTHE HEADS OF DEPARTMENTS AND AGENCIES
DESIGNATED AS PERFORMANCE MEASUREMENT PILOT PROJECTS FOR FY
1995 UNDER P.L. 103-62

FROM:  Alice M. Rivlin /s/
       Director

SUBJECT:  Submission of FY 1995 Program Performance Reports for
Pilot Projects under P.L. 103-62, the Government
Performance and Results Act of 1993 (GPRA)

This memorandum covers the submission of program
performance reports for FY 1995 by the designated
performance measurement pilot project agencies under the
Government Performance and Results Act.

An attachment to this memorandum has been prepared to
assist your staff in developing these reports.  The
attachment sets forth basic information on the scope and
general content of the program performance report.  This
guidance is similar to that provided by OMB Memorandum 95-07
on the preparation and submission of pilot project program
performance reports for FY 1994.  If you have any further
questions on the pilot project program performance reports,
please call your OMB Resource Management Office.

By separate cover, we will be providing the pilot
project agencies with a copy of GAO's recently completed
review of the FY 1994 program performance reports.

Your agency's continuing participation in these
performance measurement pilot projects is appreciated.

Attachment


Attachment

SUBMISSION OF PILOT PROJECT
PROGRAM PERFORMANCE REPORTS FOR FY 1995

Submission Date

The FY 1995 program performance report should be sent
to OMB by March 31, 1996.  (GPRA does not require agencies
to send the pilot project program performance reports to the
President or Congress.)  The report may be submitted either
by the agency head, or by a senior official (one who is
appointed by the President and Senate-confirmed) having
direct responsibility for the programs and activities
covered in the report.

Report Content

The basic content of an annual program performance
report is defined in Section 4(b) of the Government
Performance and Results Act.  For the individual pilot
projects, the FY 1995 report should contain the following
elements:

(1)a comparison of the actual performance achieved
with the performance level(s) specified for each performance
goal and performance indicator in the annual performance plan;

(2)if a performance goal was not met, an explanation
of why the goal was not met, along with either:

  (a)the plans and schedules for achieving
the performance goal in the future, or

  (b)a statement that the performance goal as
established is impractical or infeasible, and expressing the
agency's intention to modify or discontinue the goal.

(3)the summary findings of any program evaluations
completed during fiscal year 1995 and materially bearing on
the program(s), activities, or organizational component
covered by the pilot project;

(4)a description of the contribution (if this was
significant) made by non-Federal parties (e.g., consultants,
contractors, States, local governments, grantees) in the
preparation of the report.  This contribution can include
the collection and reporting of performance data.

Report Format

No presentation format is prescribed.  An agency with
more than one pilot project may choose to submit a
consolidated report covering all its pilot projects, or
submit individual reports for each pilot.

Missing or Preliminary Performance Data

If actual FY 1995 performance data are not yet
available for a performance goal or indicator, the report
should note this, and indicate (by quarter and year) when FY
1995 performance data will be available.  Similarly, if the
FY 1995 performance data are preliminary, this should also
be noted, along with an indication of when final data will
be available.

Including Performance Data for FY 1994

GPRA program performance reports are to include
performance trend data from previous years.  For those pilot
projects that prepared a FY 1994 performance plan and
program performance report, the FY 1995 report should
include data on the actual performance achieved in FY 1994
for those performance goals and indicators present in both
the FY 1994 and 1995 performance plans.

Threshold for Explaining Non-Achievement

Explanations for why goals were not met are a
distinctive feature of the program performance report, and a
report will be judged as incomplete if these explanations
are not included.

For the FY 1995 program performance reports, there is
no hard and fast rule as to when the non-achievement of a
performance goal or indicator warrants an explanation.  Much
depends on the preciseness with which a performance target
was set forth in the goal or indicator, previous year
performance trends, and the significance of the shortfall.
Depending on the program, a one percent deviation between
actual and planned might be trivial or critical.

A test for when to provide an explanation could be as
follows.  Include an explanation if:

* the manager(s) of the pilot project program,
activity, or component shortfall were sufficiently
concerned about actual performance levels to alert
or inform senior agency officials about such and
the implications thereof on overall program accomplishment;

                         or

* the managers took or are taking substantive
action(s) to address the shortfall in performance;

                         or

* performance levels for future years are
being adjusted downward to reflect actual FY 1995
performance levels.

If an agency wishes to defer providing an explanation
where the performance data is preliminary, and (based on the
experience of previous years) subject to significant
correction, it may do so.  The deferral should be noted in
the report along with the future schedule for submitting an
explanation, if such is still required.  In these instances,
agencies should submit the explanation whenever the final
data becomes available, and not delay until the submission
of a subsequent year's program performance report.

Use of an Annual Financial Statement

Agencies may choose to use their annual financial
statement for FY 1995 as the program performance report for
a pilot project.  If a financial statement is used, the
statement must cover the programs, activities, or components
covered by the pilot project, and must include the specified
content described above.

An agency using the FY 1995 financial statement as its
program performance report should note such either in a
covering memorandum, or in a separate letter to OMB.

When a financial statement is being used as the program
performance report, the program performance information
included within is subject to audit requirements for the
statement.  OMB Bulletin 93-06, "Audit Requirements for
Federal Financial Statements," prescribes the limited
procedures to be applied to performance information included
in the financial statement.

 Time-period Covered

The program performance report should cover the entire
fiscal year.