PERFORMANCE BUDGETING; It is the process by which a particular type of budget is developed -- a Performance Budget (or "program performance budget"). To design an effective system of performance-based budgeting, it is therefore vital to understand first exactly what the end product itself should be, what it should contain, and how it should look like. A program Performance Budget can be distinguished from a Line-Item Budget in a fundamental way. The line items show what each dollar will be spent on: salaries, benefits, office supplies, travel, utilities, equipment, etc. The Performance Budget shows what each dollar will accomplish, generally in the way of a measurable result achieved (such as a reduction in accidents, an improvement in health, an increase in customer satsifaction, etc.), or in the way of an activity performed (such as process a grant application, inspect a worksite, review a compliance activity, etc.).
Posted on: Fri, 19 Jul 2013 12:20:03 +0000