Skip to content


Measuring Value for Money in DFID: Review of the VFM Indicator in DFID’s Public Service Agreement

Itad was contracted by DFID to produce a paper reviewing Value For Money indicators.


This included a detailed analysis of data contained within DFID’s management information system (PRISM), with particular attention paid to the issues of compliance and disparities across country offices, regions, sectors and instruments of aid. Key informant interviews were held with DFID staff, including various Country Offices.

DFID’s Public Service Agreement (PSA) 2003-2006 set out a number of key indicators for reporting performance to the Treasury department. This included the Value for Money (VFM) indicator, which was defined as both an increase in the proportion of DFID’s bilateral programme going to low-income countries, and a sustained increase in the index of DFID’s bilateral projects evaluated as successful.

Image © Women from a community in Nepal that benefits from UK aid. Photo Credit: ‘Department for International Development/Narendra Shrestha (shared under CC BY 2.0 license)
Team members