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AUDITOR-GENERAL SPECIAL REPORT NO 24 Further Review Of 1997 PARLIAMENT OF TASMANIA AUDITOR-GENERAL SPECIAL REPORT NO 24 Further Review of Performance Indicators In Government Departments No. 8 of 1997 – December 1997 Presented to both Houses of Parliament in accordance with the provisions of Section 57 of the Financial Management and Audit Act 1990 By Authority: G Priestley, Government Printer, Tasmania © Crown in Right of the State of Tasmania November 1997 Auditor-General’s reports are available from the Tasmanian Audit Office, HOBART. Tasmanian Audit Office GPO Box 851 Hobart TASMANIA 7001 Phone: (03) 6233 4030, Fax (03) 6233 2957 Email: [email protected] Home Page: http://www.audit.tas.gov.au This report is printed on recycled paper. ISBN 0 7246 4696-5 3 December 1997 President Legislative Council HOBART Speaker House of Assembly HOBART Dear Mr President Dear Mr Speaker PERFORMANCE AUDIT NO 24 – FURTHER REVIEW OF PERFORMANCE INDICATORS IN GOVERNMENT DEPARTMENTS This report has been prepared consequent to examinations conducted under section 44 of the Financial Management and Audit Act 1990, for submission to Parliament under the provisions of section 57 of the Act. Performance audits seek to provide Parliament with assessments of the effectiveness and efficiency of public sector programs and activities, thereby identifying opportunities for improved performance. The information provided through this approach will, I am sure, assist Parliament in better evaluating agency performance and enhance Parliamentary decision making to the benefit of all Tasmanians. Yours sincerely A J McHugh AUDITOR-GENERAL Tasmanian Audit Office Table of Contents LIST OF ACRONYMS ...................................................................................................................iii GLOSSARY...................................................................................................................................... v INTRODUCTION ............................................................................................................................ 1 SUMMARY OF AUDIT RECOMMENDATIONS ARISING FROM RGSP REVIEW................ 3 AUDIT OPINION............................................................................................................................. 5 AUDIT OBJECTIVES, SCOPE, TIMING AND COST.................................................................. 7 AUDIT OBJECTIVES ....................................................................................................................... 7 AUDIT SCOPE.................................................................................................................................. 7 AUDIT APPROACH.......................................................................................................................... 8 BACKGROUND............................................................................................................................... 9 THE ROLE OF PERFORMANCE INDICATORS IN OUTPUT METHODOLOGY........................... 9 IMPORTANCE OF THE USE OF PERFORMANCE INDICATORS............................................... 10 FOLLOW-UP OF AGENCIES’ PROGRESS ............................................................................... 13 INTRODUCTION............................................................................................................................ 13 AUDIT APPROACH........................................................................................................................ 14 RESULTS ........................................................................................................................................ 14 CHANGE IN FOCUS....................................................................................................................... 14 POSTSCRIPT .................................................................................................................................. 15 REVIEW OF GOVERNMENT SERVICE PROVISION ............................................................. 17 AUDIT EXAMINATION OF RGSP PERFORMANCE INDICATORS...................................... 21 UNIFORM COLLECTION AND DEFINITION OF DATA ........................................................ 21 INTRODUCTION............................................................................................................................ 21 FINDINGS....................................................................................................................................... 21 CONCLUSION ................................................................................................................................ 25 USE OF PERFORMANCE INDICATOR REPORTS .................................................................. 27 INTRODUCTION............................................................................................................................ 27 FINDINGS....................................................................................................................................... 27 CONCLUSION ................................................................................................................................ 29 CONSISTENCY AND LINKAGE OF RGSP INDICATORS....................................................... 31 INTRODUCTION............................................................................................................................ 31 FINDINGS....................................................................................................................................... 31 CONCLUSION ................................................................................................................................ 34 VERIFICATION OF PERFORMANCE INDICATOR DATA .................................................... 35 INTRODUCTION............................................................................................................................ 35 FINDINGS....................................................................................................................................... 35 CONCLUSION ................................................................................................................................ 37 i Tasmanian Audit Office APPENDIX 1 - PERFORMANCE INDICATORS EXAMINED FROM GOVERNMENT SERVICE PROVISION REPORT ................................................................................................ 39 APPENDIX 2 - SUMMARY OF PRELIMINARY FINDINGS AS AT FEBRUARY 1997.......... 41 END-NOTES .................................................................................................................................. 45 BIBLIOGRAPHY .......................................................................................................................... 47 PREVIOUS REPORTS TO PARLIAMENT................................................................................. 51 ii Tasmanian Audit Office List of Acronyms ABS Australian Bureau of Statistics ACVETS Australian Committee on Vocational Education and Training Statistics AIHW Australian Institute of Health and Welfare ALOS Average length of stay ANAO Australian National Audit Office AN-DRG Australian National Diagnostic Related Group ANTA Australian National Training Authority AVETMISS Australian Vocational Education and Training Management Information Statistical Standard CEO Chief Executive Officer CSDA Commonwealth-State Disability Agreement DCHS Department of Community and Health Services DECCD Department of Education Community and Cultural Development DELM Department of Environment and Land Management DHCS Department of Health and Community Services (Commonwealth) DPAC Department of Premier and Cabinet DPIF Department of Primary Industry and Fisheries DPP Director of Public Prosecutions DRG Diagnosis Related Group DVET Department of Vocational and Educational Training FMAA Financial Management and Audit Act 1990 USGAO United States General Accounting Office HRSCFPA House of Representatives Standing Committee on Finance and Public Administration IC Industry Commission MAB/MIAC Management Advisory Board/Management Improvement Advisory Committee NSSC National Schools Statistics Collection NGO Non-governmental organisation OAG (NZ) Office of the Auditor-General, New Zealand PI Performance indicator iii Tasmanian Audit Office RGSP Report on Government Service Provision 1997 SCRCSSP Steering Committee for the Review of Commonwealth/ State Service Provision SQL Structured Query Language TAFE Technical and Further Education THIS The Housing Information System TI Treasurer’s Instruction TQM Total quality management TSR Department of Tourism, Sport and Recreation (now Tourism Tasmania) iv Tasmanian Audit Office Glossary Term Description Budget Information Information which is used in the resource allocation process. Business Plans Annual Department or business unit operating plans which specify Outputs to be provided and their cost. Corporate Plans Medium term portfolio strategic plans. Customers People, organisations and departments who purchase, use or consume goods or services provided by a department. Efficiency The extent to which resources are used to maximise agency Outputs and results. Effectiveness The achievement of intended objectives. Inputs Labour, materials and other resources used to produce Outputs. Outcomes Effects on the community of the Outputs that are purchased by the Government. Output Budgeting Process of allocating resources on the basis of the Outputs to be produced or delivered. Output Groups Groups
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