The purpose of this dissertation was to determine the preferences of clients of programs administered by selected federal agencies and the preferences of the federal managers who administer the programs in assessing performance measurement systems. Using the general progression of previous budgetary models used in the public sector, the researcher developed the Modified Balance Scorecard (MBSC), a performance measurement model designed specifically for use within the public sector. Surveys based on the MBSC were administered to public managers and to clients of those managers in order to determine their preferences. The results showed that managers preferred public good measures and clients preferred financial measures. Both groups' second preferred index of measures was internal management process measures. This research is important in policy formulation and provides many implications regarding the effective presentation of policies. These results can be used to help craft policies for maximum effectiveness, based on the preferences of the respective groups.