Performance standards to measure Government programmes should be introduced to cut costs, improve services -- and boost accountability, according to a new report.

Independent Auditor Larry Dennis said: "Accountability reporting should include more than just financial results.

"Reporting operational results can provide administrators, governments; legislators and citizens with valuable accountability information about what is being done with tax dollars and what is being achieved.'' Mr. Dennis, in the latest annual report on Government's accounts, said Parliament did get annual financial statements.

But he added: "They rarely provide information about the nature and the extent of the services provided by spending the money or what the delivery of these services achieved.'' Mr. Dennis pointed out: "Yet this is the information that taxpayers need when they ask `Where are my tax dollars going and what are they doing?' '' Mr. Dennis said that the Act which set up his office required him to report where performance standards could have been used to measure effectiveness.

He added: "I see very few performance measurements systems in operation in Bermuda's Government departments and entities.'' The report said many jurisdictions which measure the cost and effect of their work reaped benefits in terms of lower costs and improved services.

He added performance reporting could run alongside the current financial budget system.

Mr. Dennis said that an operational plan containing information including intended goals, the cost and how the services are expected to achieve their goals.

He added: "Individual departments and entities would probably find it useful -- and a stimulus to improving performance -- to use this framework to report internally on their performance.'' And Mr. Dennis said the information could then be presented with the annual financial reports.

But he added: "The reported information should be brief -- long reports with copious qualitative details are not useful and will not be read by busy Ministers and legislators.'' The PLP Government were elected last November on a platform which included pledges of "accountability and transparency in all areas of governance'' and Government in the sunshine of public scrutiny.'' A reply to Mr. Dennis' recommendations from Finance Minister Eugene Cox's office said: "The Ministry recognises the benefits to be derived from performance measurement and reporting. As the necessary staffing resources become available, the Ministry will focus its attention on this area.'' Mr. Dennis' report also took another swing at late financial reporting by Government bodies and Government-funded organisations for failing to keep proper sets of books.

And he called on Government to use its clout to force groups which spend taxpayers' cash to account for it properly.

He listed more than 20 bodies, including schools, Parish Councils and Government pension and health insurance funds -- some of which are as many as five years behind with their accounts.

Recent Auditor's reports have criticised late accounting -- citing lack of professional skills and a desire to keep their business out of the limelight as possible reasons for the delays.

A submission by the Ministry of Finance said that the Accountant General's office was committed to finalising accounts it was responsible for by September this year.

But Mr. Dennis said: "While this acknowledges the commitment of the Accountant General to finalise the accounts for which she is responsible, it does not recognise a commitment by anyone else to finalise those accounts for which she is not responsible.''