According to GFOA, where should performance measurement be incorporated?

Incorporating performance measurement in both financial reporting and budgeting is essential for effective public financial management. This approach allows for a comprehensive evaluation of how resources are allocated and utilized, facilitating accountability and transparency.

By integrating performance measurement into financial reporting, organizations can provide stakeholders with insights into how well they are utilizing financial resources to meet their goals and objectives. This accountability fosters public trust and can influence funding decisions.

Similarly, incorporating performance measurement in budgeting ensures that the budget reflects not just financial figures but also the expected outcomes of those expenditures. This aligns resource allocation with strategic priorities, enabling better decision-making and resource optimization.

The dual focus on financial reporting and budgeting ensures that performance metrics are used consistently across both functions, enhancing the overall effectiveness of public sector management. This comprehensive approach reflects the values of the Government Finance Officers Association (GFOA) in supporting improved public sector performance and accountability.