Frequently Asked Questions - PPBB

In order for PPBB to provide transparency and meaning to decision makers and the public, it needs to be manageable.  Research of other states that have moved to performance-based budgeting revealed that a limited number of objectives and performance measures are very important.

The PPBB design ensures that only activities with a significant tie to an objective will be linked to that objective.  The selection of 25% was simply to prevent an activity from tying to more than four objectives and to ensure this design element holds.

First, understand that this is not completely black and white and there will be grey areas.  Our recommendation is to first look at all the possible objectives your activity might tie to.  If it looks like the activity might tie to more than one objective, look at the benchmarks to see if it fits more closely with one than the other.  If your activity ties to more than one objective, you will need to determine how much of your efforts should tie to each.  Remember that it must be at least 25% to make the tie.  This is challenging and we are trying to maintain consistency.  Please coordinate with your budget analyst.

First, do not panic.  We expect that some activities will not be able to tie to one of the objectives.  In order to account for all budgeted funds, we set up an "other" objective in each core function.  If the activity does not tie to a defined objective, you should link it to the "other" objective in the core function that most of your Department/ Division's activities tie.  Again, for consistency purposes, we strongly suggest you coordinate with your budget analyst.

Benchmarks are intended to measure how well the State of Nevada is doing at achieving over-arching objectives. By design, most are not controllable entirely by any single State Agency. In fact, many are not controllable by State government. State agencies can and should contribute towards the achievement of all benchmarks.

If the activity can be tied to another activity through the tasks performed, the two activities should be combined.  However if the activity is distinct and cannot be tied to another activity it should be listed as a separate activity.  The 25% threshold does not apply in determining a primary activity (or else an agency could not have more than four activities).  The 25% threshold applies to determining if an activity links to an objective.

If the granting activity supports one to two primary activities, it should be included within those activities.  Otherwise, it’s a support activity under fiscal or administration.

The activities related to a board and/or commission should be included with the primary and/or support activities their tasks contribute to.  Agencies will more than likely not have a specific activity for the Board/Commission.

We are asking that support activities be attached to the support objective in the core function where the majority of your activities are located. For example if 60% of your primary activities are linked to the health core function, you should tie your support activities to the health core function as well.

All payments made from one state executive budget account to another state executive budget account (including any department cost allocations) should be considered a pass through by the paying account except the following: 

1. Payments to NSHE 

2. Statewide Internal Service Fund charges should be charged to the appropriate primary or support activity (e.g. EITS billings and assessments, DHRM assessments, motor pool charges, SPWD [formerly B&G] charges and rent, SWCAP, AG Cost Allocations)  

3. Transfers or payments made to non-executive budget accounts 

4. Payments or subgrants to any non-state entities (local governments, non-profits organizations, etc)  

All of the above costs should be mapped to the agency activity, the subgrant, transfer or payment supports. 

The NDOT Radio and DPS Dispatch cost allocations should be considered pass throughs by the paying budget accounts.

Accounts receiving the funds should record the funds in the activity the funds are supporting (either a primary program activity or a support activity).