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 very little output efficiency or effectiveness measurement and reporting. The failure to measure performance in this manner is to the considerable detriment of operational efficiency, effectiveness and cost reduction in the federal government.