i) Value for Money Audit (VFM):
Value for Money audit is a financial management tool used primarily in public sector organizations. It assesses financial performance where profit is not the primary measure. VFM audits evaluate whether resources are used efficiently, effectively, and economically, often referred to as the “3 Es”:

• Economy: Spending no more than necessary for required resources (e.g., purchasing at the best price).
• Efficiency: Achieving the highest possible output from the resources used (e.g., productivity improvements).
• Effectiveness: Ensuring that objectives are met with the resources utilized. A VFM audit focuses on whether the organization achieves its goals in the most cost-effective way possible.

ii) Best Value Audit:
Best Value Audit ensures good governance and effective management of resources in the public sector with an emphasis on continuous improvement and delivering the best possible outcomes for the public. Best Value goes beyond the “3 Es” of VFM by focusing on service delivery to meet public needs and priorities. The audit includes principles like:

• Challenge: Reviewing whether services are necessary or can be improved.
• Compare: Benchmarking service costs and quality against others.
• Consult: Engaging service users to ensure their needs are met.
• Compete: Encouraging fair competition to improve service delivery. Best Value Audit ensures that public sector organizations are using resources in the most advantageous combination to deliver public services.