Financial Planning and Budgeting-GFOA Certification
Program Questions With Complete Solutions
Allocation (Federal Government Process) Correct Answers
administrative distribution by purpose
Allocation Correct Answers Portion of appropriation set aside
for specific functions or expenditure categories
Allotment Correct Answers administrative distribution by time
period
Annualization Correct Answers In governmental budgeting, the
funding required in year two to fully fund an item partially
funded in year one
Appropriation Correct Answers Legislative body's legal limit
set on spending: approved in the form of a law, act, or ordinance
Approved State Budget: Appropriations Act Correct Answers
Parts of Act:
IA basic appropriations- divided into sections for departments
IB temporary provisos- conditions placed on spending for
current year only-no permanent legislative changes
Assessment Ratios Correct Answers -primary residence & agric
private-4%
-secondary residence other real prop-6%
-private passenger motor veh (not heavy duty) -6%
-manufacturing + certain tangible personal property (including
boats, rv's)- 10.5 %
,Basis for federal budget process Correct Answers
Congressional budget and Impoundment Act of 1974
Budget authority (Federal Govt Budget Process) Correct
Answers authority to enter into financial obligations
-Appropriation-legislative (legal) authority to spend approved by
appropriations committees of Congress; legislation authorizing
spending approved through authorization committee
-Authority to borrow
-Contract authority-obligations in advance of appropriations
Budget Correct Answers Financial plan: service goals with
associated costs and means for financing
Budget data provided by finance/budget officer Correct Answers
a. prior year actual
b. current year expenditures year to date
c. commitments year to date
d. projections of personal services and fringe benefits for
existing personnel: this year and next year
Budget data requested from agencies Correct Answers a.
projection for balance of current year; department staff with
finance officer
b. projected total for current year
c. request for next year based on experience and projections of
new needs
Budget Process Correct Answers The budget process consists of
activities that encompass the development, implementation, and
, evaluation, of a plan for the provision of services and capital
assets.
Budget Reform in State Government Correct Answers -
Attempts to look at service groupings and
consolidate/restructure agencies: service coordination and
reduction of overhead
-Efforts to emphasize services over line items: reduction of line
items in Act, publication of service descriptions and
performance data in budget document (program/activity,
performance budgeting)
-simplification of administrative procedures for agencies to
"stretch" dollars further(e.g. procurement, HR, internal agency
transfers)
-questioning of the base: zero based budget approach in asking:
"Is this service really needed?"
-limited carry forward of "state" funds permitted to prevent
year-end spending
-more conservative approach to revenue estimating
-program ranking
-linkage of capital budget requests to operating budget requests
-formalization of capital requests
-projection of future year impacts of budget requests
-base budget analysis and review of prior year performance-
accountability reports
-Voluntary separation program
Budget review questions to ask agency staff Correct Answers a.
be specific/prove/facts
b. if you had to absorb a 10% reduction where would you take
it? (what are the alternatives to reducing services?)
Program Questions With Complete Solutions
Allocation (Federal Government Process) Correct Answers
administrative distribution by purpose
Allocation Correct Answers Portion of appropriation set aside
for specific functions or expenditure categories
Allotment Correct Answers administrative distribution by time
period
Annualization Correct Answers In governmental budgeting, the
funding required in year two to fully fund an item partially
funded in year one
Appropriation Correct Answers Legislative body's legal limit
set on spending: approved in the form of a law, act, or ordinance
Approved State Budget: Appropriations Act Correct Answers
Parts of Act:
IA basic appropriations- divided into sections for departments
IB temporary provisos- conditions placed on spending for
current year only-no permanent legislative changes
Assessment Ratios Correct Answers -primary residence & agric
private-4%
-secondary residence other real prop-6%
-private passenger motor veh (not heavy duty) -6%
-manufacturing + certain tangible personal property (including
boats, rv's)- 10.5 %
,Basis for federal budget process Correct Answers
Congressional budget and Impoundment Act of 1974
Budget authority (Federal Govt Budget Process) Correct
Answers authority to enter into financial obligations
-Appropriation-legislative (legal) authority to spend approved by
appropriations committees of Congress; legislation authorizing
spending approved through authorization committee
-Authority to borrow
-Contract authority-obligations in advance of appropriations
Budget Correct Answers Financial plan: service goals with
associated costs and means for financing
Budget data provided by finance/budget officer Correct Answers
a. prior year actual
b. current year expenditures year to date
c. commitments year to date
d. projections of personal services and fringe benefits for
existing personnel: this year and next year
Budget data requested from agencies Correct Answers a.
projection for balance of current year; department staff with
finance officer
b. projected total for current year
c. request for next year based on experience and projections of
new needs
Budget Process Correct Answers The budget process consists of
activities that encompass the development, implementation, and
, evaluation, of a plan for the provision of services and capital
assets.
Budget Reform in State Government Correct Answers -
Attempts to look at service groupings and
consolidate/restructure agencies: service coordination and
reduction of overhead
-Efforts to emphasize services over line items: reduction of line
items in Act, publication of service descriptions and
performance data in budget document (program/activity,
performance budgeting)
-simplification of administrative procedures for agencies to
"stretch" dollars further(e.g. procurement, HR, internal agency
transfers)
-questioning of the base: zero based budget approach in asking:
"Is this service really needed?"
-limited carry forward of "state" funds permitted to prevent
year-end spending
-more conservative approach to revenue estimating
-program ranking
-linkage of capital budget requests to operating budget requests
-formalization of capital requests
-projection of future year impacts of budget requests
-base budget analysis and review of prior year performance-
accountability reports
-Voluntary separation program
Budget review questions to ask agency staff Correct Answers a.
be specific/prove/facts
b. if you had to absorb a 10% reduction where would you take
it? (what are the alternatives to reducing services?)
