What is the primary purpose of a Medium-Term Financial Strategy (MTFS) in public sector organizations
What is the primary purpose of a Medium-Term Financial Strategy (MTFS) in public sector organizations?
A) To manage day-to-day cash flow
B) To support business planning through identification of key budgets and future assumptions
C) To report on past financial performance
D) To calculate employee salaries
**Answer: B**
*Explanation: An MTFS supports business planning by identifying key budgets and assumptions for change in future years, helping organizations manage volatile funding.*
