Professional Documents
Culture Documents
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Two questions posed by Bond: What does DFID want CSOs to do on VFM?
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More about Organisation-wide thinking Justifying your approach in your specific context Identifying options and prioritising areas for maximising value Continual commitment to learning and improving Piloting and monitoring Showing evidence and feedback loops Being practical
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Myths about Value For Money Its a race to the bottom its not about whats cheapest (eg use of volunteers) It hinders innovation and risk taking should make risks and assumptions explicit as part of the theory of change, but also the potential opportunities for scaling up/wider application It encourages easy-to-measure programming choices if the results chain is sound, should not drive particular sectors or projects further down the results chain.
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How can CSOs demonstrate value Monetizing eg costs per beneficiary, unit costs and compare with industry/local standards where available. Extrapolate sensibly. Benchmarking Compare your costs against other CSO/govt/private sector provider and show how costs and benefits vary Showing efficiencies: % costs on activities compared to running cost, where budgets are being spent, staff based, outreach approaches etc
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Questions we ask of proposalsand of ourselves! Are there recent examples to show how CSOs ensure value for money in their work? Is there evidence to show that CSOs think about cost effectiveness in decision making and resource allocation? Is funding performance based within the organisation? Have CSOs used any comparators (either internal or external) to highlight value for money? Are robust monitoring and evaluation systems in place?
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More questions(continued) Is there evidence to show that CSOs are continually looking to improve value for money? How does the organisation control administrative costs? Is there evidence that the organisation achieves economy in purchase of inputs? Are robust financial management, accountability and auditing arrangements in place?
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Conclusions Joint learning process DFID doesnt have the answers. But DFID is keen to share knowledge and lessons Continual improvement rather than a hurdle to jump over Should reinforce poverty and results focus, and enhance effective partnerships Its building an organisational culture of VFM, with partners too. Trail blazing - much innovation and leadership in civil society
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LONDON 1 Palace Street London SW1E 5HE EAST KILBRIDE Abercrombie House Eaglesham Road East Kilbride Glasgow G75 8EA Tel: +44 (0) 20 7023 0000 Fax: +44 (0) 20 7023 0016 Website: www.dfid.gov.uk E-mail: enquiry@dfid.gov.uk Public Enquiry Point: 0845 300 4100 If calling from abroad: +44 1355 84 3132
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