ACCA · Question 31 · Performance Measurement and Control

Section C

AquaVitae Foundation is a global Non-Governmental Organization (NGO) dedicated to providing clean drinking water in developing nations. They rely entirely on donor funding.

Historically, AquaVitae has struggled to quantify its success. Management has decided to evaluate performance using the 'Value for Money' framework (the 3 Es).

Recent project data for the 'Desert Wells' initiative:

• Budgeted cost per well: $5,000. Actual cost per well: $4,800.
• Budgeted time to dig one well: 14 days. Actual time: 12 days.
• Target: Provide clean water to 10,000 villagers. Actual villagers reached: 8,500 (due to several wells drying up faster than anticipated).

Furthermore, the Board wants to implement a Balanced Scorecard adapted for Not-For-Profit organizations.

Required:
(a) Analyze the performance of the 'Desert Wells' initiative using the 3 Es (Economy, Efficiency, Effectiveness). (10 marks)
(b) Evaluate how the four perspectives of the traditional Balanced Scorecard must be adapted to suit AquaVitae Foundation, providing one specific KPI for each adapted perspective. (10 marks)