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7/27/2019 Dfid Jo Abbot - VfM and Civil Society
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Slide 1
Value for Moneyand Civil Society
Civil Society Department
February 2011
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Slide 3
What does DFID want to see CSOs doing on VFM?..shared agenda, we want civil society organisations to be as
effective as they can be in eradicating poverty..
..same agenda for all organisations multilaterals, governments etc
Putting effectiveness at the heart of a CSOs work:
Having a clear vision
Being clear about results
Having sound, evolving partnerships
Being well governed and having strong organisational processes
Maximising value in everything an organisation does
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Slide 4
What does DFID want to see CSOs doing on VFM?Cont.Less about:
Isolated used of methods orapproaches eg SROI, DALYs,
CBAsAnalysis delinked from
organisational processes
Applying a VFM recipe book orstep by step guidance
VFM as an add on, discreteprocess or activity
Blanket application of formulas andratios
More about
Organisation-wide thinking
Justifying your approach in your
specific context Identifying options and prioritising
areas for maximising value
Continual commitment to learningand improving
Piloting and monitoring Showing evidence and feedback
loops
Being practical
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Slide 5
Myths about Value For Money Its a race to the bottomits not about whats cheapest
(eg use of volunteers)
It hinders innovation and risk taking should make risksand 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 ifthe results chain is sound, should not drive particular sectors
or projects further down the results chain.
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Slide 6
What is DFIDs policy on VFM in its funding ofNGOs? NAO: optimal use of resources to get desired outcomes
Proposals need to explain in what ways funding will offer the maximum
benefit for the resources requested.
Consider and cost different options.
All funding applications are scrutinized for VFM in terms of
administrative and programme fundingthis is not new.
VFM considerations are part of funding decisions, but what is key is a
sound proposal. If a project/programme has been well thought through,then it is more likely to be scored highly in terms of value for money
Consistency - the budget, logframe and proposal need to tell a coherent
story of change
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Slide 7
Ways to think about VFM: Be practical. Value for money is part of the overall assessment and can not be de-
linked from other aspects of the assessment eg design, rationale
Give sufficient information to assess VFM eg unit costs, costs per participant/trainee,cost effectiveness or rate of return, other options considered.
Work through the programme with partners VFM applies to all organisationsreceiving funding.
Justify why the approach has been chosen in terms of providing the best value giventhe time and resources spent, the type of spend.
Provide clear analysis of what VFM means for you eg type of organisation or spend,position on the results chain, geog spread
Explain the nature of the project and the context as it relates to VFMwhat are thereal costs of doing business? eg harder to reach groups/areas, security concerns etc
Demonstrate the institutional systems in place to assess/monitor VFM Have strong results focus VFM flows from that.
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Slide 8
How can CSOs demonstrate value
Monetizing eg costs per beneficiary, unit costs and comparewith industry/local standards where available. Extrapolatesensibly.
Benchmarking Compare your costs against otherCSO/govt/private sector provider and show how costs andbenefits vary
Showing efficiencies: % costs on activities compared torunning cost, where budgets are being spent, staff based,outreach approaches etc
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Slide 9
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 costeffectiveness 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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Slide 10
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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Slide 11
Conclusions Joint learning processDFID 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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Slide 12
Leading the UK governments fight against world poverty
Tel: +44 (0) 20 7023 0000
Fax: +44 (0) 20 7023 0016
Website: www.dfid.gov.uk
E-mail: enquiry@dfid.gov.ukPublic Enquiry Point: 0845 300 4100
If calling from abroad: +44 1355 84 3132
LONDON
1 Palace Street
LondonSW1E 5HE
EAST KILBRIDE
Abercrombie House
Eaglesham Road
East KilbrideGlasgow
G75 8EA
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