Difference between revisions of "Value for Money (VfM)"

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Value for Money (VfM) in DFID’s programme means:<br/>
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= Overview =
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<u>Value for Money (VfM) in DFID’s programme means:</u><br/>
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'''We maximise the impact of each pound spent to improve poor people’s lives.'''
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"VFM is a set of assessment practices for appraisal, review or evaluation of systems and functions as well as initiatives, schemes and projects that are time bound. The development of these practices, following economic policy imperatives, has traditionally been led by the auditing and accountancy professions. VFM is now found not only amongst a range of internal and external controls, procedures and assessments for financial and resource management (for example risk management, fraud and corruption, audits), but also forms part of performance management systems and processes in organizations. Hence there are many and necessary links to results-based management, monitoring activity, impact assessment and evaluations."
  
We maximise the impact of each pound spent to improve poor people’s lives.
 
  
"VFM is a set of assessment practices for appraisal, review or evaluation of systems and functions as well as initiatives, schemes and projects that are time bound. The development of these practices, following economic policy imperatives, has traditionally been led by the auditing and accountancy professions. VFM is now found not only amongst a range of internal and external controls, procedures and assessments for financial and resource management (for example risk management, fraud and corruption, audits), but also forms part of performance management systems and processes in organizations. Hence there are many and necessary links to results-based management, monitoring activity, impact assessment and evaluations. "
 
  
 
= 3Es (and a CE) =
 
= 3Es (and a CE) =
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Are we or our agents buying inputs of the appropriate quality at the right price? (Inputs are things such as staff, consultants, raw materials and capital that are used to produce outputs)
 
Are we or our agents buying inputs of the appropriate quality at the right price? (Inputs are things such as staff, consultants, raw materials and capital that are used to produce outputs)
  
== Efficiency: ==
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== Efficiency ==
  
 
How well do we or our agents convert inputs into outputs? (outputs are results delivered by us or our agents to an external party. We or our agents exercise strong control over the quality and quantity of outputs)
 
How well do we or our agents convert inputs into outputs? (outputs are results delivered by us or our agents to an external party. We or our agents exercise strong control over the quality and quantity of outputs)
  
== Effectiveness: ==
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== Effectiveness ==
  
 
How well are the outputs from an intervention achieving the desired outcome on poverty reduction? (Note that in contrast to outputs, we or our agents do not exercise direct control over outcomes)
 
How well are the outputs from an intervention achieving the desired outcome on poverty reduction? (Note that in contrast to outputs, we or our agents do not exercise direct control over outcomes)
  
== Cost-effectiveness: ==
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== Cost-effectiveness ==
  
 
How much impact on poverty reduction does an intervention achieve relative to the inputs that we or our agents invest in it?
 
How much impact on poverty reduction does an intervention achieve relative to the inputs that we or our agents invest in it?
  
= Links =
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= Further Information =
  
 
*[https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/49551/DFID-approach-value-money.pdf VfM Approach by DFID (2011)] (very much worth a read!)
 
*[https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/49551/DFID-approach-value-money.pdf VfM Approach by DFID (2011)] (very much worth a read!)
 
*[http://r4d.dfid.gov.uk/PDF/Outputs/Mis_SPC/60797_ITAD-VFM-Report-Dec10.pdf VfM and Impacts in Governance and Conflict Projects]
 
*[http://r4d.dfid.gov.uk/PDF/Outputs/Mis_SPC/60797_ITAD-VFM-Report-Dec10.pdf VfM and Impacts in Governance and Conflict Projects]
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= Updates =
 
= Updates =
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*[http://www.edgroup.com.au/edg-events/vfm-symposium/ "Measuring the intangible"] VfM Symposium held in London.<br/>
 
*[http://www.edgroup.com.au/edg-events/vfm-symposium/ "Measuring the intangible"] VfM Symposium held in London.<br/>
 
*Upcoming [http://www.edgroup.com.au/edg-events/measuring-the-intangibles-conference/ VfM Conference on the 19th and 20th of September 2013 in Bangkok]
 
*Upcoming [http://www.edgroup.com.au/edg-events/measuring-the-intangibles-conference/ VfM Conference on the 19th and 20th of September 2013 in Bangkok]
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= References =
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<references />
  
 
[[Category:Impacts]]
 
[[Category:Impacts]]

Revision as of 07:40, 29 May 2013

Overview

Value for Money (VfM) in DFID’s programme means:

We maximise the impact of each pound spent to improve poor people’s lives.

"VFM is a set of assessment practices for appraisal, review or evaluation of systems and functions as well as initiatives, schemes and projects that are time bound. The development of these practices, following economic policy imperatives, has traditionally been led by the auditing and accountancy professions. VFM is now found not only amongst a range of internal and external controls, procedures and assessments for financial and resource management (for example risk management, fraud and corruption, audits), but also forms part of performance management systems and processes in organizations. Hence there are many and necessary links to results-based management, monitoring activity, impact assessment and evaluations."


3Es (and a CE)

Economy

Are we or our agents buying inputs of the appropriate quality at the right price? (Inputs are things such as staff, consultants, raw materials and capital that are used to produce outputs)


Efficiency

How well do we or our agents convert inputs into outputs? (outputs are results delivered by us or our agents to an external party. We or our agents exercise strong control over the quality and quantity of outputs)


Effectiveness

How well are the outputs from an intervention achieving the desired outcome on poverty reduction? (Note that in contrast to outputs, we or our agents do not exercise direct control over outcomes)


Cost-effectiveness

How much impact on poverty reduction does an intervention achieve relative to the inputs that we or our agents invest in it?


Further Information


Updates


References