Review of International Experience in Development and use of Key National Indicators

1. Review of International Experience in Development and use of Key National Indicators Inguna Sudraba Auditor General State Audit Office of the Republic of Latvia 13 k-5 Skanstes Street, Riga, LV-1013 Telephone: +371 67017500 Fax: +371 67017673 E-mail: lrvk@lrvk.gov.lv Home page: http://www.lrvk.gov.lv 07.04.2010.

2. Contents • General description of the Review • Use of the Review in audits conducted by Supreme Audit Institutions

3. I General description of the Review (1) • The Review outlines the established principles of policy planning and performance measurement in the surveyed countries, describing: • scope of policy planning and performance measurement from the level of budgetary programs up to national level • main characteristics of key national indicators systems, including socio-economic areas covered, monitoring measures and authorities involved of the 47 surveyed countries • The Review shall be incorporated into the Knowledge Base on the methodology of planning, using and auditing of KNI as a separate chapter

4. I General description of the Review (2) • Comparative material reviewed helps the SAIs to identify the countries with resembling policy planning and performance measurement systems • Identifies practices of 47 reviewed countries at all levels of policy planning (national, sub-national, sectors/policies, institutions and budget)

5. I General description of the Review (3) The Review is structured according to the surveyed themes: • General Issues of Planning and Performance Measurement • Review of KNI • Performance management review

6. II Use of the Review in audits conducted by Supreme Audit Institutions (1)1.General Issues of Planning and Performance Measurement • This chapter reveals the general picture of performance management in each surveyed country (filled by 46 respondents) • According to the survey results, planning and performance measurement systems greatly depend upon the political, legislative and administrative systems of the respective countries

7. II Use of the Review in audits conducted by Supreme Audit Institutions (2)1.General Issues of Planning and Performance Measurement Application in audits: • a tool for comparative criteria setting in performance audits, when analyzing policy planning in the respective country • types and examples of nation-wide planning documents described in 32 countries • cohesiveness of policies and indicators reviewed • reporting on the achievement of international goals

8. II Use of the Review in audits conducted by Supreme Audit Institutions (3)1. General Issues of Planning and Performance Measurement Application in audits: • scope of policy planning and performance measurement in the surveyed countries • experience of 46 countries in National, Sub-national, Sectors/Policies, Institutions and Budget level planning, revealing objectives, targets and milestones, performance indicators and data analysis use in policy planning and performance management systems

9. II Use of the Review in audits conducted by Supreme Audit Institutions (4)1.General Issues of Planning and Performance Measurement Following audit assumptions are explored in the chapter: • indicators are an integral part of policy planning and should be defined for policies at all levels • policies at all levels must be cohesive • indicators at all levels from top to bottom and vice versa should be comparable and consistent • all indicators should be measurable • national goals and targets should be consistent with supranational ones (international or regional)

10. II Use of the Review in audits conducted by Supreme Audit Institutions (5)2. National indicators review • The chapter reveals types and characteristics of KNI in the surveyed countries, structuring types of KNI systems approved by the respective countries • Main characteristics of the KNI systems emphasized including areas covered, indices and structure of the KNI systems • A tool for comparative criteria setting in performance audits, when analyzing policy development process and cohesiveness, structure of appropriate areas, indicators and targets as well as data collection procedures

11. II Use of the Review in audits conducted by Supreme Audit Institutions (6) 2. National indicators review Main characteristics of the systems of KNI

12. II Use of the Review in audits conducted by Supreme Audit Institutions (7)2.National indicators review Following audit assumptions are explored in the chapter: • whether there is a system of KNI in place • whether national indicators is a set of indicators that are compatible with macro-economic indicators • whether national indicators is a set of indicators for which statistics are gathered to report on progress towards international goals, or something else

13. II Use of the Review in audits conducted by Supreme Audit Institutions (8)3.Performance management review • The chapter aims at describing experience of countries not having performance measurement at national level • The covered socio-economic areas are: institutional, social, economic and environmental • A tool for comparative criteria setting in performance audits, when analyzing efficiency of performance management procedures developed by the respective country

14. II Use of the Review in audits conducted by Supreme Audit Institutions (9)3.Performance management review Characteristics of performance management in responding countries

15. II Use of the Review in audits conducted by Supreme Audit Institutions (10)3.Performance management review Following audit assumptions are explored in the chapter and should be considered when developing audit questions: • How the performance measured system is organized? • Is there a link between all measurement stages both vertically and horizontally?

16. II Use of the Review in audits conducted by Supreme Audit Institutions (11)3.Performance management review Following audit assumptions are explored in the chapter and should be considered when developing audit questions: • Are the indicators linked among other government sectors indicators and are they harmonized? • Are the indicators set in compliance with the appropriate policy documents and government actions?

17. II Use of the Review in audits conducted by Supreme Audit Institutions (12)3. Performance management review Following audit assumptions are explored in the chapter and should be considered when developing audit questions: • Is there performance management system elaborated in National and Sub-national level? Is it linked with budget elaboration process? • Are there control procedures elaborated un order to monitor achievement of the respective government sector and state policies?

18. Thank you for your attention! State Audit Office Of the Republic of Latvia Phone: +371 67017500 Fax: +371 67017673 E-mail: lrvk@lrvk.gov.lv