GFOA Financial Planning and Budgeting Certification Practice Exam

Question: 1 / 400

What does the concept of Retention of Savings Generated incentivize agencies to do?

Reduce their overall budgets

Develop better service delivery methods

The concept of Retention of Savings Generated incentivizes agencies to develop better service delivery methods because it creates a financial motivation for organizations to pursue efficiency and innovation. When agencies retain savings, they are encouraged to prioritize improvements that result in cost savings while still maintaining or enhancing the level of service provided to the public. This approach shifts the focus toward effective resource management and encourages the exploration of new practices or technologies that could streamline operations and reduce expenditures without compromising the quality of services. In essence, it directs agencies to strive for operational excellence and continuous improvement in the services they offer.

Get further explanation with Examzify DeepDiveBeta

Increase administrative overhead costs

Spend more on non-essential services

Next Question

Report this question

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy