The National Performance Management Advisory Commission established a comprehensive framework that incorporates performance measurement into the

The National Performance Management Advisory Commission (NPMAC) framework establishes a continuous cycle for improving government outcomes. A fundamental principle of this framework is the direct integration of performance measurement into the budget process. This linkage ensures that financial resources are allocated based on strategic priorities and expected results, effectively creating a performance-informed or performance-based budget. The framework's cycle explicitly connects planning, budgeting, execution, and measurement, making the budget the primary vehicle for translating performance goals into funded actions.

A. internal control plan: The framework's scope is broader, focusing on strategic management and resource allocation, not solely on internal control compliance.

B. financial statements: Performance data is typically non-financial and reported separately, not incorporated directly into the core financial statements.

C. audit procedures: Auditors may assess performance data, but the framework is a management tool for decision-making, not a set of audit protocols.

1. National Performance Management Advisory Commission. (2010). A Performance Management Framework for State and Local Government: From Measurement and Reporting to Management and Improving. The framework diagram on page 4, "Figure 1: The Performance Management Framework," explicitly includes "Budget" as a core component of the cycle, linking it directly to "Plan" and "Execute."

2. Government Finance Officers Association (GFOA). (2012). An Elected Official's Guide to Performance Measurement. This guide emphasizes, "The budget is the single most important policy document for a government... Linking performance information to the budget process is a powerful way to improve results" (p. 12), directly reflecting the NPMAC's principles.

3. Poister, T. H. (2010). The Future of Strategic Planning in the Public Sector: Linking Strategic Management and Performance. Public Administration Review, 70(s1), s246-s254. This peer-reviewed article discusses the evolution of performance management, noting the critical link between strategic plans and resource allocation through the budget process as a key to effectiveness (Section: "Linking Strategic Management and Performance"). https://doi.org/10.1111/j.1540-6210.2010.02274.x