Altus Alliance 2016 - Performance-based Budgeting with Questica

ALTUS ALLIANCE 2016Revolutionizing Accountability: 3 Tips to Make Performance Based Budgeting a Reality

Today’s Speaker

Gerry McDonald Questica

Agenda•   Performance Based Budgeting – what it is?• What it looks like• 3 Tips to make it a reality

Questica inc.• Over 15 years in business • 175+ Customers, 1 Focus• Customer’s budgets range from $20M into the Billions• The Public Sector turns to Questica when their budgeting &

Performance needs outgrow their existing systems

Performance Based Budgeting – what it is?

Performance Based Budgeting is …• Based on the assumption that performance information

alongside budgets will improve budget decision-making• Intended to be a management tool for program

improvement, not a “carrot and stick” • Both the Government Accounting Standards Board

(GASB) and the Government Finance Officers Association (GFOA) are promoting performance measurement indicating it may soon become a requirement

Related topics

PerformanceBased

Budgeting

Performance Management

PerformanceMeasures

Performance Based Budgeting• Performance based budgeting cannot begin until a

system of performance measurement has been instituted

Performance Measurement is …• The regular systematic collection, analysis, and

reporting of data that tracks resources used, work produced, and whether specific outcomes were achieved by an organization

• But, be careful … • Only meaningful to the degree that they are the basis

for good decision making

Performance Measurement should:• Based on objectives that tie to a statement of program

mission or purpose• Measure program outcomes• Provide for resource allocation comparisons over time• Measure efficiency and effectiveness for continuous

improvement• Be verifiable, understandable, and timely• Motivate staff

What it looks like

ALTUS ALLIANCE 2016

Demo

Tips• Just do it – start, do something • Law of unintended consequences

• Barbra Streisand• The British government and cobra snakes in Delhi

• It’s going to take time• Years

Interim Solution • Departments heads provide a bullet narrative with annual

budget requests including:• what department accomplished last year?• what is different in this year’s budget request?• what goals has the department set for the coming year?

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