The purpose of a value for money (VFM) audit is to assess whether an entity is obtaining the best possible combination of services for the lowest level of resources used. VFM audits focus on the 3 Es:

1. Economy:
   • Ensuring that resources (such as labor, materials, and equipment) are acquired at the lowest possible cost without compromising quality.
2. Efficiency:
   • Evaluating the relationship between the resources used (inputs) and the outputs achieved. An efficient operation is one that maximizes outputs while minimizing the resources used.
3. Effectiveness:
   • Determining whether the intended goals and objectives of the entity are being achieved. This involves assessing whether the activities of the entity are producing the desired outcomes.

In summary, a VFM audit aims to ensure that an organization is managing its resources in a way that delivers the highest value for money, balancing cost, productivity, and outcomes.