Audits Are Expensive.pdf

The International Monetary Fund (IMF) released a technical note on revenue administration, focusing on performance measurement in tax administration. The note, prepared by William Crandall, discusses the importance of performance measurement in achieving accountability and transparency. It highlights two key considerations: consequences for over and under-performance, and using performance measurement to support organizational priorities. The note defines performance management and performance measurement, explaining that performance measurement is an ongoing process of assessing how well an organization achieves its goals and objectives. It also discusses the development of performance indicators, which provide information on inputs, activities, outputs, and outcomes. The note outlines the different types of information that performance measurement systems can provide, including inputs, activities, outputs, and outcomes, and defines key terms such as performance indicators, key performance indicators, and standards. The Organization for Economic Co-operation and Development (OECD) concludes that a performance management strategy is a positive element in any modernization program, leading to improvements in management reforms, efficiency, cost awareness, and effectiveness. The note applies performance management at the strategic, operational, and individual staff member levels, and discusses the implementation of a performance management system and the experience with performance management in different countries.