FCO Project Proposals: Assessing Value for Money and Activity Based Budgets - Guidance for Implementers All project proposals will be assessed for value for money against 3 headline criteria: Economy: have costs have been reduced as far as possible Efficiency: will the project deliver the best product for the best price Effectiveness: will the project support and deliver against FCO objectives A clear and appropriately detailed Activity Based Budget (ABB) is essential in order to assess value for money: Good Activity Component Unit Number of units Cost per unit March April May 1.1 Visit to UK by 8 Flights post-London Return flight, economy 8 320 2560 scientists class Hotels Night in marker hotel B&B 8 110 880 Meals and dinner per day 16 30 480 1.2 Development of Scientists’ fees Day 20 100 2000 policy recommendations Printing Copy of recommendations 35 5 175 1.3 Briefing for Finance Venue Daily use 1 0 0 Ministry on and Trainers’ fee Daily rate 3 150 450 policy recommendations Sandwich lunch Per person 15 5 75 TOTAL 3920 2175 525 Costs linked numerically to activities in the project proposal Unit costs identified, as well as number of units, to show exactly what Activity costs broken down into constituent parts the FCO is getting for its money Costs minimised Bad Activity Total March April May Flights 2560 2560 Accommodation and 1435 1360 75 People 2450 2000 450 Printing 175 175 Admin charge 1000 333 333 334 Contingency (5%) 380 200 90 90 6453 673 874 Costs not linked directly to activities Admin charge disproportionately high Unclear how many units (eg flights) are included and how much we Budget includes a contingency are paying for each
FCO Project Proposals: Assessing Value for Money and Activity Based Budgets - Guidance for Implementers All project proposals will be assessed for value for money against 3 headline criteria: Economy: have costs have been reduced as far as possible Efficiency: will the project deliver the best product for the best price Effectiveness: will the project support and deliver against FCO objectives A clear and appropriately detailed Activity Based Budget (ABB) is essential in order to assess value for money: Good Activity Component Unit Number of units Cost per unit March April May 1.1 Visit to UK by 8 scientists Flights post-London Return flight, economy class 8 320 2560 Hotels Night in marker hotel B&B 8 110 880 Meals and dinner per day 16 30 480 1.2 Development of policy recommendations Scientists’ fees Day 20 100 2000 Printing Copy of recommendations 35 5 175 1.3 Briefing for Finance Ministry on and policy recommendations Venue Daily use 1 0 0 Trainers’ fee Daily rate 3 150 450 Sandwich lunch Per person 15 5 75 TOTAL 3920 2175 525 Costs linked numerically to activities in the project proposal Activity costs broken down into constituent parts Costs minimised Unit costs identified, as well as number of units, to show exactly what the FCO is getting for its money Bad Activity Total March April May Flights 2560 2560 Accommodation and 1435 1360 75 People 2450 2000 450 Printing 175 175 Admin charge 1000 333 333 334 Contingency (5%) 380 200 90 90 6453 673 874 Costs not linked directly to activities Unclear how many units (eg flights) are included and how much we are paying for each Admin charge disproportionately high Budget includes a contingency
Value_for_Money_and_Budgeting_-_Guidance_for_Implementers.docx