How about you enact budget cuts, with no guaranteed annual growth, and then tell them to figure it out. I think the assumption that all these agencies waste money is spot on. But instead of incentivizing through rewards for reporting, how about incentivizing through "Your agency now has 10% less money. Find the most wasteful 10% to eliminate, and prove that that doesn't include your own job." That way we don't even have to incentivize them to cut waste. We cut the waste FIRST, and THEN they are incentivized not to BE the waste.