{"id":9137,"date":"2026-04-11T05:50:19","date_gmt":"2026-04-11T10:50:19","guid":{"rendered":"https:\/\/westplexnews.com\/index.php\/2026\/04\/11\/performance-funding-without-measurement-integrity-is-a-procurement-scandal-waiting-to-happen\/"},"modified":"2026-04-11T05:50:19","modified_gmt":"2026-04-11T10:50:19","slug":"performance-funding-without-measurement-integrity-is-a-procurement-scandal-waiting-to-happen","status":"publish","type":"post","link":"https:\/\/westplexnews.com\/index.php\/2026\/04\/11\/performance-funding-without-measurement-integrity-is-a-procurement-scandal-waiting-to-happen\/","title":{"rendered":"Performance funding without measurement integrity is a procurement scandal waiting to happen"},"content":{"rendered":"
\"U.S.
\n

(Photo illustration by Catherine Lane\/Getty Images)<\/p>\n<\/figcaption><\/figure>\n

I am a finance professor at Lincoln University, currently in litigation over a specific allegation: that failing grades I entered for plagiarism were later altered through the learning management system without my consent. I have an obvious stake in how that dispute resolves \u2014 but it pointed me toward a policy problem that exists entirely independent of my case.<\/p>\n

In February, the Missouri Senate Education Committee debated \u00a0Senate Bill 1121<\/a>, legislation that would align the money Missouri spends on higher education with the outcomes lawmakers want to see. That\u2019s a familiar bargain in public finance: pay more when agencies deliver measurable results.<\/p>\n

But state finance has a rule older than any formula: you don\u2019t pay for deliverables you can\u2019t verify. If the measurement layer that produces \u201coutcomes\u201d is not governed with audit\u2011grade controls, performance funding stops being accountability and starts looking like an improper\u2011payment machine \u2014 a procurement scandal waiting to happen.<\/p>\n

Missouri is already moving this direction. The Department of Higher Education and Workforce Development\u2019s performance funding model<\/a> is used to allocate the majority of higher\u2011education funding increases based on performance measures.<\/p>\n

SB 1121<\/a> would require the department to develop and test a cost\u2011based funding model with a performance component \u2014 and, if approved by the General Assembly, make appropriations for public higher education conform to the new model beginning in fiscal year 2028\u201329<\/a>.<\/p>\n

Once the state pays for \u201coutcomes,\u201d it is effectively procuring deliverables \u2014 credits earned, degrees completed, and the performance measures derived from those records. Procurement has a first question: what is the receipt? In higher education, the receipt is the academic record: transcripts, final grades, and the controlled workflow that turns a course result into a state\u2011funded metric.<\/p>\n

To be clear, I\u2019m not alleging that Missouri\u2019s public colleges and universities are falsifying results. The point is simpler: if the state ties new dollars to \u201coutcomes,\u201d it must be able to audit the records and controls that produce those outcomes.<\/p>\n

Most models talk about completions and progress, not grade books. But grade books and transcript workflows are the unit of account behind the pipeline: course completion produces credits; credits produce degree progress; progress produces completion rates; completion rates justify dollars. Legitimate post\u2011term corrections exist. The risk is not that changes can happen; the risk is that they can happen without preserved originals, documented reasons, independent approval, and a tamper\u2011evident trail.<\/p>\n

I\u2019ve seen the stakes up close at Lincoln University in Jefferson City. In my pending dispute, I allege that failing grades I entered for plagiarism\u2011related work were later changed to passing grades through the back end of the learning management system \u2014 without my consent.<\/p>\n

However that dispute resolves, it illustrates why \u201cpay for outcomes\u201d must be built on auditable controls, not trust.<\/p>\n

Missouri\u2019s own rules show how costly record integrity failures can be. State law<\/a> sets a formal dispute process when transfer credit is denied \u2014 including written notice and a 45\u2011day window before escalation to the commissioner of higher education. And for some professions, Missouri regulations<\/a> require an official final transcript that clearly shows the degree awarded and graduation date before an applicant can sit for a licensure exam. These are everyday examples of the same principle: when records are the receipt, controls matter.<\/p>\n

Auditors don\u2019t audit aspirations; they audit evidence. The GAO\u2019s Government Auditing Standards (\u201cYellow Book\u201d)<\/a> were revised in 2024 and apply to performance audits beginning on or after Dec. 15, 2025. Missouri\u2019s State Auditor<\/a>, reviewing higher\u2011education performance funding in 2017, warned that oversight and verification were weak \u2014 including insufficient review procedures and a lack of comprehensive standards, rules, and guidelines for performance\u2011funding data.<\/p>\n

The incentive trap is structural. WICHE<\/a> projects U.S. high school graduates peak in 2025 and then decline through 2041. Under stress, enrollment and retention become revenue variables; layer performance funding on top, and institutions face a double incentive to keep students enrolled and show better outcomes. If controls are weak, \u201coutcome management\u201d becomes predictable.<\/p>\n

Missouri does not need to micromanage campuses. It needs minimum internal controls that make the academic record a reliable receipt: standardized reason codes for every post\u2011submission change; separation of duties so no one person can initiate and finalize end\u2011to\u2011end; preserved originals plus a log (original value, new value, timestamp, identity\/role, and reason code); documentation retention sufficient for audit sampling; and independent monitoring with periodic sampling.<\/p>\n

Missouri already has a statutory hook to govern performance measures. Under state law<\/a>, the coordinating board evaluates and can revise institutional performance measures on a recurring schedule. Add one guardrail: no institution should receive performance\u2011based increases unless it can certify annually \u2014 with board\u2011level attestation \u2014 that minimum controls exist for academic\u2011record changes that affect reported measures, with periodic sampling and disclosure of any material control deficiencies before performance dollars are paid.<\/p>\n

Missouri can debate the right funding model \u2014 cost\u2011based, performance\u2011based, or hybrid. But before it pays for \u201coutcomes,\u201d it should demand the procurement prerequisite: auditable receipts. Otherwise, performance funding won\u2019t be accountability. It will be a procurement scandal waiting to happen.<\/p>","protected":false},"excerpt":{"rendered":"

(Photo illustration by Catherine Lane\/Getty Images) I am a finance professor at Lincoln University, currently in litigation over a specific allegation: that failing grades I entered for plagiarism were later altered through the learning management system without my consent. 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