The PGPA Rule (section 16F) requires the measurement and assessment of an entity’s performance to be reported in an annual performance statement (which is included in the annual report). This involves the reporting of performance in accordance with methods set out in the entity’s corporate plan and the PBS.
The PGPA Rule sets out the details of how an entity’s performance in achieving its purposes will be measured and assessed for each reporting period covered by the entity’s corporate plan, through:
- specified performance measures which meet the requirements of section 16EA of the PGPA Rule, and
- specified targets for each of those performance measures for which it is reasonably practicable to set a target.
Characteristics of performance measures
It is expected that performance measures presented in the PBS meet the requirements of section 16EA of the PGPA Rule to ensure consistency and alignment with the corporate plan and annual performance statements.
This section sets out characteristics of performance measures in the context of an entity’s purposes or key activities, which are that the performance measures must:
- relate directly to one or more of the purposes or key activities
- use sources of information and methodologies that are reliable and verifiable
- provide an unbiased basis for the measurement and assessment of the entity’s performance
- where reasonably practicable, comprise a mix of qualitative and quantitative measures
- include measures of an entity’s outputs, efficiency and effectiveness if those things are appropriate measures of the entity’s performance
- provide the basis for an assessment of the entity’s performance over time.
For more information about developing performance measures go to RMG-131 Developing performance measures.