This work examines the extent to which federal government performance measurement systems report on operational efficiency and effectiveness and thereby further facilitate performance management. It examines outputs as the unit-of-analysis within the input-output-outcome framework of performance measurement and reporting systems and their integration with accrual-based financial management systems in evaluating government operations. It challenges the predominantly outcomes-focused reporting system as insufficient to the objective of improved operational efficiency and effectiveness. The author examines an increased focus on output reporting as a means to improve operational efficiency and the linkage of outputs to outcomes as an effectiveness measure. To this point in time, American federal government exhibits