furthermore it discusses the planning of resource use eg definition of priorities and targets distribution of responsibilities for school funding the monitoring of funds use eg audit systems transparency and reporting as well as incentives for the effective use of school funding in addition it analyses the distribution of funding between the different levels of the administration eg central regional and municipal and between individual schools eg through funding formulae in addition the chapter places special emphasis on funding incentives to improve the effectiveness of the school network while analysing the equity implications of funding approaches both the source of funding for school education and its distribution to individual schools are centralised central government provides around of funding and the formula operated by the ministry of education determines the budgets of individual schools with only limited scope for locally determined variation