What is the purpose of this tool?
This voluntary online self-evaluation tool will help you answer the questions from the Audit Commission publication Valuable lessons: improving economy and efficiency in schools, a briefing for schools. It will provide an action plan that will help give structure to discussions on value for money with school management and governors, and provide sign-posting to further information. It will take around 20 minutes to complete.
What is value for money?
The widely accepted definition of value for money refers to three elements described as the ‘three Es’: economy; efficiency; and effectiveness.
The three components of value for money
| | Definition | Example |
Economy | Minimising the costs of resources used for a good, service or activity | Are school supplies purchased at the best available price? |
Efficiency | The relationship between outputs and the resources used to produce them | Do the school timetable arrangements make best use of teachers? |
Effectiveness | The extent to which objectives have been achieved | To what extent has the deployment of staff raised attainment? |
How can your school improve value for money?
We have identified six areas where you can improve value for money:
- considering the financial implications of your plans;
- reviewing your financial surplus (or deficit);
- ensuring that the goods and services you buy represent value for money;
- using the school workforce to best effect;
- collaborating with other local schools; and
- using data and information to support better decision making.
How does the tool work?
This tool asks questions on each of the six areas, asking you to score the extent to which you undertake key activities that support value for money. We also provide examples of good practice that are drawn from our research. An action plan will give suggestions for how to improve high priority value for money activities in your school. We describe high priority areas as those where you answer the extent question with the "not at all" or "to a limited extent" options.
The tool updates and replaces the Audit Commission’s Managing School Resources Tool, released in 2000.
For secondary schools we have also developed a more detailed tool for you to review the deployment of the teaching workforce, comparing teaching time and cost and educational results.
Who is this tool for?
It is for all those with responsibility for managing resources in maintained primary and secondary schools in England, including:
- head teachers;
- bursars and business managers, administrative assistants and school secretaries; and
- other senior school staff.
School governors may also find the tool useful. In this tool, we use the term governing body to mean either the full governing body or its committees in cases where responsibility is delegated.
The principles of value for money apply to all schools. However, the size and organisation of the school will determine how you interpret and implement the principles and guidance.
What is the suggested process?
Head teachers will be best placed to complete this tool. However, we recommend that more than one individual in the school completes the tool so that views can be compared, to see if there are differences. We suggest the action plan from the tool is then discussed at the relevant school governor committee. Head teachers, school business managers and bursars can also use the tool as a basis for finance discussions in school management meetings. It will be particularly useful to complete this tool ahead of the start of the annual financial planning process.
Further Information
Further guidance on value for money can be found at the DCSF value for money unit website.
Section 3.5 of the Financial Management Standard in Schools covers value for money.
The Audit Commission’s national report Valuable lessons is available to all schools.
The Audit Commission has also produced a resource pack on Special Education Needs and Additional Educational Needs
Getting Started
To start using the tool please click on the next button at the bottom of this page. Please enter your Local Education Authority (LEA) number below along with your school number to help us record use of the tool.