Connection between evaluation findings and educational financing In Finland, comprehensive schools, upper secondary schools and vocational institutions are mainly run by local authorities or intermunicipal joint authorities. Since their financing is based on unit costs which take account of the special characteristic of each municipality and the appropriations are not earmarked, evaluation findings do not influence their basic financing. There are, however, incentive funds which can be used to encourage local authorities and educational establishments to undertake given activities or to reward them for innovative evaluation criteria. These rewards have no bearing on the size of state grants. One objective in the annual agreements on target outcome between universities and the Ministry of Education is that universities introduce self-study as an inherent part of their activities and evaluate teaching regularly.
Good quality is rewarded from annual performance-based appropriations.
The set of performance criteria will be further developed by the Ministry of Education and universities. Annual evaluation plans Annual evaluation plans are made according to the principles defined above. The main responsibility for financing the evaluation programme rests with the Ministry of Education. The educational administration allocates both human and financial resources for evaluation. This entails that it will also make evaluation a priority as regards human resources.