The Prevention, Diversion, Rehabilitation and Restorative Justice Program works to divert Indigenous Australians away from adverse contact with the legal system and provides activities that will rehabilitate and support Indigenous Australians who have been incarcerated or are in custody. The program has four sub-components: night patrols, youth initiatives, prisoner support and rehabilitation services, and restorative justice initiatives. A performance audit of the PDRRP was conducted as part of the Office of Evaluation and Audit (Indigenous Programs) 2006-09 Evaluation and Audit Work Program. The objective of OEA’s performance audit was to: assess the efficiency, effectiveness and economy of the PDRRP and its delivery by funded external service providers; identify the achievements of projects funded under the program, and determine the extent to which project performance and outcomes have met the overall objectives of the PDRRP; and identify any areas where performance can be improved. This is the report of the audit.