Value For Money statements
To comply with the Academies Financial Handbook, all academy trust accounting officers are required to complete a Value For Money statement, which must be submitted to the EFA by 31 December 2014 and published on the academies website by the 31 Jan 2015.
Value for money is defined as “achieving the best possible educational and wider societal outcomes through the economic, efficient and effective use of all the resources in the trust’s charge”.
Accounting officers are personally responsible and publically accountable for achieving best possible value for money. This includes:
- the economic, efficient and effective use of all the resources in their charge;
- the avoidance of waste and extravagance;
- the prudent and economical administration of the organisation;
- the establishment and maintenance of a system of financial governance, including sound internal spending controls, keeping up to date financial records, continuous financial monitoring and timely reporting; and
- ensuring all financial transactions represent value for money.
The statement should include specific examples of areas where the trust has achieved value for money and where it could do better.
One example of the former is purchasing. What has the trust done to get more for its money?
Has the trust appraised or renegotiated services and contracts to get the best mix of quality and effectiveness for the least cost? Has the trust benchmarked its costs against similar organisations to identify areas for making savings? Have different options been considered before making purchases, including cost benefit analysis over the longer term? Has tendering been used appropriately to get the best deal – this does not mean always choosing the cheapest option.
If you would like to speak to Bates Weston about benchmarking your accountancy and audit costs, please do contact Wayne Thomas on 01332 365855 or email firstname.lastname@example.org