Furthermore, it discusses the planning of resource use (e.g. definition of priorities and targets, distribution of responsibilities for school funding); the monitoring of funds’ use (e.g. 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 (e.g. central, regional and municipal) and between individual schools (e.g. 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 70% 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.