On September 25, 2000, the OIG issued Audit Report 0-26, Results Act Performance Measurement for the Surety Bond Guarantee Program. In 1998, Congressional leaders requested that Offices of Inspectors General review how effectively their agencies were measuring performance under the Government Performance and Results Act of 1993 (Results Act) and the reliability of the underlying data. In response to these requests, the OIG initiated a series of audits to evaluate the performance indicators the SBA developed for its major programs. This audit examined whether the Surety Bond Guarantee (SBG) program met the performance measurement requirements of the Results Act.
In enacting the Results Act, Congress intended to improve the efficiency and effectiveness of Federal programs by establishing a system to set goals for program performance and to measure results. To implement the Act, executive agencies must prepare multiyear strategic plans, annual performance plans that include performance indicators, and performance reports. The SBA’s Office of Policy (OP) has overall responsibility for implementation of the Results Act for all SBA programs. The SBG program performance measures were developed by the Office of Surety Guarantees (OSG). To answer the objective of the audit, the OIG determined if: (1) program goals and indicators aligned with the mission, (2) performance indicators focused on the results of the program in terms of efficiency and effectiveness, and (3) reliable supporting data existed.
The OIG found that the SBG program did not have performance goals and indicators to demonstrate that the program is meeting the intended purposes of the authorizing legislation. Specifically, the performance indicators listed in SBA’s Fiscal Year (FY) 2000 and 2001 Annual Performance Plans were activity-oriented and did not address Results Act priorities such as programmatic outcomes, service quality, or cost. While the performance data was reliable, the OIG identified a few areas for improvement in data collection and presentation. The OIG recommended the SBA ensures that: (1) the SBG’s program goals include program outcomes, service quality, and program costs, as appropriate; (2) SBG program indicators reflect the goals; and (3) SBG performance data is complete and accurately presented. Management agreed with the finding and recommendations.