Decision making The commitment of resources is the result of a decision. In general government budgets are allocated, and loans or grants are advanced by MFOs, to achieve specific measurable objectives. The distribution of resources to the actions making up the development process provide a map of how the outcome was accomplished. Invariably some actions will satisfy all objectives whereas others will slip in time and in output. The analysis of how outcomes were achieved is important in identifying where performance can be improved in similar future actions.
Economic development needs to be sustainable.
Future activities need to generate enough income so as to maintain or improve the levels of economic development. For this to be feasible, future income must cover costs. On the other hand, there are other costs. The role of Audit is to identify where MFO performance has not satisfied expectations. The Audit Commission is making use of four indicators which make up a substantial proportion of the reasons for waste in financial and other resources and which result in failures in performance.