The Performeter^®

In 2001, Crawford & Associates developed, copyrighted and trademarked a new service for governmental entities entitled The Performeter®, a unique financial analysis and rating tool for use in measuring a government's financial health and success. Since its introduction in 2001, The Performeter^® has proven to be a very popular and valuable financial management tool for state and local governments.

 The Performeter^® is now featured in highly used college government accounting text books. And, it has been featured in the October 2003 addition of the AICPA’s newsletter, The CPA Letter. 
Click here for Press Releases and Rave Reviews related to the Performeter.

The Performeter^® uses a variety of financial ratios and an analysis methodology to determine the overall financial condition (financial position or health) of the government as of fiscal year end, the changes in financial condition (financial performance) for the year then ended, and the ability to raise revenue and issue debt in the future (financial capability). The analysis also provides for ratio comparison to prior years and certain industry benchmarks.

(Click on image at right to view enlargement.)

From the CNMI Newspapers in the south pacific From the Saipan Tribune...click here to see newspaper headline. Frank Crawford, who developed the Performeter methodology, attributed the current low score to decrease in net assets...Click here to read more Frank Crawford presents his firm’s Performeter report on the CNMI government’s financial performance & condition...read more Mariana’s Variety features information presented by Frank Crawford.. view newspaper. See below for article. Frank Crawford: NMI government performance is less than satisfactory based on figures from the fiscal year ending in Sept. 2006....read more

The Performeter^® analyzes the following financial performance measures:

• Change in Overall Financial Condition - a measure of the change from the prior period in total net assets of the government as a whole for governmental and business-type activities, excluding any fiduciary activities and net assets.
• Interperiod Equity - a measure of whether the government lived within its means in the measurement year, or was required to use prior year resources to fund a portion of current year costs, or shifted the funding of some current year costs to future periods.
• Level of Unrestricted Net Assets - a measure of the adequacy of the amount of the government’s total unrestricted net assets at the measurement date. Unrestricted net assets are needed to fund cash flow, emergencies, or other unexpected needs.
• Revenue Dispersion - a measure of the exposure to potential financial difficulties resulting from the extent of reliance on revenue sources beyond the direct control of the government to fund the cost of operations.
• Self-Sufficiency - a measure of the extent to which the government’s business-type activities are dependent upon subsidies from taxpayer or other general revenues, rather than having the full cost of the activities’ operations funded by charges to the users of the service.
• Debt Load - a measure of the extent to which the government had to use current year resources provided for governmental and business-type activities to make payments on long-term debt and the amount of outstanding debt per capita or constituent.
• Financing Margin - a measure of the government’s ability to finance future services or capital needs through its ability to levy taxes, raise rates and/or incur long-term debt considering any legal restrictions on such funding resources.
• Debt-to-Asset Solvency - a measure of the degree to which the government’s totals assets has been funded with debt as of the measurement date, indicating the extent of true ownership of government assets.
• Debt Service Coverage - a measure of the government’s ability to meet its long-term financial obligations from net cash generated and available for debt service during the measurement period.
• Liquidity - a measure of the government’s ability to meet its current financial obligations (current liabilities) from available cash, cash equivalents and short-term investments.

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An example Performeter® report and a summary of the FY 2006 Performeter® ratings and ratios for various governments are available from the Useful Tools page under the topic labeled Performeter. Click here to go to Useful Tools Page

 Press Releases & Rave Reviews

 CAROLYNN CAUDILL - April 26, 2006:
Oklahoma County Undergoes Comprehensive Financial Analysis, Receives Overall Grade Above Satisfactory

Oklahoma City - Oklahoma County officials on Wednesday received results of a first-ever comprehensive analysis of the County’s financial health and performance...“We at the Oklahoma County Clerk’s Office feel the people of Oklahoma County deserve high quality, professional financial information on a regular basis, and are pleased to make available this special report demonstrating the financial condition, performance and capabilities of their county government. It appears Oklahoma County’s financial health is fine in some areas, but needs improvement in others, in the professional judgment of the highly-respected CPA firm of Crawford & Associates, based on their review of the award-winning annual financial reports our office has issued the past three years”, Caudill said. 

 The analysis, the first of its kind for an Oklahoma county,  represents an examination of Oklahoma County’s annual financial condition and performance as evaluated by the firm of Crawford & Associates CPAs, using its Performeter® financial analysis tool.  In an effort to expand the understanding of the annual financial reports of the County and provide the County with an additional financial management resource, Oklahoma County Clerk Carolynn Caudill took the initiative to submit the County’s annual financial statements for the 2003, 2004, and 2005 fiscal years for this comprehensive evaluation. Caudill’s office was awarded a prestigious Certificate of Excellence for Financial Reporting for each of those reports, by the Government Finance Officers’ Association, something it has earned for each of the past 11 years. 

Click here to read full report.

 CAROLYNN CAUDILL - April 27, 2006:
CAUDILL SAYS REPORT HELPFUL TO EXCISE BOARD

Oklahoma City - Oklahoma County Clerk Carolynn Caudill said she was pleased with yesterday’s presentation to the Board of County Commissioners by CPA Mike Crawford on the county’s financial health. Crawford measured various financial benchmarks and the county scored an overall “above average” 6 on a scale from 1 to 10. Oklahoma County is the first county in the State of Oklahoma to undergo the scrutiny of the Performeter® developed by Crawford. 

Caudill said she wanted a fresh new approach when looking at Oklahoma County’s financial condition and to see what trends have developed over the past three years. “This is a great tool for the County Excise Board”, Caudill said. “They will be balancing the county’s budget this year and this type of information is sure to be helpful.”  Caudill noted the report will also be helpful to county taxpayers. “This report is available on the county’s website at www.oklahomacounty.org and written so the average person can understand”, Caudill said.

Click here to read full report.

Note: The Performeter^® is available in both printed form and on CD.