1.1.1 Economic Appraisal - hereafter referred to simply as "appraisal" - is a key tool for achieving value for money and satisfying public accountability requirements. It is a systematic process for examining alternative uses of resources, focusing on assessment of needs, objectives, options, costs, benefits, risks, funding, affordability and other factors relevant to decisions.
Appraisal is:- • designed to assist in defining problems and finding solutions that offer the best value for money (VFM). • a way of thinking expenditure proposals through, right from the emergence of the need for a policy, programme or project, until its implementation. |
1.1.3 The basic elements of appraisal are listed at 1.4 below and explained in Section 2. Other sections elaborate on more specific aspects.
1.1.4 Good appraisal leads to better decisions and VFM. It facilitates good project management and project evaluation. Appraisal is not optional; it is an essential part of good financial management, and it is vital to decision making and accountability.