Value for Money

What is value for money?

Value for money is the optimal use of resources to achieve the intended outcomes. Rather than budget cuts alone, good value for money requires integrating into decision-making a careful allocation of resources that balances costs and effectiveness in the short- and long-term to achieve maximum sustainable health outcomes and impact.

The Global Fund approaches value for money at three levels:

1. By maximizing the funding that reaches supported programs, through operating the Secretariat as efficiently as possible while minimizing transaction costs for programs;

2. By managing the portfolio of grants to ensure that Global Fund resources are invested in activities and programs that represent good value for money;

3. By promoting the creation of improved evidence on value for money, through in-depth reviews with program implementers and partners, as well as reporting of data on results and expenditure by grants and national programs.

A series of indicators  monitor selected actions taken by the Global Fund across these three levels to improve value for money. With the second level having the most significant direct influence over the value for money of Global Fund financing, a specific framework  has been established for considering value for money in grant management decision-making.  In addition, the Global Fund monitors the costs of key health products and services as an important component of value for money in the interventions and programs it supports.