Many governments are implementing budgeting for results. Some are developing a performance based budget with allocations of personal and non-personal services expenditures to programs. Others are formulating budgets at the activity level and presenting the budget along program lines. The following presents a few of the Budgeting for Results projects that The Abrahams Group has performed.
City of Worcester,
The City of Worcester embarked on a new planning, budgeting, and reporting mechanism for all city departments as the City began to develop a performance management system utilizing the Departments of Public Works and Treasury as pilots. The project first developed outcome measures, linking outcome measures to the strategic plan, and developing a performance-based budget. The project included strategic planning, goals and objectives setting, performance measurement, performance budgeting, and performance monitoring and reporting. The pilot departments developed department and division mission and goal statements, activity lists, performance targets and indicators, have identified data sources for the performance information, and have prepared a performance-based budget. These indicators include inputs, outputs, outcomes, and efficiency measures as well as explanatory data. The project was then expanded to a citywide performance-based budget for all departments. The City was the recipient of the LBJ School of Government Award for Advancing the Art of Performance Measurement. Robert Moyland, the Commissioner of Public Works, accepted the award.
City of Milwaukee,
The City of Milwaukee is recognized as one of the first large cities to adopt a performance budget. This project built upon the city's performance data system, which was substantially input and output data, to develop outcome measures. The project involved reviewing the City's budgeting and costing practices and developing and conducting general and specific department training programs to develop outcome measures for their budget. A general training session was conducted for the directors and deputy directors of the City's 25 departments, and specific training sessions for the Departments of Library, Health, Public Works, Fire, Police, City Development, and Building Inspection focusing on helping departments develop department objectives with outcome measures. The City then organized its budget around budgeting by outputs and outcomes. The City was the recipient of the "E For Effort Award" from Financial World and received a A- grade from Governing Magazine for its Managing for Results efforts.
City of Indianapolis,
The City of Indianapolis for years has operated with a basic line item, four-character budget that focused on inputs. The mayor desired to implement a new management system focusing on results. Accordingly, he targeted a "popular" budget. This popular budget focuses on outcomes, and crosswalks the statutory budget to service activities; defines service level targets by activity; identifies inputs, outputs and efficiency measures for each activity; relates each activity to outcomes; and links department outcomes to the Mayor's policies and goals. The project included the Departments of Public Works, Transportation, Metropolitan Development (including public housing), and Parks and Recreation. Four training workshops were conducted each for the four departments to train between 30-55 department managers (each) in the background, objectives, use, definitions, and development of performance measures. The Governmental Accounting Standards Board's Service Efforts and Accomplishments reporting guidance was incorporated into the training along with other materials.
Once the performance measures were identified, assistance was provided to the City to develop and implement a performance based "popular budget". The objectives of this project were to crosswalk the department line-item budgets into activity budgets, and identify the service levels, objectives and performance measures for each activity identified. The City was the recipient of the "E For Effort Award" from Financial World and an A- grade from Governing Magazine for its Managing for Results efforts.
City of San Diego,
The City of San Diego begun a Competition Program to encourage City departments to provide services and programs more competitively with other service providers. As part of this effort, the City established outcome measures and related outcomes to how the City allocates resources in order to enhance accountability. The City built upon its base of efficiency and effectiveness measures to accomplish outcome-based indicators. The Abrahams Group trained city management and selected departments to develop outcome measures and trained City staff to develop a performanced based budget and cost accounting system. The project involved:
The Streets, Real Estate, Fire, Water, and Police department results were used as pilots for a citywide performance-based budget. The City now has a significant (a "gazillion") number of activities, each with input, output and efficiency measures, linked to program goals and outcome measures. The city received an A- grade from Governing Magazine for its Managing for Results efforts.
Maricopa County has been implementing a Managing for Result program for the past two years. The Abrahams Group was brought in to work with Weidner Consulting to implement budgeting for results and a cost accounting system. Once fully implemented, the system will formulate budgets at the activity level and present the budget along program lines. The Adaytum software is being utilized for the Budgeting for Results program. The County will allocate resources to support the program structure derived from department strategic business plans. The County is utilizing the AMS Advantage 2000 series software to provide detailed cost accounting by activity or service. Click on http://www.maricopa.gov for more detail.
Franklin County has been implementing a Managing for Result program for the past two years. The Abrahams Group was brought in to work with Weidner Consulting to implement budgeting for results and a cost accounting system. The system will formulate and present the budget at the program or lines of business level. The American Management System's (AMS) BRASS software is being utilized for performance based budgeting. The County will allocate resources to support the program structure derived from department strategic business plans. The County is utilizing the Computer Center MUNIS software to provide activity based cost accounting to support the lines of business, programs and activities defined in the strategic business plans. Click on http://www.co.franklin.oh.us for more detail.
The District of Columbia has been implementing a Managing for Result program for the past year. The Abrahams Group was brought in to work with Weidner Consulting to implement budgeting for results and a cost accounting system. The budget system will formulate budgets at the activity level and present the budget along program lines. The District is utilizing a Microsoft Office Access and Excel in house system to compile and load their annual financial plan. The KPMG R*STARS system software is being utilized to provide activity based cost accounting to support the programs, activities and services as defined in the strategic business plans.
School District, Wisconsin
The Milwaukee Public Schools is implementing a Managing for Results program including a major change in the way the District budgets and accounts for its 150 school sites and other state and district requirements. The District has selected a new financial management system to provide results based budgeting and cost accounting. The Abrahams Group is providing Managing for Results training and specific performance based budgeting and activity based cost accounting assistance. More information will be provided once the software vendor is officially announced.
State of Iowa
The State of Iowa dramatically changed the way it budgeted and acounted for State services through its Budgeting for Results and Activity Based Costing programs. The Budgeting for Results program involved developing budgeting for results concepts and writing a Budgeting for Results Handbook, then conducting training for about 200 of the state's top management personnel. The program included developing mission statements, writing program purpose statements, developing program outcome, input, output and efficiency measures and aligning programs with state policy objectives.
The Activity Based Costing program involved developing and conducting ABC Awareness and How To training program and the writing of an Activity Based Costing Manual. Training was also provided to the top 80 finance officials in the state. Click on http://www.state.ia.us/government/dom/abc_book_pdf.PDF to download the ABC manual written by Mark D. Abrahams or http://www.state.ia.us/government/dom/abc_article_pdf.PDF to download the Activity Based Costing, Illustrations from the State of Iowa, written by Mark D. Abrahams and Mary Reavely.
Santa Clara County,
The Abrahams Group assisted the County of Santa Clara, California to implement its Comprehensive Performance Management (CPM) Program including a pilot performance based budgeting for the Roads and Airports Department. The County is using the AMS BRASS software to prepare the County's annual budget. The pilot project developed alternative performance based budgeting formats for the County. For further information on the CPM program, click on http://santaclaracounty.org/handbook/cpm.htm
City of Riverside,
The City of Riverside has been implementing a Managing for Results program for the past year. The Abrahams Group assisted the city departments to develop a program and activity structure and define performance measures. The City has prepared its budget to include program goals and outcome measures. This year the City is developing a SQL database to compile performance information and is restructuring its Bi-Tech budgeting and accounting systems to support the City's program and activity structure.
Metro Parks Tacoma,
The Tacoma Metropolitan Parks District has been implementing a Managing for Results program for the past year. The Abrahams Group with assistance from Weidner Consulting developed strategic business plans for the District's lines of businesses including a program, activity and service structure with related performance measures. The District converted from an annual budget to a biennial budget and developed a performance based budget to support its strategic business plan. The District is utilizing Excel spreadsheets to present its performance based budget and Cayenta (formerly SFG) software for activity based cost accounting. The District is also developing a Microsoft Access database to compile performance information.
City of Kansas
The City of Kansas City has been implementing a Managing for Results program for several years. The City retained The Abrahams Group to provide Managing for Results training including assistance to implement performance based budgeting. The City is utilizing the American Management System (AMS) BRASS software and the AMS Advantage 2000 series accounting software to provide activity based cost accounting. The City has over 750 activities included in its performance based budget. Refer to http://www.kcmo.org/index.htm for the KCMO web site.
Capital Parks Planning Commission, Maryland
The Maryland-National Capital Parks Planning Commission has been implementing Managing for Results for the past two years. The Abrahams Group has been assisting MNCPPC to implement Managing for Results and performance based budgeting. Organizationally, there are six departments. In Prince George's County, these are the Department of Planning and the Department of Parks and Recreation; and in Montgomery County, the Department of Park and Planning. The Department of Human Resources and Management, Finance Department, and Legal Department comprise the Central Administrative Services. The Commission utilizes in house software to prepare its performance based budget.
Town of Weymouth,
The Town of Weymouth has been implementing program based budgeting for the past year. The Abrahams Group was brought in to help departments establish programs and program goals and to implement budgeting for results and a cost accounting system. The budget system will formulate budgets at the program level. The Town developed its program budget on Excel spreadsheets. The Town is utilizing the Computer Center MUNIS software to provide program based cost accounting.
City of Leominster,
The City of Leominster has been implementing program based budgeting for the past year. The Abrahams Group was brought in to help departments establish programs and program goals. The budget system will formulate budgets at the program level. The City developed its program budget on Microsoft Publisher and Excel software. The City is utilizing the Computer Center MUNIS software to provide program based cost accounting.
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