Presentation on theme: "DFID’s work on VFM so far…"— Presentation transcript:
1 DFID’s work on VFM so far… Claire VallingsGovernance and Social Development DepartmentDFID30 March 2011
2 OVERVIEWValue for Money generally in DFIDValue for Money in Governance
3 VFM 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
5 Proportionate, 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?
6 OverallJoint 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!
7 Where are we on governance? IndicatorsVFM Analytical Framework / Approach
8 IndicatorsTheory 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