PERFORMETERS

Performeters

The Performeter is an analytical tool that takes a government’s financial statements and converts them into useful and understandable measures of financial performance. The Performeter uses financial ratios and a copyrighted analysis methodology to arrive at an overall rating of 1-10, which indicates the overall financial health and performance of a government.

Since 2002, PITI-VITI has been developing Performeters annually for each of the insular areas. As a result, multiple years of cumulative data is now available for each government. In addition to being able to track overall scores, the Performeter can also be used to track individual trends withinratios: Net Assets, Fund Balances, Revenue Dispersion, Intergenerational Equity, etc.

The individual Performeter ratios are intended to be used to identify financial warning signals within specific governments. The overall rating can be used as a collective benchmark of financial health and success of a government as a whole.

While the Performeter model has been adjusted to fit Pacific environments, Performeter ratings among insular areas are determined using consistent criteria among governments, and as such can be used for inter-governmental comparisons. However, the Performeter was primarily developed to assist governments in tracking their financial health from year to year.

The Performeter should not be used as the only source of financial information to evaluate a government's performance and condition. The analysis is an overall rating of a government as a whole, and not of specific activities, funds or units.

The Performeter was developed by Crawford & Associates, and any individual scores or readings are based on their professional judgment and are limited as to their intended use.