BULLETIN NO. 00-04
TO THE HEADS OF EXECUTIVE
DEPARTMENTS AND AGENCIES
the Performance Plan and Budget
part of preparation for the FY 2002 Budget, agencies will be asked
to submit an integrated Annual Performance Plan with goals
based on current services levels, associating budget authority and
outlay estimates insofar as possible with each goal. This document
will provide a succinct description of the agency's mission and
goals, based on the strategic plan that you will have sent to OMB
and the Congress by September. It will explain the agency's programs
and activities, and the way these contribute to its outputs and
outcomes. The agency's recent performance results will be presented,
and factors other than the agency's programs that affect its outcome
goals will be discussed. Budget authority and outlay estimates will
be associated with the goals, and the budget accounts that finance
them will be identified. In this initial draft, targets for the
objectives would be based on enacted appropriations and a continuation
of current funding in the budget year.
In preparation for production
of these integrated documents, agencies will need to focus over
the next six months on better understanding the relationships between
budgetary resources and performance results. To begin the process,
this Bulletin requests the agencies listed at Attachment A to prepare
written reports to OMB assessing agency progress to date on certain
aspects of the integration of performance planning with the budget,
and outlining their current plans for further improvement.
Background and coverage. One
of the Administration's top priority management objectives in the
FY 2001 Budget is to "Use performance information to improve program
management and make better budget decisions." The objective is to
continue improving the implementation of the Government Performance
and Results Act and specifically to integrate planning and budgeting.
This Bulletin focuses on assessing and deepening that integration,
following up the questions on "Linking Planning, Performance Measurement,
and Budgeting" attached to the transmittal memo of OMB Circular
A-11 for FY 2001.
Progress in the use
of performance information relies heavily on the ability of agency
policy makers and program managers to relate goals and objectives
to resource requirements. Judging by the increased use of performance
information in the FY 2001 budget process, agencies are making steady
progress; the momentum toward improvement must continue. Strategic
goals and performance measures should have meaning in the context
of real program management and resource allocation.
Over the coming year,
OMB and the agencies should be taking steps to build on the progress
achieved in implementing GPRA to date by:
- integrating performance
planning and budgeting;
- budgeting for resources
where they are used;
- developing greater
organizational accountability for program results;
- improving the content
and usefulness of agency strategic and annual performance plans;
- ensuring that the
annual program performance reports meet GPRA requirements and
are of satisfactory quality;
- deepening understanding
of how results are achieved; and,
- using performance
measures to improve program management.
The reports required
by this Bulletin will serve as a Government-wide snapshot of the
progress that has been made toward integration, and as a summary
of agencies' analyses of and plans for improving integration in
preparation for the integrated current services document and the
FY 2002 Budget. Over the coming months, there will be discussions
between OMB staff and agency representatives designed to encourage
further development of integrated annual performance plans, both
before and after the submission of written reports responding to
Required Action. The
agencies listed at Attachment A should submit a report that assesses
agency progress in the directions indicated by the questions at
Attachment B by Friday, June 30th. The responses to these
questions should be as specific as possible, and should incorporate
actual experience from agency programs in integrating performance
measurement with resources.
regarding this Bulletin should be directed to the relevant agency's
Jacob J. Lew
Bulletin No. 00-04
Corporation for National and Community Service
Corps of Engineers
Bulletin No. 00-04
the Annual Performance Plan and the Budget
Name, Telephone, E-Mail
Please provide an assessment
of your agency's progress in the directions indicated by the questions
below, and your current plans for further improvement.
- Presentation. Did
your agency include its annual performance plan and budget justification
in a single document last year? Had they done so in previous years?
- If so: What were
its strengths and weaknesses? Did it provide a tightly crafted
overview of the agency's activities, plans, and resources?
- What actions are
needed to develop an integrated presentation this year?
- What plans does
your agency have for improvements in presentation?
- Linkage with resources. Are
there areas where your agency identifies in its plan and/or budget
justification the amount of budget authority and outlays devoted
to each of the plan's objectives and the budget account(s) from
which these come?
- If so, are these
"ballpark estimates" or are they more solidly grounded? For
example, are they based on historical data on spending for these
objectives? Please explain.
- Where this is not
done, please explain as specifically as possible what obstacles
or issues the agency encountered in making such estimates.
- What actions are
needed to make estimates this year? Is planning to do this underway?
- Are the amounts
of resources roughly appropriate to reach the performance target?
- If the amount of
resources in the policy budget were to be changed, up or down,
by 10 percent, can you estimate the corresponding change in
each performance target?
- Account and activity
alignment. With your current budget account structure,
to what extent do (or can) the resource estimates for your agency's
objectives align with program activity lines, budget account totals,
or aggregations of these? Please explain in detail which objectives'
resources already align with these "building blocks" or aggregations
- For objectives
that are not now aligned with budget lines or aggregates thereof,
please analyze whether and how they could be tracked in the
budget. To what extent would additional program activity lines
be useful? To what extent can resources for more than one objective
jointly be tracked in the budget? In these cases, could cost
accounting disentangle the amounts devoted to each objective?
- Would changes in
the structure of the agency's plans and/or budget accounts be
useful to bring them into closer alignment with each other?
If so, please specify what changes might be considered. What
is the status of consideration of such changes?
- Would these suggested
changes be problematic if policies change, or are they aligned
with programs, activities, and organizations that are unlikely
- Would it be useful
to have the capability in MAX to collect P&F program-by-activity
by GPRA performance activity code?
- Staff relationships. Are
the Annual Performance Plan and the budget developed by the same
staff? If different staffs work on the plan and the budget, please
describe how these staffs interact.
- Program accountability. How
does the agency identify the official (below the Secretary's office)
who is held accountable for achievement of each goal and objective?
- Are program managers
held accountable? Do the central and regional staffs that run
the program report to the accountable official? Please explain.
- Are the budgetary
resources needed to achieve each objective (mostly) under the
control of the agency official responsible for achieving the
objective? Or are they linked to the objective only in an information
- For OMB use, please
provide the name, title, telephone, and E-mail address for the
official responsible for each objective.
- Suggestions. What
plans and suggestions do you have fsor improving the integration
of planning and budgeting in this agency? What questions or issues
would you like to raise for discussion with OMB?