Cultural Arts Council 9-2012(9 M~AMI BEACH
BUDGET AND PERFORMANCE IMPROVEMENT
Internal Audit Division
TO:
FROM:
DATE:
AUDIT:
PERIOD:
Kathie G. Brooks, Acting City Manager
James J. Sutter, Internal Audita~
March 22, 2013 /
Miami Beach Cultural Arts Council Audit
October 1, 2011 to September 30, 2012
INTERNAL AUDIT REPORT
This regularly scheduled audit of the Miami Beach Cultural Arts Council awarded and issued
grants during the 2011/12 fiscal year by the Cultural Affairs Division was performed in
compliance with the annual audit requirements specified by City Code Section 2 -64.
INTRODUCTION
The City Commission passed City Ordinance No. 97-3075 on March 5, 1997 thereby creating
the Miami Beach Cultural Arts Council (CAC) to develop, coordinate, and promote the
performing and visual arts in Miami Beach for the enjoyment, education, cultural enrichment,
and benefit of both residents and visitors. Since that time, the City has awarded more than
$8,495,000 in cultural art grants, supporting thousands of performances, exhibits and other
cultural activities in Miami Beach.
On June 3, 1998, the City Commission approved the Miami Beach Cultural Arts Council Master
Plan through Resolution No. 98-22760. The Master Plan process began in October of 1997 and
was the result of a series of public town meetings held in cultural venues throughout Miami
Beach. The Master Plan included the program areas of Cultural Grants Program, Joint
Marketing, Cultural Facilities, Advocacy and Planning, and Revenue Development; each with
individual objectives.
In fiscal year 2004/05, the City Commission authorized expanding the allocation of the 50% of
the 1% resort tax previously equally distributed to North Beach, Middle Beach and South Beach,
to include funding for the arts. This funding is distributed in the year after it is collected as this
commitment provided a new permanent funding source that sustains cultural programming long
term. As a result, the 1% resort tax revenues collected in FY 2010/11 totaling $1,229,681 were
appropriated to each of North Beach, Middle Beach, South Beach and the Arts in the 2011/12
fiscal year.
In an effort to address the needs of the arts community, City staff in conjunction with the CAC
Board annually reviews each of the grants programs (currently Cultural Anchors; Cultural
Presenters; Cultural Heritage; Artistic Disciplines -Dance, Music and Theater; and Cultural
Tourism) to determine the type of programs which will benefit the community. A summary of
each grant program follows:
• Cultural Anchors provide grants to the major preeminent arts institutions physically
based in Miami Beach, whose primary mission is year round artistic and cultural
programming that contributes significantly to the City's cultural life. Organizations must
have minimum organizational budget levels of $750,000 and the monies received may
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Internal Audit Report
Miami Beach Cultural Arts Council Audit
For the Fiscal Year Ending September 30, 2012
March 22, 2013
be used towards operational expenses in association with the annual cultural
programming described in the application. This category also includes "Junior" Cultural
Anchors which are Miami Beach based cultural organizations that meet all the above
listed objectives but their organizational budget levels are below $750,000 as approved
by the CAC approximately three years ago.
• Cultural Presenters provide grants to organizations whose primary mission is to produce
and present cultural and artistic productions.
• Cultural Heritage provides project specific grants for arts programming to not-for-profit
501 c(3) Miami Beach based institutions devoted to promoting and protecting the diverse
heritage, traditions and culture of Miami Beach. Grants may be used for presentation of
visual and performing arts, arts programs and workshops, and other projects which
emphasize the artistic experience and are accessible to a broad audience.
• Artistic Disciplines funding is limited to arts and cultural organizations whose primary
mission is to create and present work in one of the following artistic disciplines; Dance,
Music, Theater, Film and Visual Arts. Proposed projects should be for work that is new
or has never before been presented in Miami Beach. Selections are based on the
organizations demonstrated artistic talent and potential and the vision for the proposed
project, in relation to their overall artistic goals.
• Cultural Tourism are grant funds jointly provided by the CAC and Miami Beach Visitor
and Convention Authority (VCA) to support major cultural arts performances, festivals,
and events which attract a significant number of tourists to the City. Both the VCA and
the CAC gave $30,000 each to fund this program during the 2011/12 fiscal year.
Suggestions and ideas are received from grantees, grants' panelists, members of the CAC and
other granting organizations through orientation meetings held at the beginning of each grant
period, consultations with grantees, public application and proposal reviews, public meetings
held at the end of the review cycle, the Grants Task Force, and through staff, so that the
programs can continually be improved. Program application periods and relevant deadlines are
announced in January via press releases, electronic mail, on its website and in area
newspapers. Program guidelines, applications and instructions are created in Microsoft Word
format and made available on the website in both English and Spanish.
To be eligible to apply, organizations must be non-profit 501 c(3) cultural organizations and
cultural departments within an institution of higher learning (college or university) with tax-
exempt status under subsections of 501 c(3) wishing to present or produce cultural and artistic
events in the City of Miami Beach. Furthermore, any applying organization that satisfies one of
the following criteria is not entitled to receive funding:
• applied through a fiscal agent
• received prior CAC grant funding and did not comply with the Grant Agreement and/or
other requirements
• did not include the City of Miami Beach logo and required credit line in all publications
related to the grant
• received funding from the VCA during the same fiscal year
Page 2 of 12
Internal Audit Report
Miami Beach Cultural Arts Council Audit
For the Fiscal Year Ending September 30, 2012
March 22, 2013
A total of $975,000 was requested in grant monies by forty-seven organizations for the 2011/12
fiscal year. Each grant applicant must follow an extensive multi-level public review process
which includes a general orientation for all applicants and required consultations with CAC staff
to determine eligibility and appropriate programs. Applicants must meet all application
requirements, including deadlines, or be disqualified.
Applications were scored by the CAC at a series of publicly noticed panel meetings using
evaluation forms based on criteria listed in the application, and then were averaged dropping
the highest and lowest scores. An application must have scored a minimum average of 80%
with a maximum possible score of 100 points, to be eligible to receive funding.
Forty-three organizations exceeded or met the designated minimum score required for funding.
As a result, the City Commission, through the passage of Resolution No. 2011-27755, awarded
grants totaling $630,000.00 to these eligible organizations for the 2011/12 fiscal year. The
largest award of $25,597.75 was given to the New World Symphony, while the lowest amount of
$6,450.36 was given to City Theatre. All of these authorized grant recipients receive half their
funding upon submittal and approval of the required documents with the remaining half upon
completion from the City (excluding the "Fresh Air Fund").
The CAC adopted the $2,000.00 "Fresh Air Fund" to be given to grant recipients whose projects
include free outdoor performances in the City of Miami Beach at Collins Park, North Beach
Bandshell, etc. during the 2011/12 fiscal year. Twelve organizations qualified for the "Fresh Air
Fund" monies and these monies are included in the $630,000.00 aforementioned awarded grant
amounts. However, they are fully payable to the grantee in their second annual payment only
upon completion of the designated events.
Resolution No. 2011-27755 also included four programs (16th Brazilian Film Festival of Miami,
XVII International Ballet Festival of Miami, 14th Annual Miami Gay & Lesbian Film Festival in
Miami Beach and VII Sicilian Film Festival) whereby the CAC partnered with the Miami Beach
Visitor and Convention Authority or VCA for Cultural Tourism grants that support cultural events
with documented tourism benefits. The City's agreed upon payment of $30,000.00 was made to
the VCA through check number 3057 dated 11/03/11. These four authorized grant recipients
receive all their funding from the VCA upon submittal and approval of the required documents
after the project's completion.
The CAC budget did not include a contribution towards the City's Cultural Endowment for the
2011/12 fiscal year due to budget constraints. Yet, the endowment's 09/30/12 balance held in a
restricted cash account increased by $14,435.22 to $1,581,873.86 from the prior fiscal years
ending balance of $1,567,438.64 due to the interest earned on the invested monies.
Under Resolution No. 99-23228, the City Commission approved the appropriation of
$220,000.00 from the CAC budget to provide matching funds in the form of a non-interest
bearing loan to fund a portion of the Colony Theatre Improvements. Since the City was able to
obtain the maximum grant award from the State's Cultural Arts Facilities Grant Program, the
loan was reduced to $165,000.00. The City will repay the loan to the Cultural Arts Council from
the 70% recapture of the Colony Theatre Cafe revenues. As of September 2012, the total
amount in the Colony Theater Trust account remained at $75,740.00 as no monies were
authorized to be spent during the 2011/12 fiscal year.
Page 3 of 12
Internal Audit Report
Miami Beach Cultural Arts Council Audit
For the Fiscal Year Ending September 30, 2012
March 22, 2013
OVERALL OPINION
The Cultural Arts Council has properly followed the guidelines established by the Miami Beach
City Commission as to their purpose in the City. It has established a master plan for the arts,
and developed and established criteria and guidelines for review and funding for qualified not-
for-profit organizations. The active Cultural Arts Council is comprised of eleven Miami Beach
residents who routinely meet once a month to plan the organizations' future. Program files were
well organized for each tested vendor. Finally, sufficient documentation was present confirming
that funded programs were staged and that the organizations' final reports were received before
that fiscal year's grant payments were authorized for reimbursement.
However, the following findings were identified which are in need of corrective action:
• Six Cultural Anchor grantees received their 2012/13 fiscal year's first grant payments
despite not fully satisfying 2011/12 fiscal year's requirements for their second grant
payment.
• Three sampled grantees that did not submit timely IRS tax exempt letters or sufficient
proof of payments still received their full second City grant payment. Also, three of the
twelve randomly sampled grantees or 25% did not submit their final reports by the stated
due dates.
• The Miami Gay Men's Chorus's second grant payment was incorrectly entered into
general ledger account numbered 601-7000-229316 instead of 140-6080-000349. Once
notified, a journal entry was prepared to correct this transaction on the City's Financial
System.
• Inaccuracies were noted in the number of grants awarded, the number of grants issued
and the total grant dollars awarded performance measures reported in the City's
Environmental Scan and budget book.
PURPOSE
To determine whether the Cultural Arts Council complied with tested requirements set forth by
the City Commission during the 2011/12 fiscal year, which includes the timely distribution of
approved grant funds in the correct amounts to qualified eligible not-for-profit organizations;
properly reported grant payments in the City's Financial System; and accurately reported data in
the City's Environmental Scan and performance management software.
SCOPE
1. Confirm that the Cultural Arts Council has developed, established and adhered to criteria
and guidelines for review and funding of qualified not-for-profit arts organizations.
2. Confirm that the Cultural Arts Council consists of eleven Miami Beach residents, who are
appointed for three-year terms and no more than six consecutive years.
3. Confirm that Cultural Arts Council meetings are held once a month (excluding August)
and that one public hearing before the City Commission is held annually.
Page 4 of 12
Internal Audit Report
Miami Beach Cultural Arts Council Audit
For the Fiscal Year Ending September 30, 2012
March 22, 2013
4. Confirm that grant payments were correctly recorded in the City's Financial System.
5. Select a sample of grants awarded, ensuring that all grant categories are represented,
and confirm that funds paid for grants were for approved programs, meeting the criteria
set forth by the Cultural Arts Council.
6. Confirm that selected departmental measurement data reported in the City's
Environmental Scan and performance management software are accurately calculated
and properly supported by source documentation.
FINDINGS, RECOMMENDATIONS AND MANAGEMENT RESPONSES
1. Finding -Six Cultural Anchor Grantees Received 2012113 Fiscal Year's First Payments
Before Fully Satisfying 2011112's Requirements
Many grantees apply and are awarded Cultural Arts Council or CAC grant funding in
consecutive fiscal years. For example, thirty-six of the forty-three organizations
(excluding those organizations in the Cultural Tourism category) awarded monies in the
2012/13 fiscal year also received funding in the 2011/12 fiscal year. Testing found that
the following six Cultural Anchor organizations received grant monies for the 2012/13
fiscal year before satisfying all the requirements in order to receive their second 2011/12
second payment: New World Symphony, Jewish Museum of Florida, Wolfsonian-FIU,
Miami Beach Film Society, Art Center/South Florida and the Holocaust Memorial
Committee.
Recommendation( s):
2012/13 grant award recipients should not receive any CAC funding until they have
complied with all the prior year's requirements and received their second payment.
Management's Response:
The Grants and Operations Administrator assumes complete responsibility for the
issuance of 1 81-half payments prior to full compliance with previous years' final reporting.
Cultural Anchors remain a unique category of grantee, whose final reports can be
submitted as late as November 15, often coinciding with the receipt of their fully-
executed grant agreement for the current fiscal year. Each of the six Cultural Anchor
organizations mentioned above submitted their final report on or prior to the November
15 deadline and were ultimately found to be in full compliance.
2. Finding -Submitted Supporting Documentation Does Not Fully Satisfy Tested Grant
Requirements
Prior to receiving any monies, a grant agreement must be completed and signed by both
the City and the participating 501 (c)3 entity. This standard document requires the
submittal of a final report within 45 days of the project's completion date; proof of the
City of Miami Beach logo and credit line must be included in all project publications and
advertisements; proof of performances such as programs, brochures and flyers; etc.
The Grants and Operations Administrator maintains separate grantee files of all
submitted documentation which must be approved for sufficiency before a Request for
Direct Payment is prepared authorizing the City's Finance Department to issue a check
to the grantee.
Page 5 of 12
Internal Audit Report
Miami Beach Cultural Arts Council Audit
For the Fiscal Year Ending September 30, 2012
March 22, 2013
Twelve of these forty-seven grantees' files or 25.53% totaling $133,205.55 or 21.14% of
the $630,000.00 in awarded grants were randomly selected for review with two nonprofit
organizations chosen from each of the six designated programs (Cultural Anchors,
Cultural Presenters, etc.). In doing so, the following deficiencies were noted:
a. Ground Up and Rising's file contained an Internal Revenue Service letter dated
03/21/08 which is prior to the 01/01/09 CAC's desired date. Internal Audit's
further review of the State of Florida Division of Corporation's website properly
found that all twelve sampled grantees were currently active Florida nonprofit
corporations.
b. Grantees are required to categorize all receipts, invoices and cancelled checks
(front and back copies), etc. according to the approved grant budget before they
are eligible for reimbursement but the following two exceptions were noted:
• Miami Dade College did not provide proof of payment for $10,931 in
claimed personnel-technician and marketing/publicity expenditures.
• The Cuban Classical Ballet of Miami similarly did not provide proof of
payment for $7,640 paid to dancers and a separate $600 cash payment
for marketing/publicity.
c. The signed grant agreements require grantees to postmark or deliver their final
report no later than 45 days after the project end to receive the second half of
their grant award. For example, the final report is due on November 15th for all
grantee's programs having a September 30th completion date.
Unlike the Cultural Grants and Operations Administrator which time/date stamps
the grantees' final reports upon submittal, the Miami Beach Visitor and
Convention Authority or VCA manually records the date received. A comparison
of the final reports' due dates with the listed received dates found that three
sampled grantees had submitted these documents late or after the due date
ranging from a low of 13 days (141h Annual Miami Gay & Lesbian Film Festival) to
a high of 74 days (Teatro en Miami.) and had received their full second annual
grant payment.
One other sampled grantee, Florida Grand Opera, submitted their final report late
but their second grant payment is being disputed because they only staged three
of seven proposed events. In addition, there were three other organizations that
had not yet received their second grant payment as of the completion of this
audit (Holocaust Memorial Committee, Florida Dance Association and City
Theatre).
Subsequent inquiries with Cultural Affairs Division staff found that they
continually spend time reminding the grantees that deadlines have passed and
work with them to help ensure that they receive full funding, whenever possible.
Despite continued warnings in the 2011/12 fiscal year of the need to comply with
listed deadlines and the inclusion of the following statement in the grant program
guidelines and applications instructions "Application and Final Report deadlines
Page 6 of 12
Internal Audit Report
Miami Beach Cultural Arts Council Audit
For the Fiscal Year Ending September 30, 2012
March 22, 2013
will be strictly enforced. There will be no exceptions." this year's random sample
contained the same number of grantees submitting late as in last year's audit.
Recommendation(s):
The Cultural Affairs Division should more closely scrutinize the documents received and
compare them to the maintained checklist to help ensure that all required items are
received and are complete. The grantee's second payment should be withheld until any
items required in the signed agreement deemed missing (financial statements, cancelled
checks, etc.) are subsequently received. If the grantees don't fully comply by the
previously agreed upon due dates, then they should consider reducing the grantee's
funding accordingly in accordance with provisions that should be added to future grant
agreements. The implementation and enforcement of these practices should result in
better grantees' compliance thereby giving Cultural Affairs Division staff additional time
to focus on more important duties and helping ensure that most, if not all, grant monies
are disbursed in the fiscal year appropriated/awarded by the City Commission.
Management's Response:
a. Ground Up & Rising's 501 (c)(3) letter was found to be outdated however,
Cultural Affairs Program Staff also utilized State of Florida Division of
Corporation's web site at the time of submittal to determine their status as a
current not-for-profit entity.
b. Grants and Operations Administrator agrees that Miami Dade College did not
provide sufficient proof of payment in the form of a front/back cancelled check in
the amount of $6,500 for the Personnel-Technical budget line item.
Corresponding checks have been requested to complete and close the file.
Additionally, required documentation was in fact received for the remaining
$4,431 mentioned above for Marketing/Publicity.
Staff acknowledges the oversight with regard to the Cuban Classical Ballet of
Miami's proof of payment for their dancers. As was discussed during the audit
process, there were prevailing issues with their final report which staff dealt with
immediately and in doing so, inadvertently overlooked other possible
deficiencies. The file has since been updated to include the required proof of
payments.
c. City of Miami Beach Cultural Affairs Program staff recognizes that Teatro en
Miami's final report was received past the 45-day project completion date but
understands that many organizations working with minimal staff have difficulty
meeting certain deadlines. Staff maintains its commitment to the task of providing
cultural programming to the residents and visitors of Miami Beach. In doing so,
extra effort and understanding of grantees' limitations is sometimes necessary in
order to secure documentation to complete the final report.
Page 7 of 12
Internal Audit Report
Miami Beach Cultural Arts Council Audit
For the Fiscal Year Ending September 30, 2012
March 22, 2013
3. Finding-The Miami Gay Men's Chorus Second Grant Payment was Incorrectly Entered
into General Ledger Account Numbered 601-7000-229316
Forty-seven organizations were awarded grant monies totaling $630,000.00 for the
2011/12 fiscal year by the City Commission's ratification of Resolution No. 2011-27755.
These authorized grant recipients were to receive half their funding upon submittal and
approval of the required documents with the remaining half upon completion (excluding
the $2,000.00 "Fresh Air Fund" which is included only in the second grant payment).
The Grants and Operations Administrator approves the submitted documentation for
sufficiency before a Request for Direct Payment is prepared authorizing the City's
Finance Department to issue a check to the grantee.
The Grants and Operations Administrator maintains an Excel spreadsheet to record all
Cultural Arts Council or CAC grant payments. Among other information, it lists the grant
program, the amounts awarded, the date the checks are requested and the amount of
the two payments. Internal Audit compared this spreadsheet's data with the actual
payments recorded in the City's Financial System general ledger account number 140-
6080-000349 for all forty-seven grantees by an Office Associate V and found that the
Miami Gay Men's Chorus second payment of $6,577.79 was incorrectly coded to
general ledger account number 601-7000-229316. Once notified, a journal entry was
promptly completed to correct this inadvertent mistake.
Recommendation(s):
The Grants and Operations Administrator's maintained Excel spreadsheet should
continue to reflect each grant payment made to eligible organizations. In addition, the
Grants and Operations Administrator should be granted Eden System read only access
so that she can reconcile this Excel spreadsheet with the payments recorded in the
City's Financial System and investigate any differences.
Management's Response:
As noted above, the journal entry was promptly completed and corrected. Staff will look
into getting additional access to the Eden System for the Grants and Operations
Administrator.
4. Finding-Review of Departmental Performance Measures
The Cultural Affairs Division measures both the number and amounts of grants awarded
by the City Commission, as well as the actual number of grants issued (output
measures). These numbers may differ as the number of grants issued is usually not
available until the end of the fiscal year since grantees may withdraw or be denied
funding due to not fulfilling all the grant requirements.
These tested departmental measures are reported in the City's performance
measurement software and/or the Environmental Scan. We reviewed the basis for each
measure and compared the reported amounts to the actual supporting documentation.
The following figures were reported for the three tested measures reported annually in
the City's performance measurement software:
Page 8 of 12
Internal Audit Report
Miami Beach Cultural Arts Council Audit
For the Fiscal Year Ending September 30, 2012
March 22, 2013
#of grants Awarded
2003/04 53 53 0
2004/05 49 49 0
2005/06 47 47 0
2006/07 50 50 0
2007/08 36 36 0
2008/09 43 43 0
2009/10 55 55 0
2010/11 52 52 0
2011/12 47 47 0
Grant Award Amounts
~ $500,750 $500,750 $0
:-: $599,015 $599,015 $0
~ $613,810 $613,810 $0
~ $642,887 $642,887 $0
~ $630,000 $630,000 $0
::_§ $627,169 $627,169 $0
:§: $630,000 $630,000 $0
§§: $627,676 $627,676 $0 m $63o,ooo $63o,ooo $0
#of grants Issued
~,M~f~Js~~~~tli~~$!~ ¥&l~~~~~J~'~'I;:t: ~~~bJTW~~i ~f:l_fRifiefi~-~~~
2003/04 51 51 0
2004/05 46 46 0
2005/06 46 46 0
2006/07 49 49 0
2007/08 36 36 0
2008/09 43 43 0
2009/10 54 54 0
2010/11 51 51 0
2011/12 46 46 0
The following figures were reported for the two tested measures reported annually in the
City's Environmental Scan last updated on 05/18/12:
After completing our review of the above measures for the specified fiscal years, we
determined the following assessment categories suitable as defined in Exhibit 1 attached
at the end of this audit report:
Page 9 of 12
Internal Audit Report
Miami Beach Cultural Arts Council Audit
For the Fiscal Year Ending September 30, 2012
March 22, 2013
Environmental Scan #of grants Awarded Certified with Qualifications
Environmental Scan
Performance Management
Software
Performance Management
Software
Performance Management
Software
Grant Award Amounts Certified
# of grants Awarded Certified
Grant Award Amounts Certified
# of grants Issued Certified
Lastly, a comparison of the audited figures listed above for the 2004/05 through 2011/12
fiscal years with those reported in the City's adopted budget book for the two
performance measures entitled "# of cultural grants issued" and "total grant $'s awarded"
found the following:
• The budget book incorrectly reported that 47 CAC grants were issued during the
2011/12 fiscal year when the actual number is 46 as City Theatre did not receive
any funding.
• The budget book incorrectly reported that $627,169 in CAC grant monies were
awarded when the actual amount was $630,000 for the 2007/08 fiscal year which
is a $2,831 difference.
Recommendation(s):
The identified incorrect figures in the City's Environmental Scan and budget book should
be promptly corrected. Also, designated City employee(s) should be assigned the
responsibility to ensure that the dually reported figures in the Environmental Scan,
performance measurement software and/or the adopted budget book are identical and
correct going forward.
Management's Response:
Staff cannot change already published issues of the budget book and Environmental
Scan. Since the City's performance measurement software system is the only one
available for data entry, whoever creates the Environmental Scan and the budget book
should be referring to that data and checking for updates prior to publication. We will
contact OBPI to make the necessary changes.
EXIT CONFERENCE
An exit conference was held on March 20, 2013 and the participants included Gary Farmer
(Cultural Affairs Program Manager), Mary Heaton (Grants & Operations Administrator), James
Sutter (Internal Auditor), and Mark Coolidge (Senior Auditor). All present were in agreement
with the findings and recommendations discussed and management responses were submitted
shortly thereafter for inclusion in this report.
JJS:MC:mc
Audit performed by Senior Auditor Mark Coolidge
F:\OBPI\$AUD\INTERNAL AUDIT FILES\DOC12-13\REPORTS-FINAL\CAC 2012.docx
Page 10 of 12
Internal Audit Report
Miami Beach Cultural Arts Council Audit
For the Fiscal Year Ending September 30, 2012
March 22, 2013
cc Max Sklar, Assistant City Manager
Patricia Walker, Chief Financial Officer
Gary Farmer, Cultural Affairs Program Manager
Vicki Kroger, Budget Officer
Page 11 of 12
Internal Audit Report
Miami Beach Cultural Arts Council Audit
For the Fiscal Year Ending September 30, 2012
March 22, 2013
EXHIBIT: 1 -Assessment Categories for Performance Measures Verification
Certified
Certified with Qualifications
Factors Prevented Certification
Inaccurate
If reported performance is 1 00% accurate and if it appears that
controls are in place to ensure accuracy for collecting and
reporting performance data. Measurement data is supported by
source documents.
This category is assigned under either one of two conditions:
1. Reported performance is within +/-3%, but the controls over
data collection and reporting are not adequate to ensure
continued accuracy.
2. The department's calculation of actual performance deviates
from the measure definition, but was still within an
acceptable range.
Documentation is unavailable or incomplete and controls are not
adequate to ensure accuracy. This category is also assigned
when there is a deviation from the measure definition and the
reviewer cannot determine the correct measure result.
Actual performance is not within 3% of reported performance, or
there is a greater than 5% error in the sample of documents
tested.
EXHIBIT: 2 -Additional References for Performance Management Software's
Description of Measure
1) Measure Name:
2) Measure Type:
3) Measure Description:
4) Measure Frequency:
5) Data Sources:
6) Calculation Methodology:
Should list the name of the measure for which data is being
collected and reported.
Should recognize whether the measure is an "Input", "Output", or
"Outcome" measure. One must consider whether results are
measured through input (Ex: Customer surveys), output (Ex:
Number of contracts completed without change orders), or
outcome (Ex: % of projects substantially completed or in
beneficial use within 120 days).
Should describe the measure. Some measures are self
explanatory and some may not; however, a description should
always be included (Ex: The measure considers the % of
change in the value of the change orders for a specific category
divided by the original project cost).
Describes how often performance data is reported (Ex:
Quarterly).
Should list sources used to collect performance data (Ex:
System Software Names, Report Names, Schedules, etc.)
Should explain how data reported was calculated (Ex: change
orders for that quarter divided by the original total projects costs,
projects substantially completed or in beneficial use within 120
days of the contract milestone date divided by the total number
of projects completed during the same quarter).
Page 12 of 12