What is the purpose of performance audits and program evaluation in budgeting?

The purpose of performance audits and program evaluation in budgeting is to determine the effectiveness of programs for future prioritization. These evaluations are essential tools for organizations, as they provide data and analysis on how well existing programs are meeting their objectives and utilizing resources. This information enables decision-makers to assess which programs should be continued, modified, or discontinued based on their performance and alignment with strategic goals.

By analyzing the outcomes, efficiency, and overall impact of programs, performance audits and evaluations help inform budget decisions. This ensures that resources are allocated effectively to the programs that deliver the most value, thereby enhancing organizational effectiveness and accountability. Such practices ultimately contribute to better financial planning and optimized service delivery to the community.