MR. EDUARDO GURZA-CURIEL, P.A. HEAD OF THE SPECIAL PERFORMANCE AUDITS OFFICE

1. KEY NATIONAL INDICATORS • Indicators • Performance Assessment in Mexico • SAI of Mexico’s Performance Audits MR. EDUARDO GURZA-CURIEL, P.A. HEAD OF THE SPECIAL PERFORMANCE AUDITS OFFICE PERFORMANCE AUDIT DEPARTMENT SUPERIOR AUDIT OFFICE OF MEXICO

2. INDICATORS WHY? WHAT FOR? What cannot be measured, cannot be controlled Public entities must measure their processes to control, manage and improve them. What cannot be controlled cannot be managed What cannot be managed, cannot be improved 2

3. An indicator is the relation between the public policy theoretically defined dimensions and their respective empirical outcomes. One of the first actions in the development of indicators is the establishment of a univocal-meaning common vocabulary. INDICATORS 3

4. INDICATORS • Indicators: • Defining Indicators • Inference Indicators 4

5. DEVELOPMENT OF A MEASUREMENT SYSTEM BASED ON KEY NATIONAL INDICATORS • Indicators selected for the control board • Strategic or outcomes indicators: effectiveness • Management indicators: efficiency • Costs indicators: economy • Quality indicators • Indicators on Citizen–user’s satisfaction • Indicators on the actors’ competence 5

6. INDICATORS • Major problems to identify or to build indicators • Definition of complex mission objectives • Absence of pertinent and measurable objectives • Absence of correlation between global and specific objectives • Public servants’ relative inexperience • Lack of accounting competences beyond traditional training • Absence of interest of high-level officers • Lack of means to create the necessary information systems • Personnel’s resistance • Cost of performance measures • Work complexity 6

7. PERFORMANCE ASSESSMENT IN MEXICO In Mexico, the budget based on programmes was first implemented in 1976. In 1997, a reform to the budgetary system was implemented in order to use budget as a means of obtaining results. The National Development Plan 2001-2006 considered the creation of a follow-up, control and assessment system. In March 2008, the Chamber of Deputies endorsed the Performance Assessment System. 7

8. PERFORMANCE ASSESSMENT SYSTEM IN MEXICO • The origin of the Performance Assessment System, endorsed by the Chamber of Deputies on March 31, 2008, dates from the publication of the Federal Budget and Finance Liability Law on March 30, 2006. • System’s Strengths: • Linkage of strategic objectives with national objectives • Elaboration of a performance indicators matrix • Establishment of an annual assessment program • Integration of a monitoring and assessment system based on outcomes • Implementation of management improvement programs • Implementation of framework program associated to management indicators • Signature of a performance commitment 8

9. PERFORMANCE ASSESSMENT SYSTEM IN MEXICO The Mexican Congress granted the faculty to the Superior Audit Office (SAO) to assess the final compliance of the goals and objectives established in federal programs. The SAO’s Rules of Procedure establish that Performance Audit Department is responsible for the coordination and oversight of Performance Auditing Practices. Last May 7, 2008, the Mexican United States’ Constitution was reformed. Through this modification, the outcomes of the resources use will be assessed by technical entities in order to encourage that economic resources be allocated to the respective budgets. 9

10. PERFORMANCE ASSESSMENT SYSTEM IN MEXICO List of government functions requiring the implementation of key national indicators Social Development Functions Education Health Social Security Urbanization and Housing Drinking Water and Sewage Social Assistance 10

11. PERFORMANCE ASSESSMENT SYSTEM IN MEXICO Economic Development Functions Energy Communications and Transport Financial Services Tourism Science and Technology Agroindustry Sustainable Development 11

12. PERFORMANCE ASSESSMENT SYSTEM IN MEXICO Government Functions Legislation Sovereignty Tax collection Incomes Treasury Financial Services Governance Electoral Processes Organization Mass Media Population Religion Civil Protection Access to the Government Public Information 12