AGA Exam GFMC Topic 1 Question 10 Discussion

National Performance Management Advisory Commission Framework:

The National Performance Management Advisory Commission developed a comprehensive framework to integrate performance measurement into government operations.

One of its primary goals was to incorporate performance metrics into the budget process to align resource allocation with program outcomes.

This ensures that budgeting decisions are informed by program performance, improving efficiency and accountability.

Why the Budget Process?

By linking performance to budgeting, governments can prioritize funding for programs that demonstrate effectiveness and reduce funding for underperforming initiatives.

Why Other Options Are Incorrect:

A . Internal control plan: Internal controls focus on risk management, not incorporating performance measurement.

B . Financial statements: Performance metrics are not reported in financial statements, which focus on financial position and results.

C . Audit procedures: Audits verify financial accuracy and compliance but do not incorporate performance measurement.

Reference and Documents:

National Performance Management Advisory Commission Report (2010): Recommends integrating performance measurement into the budget process.

GAO Guide on Performance Budgeting: Explains how performance metrics inform budget decisions.