PERFORMANCE MANAGEMENT: REPORTING AND TRACKING PERFORMANCE DATA

1
OPB RoadShowSeptember 2006
Office of Planning and BudgetDivision of
AdministrationState of Louisiana
2
AGENDA

• Welcome and Introduction
• Budget Basics FY 07-08
• Changes
• Special Concerns
• FY 07-08 Operational Plans
• ISIS/HR Data Budget
• ZP 22
• ZP 39
• ZP 116 BR9B
• LaPAS FY 06-07 Reporting
• EB-RB Controls
• Expenditure Revenue Budget Controls
• Expenditure Revenue Budget Adjustment Request
• BA-7s

• Executive Orders KBB 06-32 33
• Accountability for Line Item Appropriations
• Katrina/Rita Cost Classifications
• Hurricanes Katrina Rita Expenditure Revenue
  Tracking
• FEMA Reimbursement Coding
• Senate Concurrent Resolutions (SCRs) 43 and 130
• State Emergency Response Fund Act 640 of 2006
• Act 160 Undersecretarys Report
• Revised Five-Year Strategic Plans
• Questions and Answers as we go and at end

3
Basics
Office of Planning and BudgetDivision of
AdministrationState of Louisiana
4
Performance-based Budgeting

• Budgeting for Results
• Performance-based budgets focus on return on
  investmentthat is, what do we get for our
  investment of state resources?
• Basic service level (or continuation of basic
  services)?
• Increased services (more services to same
  recipients or expansion of same services to more
  recipients)?
• Better (higher quality) services?
• More efficient services (cost savings in service
  delivery)?
• Mitigation or resolution of a problem?

Budgeting for Results
5
Performance-based Budgeting

• Budgeting for Results
• With an Eye on the Price Tag
• Performance-based budgeting emphasizes program
  effectiveness and bases decision making (whether
  for continuation or enhancement of a program) on
  outcomes.
• However, the costs of achieving those outcomes
  must be scrutinized to ensure efficient service
  delivery and maximize allocation of scarce
  resources.

Budgeting for Results
6
Operating Budgets

• A budget is a plan for receiving and spending
  funds it is an allocation of anticipated
  resources. There are two parts to a budget 
• Means of Financing (what comes in) and
• Expenditures (what goes out).
•  
• Budget requests must provide detailed information
  on both parts.
• Primary source of data for OPB budget analysis
  and recommendations
• Give special care to BR-6s, BR-7s, BR-8s
• The goal of budget development is to balance
  these two parts.
• The goal of budget management is to keep them in
  balance.

7
Operating Budget Timelines
November 8
December/January
First Quarter Performance
Revenue Forecast
Progress Report
December/January
November 1
Preliminary Budget Recommendation
Operational Plan, Budget Request and Capital
Outlay Requests
February/March

Executive Budget, Supporting
Document, and Appropriation Bills
February 8
September-November
Midyear Performance
Agency Budget Preparation
Progress Report
September 20
March/April- June
DOA/OPB Guidelines for
Legislative Appropriation
Budget Preparation
Process
September 8
Yearend Performance
May 8
Progress Report
Third Quarter Performance
August 15
Progress Report
Performance Adjustment Requests
Fiscal Yearend Closeout
June 30
Prior Fiscal Year Current Fiscal Year Ensuing
Fiscal Year
Fiscal Year Ends
July 1
Early July
Fiscal Year Begins
Appropriation Letters
Budgets Spread
8
OPB Budget Decision-making Factors
DATA drive

• Available Revenues
• Means of Financing
• Discretionary vs. nondiscretionary status
• Gubernatorial agenda and initiatives
• Statewide and agency strategic plans or
  initiatives
• Return on Investment
• Program performance
• Demonstrated need
• Other guidelines
• Agency and other input
•     

Budget Development
9
TOTAL BUDGET REQUEST PACKAGE
Changes and Special Concerns
10
Total Budget Request Package

• Total Budget Request Package consists of 6
  components
• Operational Plan (OP Form)
• Existing Operating Budget (BR Forms)
• Continuation Budget (CB Forms)
• Technical/Other Adjustment Package (T/OAP Forms)
• New or Expanded Services Package (NE Forms)
• Total Request Summary (TR-SUMM Form)
• Total Budget Request Package is accompanied by 5
  addenda
• Activities
• Sunset Review
• Information Technology
• Childrens Budget
• LA Workforce Commission
• Forms, Guidelines, and Instructions posted on OPB
  website.

11
Budget Request Forms and Addenda
BIGGEST CHANGE Keeping hurricane recovery
funding and expenditures separate
12
Budget Request Forms and Addenda
Budget Request Pointers

• Use current OPB forms
• Follow instructions
• Check summary rows and columns
• Check for consistency between forms
• Submit a complete package on time

13
Budget Request Forms and Addenda
Budget Request Pointers

• Explain, explain, explain!
• Data-driven, quantifiable
• Pertinent, concise
• Complete the package as if your budget depends
  upon itIT DOES!

14
Budget Request Forms and Addenda

• OPERATIONAL PLAN (OP)
• An operational plan is an annual work plan.
• An operational plan draws directly from strategic
  plan to
• describe agency and program missions and goals
• state program objectives
• measure progress

15
Budget Request Forms and Addenda

• OP POINTERS
• Use the current OP form.
• Follow all instructions and guidelines.
• Submit a complete OP on time.
• Cite strategic program performance objectives.
• Report balanced sets of indicators.
• Explain, explain, explain.

16
Budget Request Forms and Addenda

• OP POINTERS
• Be clear.
• Avoid technical terms or jargon.
• If a technical term must be used, add a note to
  explain the term.
• Avoid acronyms and initializations unless first
  spelled out.
• Do not use NA.
• To maximum extent possible, use standard
  definitions and generally accepted or recognized
  calculation methods and formulas.

17
Budget Request Forms and Addenda

• OP POINTERS
• Be sure that indicator names and values are
  consistent with official sources.
• LaPAS
• Appropriation acts, approved Aug. 15th
  performance adjustments, and approved BA-7s
• Cite LaPAS PI Code for existing indicators.

18
Budget Request Forms and Addenda

• OP POINTERS
• Be consistent in what you report and how your
  data are calculated.
• Dont change performance indicators willy-nilly.
• Dont let the OP be the first indication that you
  think performance changes may be justified.
• Talk to your OPB analyst before you undertake
  changes.

19
Budget Request Forms and Addenda
Its my operational plan! Why cant I change my
performance indicators whenever I want to?
FAQ
In your strategic plan, you identified the
indicators to be used to measure progress over
the lifetime of the plan. You committed to those
indicators. We need to track indicators over
time to see progress. So there must be a
compelling reason to change indicators during the
lifetime of your strategic plan. AND that reason
must be communicated and justified, early in the
budget development process, to all key parties.
Given our post-hurricane operating environment,
some changes for FY 07-08 may be justified.
However, other key partiesparticularly OPBmust
agree with you.
Answer
20
Budget Request Forms and Addenda

• Performance information must be provided also on
• Continuation Budget Forms
• New or Expanded Service Forms
• Technical and/or Other Adjustment Package (as
  appropriate)

Use performance indicators to describe and
quantify existing services and justify workload
adjustments and/or enhancements.
21
Office of Information Technology (OIT)Forms
Budget Request Forms and Addenda

• Who must submit IT-10 requests?
• Departments/agencies must submit an IT-10 and a
  corresponding Office of Planning and Budget
  CB8/NE form as a justification for each
  Information Technology (IT) project and/or
  initiative request exceeding 100,000 in total
  cost over five years.
• All IT projects and/or initiatives meeting the
  criteria for submittal specified require the
  approval of OIT.
• http//www.doa.louisiana.gov/oit/publications/pub_
  guidelines.htm

22
Office of Information Technology Forms
Budget Request Forms and Addenda

• Recent changes to the IT Request process
• A tab added to IT-0 identifying all previously
  approved IT-10s for which funds are in the
  Existing operating Budget itemizing planned cost
  by fiscal year through final year of planned
  funding.
• A box has been added to the IT-10 form to
• Identifying the impact if the request is not
  funded
• Affirm the department/agency budget office has
  reviewed the IT-10
• Affirm the department/agency undersecretary has
  approved the IT-10
• Means of financing has been added to the cost
  summary section of the IT-10 Cost worksheet

23
Budget Request Forms and Addenda
Office of Information Technology Forms

• What IT expenses do not require an IT-10?
• Continuation of an existing contract, multi-year
  lease, lease purchase, or finance agreement for
  equipment that has been approved by OIT through
  an IT Request
• Hardware and software maintenance renewal
  contracts
• Object Code 2820 Maintenance of Data Processing
  Equipment
• Object Code 2825 Maintenance of Data Processing
  Equipment Software
• Acquisitions that were included in a previously
  approved IT Request (has been assigned a CIO
  Approval ) unless the project/initiative
  materially changes (i.e., change in technical
  approach or scope, increase in total costs by 15
  or more)

24
ISIS/HR Data and the Budget

• Employees are a valuable resource.
• Salaries and related benefits often represent the
  largest operating cost for an agency.
• Commissioner of Administrations memorandum of
  February 9, 2006, directs state agencies to
  ensure accuracy and timeliness of data in
  ISIS-HR.
• http//www.doa.state.la.us/OPB/faf/ISIS_HR_Use.pdf
  
• OPB uses ISIS/HR data to develop and monitor
  budgets.

25
ISIS/HR Data and the Budget

• Valuable ISIS/HR Reports
• ZP22 - projects salary expenditures for the
  remainder of the current fiscal year
• ZP39 - Position/Employee Statistical Report
  Summarized, which reports the total number of
  positions, employees and FTE by salary object, as
  defined by ISIS/HR Personnel Subarea.
• Mathematically, OPB simply subtracts the total
  FTE for all the Table of Organization (T.O.)
  salary objects (2100, 2130, 5200) from the
  authorized T.O. to obtain the number of funded
  vacancies.

26
ISIS/HR Data and the Budget

• Valuable ISIS/HR Reports
• ZP116 BR9B, which
• for filled positions, projects the salary and
  related benefits based upon the actual data of
  each incumbent identified by salary object
• for vacant positions, selects only the vacant
  positions designated with the X in the planned
  vacancy field. To project salary and related
  benefits, it uses the midpoint of the jobs pay
  range associated with the position and predefined
  specific amounts for the employee shares of
  retirement, health and life insurance.

27
LaPAS

• Opens for FY 06-07 1st Quarter Performance
  Progress Reports on Monday, October 9, 2006.
• Set interim targets prospectively
• Manage targets throughout the year
• Targets and actuals are cumulative
• All data cell entries required for a particular
  quarter must be complete to get complete
  status
• Explain, explain, explain
• Use LaPAS user forms on the OPB website to
  request new user IDs and keep user contact
  information current.
• Learn to use all the LaPAS tools.
• New LaPAS Administrator, Diana Williamson
• http//www.doa.louisiana.gov/opb/lapas/lapas.htm

28
Operating Budget Monitoring, Maintenance, and
Control

• Monitoring throughout fiscal year
• OPB analysts reconcile agency budgets between the
  OPB Budg-o-matic database and AFS.
• OPB analysts monitor collections by the agencies.
  
• OPB analysts run monthly position reports.
• OPB analysts monitor agency quarterly performance
  progress reports in LaPAS.
• OPB analysts monitor reports by legislative
  auditor and inspector general.

29
EB AND RB CONTROLS
Office of Planning and BudgetDivision of
AdministrationState of Louisiana
30
EB-RB CONTROL

• OPB reviews and takes action on all EBs and RBs
  in AFS.
• Policy and procedures detailed in OPB Memoranda
  to state agencies.
• June 16, 2005
• July 26, 2005
• Available on OPB website
• http//www.doa.louisiana.gov/OPB/faf/faf-br_for
  ms.htm

30
31
WHAT MUST AGENCIES DO?

• Agency must notify OPB analyst and supervisor via
  email whenever an EB is entered into AFS.
• Agency must submit written justification (Form
  EB) for all EBs that realign funding between
  categories.
• Agency is not required to submit written
  justification for EBs that realign funding within
  a category.

31
32
WHAT DOES OPB DO?

• OPB monitors expenditures at both the CATEGORY
  and OBJECT level.
• Prior Year Expenditures
• Appropriated Budget
• Initial Budget Spread
• Year-to-Date Expenditure / Percent Expended
• Existing Operating Budget

32
33
WHAT HAPPENS IFAGENCIES FAIL TO COMPLY?

• OPB may delay or refuse approval for EBs with
  insufficient written justifications.
• If unexpected realignments between expenditure
  categories are identified in monthly
  reconciliations, OPB will require object-level
  justifications for all future EBs.
• If OPB finds questionable realignments within an
  expenditure category that an agency cannot
  sufficiently justify, OPB will require
  object-level justifications for all future EBs.

33
34
BA-7s

• Mid-Year Adjustments - BA-7 Process
• BA-7 form and questionnaire are available on OPB
  website.
• Request must conform with Title 39, preamble of
  the appropriation act (general or ancillary), and
  PPM 52.
• Both financial and performance data are required.
• Form and questionnaire must be complete.
• Incomplete BA-7 requests may be returned without
  action.
• Submission must be timely.
• Submission by deadline does not guarantee
  placement on agenda for JLCB meeting.

35
Executive Orders KBB 2006-32 33

• KBB 2006-32 Accountability for Line Item
  Appropriations sets forth the requirements of
  certain appropriations in the General
  Appropriations Bill (Act 17).
• http//gov.louisiana.gov/assets/docs/32Accountabi
  lityForLineItemAppropriation.pdf
• KBB 2006-33 modified and clarifies language in
  KBB 2006-32.
• Line item appropriations require a cooperative
  endeavor agreement or contract between the
  recipient and an executive branch state agency to
  satisfy the provisions of Article VII, 14 of the
  Louisiana Constitution.
• Susan Smith with the Office of Contractual Review
  is here to discuss the guidelines.
• http//www.doa.louisiana.gov/ocr/index.htm

36
Cost Classifications KATR RITA

• Hurricanes Katrina Rita Expenditure and Revenue
  Tracking
• Commissioners memo of September 6, 2005,
  regarding accurately capturing and maintaining
  all records and documents related to Hurricane
  Katrina (KATR)
• http//www.doa.louisiana.gov/opb/faf/Katrina_Expe
  nditures.pdf
• September 23, 2005, similar memo regarding the
  capture of records for Hurricane Rita (RITA)
• http//www.doa.louisiana.gov/opb/faf/Hurricane_Ri
  ta.pdf
• Followup memo on September 27, reiterating the
  importance of identifying KATR and RITA
  expenditures
• http//www.doa.louisiana.gov/opb/faf/FEMA20IAT-r
  eimbursement20ltr20for20JLL.doc
• Why is it so important to identify KATR and
  RITA expenditures?

37
Senate Concurrent Resolutions 43 and 130

• TRACKING HURRICANE RECOVERY SPENDING
• SCR 43 of the 2005, 1st Extraordinary Session
  requested the commissioner of administration to
  coordinate the efforts of agencies to develop an
  easily accessible public website detailing
  information on all recovery spending on disaster
  related contracts.
• http//www.legis.state.la.us/billdata/streamdocume
  nt.asp?did329154
• SCR 130 of the 2006 Regular Session went further
  in requesting a website contain a list of all
  state spending of federal hurricane-related aid
  updated monthly.
• http//www.legis.state.la.us/billdata/streamdocume
  nt.asp?did401450

38
Senate Concurrent Resolutions 43 and 130

• TRACKING HURRICANE RECOVERY SPENDING
• Some agencies have already started placing
  various hurricane recovery spending information
  on their websites.
• To avoid duplication and assure a consistent
  approach, Neal Underwood with the Office of
  Electronic Services, is coordinating this website
  effort.

39
Act 640 of 2006

• Created FEMA Reimbursement Fund and State
  Emergency Response Fund
• FEMA Reimbursement Fund is for the purpose of
  providing funds to pay the states portion of any
  amount due the United States.
• State Emergency Response Fund (SERF) is to be
  used to provide a source of funds to pay
  expenses incurred as a result of activities
  associated with the preparation for and response
  to an emergency or declared disaster.
• Agencies must contact Commissioner of
  Administrations Office to request use of the
  SERF before obligating expenditures.
• Use of the SERF for specific purposes will be
  evaluated on a case-by-case basis.
• NO AGENCY SHOULD SPEND MONEY ASSUMING
  REIMBURSEMENT FROM THIS FUND.
• http//www.legis.state.la.us/billdata/streamdocume
  nt.asp?did405246

40
Annual Undersecretary Management Program
Evaluation Reports (Act 160 Reports)

• LRS 368 requires submission of an annual report
  summarizing the activities of each
  undersecretarys office relating to management
  and program analysis conducted for preceding
  fiscal year.
• Due to hurricanes Katrina and Rita, report was
  suspended last year.
• However, FY 05-06 report is required and due
  December 5, 2006.
• Guidelines for undersecretary's Annual Management
  and Program Analysis Report (AMPAR) on OPB
  website.
• http//www.doa.louisiana.gov/OPB/faf/AMPAR_Guideli
  nes.pdf
• AMPAR Form on OPB website.
• http//www.doa.louisiana.gov/OPB/faf/AMPAR20Form.
  doc

41
Strategic Plan Revision
Strategic Planning

• Successful strategic plans are not static.
• Revision and update are required, at a minimum,
  every three years after submission of an initial
  strategic plan.
• (The OPB recommends an annual effort to track
  progress toward accomplishment of strategic goals
  and objectives. This annual review and
  evaluation may reveal the need to make a few
  adjustments or accommodations. However, unless
  extraordinary changes in internal capacity or
  external operating environment have occurred, it
  should not be necessary to overhaul or rewrite
  your entire strategic plan annually.)
• Due date for next revised and updated strategic
  plans is July 1, 2007. This plan will cover the
  period of FY 2008-2009 through FY 2012-2013.

42
Strategic Plan Revision
Strategic Planning

• Revision and update move the plan into the
  future.
• A three-year update moves the plan three years
  into the future.
• The strategic plan remains a five-year plan. Its
  start and end dates are moved into the future.

Revised 5-Year Strategic Plan
5-Year Strategic Plan
FY 05-06 FY 06-07 FY 07-08 FY 08-09 FY
09-10 FY 10-11 FY 11-12 FY 12-13 FY 13-14
43
Strategic Plan Revision
Strategic Planning

• Division of Administration guidelines must be
  used.
• Updated guidelines for revising and submitting
  strategic plans available on OPB website in
  October 2006.
• Training in strategic planning available through
  the Comprehensive Public Training Program,
  beginning in November 2006.
• Your strategic plan is a public document.
  Publish your plan along with your process
  documentation, on your department or agency
  website. Unless your agency does not have
  website capability, hard copy or other electronic
  submission does not substitute for website
  publication.
• NOTE If your organization does not have a
  website, contact the OPB regarding submission of
  hard copy.

44
Strategic Plan Revision
Strategic Planning

• Strategic plans must be submitted to the
  commissioner of administration (through the OPB)
  and the standing committee of each house of the
  legislature having responsibility for oversight
  of the department/agency.
• As a practical matter, plans also should be
  submitted to
• gt Legislative Fiscal Office
• gt House Appropriations Committee/ House Fiscal
  Division
• gt Senate Finance Committee/Senate Fiscal Section
• gt Office of the Legislative Auditor
• To submit your plan, post your plan and process
  documentation to your website. Then send a
  notification to the official and courtesy
  recipients, stating the availability and web
  location of the plan.

45
Strategic Plan Revision
Strategic Planning

• The OPB reviews department and agency strategic
  plans for compliance with guidelines and quality
  of plan contents.
• OPB reviews are sent to departments and agencies,
  with feedback on how to improve the plan.
• Departments/agencies are given a timeline for
  improving and resubmitting plans to the OPB.

46
For more information, please visit the Office of
Planning and Budget website at
http//www.doa.state.la.us/opb/index.htm

• Look for
• Executive Budget Documents
• LaPAS
• Performance-based Budgeting Forms and Guidelines
• MANAGEWARE A Practical Guide to Managing for
  Results
• Links to performance-based enabling legislation
  and appropriation acts

47
CONTACT OPB
PHONE [phone] FAX [phone] STAFF
ASSIGNMENTS AND EMAIL ADDRESSESAVAILABLE ON THE
OPB WEBSITE http//www.doa.louisiana.gov/opb/sa/s
a-agencies.htm
47
Louisiana Office of Planning and Budget
48
ANY OTHER QUESTIONS?
48
Louisiana Office of Planning and Budget