What Is a GPP in Government Accounting and Finance?
Learn how GPP drives federal government effectiveness through systematic performance measurement and financial transparency.
The Government Performance and Results Act (GPRA) of 1993, modernized by the GPRA Modernization Act (GPRAMA) of 2010, established a framework for improving federal government operations. This legislative initiative enhances the efficiency, effectiveness, and accountability of federal programs. By requiring agencies to establish clear goals, measure progress, and publicly report achievements, GPP shifts the focus of government management. It provides a structured approach for agencies to demonstrate how taxpayer funds are used to achieve their missions and deliver results.
Understanding the GPP Framework
The GPP framework mandates a systematic approach to performance management across federal agencies. It requires a shift from simply tracking activities to focusing on the results and outcomes of government programs. This results-oriented philosophy encourages agencies to think strategically about their objectives and how best to achieve them.
Agencies are required to develop strategic goals, create annual performance plans to outline how those goals will be met, and report on their progress. This integrated framework helps ensure that planning, budgeting, and program implementation are aligned towards common objectives. The framework also emphasizes collaboration across agencies to achieve shared goals, especially for complex issues that span multiple governmental entities.
Core Components of GPP Reporting
GPP mandates specific documents and processes to ensure federal agencies plan and report their performance transparently. These components include strategic plans, annual performance plans, and annual performance reports. Each serves a distinct purpose in the overall performance management cycle.
Strategic plans articulate an agency’s long-term goals and objectives, typically covering a five-year period. These plans outline the mission of the agency and the broad functions it performs, along with the strategies and resources required to achieve those long-term aims. Agencies update these plans periodically, often every four years, aligning with presidential terms to ensure relevance with new administrations.
Annual performance plans translate the long-term strategic goals into specific, measurable, achievable, relevant, and time-bound (SMART) objectives for the upcoming fiscal year. These plans detail the specific performance goals an agency intends to achieve and describe the strategies and resources it will use. They also include how performance will be measured and verified.
Annual performance reports review an agency’s actual performance against the goals set in its annual performance plan. These reports explain successes, identify challenges, and outline any adjustments needed for future performance. The Office of Management and Budget (OMB) reviews these reports, and agencies must submit performance improvement plans if goals are not met.
GPP and Government Accountability
GPP serves as a tool for fostering accountability and transparency within the federal government. By requiring public reporting on agency performance, the framework enables various stakeholders to assess the effectiveness of government programs. This includes Congress, the public, and oversight bodies, who can evaluate whether agencies are achieving their stated missions and efficiently utilizing taxpayer funds.
The public accessibility of agency goals and performance results promotes transparency in government operations. This transparency allows for informed scrutiny of how public resources are managed and contributes to building confidence in federal government capabilities. It helps ensure that agencies are systematically held responsible for achieving program results.
The Role of Auditing and Financial Linkages
The performance data and reports generated under GPP are subject to independent review to ensure their accuracy and reliability. The Government Accountability Office (GAO) frequently audits these performance reports. Agency Inspectors General also play a role in verifying the validity of the reported information.
Performance information from GPP is increasingly used in budget formulation and resource allocation decisions. This linkage helps to direct financial resources towards programs that demonstrate effectiveness and achieve desired outcomes. By connecting financial inputs to measurable results, GPP supports the principle that taxpayer money should be invested in programs that deliver tangible benefits.