Cost efficiency and cost effectiveness review of Save the Children

Norad aim at supporting cost efficient and cost effective partners and partnership models, favoring those where a limited, but reasonable and justifiable portion of the funds are spent in high-income countries (Norad’s principles for support to Civil Society). In 2018, Norad carried out an organizational review of SCN. This review pointed out some areas for improvement related to costs and cost efficiency. It also left some unanswered questions in this regard. In line with the signed agreement and as part of the overall follow up of the agreement, Norad carried out this organizational review specifically focusing on cost efficiency and cost effectiveness.

The organisational review of SCN has had a particular focus on cost-efficiency and costeffectiveness.
The key objectives of the review were to describe, analysis and assess:
• The economy of input costs, e.g. how SCN and Save the Children International’s (SCI)
systems for budgeting, cost allocation, salaries, etc., contribute to economy;
• Efficiency, e.g. in terms of SCN’s value added to country programmes, project and partner
management, etc;
• Cost-effectiveness, e.g. in terms of programming, results management and achievement,
etc;
• Equity in terms of the distribution of benefits and outreach to vulnerable and marginalised
groups, and;
• How SCN has followed up on the recommendations of the 2018 organisational review.

The review has mainly been limited to the period of the current Norad FWA, i.e. 2019-2023. The previous Norad agreement has also been looked into when relevant, and the country level assessment has considered the use of NMFA humanitarian funds provided through the Strategic Partnership Agreement (SPA). Although the focus of the review has been on SCN, the assessment has also covered SCI’s structures and functions, given the fact that country level programmes are managed and implemented by SCI country offices. This included the SCI country offices in Malawi, Lebanon and Colombia (SCM, SCL, and SCCO).