(1) (a) No later than August 1,
2013, and no later than August 1 of each year thereafter, the governor shall publish
the components of the performance management system for managing the
principal departments of the executive branch of state government, except the
department of state, the department of the treasury, and the department of law.
The performance management system must be published in instructions issued by
the office of state planning and budgeting. The instructions must be posted on the
official website administered by the office of state planning and budgeting.
(b) No later than August 1, 2013, and no later than August 1 of each year
thereafter, the judicial department shall publish the components of the
performance management system for managing the judicial branch through
instructions issued by the office of the state court administrator. These instructions
must be posted on the official website administered by the judicial branch.
(c) No later than August 1, 2013, and no later than August 1 of each year
thereafter, the department of state, the department of the treasury, the
department of law, the office of state public defender, the office of alternate
defense counsel, the Colorado energy office, the office of economic development,
the office of the child's representative, and the office of the child protection
ombudsman shall each publish their components of the performance management
systems for their respective department, office, or commission. These instructions
must be posted on the official websites administered by the respective
departments, offices, and commissions.
(2) (a) Any performance management system published pursuant to
subsection (1) of this section must address, among other strategic goals and
priorities that are consistent with the charge of each department, strategies for
enhancing productivity, improving efficiency, reducing costs, and eliminating waste
in the processes and operations that deliver goods and services to taxpayers and
customers of state government. At a minimum, the performance management
system must establish parameters for the development of performance plans for
each department. A performance management system should incorporate a
continuous process improvement system based on lean government principles or
another widely accepted business process improvement system.
(b) A performance management system should include elements to ensure
that a department's employees are appropriately trained to implement its various
components.
(3) (a) (I) Except as provided in subparagraphs (II) and (III) of this paragraph
(a), no later than July 1, 2014, and no later than July 1 of each year thereafter, each
department shall develop a performance plan in accordance with the performance
management system and submit that plan to the joint budget committee and the
appropriate joint committee of reference as determined pursuant to section 2-7-203. The performance plan serves as a guide to a department's major functions and
as a tool to evaluate performance goals over time.
(II) (A) The department of higher education will satisfy the requirements in
this subsection (3) through the master plan for postsecondary education that the
Colorado commission on higher education maintains as described in section 23-1-108 (1.5). The department of higher education shall ensure that copies of the master
plan are submitted to the joint budget committee and the appropriate joint
committee of reference as determined pursuant to section 2-7-203, and shall post
the master plan and any performance contracts and reports to its official website
and the official website of the office of state planning and budgeting.
(B) The state auditor, in conducting a performance audit of the department
of higher education as specified in subsection (5) of this section, shall consider the
extent to which the goals of the master plan and the associated performance
contracts have been achieved.
(III) The public employees' retirement association will satisfy the
requirements of this subsection (3) through its annual actuarial valuation report
described in section 24-51-204 (7), C.R.S., and its report to the governor described
in section 24-51-204 (8), C.R.S., regarding the policies, financial condition, and
administration of the association. The public employees' retirement association
shall ensure that copies of the reports described in this subparagraph (III) be
submitted to the joint budget committee and the appropriate joint committee of
reference as determined pursuant to section 2-7-203, and shall post such reports
to its official website and the official website of the office of state planning and
budgeting.
(b) Each department's performance plan shall be posted on the official
websites of the department and the office of state planning and budgeting. The
state treasurer, the attorney general, the secretary of state, the state court
administrator for the judicial department, the office of state public defender, the
office of alternate defense counsel, the public employees' retirement association,
the Colorado energy office, the office of economic development, the office of the
child's representative, and the office of the child protection ombudsman shall
ensure the office of state planning and budgeting receives the information required
to be posted on the office of state planning and budgeting's website pursuant to
this paragraph (b). The office of state planning and budgeting shall not have access
to edit any information provided by the state treasurer, the attorney general, the
secretary of state, the state court administrator for the judicial department, the
office of state public defender, the office of alternate defense counsel, the public
employees' retirement association, the Colorado energy office, the office of
economic development, the office of the child's representative, or the office of the
child protection ombudsman.
(c) At a minimum, a performance plan must include the following
components, which may be further refined in the performance management system
published pursuant to subsection (1) of this section:
(I) A statement of the department's mission or vision;
(II) A description of the major functions of the department;
(III) Performance measures for the major functions of the department;
(IV) Performance goals that correspond to the department's performance
measures and that extend to at least three years into the future;
(V) A narrative description of the strategies necessary to meet the
performance goals; and
(VI) A summary of the department's most recent performance evaluation.
(d) If reasonable and appropriate, performance measures should be
developed with the input of department employees and certified employee
organizations.
(4) Departments shall conduct performance evaluations and distribute them
to the joint budget committee and the general assembly at least twice each
calendar year as defined in the published performance management system.
(5) (a) Prior to the first regular session of the seventieth general assembly,
the state auditor shall, within existing resources, conduct or cause to be conducted
performance audits of one or more specific programs or services in at least two
departments, and shall continue to conduct or cause to be conducted performance
audits of one or more specific programs or services in at least two departments
annually thereafter.
(b) In selecting both departments and specific programs or services within
those departments for performance audits, the state auditor shall consider risk,
audit coverage, resources required to conduct the performance audits, and the
impact of the audited programs or services on a department's performance-based
goals. The legislative audit committee shall approve the programs or services
selected by the auditor for performance audits.
(c) Performance audits of the programs or services selected for audit may
include, but shall not be limited to, the review of the following:
(I) The integrity of the performance measures audited;
(II) The accuracy and validity of reported results; and
(III) The overall cost and effectiveness of the audited programs or services in
achieving legislative intent and the departments' performance goals.
(d) The state auditor shall present the performance audit report to the
legislative audit committee.
(e) After the performance audit report is released by the legislative audit
committee, the state auditor shall present the performance audit report of those
departments with services or programs audited in the previous year to the
appropriate joint committee of reference as determined pursuant to section 2-7-203. The state auditor shall also present any other audit reports that he or she
deems relevant for the joint committee of reference's review.
(6) As part of its regular deliberations, the joint budget committee shall
consider the performance plans submitted pursuant to paragraph (a) of subsection
(3) of this section and the performance evaluations submitted pursuant to
subsection (4) of this section. Based on its review of these performance plans and
performance evaluations and its consideration of each department's legal
responsibilities and strategic goals and objectives, the joint budget committee may
prioritize departments' requests for new funding that are expressly intended to
enhance productivity, improve efficiency, reduce costs, and eliminate waste in the
processes and operations that deliver goods and services to taxpayers and
customers of state government.