Value for Money – Page 2

ICMA – Nov 2024 – L1 – Q3a – Value for Money (VFM)

Explains the components of Value for Money (VFM) in the public sector.

Question

Value for Money (VFM)
Value for Money (VFM) is an objective that can be applied to any organization whose main objective is non-financial but has restrictions on the amount of finance available for spending, which the public sector is no exception.

Required:
Explain the components of VFM.

Answer

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Tags: Economy, Effectiveness, Efficiency, Public Sector, Value for Money
Level: Level 1

Topic: Cost-Volume-Profit (CVP) Analysis
Series: Nov 2024

AAA – May 2017 – L3 – Q4b – Assurance Engagements

Explain "value for money" and the 3Es of achieving it in assurance engagements.

Question

Alhaji Chukwudi is the Chairman and majority shareholder of Talking Drums Limited, a telecommunications company operating in Nigeria. The company had experienced considerable growth in the past. However, over the last three years, there has been noticeable increase in cost of operations which is slowing down the growth of the company. Management had explained that the increasing cost is a result of expansion of coverage area which management believes will lead to further expansion and growth of the company in the nearest future. Alhaji Chukwudi wants to get a certain level of assurance that there is value for the increased expansion costs the company was incurring. As a result, the Board of Directors resolved to engage a practitioner for a „value for money‟ evaluation of the coverage expansion costs.

Required:

i. Explain „value for money‟. (2 Marks)

ii. Explain the 3Es of achieving value for money. (6 Marks)

Answer

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Tags: and Economy, Audit of Efficiency, Effectiveness, Value for Money
Level: Level 3

Topic: Assurance Engagements

PSAF – May 2018 – L2 – Q4 – Public Sector Audit

Explain the concept of Value-for-Money audit, its components, steps, and factors contributing to an effective VFM audit.

Question

In relation to public sector audit:

a. Define ‘Value-for-Money’ (VFM) audit. (2½ Marks)

b. Identify and explain THREE major components of ‘Value-for-Money’ audit. (6 Marks)

c. Explain FIVE steps towards a successful ‘Value-for-Money’ audit. (2½ Marks)

d. Identify FIVE factors which contribute to an effective ‘Value-for-Money’ audit. (5 Marks)

e. Explain the precise roles of the internal audit unit in relation to ‘Value-for-Money’ audit of a Government Business Entity (GBE). (4 Marks)

Answer

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Tags: Audit, Economy, Effectiveness, Efficiency, Value for Money
Level: Level 2

Topic: Public sector audit

BMF – Nov 2014 – L1 – SA – Q15 – The Role of Professional Accountants in Business and Society

Identify the main objective of a not-for-profit organization.

Question

The objective of a not-for-profit organization should be the pursuit of:

A. Cost effectiveness
B. Profit minimization
C. Shareholders’ wealth maximization
D. Value for money
E. Market position

Answer

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Tags: Cost Effectiveness, Not-for-profit, Value for Money
Level: Level 1

Topic: The Role of Professional Accountants in Business and Society
Series: NOV 2014

AA – May 2016 – L2 – Q5b – Public Sector Auditing

This question identifies operational strengths in Okunka hospital and suggests ways to improve value for money.

Question

(b) Okunka hospital is located in a country where healthcare is free, as the taxpayers fund state-owned hospitals. Two years ago, management reviewed all aspects of the hospital’s operations and instigated several measures aimed at improving overall ‘value for money’ for the local community. Management has asked you, an audit manager in the hospital’s internal audit department, to perform a review over the measures which have been implemented.

Required:

(i) Identify and explain FOUR strengths within Okunka’s operating environment. (6 marks)

(ii) For each strength identified, describe how Okunka might make further improvements to provide best value for money. (4 marks)

Answer

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Tags: Hospital Operations, Internal Controls, Operational Efficiency, Procurement, Staffing, Value for Money
Level: Level 2

Topic: Public Sector Auditing
Series: MAY 2016

AA – May 2016 – L2 – Q2b – Internal Audit and External Audit Relationship

This question discusses the benefits of establishing an internal audit department for a company.

Question

(b) Discuss the benefits of Tark Co establishing an Internal Audit Department. (8 marks)

Answer

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Tags: Corporate Governance, Internal Audit, Internal Controls, Risk Assessment, Value for Money
Level: Level 2

Topic: Internal Audit and External Audit Relationship
Series: MAY 2016

MA – May 2021 – L2 – Q1a – Performance analysis, Introduction to management accounting

Discuss problems associated with performance measurement of not-for-profit organizations and components of value for money criteria.

Question

a) Generally, evaluating not-for-profit organisations’ performance is difficult but can be managed when ‘value for money’ criteria is used.
Required:
i) Explain FOUR (4) problems associated with performance measurement of not-for-profit organisations. (6 marks)
ii) Explain the THREE (3) main components of ‘value for money criteria’ and their usefulness to not-for-profit organisations. (6 marks)

Answer

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Tags: Not-for-profit organizations, Performance Measurement, Value for Money
Level: Level 2

Topic: Introduction to management accounting, Performance analysis
Series: MAY 2021

PSAF – Nov 2019 – L2 – Q3a -Public procurement

Identify and explain four mechanisms to achieve value for money in public sector management.

Question

a) Value for Money (VFM) is derived from the optimal balance of benefits and costs on the basis of total cost of ownership. The nature of public financial management is such that it involves discretionary decision taking on behalf of government at all levels. Value for Money is therefore not a choice of goods or services which is based on the lowest bid price but a choice based on the whole life costs of the project or service.

Required:
Identify and explain FOUR (4) mechanisms that can be used to achieve “value for money” in public sector management. (8 marks)

Answer

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Tags: Procurement, Public Sector Management, Value for Money
Level: Level 2

Topic: Public Procurement
Series: NOV 2019

PSAF – Nov 2017 – L2 – Q5c -Public sector fiscal planning and budgeting

Identifying mechanisms for achieving value for money in public sector management.

Question

Value for money (VFM) is derived from the optimal balance of benefits and costs on the basis of total cost of ownership. The nature of public financial management is such that it involves discretionary decision-taking on behalf of government at all levels. Value for money is therefore not a choice of goods or services which is based on the lowest bid price but a choice based on the whole life costs of the project or service.

Required: Identify FIVE mechanisms that can be used to achieve “value for money” in public sector management. (5 marks)

Answer

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Tags: Accountability, Efficiency, Public Financial Management, Value for Money
Level: Level 2

Topic: Public sector fiscal planning and budgeting
Series: NOV 2017

PSAF – Mar 2023 – L2 – Q4b – Public sector financing initiatives

Explains key principles of Public-Private Partnership, including value for money, risk allocation, ability to pay, and competition.

Question

Explain the following principles of Public-Private Partnership:

i) Value for money
ii) Risk allocation
iii) Ability to pay
iv) Competition
(6 marks)

Answer

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Tags: Affordability, Competition, PPP, Public-Private Partnership, Risk Allocation, Value for Money
Level: Level 2

Topic: Public sector financing initiatives
Series: MAR 2023

PSAF – Nov 2018 – L2 – Q5 – Public Procurement

Discuss corporate governance issues in the public sector and best practices for PPP arrangements.

Question

a) Good corporate governance is an important way of ensuring accountability and value for money in the public sector.

Required:
i) State and explain FOUR (4) corporate governance problems in the public sector of Ghana. (6 marks)

ii) Discuss FOUR (4) principles of corporate governance that ensure effective accountability and value for money in the public sector. (6 marks)

b) Public-Private Partnership (PPP) is one of the strategies governments can adopt to bridge the infrastructure gap in developing countries. To account effectively for a PPP arrangement, best practices are recommended in executing the arrangements.

Required:
Discuss FOUR (4) best practices that ensure effective PPP arrangements in the public sector. (8 marks)

Answer

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Tags: Accountability, Best Practices, Corporate Governance, PPP, Public Sector, Value for Money
Level: Level 2

Topic: Public expenditure and financial accountability framework, Public Procurement
Series: NOV 2018

PSAF – May 2018 – L2 – Q5d – Financial Statements Discussion and Analysis

Discuss the basis for measuring public sector performance and justify why governments can be assessed at the end of their tenure.

Question

One of the key performance indicators (KPI) in the private sector is to determine the profitability of a business. This is because businesses exist to make a profit. However, in the Public Sector, the objective of governments is to provide public goods and as such, satisfy the needs of the citizens. Citizens are invariably dissatisfied with government performance at the end of its term of office. This is because most of the objectives of government are social in nature and as such, it becomes very difficult to match government revenues and expenditure to determine profit or loss as a basis of measuring its performance.

Required:
Discuss the basis for measuring Public Sector performance and justify why governments can be assessed at the end of their tenure of office.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Economy, Effectiveness, Efficiency, Equity, Public Sector Performance, Value for Money
Level: Level 2

Topic: Financial Statements Discussion and Analysis
Series: MAY 2018

PSAF – May 2018 – L2 – Q5b – Public Procurement

Explain the functions of the Public Accounts Committee and Audit Committees in ensuring value for money and accountability.

Question

State and explain TWO functions each performed by the following institutions in ensuring value for money and accountability in the public sector of Ghana:

i) Public Accounts Committee (PAC) of Parliament
ii) Audit Committees of MDAs and MMDAs.

Answer

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Tags: Audit Committees, Public Accounts Committee, Public Sector Accountability, Value for Money
Level: Level 2

Topic: Public Procurement
Series: MAY 2018

FM – MAY 2017 – L2 – Q1 – Financial markets

Discuss value for money concepts and compare them with corporate value maximization, and explain various financial markets.

Question

a) Bhim is a not-for-profit non-governmental organization aimed at supporting alleged witches to have an empowered livelihood. The organization is developing a proposal to the Ministry of Gender and Social Protection to secure funding to improve basic healthcare and sanitation at three alleged witches’ camps. They have consulted you to help them develop the section on value for money (VfM) in their proposal.

Required: i) Briefly explain the following value for money concepts:

Economy
Efficiency
Effectiveness
(6 marks)

ii) Compare and contrast value for money and corporate value maximization.
(4 marks)

b) One of the important sustainability requisites for the accelerated development of an economy is the existence of a dynamic financial market. Financial markets can be found in nearly every nation in the world. Some are very small, with only a few participants, while others, like the New York Stock Exchange (NYSE) and the forex markets, trade trillions of dollars daily.

Required:
What is a financial market?
(1 mark)

c) Explain the difference between the following financial markets:
i) Debt market and Equity market.
(3 marks)
ii) Money market and Capital market
(3 marks)
iii) Forex market and Interbank market
(3 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Corporate Value Maximization, Financial Markets, Value for Money
Level: Level 2

Topic: Financial markets
Series: MAY 2017

Question Tag: Value for Money

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ICMA – Nov 2024 – L1 – Q3a – Value for Money (VFM)

Explains the components of Value for Money (VFM) in the public sector.

AAA – May 2017 – L3 – Q4b – Assurance Engagements

Explain "value for money" and the 3Es of achieving it in assurance engagements.

Required:

PSAF – May 2018 – L2 – Q4 – Public Sector Audit

Explain the concept of Value-for-Money audit, its components, steps, and factors contributing to an effective VFM audit.

BMF – Nov 2014 – L1 – SA – Q15 – The Role of Professional Accountants in Business and Society

Identify the main objective of a not-for-profit organization.

AA – May 2016 – L2 – Q5b – Public Sector Auditing

This question identifies operational strengths in Okunka hospital and suggests ways to improve value for money.

AA – May 2016 – L2 – Q2b – Internal Audit and External Audit Relationship

This question discusses the benefits of establishing an internal audit department for a company.

MA – May 2021 – L2 – Q1a – Performance analysis, Introduction to management accounting

Discuss problems associated with performance measurement of not-for-profit organizations and components of value for money criteria.

PSAF – Nov 2019 – L2 – Q3a -Public procurement

Identify and explain four mechanisms to achieve value for money in public sector management.

PSAF – Nov 2017 – L2 – Q5c -Public sector fiscal planning and budgeting

Identifying mechanisms for achieving value for money in public sector management.

PSAF – Mar 2023 – L2 – Q4b – Public sector financing initiatives

Explains key principles of Public-Private Partnership, including value for money, risk allocation, ability to pay, and competition.

PSAF – Nov 2018 – L2 – Q5 – Public Procurement

Discuss corporate governance issues in the public sector and best practices for PPP arrangements.

PSAF – May 2018 – L2 – Q5d – Financial Statements Discussion and Analysis

Discuss the basis for measuring public sector performance and justify why governments can be assessed at the end of their tenure.

PSAF – May 2018 – L2 – Q5b – Public Procurement

Explain the functions of the Public Accounts Committee and Audit Committees in ensuring value for money and accountability.

FM – MAY 2017 – L2 – Q1 – Financial markets

Discuss value for money concepts and compare them with corporate value maximization, and explain various financial markets.

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ICMA – Nov 2024 – L1 – Q3a – Value for Money (VFM)

Explains the components of Value for Money (VFM) in the public sector.

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AAA – May 2017 – L3 – Q4b – Assurance Engagements

Explain "value for money" and the 3Es of achieving it in assurance engagements.

Required:

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PSAF – May 2018 – L2 – Q4 – Public Sector Audit

Explain the concept of Value-for-Money audit, its components, steps, and factors contributing to an effective VFM audit.

You're reporting an error for "PSAF – May 2018 – L2 – Q4 – Public Sector Audit"

BMF – Nov 2014 – L1 – SA – Q15 – The Role of Professional Accountants in Business and Society

Identify the main objective of a not-for-profit organization.

You're reporting an error for "BMF – Nov 2014 – L1 – SA – Q15 – The Role of Professional Accountants in Business and Society"

AA – May 2016 – L2 – Q5b – Public Sector Auditing

This question identifies operational strengths in Okunka hospital and suggests ways to improve value for money.

You're reporting an error for "AA – May 2016 – L2 – Q5b – Public Sector Auditing"

AA – May 2016 – L2 – Q2b – Internal Audit and External Audit Relationship

This question discusses the benefits of establishing an internal audit department for a company.

You're reporting an error for "AA – May 2016 – L2 – Q2b – Internal Audit and External Audit Relationship"

MA – May 2021 – L2 – Q1a – Performance analysis, Introduction to management accounting

Discuss problems associated with performance measurement of not-for-profit organizations and components of value for money criteria.

You're reporting an error for "MA – May 2021 – L2 – Q1a – Performance analysis, Introduction to management accounting"

PSAF – Nov 2019 – L2 – Q3a -Public procurement

Identify and explain four mechanisms to achieve value for money in public sector management.

You're reporting an error for "PSAF – Nov 2019 – L2 – Q3a -Public procurement"

PSAF – Nov 2017 – L2 – Q5c -Public sector fiscal planning and budgeting

Identifying mechanisms for achieving value for money in public sector management.

You're reporting an error for "PSAF – Nov 2017 – L2 – Q5c -Public sector fiscal planning and budgeting"

PSAF – Mar 2023 – L2 – Q4b – Public sector financing initiatives

Explains key principles of Public-Private Partnership, including value for money, risk allocation, ability to pay, and competition.

You're reporting an error for "PSAF – Mar 2023 – L2 – Q4b – Public sector financing initiatives"

PSAF – Nov 2018 – L2 – Q5 – Public Procurement

Discuss corporate governance issues in the public sector and best practices for PPP arrangements.

You're reporting an error for "PSAF – Nov 2018 – L2 – Q5 – Public Procurement"

PSAF – May 2018 – L2 – Q5d – Financial Statements Discussion and Analysis

Discuss the basis for measuring public sector performance and justify why governments can be assessed at the end of their tenure.

You're reporting an error for "PSAF – May 2018 – L2 – Q5d – Financial Statements Discussion and Analysis"

PSAF – May 2018 – L2 – Q5b – Public Procurement

Explain the functions of the Public Accounts Committee and Audit Committees in ensuring value for money and accountability.

You're reporting an error for "PSAF – May 2018 – L2 – Q5b – Public Procurement"

FM – MAY 2017 – L2 – Q1 – Financial markets

Discuss value for money concepts and compare them with corporate value maximization, and explain various financial markets.

You're reporting an error for "FM – MAY 2017 – L2 – Q1 – Financial markets"

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