Putting Teeth into the Efficiency and Effectiveness of Publ

The Governmental Accounting Standards Board (GASB) embarked upon a research effort in 1985 which may have a profound impact on public financial management. The research could lead to the creation of accounting guidelines encouraging state and local finance officers to include performance measures of efficiency and effectiveness in their annual financial reports. The Governmental Accounting Standards Board (GASB) currently is involved in research that could lead to the requirement that state and local finance officers include performance measures of efficiency and effectiveness in their annual financial reports. Its research team is examining many aspects of performance reporting, including: 1. which and how many measures seem to be most acceptable and practical, 2. how such information is used in the decision-making process, 3. how such data should be reported for disclosure purposes, and 4. what the costs and benefits of generating such data are. Research thus far shows that environmental and behavioral difficulties, rather than technical ones, probably will be the most difficult to overcome in integrating service efforts and accomplishments into the financial management structure. Simply generating and using data on service efforts and accomplishments could have a positive effect on the environment of and current behavior in government.