GOVERNMENT ACCOUNTING STANDARDS BOARD (GASB)

CATAWBA COUNTY, NC

This case describes the establishment of a performance management system and its linkage to the budget process in Catawba County, NC. The county experienced a great deal of fiscal stress because of limited revenue growth coupled with increasing demands for human services. Another impetus for change was that department heads wanted to be able to respond quickly to the changing needs of their customers without having to go through a lot of red tape. Programs and agencies that may find this case study relevant include counties and municipalities that want to link outcome measures to their budget process. Achievement of performance goals by individual departments is linked to the ability to retain savings and compensation of the department heads. Department heads have full budgetary responsibility, including the ability to create or remove positions. If the department accomplishes 90% of its goals, the department gains unrestricted use of any budgetary savings acquired in the process. The process has helped the entire organization focus on its mission and goals, and has been a good way for staff and management to communicate and set expectations. The county manager and department heads collaborated to create the budget process, while the development of performance indicators was left up to individual departments. The outcome indicators have been the most successful when line staff and managers were directly involved in creating them. Indicators focused primarily on intermediate outcomes, which forced the focus to be somewhere between the easily measurable output and the ultimate impact of providing services. There is no mention of citizen involvement.

• Case in Brief
• Download GASB Cases
• General Budgeting Teaching Notes
• Austin, TX Budgeting Teaching Notes
• Oregon Budgeting Teaching Notes
• Texas Budgeting Teaching Notes

 Local Governments:

Austin, TX; Multnomah County, OR; Portland, OR; Prince William County, VA; Tucson, AZ; Phoenix, AZ; Winston-Salem, NC; Catawba County, NC; Dayton, OH; Coral Springs, FL; Long Beach, CA; Ramsey County, MN 

 State Governments:  

Arizona, Illinois, Iowa, Louisiana, Oregon, Texas

 Background Information:

• GASB Performance Measurement Home
• Background on GASB and Performance Measurement
• Service Efforts and Accomplishments Reports