G N Wikramanayake (2000) "Design and Development of a Resource Allocation Mechanism for the School Education Sector" In: Annual Sessions, Faculty of Science, University of Colombo, p. 19. UoC Dec, vol. 1 Presentation Slides: http://www.slideshare.net/wikramanayake/design-and-development-of-a-resource-allocation-mechanism-for-the-school-education-sector-2000-presentation-883152

1. Extended Abstract
Design and Development of a Resource Allocation Mechanism for the
School Education Sector
Dr. G.N. Wikramanayake
Dept. of Statistics & Computer Science, University of Colombo.
Background
Under the second general education project (GEP II), project implementation plan for component 7:
Financing several options to reduce inequalities in resource allocation in the school education sector were
developed, discussed and revised. The most appropriate option was chosen for implementation for the Year
2000. This allocation mechanism is called NBUCRAM (Norm Based Unit Cost Resource Allocation
Mechanism).
Objectives
The objectives were to provide educational resources, on a rational and equitable basis, for quality inputs
and maintenance replacement activity. The following issues were identified.
the allocation of resources for educational quality inputs is not adequate to supply the needed
resources to teach the school curriculum,
the allocation of resources for educational quality inputs is not equitably distributed among students in
different types of schools,
the current method of allocating resources to education is not based on a formal mechanism which is
equitable and linked to the school curriculum, and
the process of resource allocation to education is not transparent (at all key stages in the system)
making it difficult to track whether resources allocated for a particular purpose are actually spent on
that purpose.
.
Research Design / Materials / Methods
To address the above issues schools are categorised based on the classification of schools by student size
(1-100, 101-300, 301-500, 501-750, 750-1000, 1000-1500 and above 1500) and school section (1-5, 6-9,
10-11, 12-13 Arts/Commerce and 12-13 Science). For each such school category (1-5, 1-9, 1-11, 1-13
Arts/Commerce, 1-13 Science, 6-13 Arts/Commerce and 6-13 Science) a desired school is determined size
(600, 1080, 1350, 1620, 1620, 1020 and 1020 respectively) so that the resources allocated could target
according to the requirements of such schools. The allocation to the school is worked out to the level of all
school sections and is made available for use by subjects across each section. Schools located in difficult
areas are identified separately and classified as deprived based on a certain criteria. These schools were
provided extra funds to allow them to develop and attract their local students (95% of the overall allocation
is distributed among all schools and balance 5% for use by deprived schools).
Spreadsheet-based software was developed to determine the allocations for each school category based on
their student size. This system captures the information about the number of schools managed by the
province (allocation of funds for national schools is done separately by the ministry of education and higher
education, but have adopted the same method) by school category and student group. This information is

2. maintained using a database and will be updated annually, after finalisation of the annual school census
information. Information about deprived schools is also maintained and will be updated annually.
The spreadsheet application captures the above-mentioned information of schools in summery form (e.g.
number of 1-5 provincial schools with students 1-100) for each province. Provincial education expenditure
for recurrent and capital for a particular year is also recorded. Norms that are used for the NBUCRAM
formula is defied separately in the spreadsheet (e.g. desired students, expenditure percentages from each
educational budget for respective school sections). The NBUCRAM formula determines the allocations for
consumables, capital items and repair / maintenance for each school section for all school categories and
student groups and for deprived schools. The derived allocations are mapped to respective schools. This
identified the allocations made available for any given school.
Results / Findings
This mechanism allows a school to find out their allocations with section breakdowns at the beginning of
the year. The school sections could determine the usage of these funds for respective subjects based on
their needs. The mechanism also ensure equity among resource allocation of similar schools (provincial /
national) within the province.
Conclusions
The quality inputs are logically linked to the curriculum and equitably distributed on a per pupil basis for
student related inputs and on a per teacher basis for teacher related inputs, across schools. This allocation
mechanism is now being used by national, provincial and zonal education officials in their planning
activities and managerial decisions concerning the allocation of resources to schools. The mechanism has
allowed schools to identify their allocations (which is in an equitable basis across all provincial school) to
procure consumables and capital items, as well as to repair and maintain their quality inputs. This
allocation mechanism will enable education authorities to synchronise their delivery of quality inputs with
the maintenance and replacement activities to ensure long-term sustainability at a level of financing
adequate to meet the needs of curriculum quality inputs.

3. Declaration by Principal Author
Title off Abstract:
Design and Development of a Resource Allocation Mechanism for the School Education
Sector
Names of Authors:
Dr. G.N. Wikramanayake
Address of Institution where the work was carried out:
Finance Commission,
52, Kitulwatte Road,
Colombo 8.
Name of the Author who will present the abstract
Dr. G.N. Wikramanayake
I declare that this abstract reports results of original research and that the work reported in the abstract has
not been published or presented elsewhere.
Name of Principal Author: Dr. G.N. Wikramanayake
Address: Dept. of Statistics and Computer Science, University of Colombo.
Signature:
Date: 31st August 2000.