Attaining value for money (VFM) means obtaining the maximum benefit from goods and services acquired and provided, within available resources. It involves economy, efficiency and effectiveness. VFM measures cost, quality, fitness for purpose, timeliness and convenience.
The University of Bristol recognises its responsibility to achieve VFM from all its activities, however they are funded, and will seek to adopt good practice and incorporate VFM principles in all its activities.
To achieve value for money, the University will:
The responsibility for VFM lies with all members and staff of the University and is not restricted to those with resource or financial responsibilities. Council is required to satisfy itself that VFM is being sought and achieved from the use of public funds, and Council has determined that this principle should extend to all its funds. The Audit Committee is required, under the HEFCE Audit Code of Practice, to satisfy itself that satisfactory arrangements are in place to promote economy, efficiency and effectiveness and to relay its view on the arrangements to Council in its annual report.
The Senior Management Team has the executive responsibility to put in place arrangements that will ensure VFM is being sought. The University Secretary and the Finance Director have a responsibility to keep Council and the Audit Committee advised of VFM issues (for example, the publication of relevant advice or reports). To help discharge these responsibilities, the University’s Budget Committee will advise the Vice-Chancellor, UPARC and Council on VFM matters.
Managers have the executive responsibility to maintain an awareness of good practices in their own area of operation and to ensure that these are followed appropriately. All members of staff should endeavour to seek and achieve VFM in all activities and to bring to the management’s attention any opportunities for improvement. A VFM checklist is appended.
The Audit Committee will receive an annual report on VFM from the Chair of the Budget Committee, based on:
1.1 Are the overall aims and objectives of the service or department clearly specified and documented?
1.2 Has a service or departmental strategy been determined, including short-term and longer-term objectives (budgetary and financial expectations, operational delivery)?
1.3 Is responsibility for management of the service or department clearly identified and documented?
1.4 How is this overseen?
2.1 Are policies and procedures in place?
2.2 Are the policies and procedures updated on a timely basis?
2.3 Are the policies and procedures formally approved by any relevant University committee?
2.4 Are University staff aware of the policies, procedures and responsibilities relating to this area?
2.5 Have the risks associated with the service or department been identified and appropriate mechanisms put in place to address them?
3.1 Does the service or department have key financial and operational targets, and if so, what are they?
3.2 How is non-salary expenditure decided on and monitored? How are goods and services procured?
3.3 What are the key performance indicators (KPIs) by which the performance of the service or department is assessed? Are comparisons made with other institutions or sector norms? Are the KPIs focussed on service delivery? Has use of KPIs been owned by relevant staff?
3.4 Is the necessary information available and is performance monitored by managers?
3.5 Is performance reported to the relevant committee?
3.6 Is action taken to address issues highlighted?
3.7 Is there a mechanism for obtaining feedback from users and is action taken in response to user requests?
4.1 Has the service or department been subject to formal review in the last one or two years?
4.2 Is the service or department subject to regular external audit?
4.3 Where actions are identified following a review or inspection, are they taken in a timely way?