Abstract
As a constitutional creation, it is the statutory responsibility of public sector organizations at federal, state and local government levels to embrace the concepts of value for money audit and integrate it in their organizations. However, determining how economical, efficient and the extent to which the related programmes are effective in meeting their objectives is still a subject of debate in most jurisdictions. Triangulating existing knowledge regarding the basic processes, while stating the ideas in practical and useable form, this paper examines the importance of value for money audit as a veritable tool for expenditure management and evaluates its crucial objectives and essential features. Using the desktop analytical approach, result shows that lack of value for money audit processes affects the smooth running and growth of an organization. The paper recommends for proper value for money audit in organisations and the independence of Internal Audit for the purposes of value for money audit functions.
Highlights
Value for money audit, according to Okwoli (2004:80) is “a systematic evaluation of the methodologies employed in the execution of programmes, projects, and activities with the objectives of confirming whether the stated objectives of the programmes, projects, and activities were achieved and at what cost”
This paper explores the ingredients and essential features of value for money audit as a veritable tool for expenditure management
Okwoli (2004:80) stated that the concept of value for money audit has not gained the required level of recognition in Nigeria, though it lies within the jurisdiction of internal control, which is a management device for effective operation of the organization
Summary
Value for money audit, according to Okwoli (2004:80) is “a systematic evaluation of the methodologies employed in the execution of programmes, projects, and activities with the objectives of confirming whether the stated objectives of the programmes, projects, and activities were achieved and at what cost” According to him, this method of audit has evolved over time and been found to be the best approach to confirming whether managers of resources are applying best practices in the use and application of resources. The managers in the civil service are usually provided with resources in the form of men, materials, money for the purpose of achieving stated objectives How far these objectives are achieved depends on how these resources are utilized. It is highly obligatory for any one, entrusted with such responsibility to exercise utmost prudence in the utilization of given resources and to ensure that the expected results are achieved
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