"Measuring government
performance is vital. It shows whether the taxpayer is getting
value for money and lets government learn from experience and
improve performance. PSAs became progressively better
specified but were not fully tied into resource management systems.
Any new performance metrics need to be clear, measurable and
directly related to the resources used to deliver
them"
Mr Amyas Morse, head of the National Audit
Office, 14 July 2010
The National Audit Office has today underlined the vital
importance of measuring government performance. Good performance
measurement frameworks show taxpayers what they are getting for
their money and enable the Government to assess whether it is
achieving its key objectives cost-effectively. In its final review
of the quality of the data systems used by government departments
to measure progress against Public Service Agreements (PSAs), the
NAO concludes that the PSA framework provided a clear focus on the
objectives that mattered for the then Government, and had gradually
improved over the years.
According to today’s report, the quality of data systems and of
disclosures about measurement policies has risen: 58 per cent of
PSA data systems, under 2007’s Comprehensive Spending Review
(CSR07), were fit for purpose, up from 30 per cent under the 2002
Spending Review. The NAO notes, however, that a third of CSR07
systems needed strengthening to improve controls or transparency
and 10 per cent of systems were not fit for purpose.
The NAO found that PSAs became progressively more focused on key
priorities, and more clearly stated. The use of indicators allowed
for better measurement of progress against individual PSAs and
better reflected the complexity of outcomes that departments
sought. However, weakness in the operation and design of the
framework means that accountability has not been as strong as it
should have been. PSA indicators generally did not make clear the
extent to which outcomes were the result of government activity.
And financial information has been poorly linked with PSA
indicators. The apportionment of annual departmental expenditure
was not broken down by the indicators used to report progress and
did not facilitate more in-depth analysis of the cost of progress.
This hinders strategic decision-making because it is not clear what
allocation of available resources could achieve the best overall
results. The ability to link financial and performance information
is particularly significant at a time when public sector budgets
face severe cuts.
Publication details:
HC: 284, 2010-2011
ISBN: 9780102965360