GAO Looks at Challenges of Measuring Program Performance

Reliably measuring performance in federal programs, particularly programs involving state-federal partnership is difficult, according to the U. S. General Accounting Office (GAO). Managing for Results: Challenges Agencies Face in Producing Credible Performance Information (GAO/GGD-00-52) and the two supporting written testimonies, Challenges in Producing Credible Performance Information (T-GGD/RCED-00-134) and Using GPRA to Help Congressional Decision making and Strengthen Oversight (T-GGD-00-95), identify several of the same issues state technology-based economic development programs have encountered for years as they attempt to define their own success for state legislatures and constituencies. 

On March 31, federal agencies will submit their first annual progress reports as required by the Government Performance and Results Act (GPRA). GPRA is intended to shift the focus of federal management and decision making from the number of tasks completed or services provided to a more direct consideration of the results or impacts of the programs. GPRA required agencies to create strategic plans with multi-year goals and annual performance measures toward achieving those goals. 

In its report, the GAO concludes that 20 of 24 agencies are not likely to have the information needed to measure their progress toward meeting their performance goals nor to be able to determine specifically how performance can be improved. The limitations in the agencies' ability to produce credible data are "substantial, long-standing, and will not be quickly or easily removed," according to the GAO. 

Limitations GAO identified include: 

• Policy decisions made when designing federal programs, particularly intergovernmental programs, make it difficult to connect timely and consistent national data. For example, efforts to provide state and local governments with flexibility in implementing a program, compete with objectives of collecting uniform performance information. 
• Many agencies are limited in their program evaluation capabilities and competencies. Determining effective measures of performance in many programs beyond the easily quantifiable, traditional tasks and services approach has proven problematic. 
• "Long-standing weaknesses" in agencies fiscal management capabilities confound assessment or improvement efforts. A historical lack of focus on performance-based issues may compound the fiscal problems. 

The importance of strong strategic plans and planning processes are not overlooked in the findings. The GAO recommends that agencies articulate more fully how strategies and resources will lead to improved performance, and to establish greater confidence that performance information will be credible and useful in decision making. 

The report, two written testimonies and other GPRA and strategic planning related reports can be found under "Reports" on the GAO website: http://www.gao.gov/