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Bridging the accountability gap - Audit Commission

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2<br />

Partnerships and value for money –<br />

<strong>the</strong> costs and benefits<br />

52 Value for money should be a key governance issue for partnerships. Increasingly, public<br />

bodies and regulators are focusing on value for money because of <strong>the</strong> Gershon Efficiency<br />

Review (Ref. 13).<br />

53 The established definition of value for money is <strong>the</strong> relationship between economy,<br />

efficiency and effectiveness (Figure 6).<br />

Figure 6<br />

The value for money relationships<br />

Value for money should be a key governance issue for partnerships.<br />

Value for<br />

money<br />

Economy Efficiency Effectiveness<br />

Qualitative<br />

Costs<br />

Inputs<br />

Outputs<br />

Outcomes<br />

Quantitative<br />

Mapping and evaluating partnerships<br />

54 Many organisations do not know <strong>the</strong> extent of <strong>the</strong>ir involvement in partnerships. Some<br />

organisations maintain a database of partnership activity or carry out a partnership audit<br />

24<br />

Governing partnerships | Partnerships and value for money – <strong>the</strong> costs and benefits

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