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  • The overall productivity of an agency in terms of budgetary allocations. Given the limited resources and unlimited demands by citizens for services, managers seek to maximize allocated resources in order to achieve the agency mission. Managers examine how different units and departments perform, to assess efficiency, on the basis of a performance measurement system. Efficiency assessment is necessary to ensure that public funds are spent properly and specific goals and objectives are being achieved. Performance measurement systems are tools that provide a mechanism to reduce the operational costs and prevent waste and fraud. The information collected is public information made available to citizens through the Freedom of Information Act (FOIA). Therefore, efficiency is key to maintaining accountability and transparency in government.

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