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Chapter 213 4

Usefulness, measurability, reliability

3.1 Usefulness

Performance information is now more commonplace with the introduction of
government targets, league tables and measures for public sector organisations to
demonstrate accountability to the taxpayer.

This information is reported to the relevant regulatory authority but may also be
published on the organisation's website and included in their annual report.

Users can use this information to assess the performance of government
departments or to help make choices such as which hospital to choose for treatment.

3.2 Measurability

Some measures may be subjective in terms of definition and as a result may be
easily manipulated by management in order to ensure they are being seen to achieve
the target.

This may lead the way for some organisations to include measures which are not
relevant to their main strategic aims but which have been included to make it appear
as though the organisation has achieved something.

There is a risk that organisations are deliberately vague when composing
performance measures so that they can claim to have met their target.

For these reasons, measurement of the target may be difficult and therefore difficult
for the auditor to prove or disprove.

Whilst there are national performance measures in place which all organisations of a
particular type will need to report, each organisation can also determine their own
performance objectives they wish to measure. This inconsistency means
comparisons cannot be drawn between different entities and may cause confusion
for users of the performance information who see that different criteria are being
used to assess the same information.

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