Presentation on theme: "DFID’s work on VFM so far…"— Presentation transcript:
1DFID’s work on VFM so far… Claire VallingsGovernance and Social Development DepartmentDFID30 March 2011
2OVERVIEWValue for Money generally in DFIDValue for Money in Governance
3VFM is about improving aid effectiveness: DFID’s VFM ThinkingVFM is about improving aid effectiveness:- “we maximise the impact of UK aid so it makes the most difference to the poorest people in the world”This requires:Clear VisionClear ResultsRobust PartnershipsStrong Organisational ProcessesMaximum Value
4‘How To’ Guidance and fixed ‘formulae’ Analysis delinked from process VFM is not about‘How To’ Guidance and fixed ‘formulae’Analysis delinked from processAn add onRace to the bottom / cheapest(Education in Ghana vs DRC)Risk avoidanceMeasuring only what can be measured
5Proportionate, considered approach Maximising resources VFM is aboutProportionate, considered approachMaximising resourcesUsing common sensenot ‘what’s the VFM of conflict prevention?’but ‘am I preventing conflict as cost effectively as I can?’Being consistent – what do you want to achieve?Be realistic;Commitment to learning / monitoring, pilotingShowing evidenceYou cannot delink analysis from programme design – give available data on unit costs and justify why this is VFMVFM flows from a strong focus on results: logframes, PDs / BCs, budgets, and any other relevant documentation should all tell a coherent story of anticipated changeQuestions we ask are:- 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?- 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?
6OverallJoint learning process – DFID doesn’t have all the answers. But keen to share knowledge and lessonsContinual improvement rather than a hurdle to jump overVFM should reinforce poverty and results focus, and enhance effective partnershipsBuilding an organisational VFM culture, with partnersTrail blazing - innovation welcome!
7Where are we on governance? IndicatorsVFM Analytical Framework / Approach
8IndicatorsTheory of Change: articulate the logic of interventionConfusion btw output and outcomeNeed more on gender and pro-poor outcomesPossible over-reliance on perceptionsFuture work:Unit cost comparisonMeasures of efficiency