The National Audit Office Uses OR to Assess the Value for Money of Public Services

Elena Bechberger (), David C. Lane (), Tom McBride (), Alec Morton (), Diogo Quintas () and Chin Hei Wong ()
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Elena Bechberger: National Audit Office, London SW1W 9SS, United Kingdom
David C. Lane: Management Science Group and Managerial Economics and Strategy Group, Department of Management, London School of Economics and Political Science, London WC2A 2AE, United Kingdom
Tom McBride: National Audit Office, London SW1W 9SS, United Kingdom
Alec Morton: Management Science Group, Department of Management, London School of Economics and Political Science, London WC2A 2AE, United Kingdom
Diogo Quintas: Centre for Telecommunications Research, King's College London, London WC2R 2LS, United Kingdom
Chin Hei Wong: Management Science Group, Department of Management, London School of Economics and Political Science, London WC2A 2AE, United Kingdom

Interfaces, 2011, vol. 41, issue 4, 365-374

Abstract: Supreme audit institutions (SAIs) have an important role in assessing value for money in the delivery of public services. Assessing value for money necessarily involves assessing counterfactuals: good value for money has been achieved if a policy could not reasonably have been delivered more efficiently, effectively, or economically. Operations research modelling has the potential to help in the assessment of these counterfactuals. However, is such modelling too arcane, complex, and technically burdensome for organisations that, like SAIs, operate in a time- and resource-constrained and politically charged environment? We report on three applications of modelling at the UK's SAI, the National Audit Office, in the context of studies on demand management in tax collection, end-of-life care, and health-care associated infections. In all cases, the models have featured in the audit reports and helped study teams come to a value-for-money judgment. We conclude that OR modelling is indeed a valuable addition to the value-for-money auditor's methodological tool box.

Keywords: accounting; hospitals; health care; services; government; agencies; tax policy (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:inm:orinte:v:41:y:2011:i:4:p:365-374

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