№ 4/2019

№ 4/2019

Nauk. pr. NDFI 2019 (4): 35–46https://doi.org/10.33763/npndfi2019.04.035

FINANCES OF EDUCATION AND SCIENCE

YABLONKO Olena ¹

¹SESE "The Academy of Financial Management"
OrcID ID : https://orcid.org/0000-0002-5266-6467

Formation of performance indicators of activities of budget institutions (HEIs): national and international experience

The results of budget programs execution are an important factor in the implementation of the prudent state budget policy within the budget process reforms. The understandable and valid information on the results of public services delivery can serve as the fundamental basis for the assessment of the budget funds’ spending efficiency. Despite a considerable amount of scientific research on the issue of determining performance indicators of the budget programs execution, it should be noted that a range of issues still remains unexplored. These include international approaches for the formation of institutions’ performance indicators and their consistency with domestic practice in this area. The purpose of the article is to highlight the main national and international methodological approaches for determining the performance indicators of budget programs execution, in particular by higher education institutions (HEIs). The content and structure of performance indicators of budget programs execution by spending units (including HEIs) is considered. It is established that in accordance with the current national legislation, performance indicators of budget programs execution reflect both quantitative and qualitative aspects of providing services by responsible executors of budget programs. The provisions of international legislation for grouping performance indicators of the attainment of the public sector entities’ goals are analysed. The article determines the conformity of performance indicators of budget programs execution and service efficiency indicators with the Recommended Practice Guideline 3 “Reporting Service Performance Information”. The analysis of the scope and composition of performance indicators of budget programs execution by HEIs for the period 2017-2018 is conducted. It is necessary to review the types of performance indicators determined by legislation to further improve the procedure for analysing the performance of government-funded institutions (including HEIs). This will ensure the complete and accurate information on efficiency of budget funds spending.

Keywords:higher education institutions, program-target method, budget program, performance indicators, key performance indicators, provision of services

JEL: H83, M41, M49

Yablonko O. . Formation of performance indicators of activities of budget institutions (HEIs): national and international experience / O. Yablonko // Наукові праці НДФІ. - 2019. - № 4. - C. 35-46.

Article original in Ukrainian (pp. 35 - 46)

Download

Downloads :273

1. Cabinet of Ministers of Ukraine. (2002). On approval of the Concept of application of the program-target method in the budget process (Decree No. 538-p, September 14). Retrieved from zakon.rada.gov.ua/laws/show/538-2002-%D1%80 [in Ukrainian].
2. Verkhovna Rada of Ukraine. (2018). On amendments to the Budget Code of Ukraine regarding the introduction of medium-term budgetary planning (Act No. 2646-VIII, December 6). Retrieved from zakon.rada.gov.ua/laws/show/2646-19 [in Ukrainian].
3. Shlapak, O. V., Iefymenko, T. I. (Eds.). (2014). Modernization of Ukraine's financial system in the process of European integration (Vol. 2). Kyiv: DNNU “Akademiia finansovoho upravlinnia” [in Ukrainian].
4. Levytska, S. O. (2004). Implementation of the targeted program budgeting method. Finance of Ukraine, 6, 33–37 [in Ukrainian].
5. Lovinska, L. H. (2017). The cost price of public sector of Ukraine services in the context of financial management reform. Finance of Ukraine, 8, 58–79. doi.org/10.33763/finukr2017.08.058
6. Ohon, Ts. H. (2009). Program-target method and financial provision of budget programs. Finance of Ukraine, 7, 20–29 [in Ukrainian].
7. Pavliuk, K. V. (2005). Evaluation of the implementation of budget programs: performance indicators. Finance of Ukraine, 2, 70–77 [in Ukrainian].]
8. Lovinska, L. H. (Ed.). (2013). Public sector accounting and control in the context of modernization of public finance management (Vol. 1). Kyiv: DNNU “Akademiia finansovoho upravlinnia” [in Ukrainian].
9. Chechulina, O. O. (2011). Modernization of state financial control in the context of developing the program-targeted budgeting. Finance of Ukraine, 10, 15–31 [in Ukrainian].
10. Chuhunov, I. Ya., Zapatrina, I. V. (2008). Development of program-target method for planning budget. Finance of Ukraine, 5, 3–14 [in Ukrainian].
11. Ministry of Finance of Ukraine. (2002). About passports of budget programs (Order No. 1098, December 29). Retrieved from zakon.rada.gov.ua/laws/show/z0047-03 [in Ukrainian].
12. Ministry of Finance of Ukraine. (2010). About performance indicators of the budget program (Order No. 1536, December 10). Retrieved from zakon.rada.gov.ua/laws/show/z1353-10#n15 [in Ukrainian].
13. International Public Sector Accounting Standards Board. (2015, March). Recommended Practice Guideline 3 (RPG 3) – Reporting Service Performance Information. Retrieved from www.ifac.org/system/files/publications/files/IPSASB-RPG-3-Reporting-Service-Performance-Information.pdf.
14. Scholey, C., Schobel, K. (2016). Performance Measurement for Non-Profit Organizations. Chartered Professional Accountants of Canada (CPA Canada). Retrieved from www.cpacanada.ca/-/media/site/business-and-accounting-resources/docs/g10026-rg-performance-measurement-for-non-profit-organizations-guidance-june-2016.pdf.
15. Office of the Auditor General of British Columbia. (2010, December). Guide for Developing Relevant Key Performance Indicators for Public Sector Reporting. Retrieved from www.bcauditor.com/sites/default/files/publications/2010/report_10/report/OAGBC_KPI_2010_updated.pdf.
16. Verkhovna Rada of Ukraine. (2017). About the State Budget of Ukraine for 2018 (Act No. 2246-VIII, December 7). Retrieved from zakon.rada.gov.ua/laws/show/2246-19#top [in Ukrainian].
17. Jarratt, A. et al. (1985). Report of the Steering Committee for Efficiency Studies in Universities. Committee of Vice Chancellors and Principals. Retrieved from www.educationengland.org.uk/documents/jarratt1985/index.html.
18. Higher Education Funding Council for England. (1999). Performance Indicators in higher education: First Report of the Performance Indicators Steering Group (PISG). Retrieved from www.leeds.ac.uk/educol/documents/000000971.htm#29.
19. Committee of University Chairmen. (2006, November). CUC Report on the Monitoring of Institutional Performance and the Use of Key Performance Indicators. Retrieved from www.universitychairs.ac.uk/wp-content/uploads/2016/07/CUC-report-on-use-of-KPIs_2006.pdf.
20. Parmenter, D. (2012, May). Key Performance Indicators for Government and Non Profit Agencies: Implementing Winning KPIs. doi.org/10.1002/9781119201038
21. An Indicator Framework for Higher Education Performance Funding. (2009). Discussion Paper, December. Retrieved from vital.voced.edu.au/vital/access/services/Download/ngv:27978/SOURCE2.