Achieving value for money (VFM)
At every HEFCE-funded higher education provider there should be effective arrangements for providing assurance to the governing body that value for money is being achieved.
Under the memorandum of assurance and accountability, internal auditors and audit committees are required to give an opinion, addressed to the governing body and the accountable officer, on the provider’s arrangements for ensuring the three elements of value for money: economy, efficiency and effectiveness.
As part of the annual accountability returns for the 2015-16 academic year, all funded providers submitted a report to HEFCE setting out how they were achieving value for money. It was also a requirement that this report was presented to the governing body or a delegated subcommittee.
HEFCE has commissioned an independent review of these reports. The review analyses the nature and volume of the savings reported and the approaches taken to achieve them. It also assesses the extent to which the reports assisted governors in understanding and improving value for money, and suggests what information value for money reports should contain, based on good practice in the sector.