Alamance County Performance Management Program
The purpose of the Alamance County Performance Management Program is to provide good service to the public and other County departments, create efficiencies, and ensure Alamance County Government remains open and responsive to its citizens.
As set forth by the terms of this approved Performance Management Program policy, Alamance County departments will set goals to track and report on regularly and, based on the success of these goals and the County’s financial health, be able to retain percentages of any general fund savings realized at the end of the fiscal year.
Performance Management Goals
- Alamance County Departments must submit an annual budget, set goals, and report results regularly to participate in the Performance Management program. Alamance County Management is authorized to remove a County department from this program if the department is not meeting the guidelines of this policy.
- Proposed goals will be presented to a Strategic Plan subcommittee for review before submission to the County Manager.
- The County Manager will review all proposed goals and may add or change goals as deemed appropriate.
4. All proposed Performance Management goals will be presented to the Board of Commissioners for review with the department’s annual budget request for the budget year being measured.
5. Goal outcomes shall be reported by the 20th day of the month following the end of the month being reported. Each department will be responsible for updating a shared online report.
6. Goal measurement results will be posted on the County’s website monthly.
7. The final department reports will be due by July 20th.
8. The Annual Performance Management Program report will be presented by the County Manager or his/her designee to the Board of County Commissioners once the annual financial audit for the measured year has been completed.
9. After goals have been approved, any subsequent changes must be approved by the County Manager.
- Savings from this program can only be banked to the extent that revenue exceeds expenditures for the entire Alamance County General Fund budget.
- General fund savings will be confirmed upon completion of the audit.
- All general fund savings will be appropriated to fund balance until the unassigned fund balance reaches seventeen (17) percent.
- Once the unassigned fund balance reaches seventeen (17) percent, then twenty-five (25) percent of the general fund savings will automatically be appropriated to fund balance until the fund balance ratio reaches twenty-five (25) percent.
- After appropriating General Fund savings to Fund Balance, an amount will be reserved for bonuses to all eligible departments based on the eligible employees at the fiscal year end date of the audit year
- Then 5% of the remaining General Fund Savings will be reserved for special project requests. The County Manager has the authority to grant up to $5,000.00 per written special project request based upon available funding. Special project requests may be used for the purposes defined for savings expenditures.
These grants must be spent within the fiscal year and may not be added to a departments saving balance to carry forward to future years. Departments are required to spend substantially all of their allocated savings before submitting a grant request. However, if they have a specific purpose intended for their allocated savings, a grant request may be submitted explaining the situation. Special project funds may also be requested to supplement spending a department’s remaining savings balance to pay for an approved purpose.
- The remaining General Fund Savings will be allocated to the departments participating in the Performance Management program based on a weighted percentage that is computed based equally on total department budget size and the department’s savings.
In the audit report on CAFR Schedule B-1, the department budget is the first column and savings is the third column of data. Non-participating departments are excluded from the computation (i.e. courts, school system allocation, animal shelter, economic development, third party agencies). Of the participating departments, their reported budget is divided by total participating budgets for a size percentage. Then the department savings is divided by total participating budget savings for a savings percentage. Each of these percentages is weighted 50% for a final allocation percentage for the department.
- (Landfill Fund): The following shall be applicable to the landfill department: (a) all provisions of this policy shall apply with the exception of items 1, 2 & 3 of the Implementation section, (b) landfill employees shall not be eligible for bonuses until the unassigned fund balance for the general fund reaches seventeen (17) percent, and (c) application of this policy shall not violate any closure and post-closure funding rules and regulations.
- Departments shall have the ability to bank 100% of their calculated percentage of savings generated annually.
- Departments will be allowed to retain up to 8% of the total department budget in savings for the current measured year.
- Departments must submit spending plans for their banked savings to the County Manager when their savings balances reach 8% of the departmental budget for the current measured year.
Alamance County Performance Management Program
- The County Manager will have authority to approve use of Performance Management Program savings for approved expenditures up to the amount of $5,000.
- All approved purchasing and budgetary rules and restrictions apply to any expenditure in this program.
- Any Performance Management funds approved for spending that remain unspent or unencumbered at year end will revert to the Department’s savings balance.
- Departments’ savings may be used to fund the following: new equipment, vehicles, capital improvements, buildings, training opportunities and travel costs, paid interns/special grant positions, strategic planning efforts, technology projects, community outreach efforts.
- Expenditures greater than $5,000 will be presented to the Board of Commissioners for approval.
- Savings will be banked on the following sliding scale: 69% and less goal achievement = 50% of possible annual savings, 70% to 79% goal achievement = 60% of the possible annual savings, 80% to 89% = 70% of the possible annual savings, and 90% or above = 100% of the possible annual savings.
- The available bonus amount will be calculated by the Finance department after the annual audit is submitted.
- Employee bonuses can be a maximum of $500 before taxes.
- All employee bonus checks will be issued one time per year as determined by the County Manager and the Finance Director.
- Employees must be employed at the time the checks are issued and must have been employed no later than the first work week of January in the year of the budget being measured. (Since employees who are hired to start in a new calendar year may be asked to work a schedule other than typical office hours, the hire dates for that entire workweek may be included.)
- Departments participating in the Performance Management Program must accomplish at least 75% of their proposed goals for the measured year in order to qualify for employee bonuses.