Value For Money
Value for Money (VFM) is the term used to assess whether or not an organisation has obtained the maximum benefit from the goods and services it acquires and/ or provides, within the resources available to it.
What is Value for Money?
Value for Money (VFM) is the term used to assess whether or not an organisation has obtained the maximum benefit from the goods and services it acquires and/ or provides, within the resources available to it. It not only measures the cost of goods and services, but also takes account of the mix of quality, resource use, fitness for purpose, timeliness and convenience to judge whether or not, when taken together, they constitute good value. Achieving VFM may be described in terms of the following:
a. Economy. Doing the same with fewer resources, i.e. making savings.
b. Efficiency. Doing the same as before, but with fewer resources (money, staff, space).
c. Effectiveness. Doing more than before with the same resources as now (or less).
Value for Money Goals & Objectives
- Maximise choice and value for money for all residents
- Achieve year on year efficiencies
- Benchmark against our peers
- Identify opportunities for income through new business
- Maximise income from existing sources
- Achieve savings through smart procurement
- Raise organisational focus on value for money
- Work with all our partners to provide best value, quality solutions and continuous improvement across all services
How have we achieved Value for Money?
- Total Housing Management costs of £506 per property for 2010/11, was £500 in 2009/10, still low when compared with other benchmarked organisations
- Rent collection is still very good in the economic climate
- Tenant satisfaction the highest it has ever been, tenants also high satisfaction with VFM of weekly rent
- Repairs per property lower cost
- Service Charge collection has improved
- One of the lowest Payroll and Invoicing costs of ALMO's in our peer group
- Excellent VFM ideas from staff that has improved performance and reduced costs
- IT & Systems have been made more efficient
- Benchmarking has led to improvements
- Financial Inclusion and Fuel Poverty advice offered to tenants
- £450,000 paid back to the HRA in 2010/11 as a result of efficiencies
Areas for improvement and what we are doing to improve
- Back Office costs – further review now underway to ascertain reductions
- Empty property spend per property has increased – Head of Performance is now reviewing
- Cost of Antisocial behaviour (ASB) was high in 08/09. Now PHP employ their own ASB Co-Ordinator so costs have reduced and satisafction increased
Conclusion
- Overall VFM in 2010/11 has improved with increased performance and lower costs
- £450,00 paid back into the HRA as a result of efficient working
- Excellent ideas from staff on VFM that have achieved significant reductions, these are used by PHP