In October 2010, ITAD was commissioned by the DFID Politics and the State team to conduct research and propose a way forward for Governance programmes in conducting value for money assessments as part of a consultancy on measuring the impact and value for money of DFID Governance programmes. The specific objective stated for our work on value for money (VFM) in the Terms of Reference was:
“To set out how value for money can best be measured in governance and conflict programming, and whether the suggested indicators have a role in this or not”.
This Report presents background on VFM from documentary research (section 2); explains the analytical framework that captures key concepts in VFM, and sets out options for improving VFM (section 3). It outlines one specific option, a “3 Es ratings and weightings approach to VFM” as presented to Governance and Conflict Advisers at a DFID Research Day on 25 November 2010, and includes their response plus some initial reactions from Finance and Corporate Performance Division (FCPD), particularly with regard to Business Case compatibility (section 4). Finally, the Report proposes ways in which initial findings can be refined and further developed to support Governance programming and build staff competence and confidence in conducting VFM assessments (section 5).