Financial Planning and Budgeting-GFOA
Certification Program questions with correct
answers,18
Budget Process - verified 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.
Mission of Budget Process - verified answers; The mission of the budget process is to help decision
makers make informed choices for the provision of services and capital assets and to promote
stakeholder participation in the decision process.
Statement of Principals: Budgeting and Budgetary Control (GASB, Section 1700.1xx) - verified answers;
1. An annual budget should be adopted by every governmental unit.
2. The accounting system should provide the basis for appropriate budgetary control.
3. A common terminology and classification should be used consistently throughout the budget, the
accounts, and financial reports of each fund.
Principal Steps in Budgeting Process - verified answers; 1. Preparation and Planning
2. Legislative Review and Approval
3. Budget Execution
4. Financial and Performance Audit
Budget - verified answers; Financial plan: service goals with associated costs and means for financing
Operating Budget - verified answers; Budget for ongoing activities that are repeated year after year
,Capital Budget - verified answers; Plan of capital outlays for upcoming fiscal year - for equipment,
buildings, land, vehicles, etc -along with sources of funding identified
Capital Plan - verified answers; Long range (5 years or more) projection of capital needs and financing
Appropriation - verified answers; Legislative body's legal limit set on spending: approved in the form
of a law, act, or ordinance
Executive Budget - verified answers; Compilation of information, proposals, and estimates prepared
and submitted by the chief executive to the legislative body (GASB)
Allocation - verified answers; Portion of appropriation set aside for specific functions or expenditure
categories
Line Item Budget - verified answers; Budget prepared on the basis of object of expenditure categories
Incremental Budgeting - verified answers; Method focusing on incremental changes to individual
objects of expenditure over current budget levels - associated with line item budgeting
Program Budget - verified answers; Budget focusing on the types of services provided with subsidiary
focus on objects of expenditures
Annualization - verified answers; In governmental budgeting, the funding required in year two to fully
fund an item partially funded in year one
SC Constitutional Requirements (Article X, Sec. 7 of Constitution) - verified answers; Balanced budgets
required; tax levied in year following deficit to cover
State Budge Process - verified answers; 1. Agency Budget Request (July-Sept)
2. Gov/Ex Budget Ofc Prep Rec Budget (Oct- Dec)
3. Gov Budget Proposal Prep (Dec-Jan)
4. Appropriations Bill to Genl Assy (Jan)
, 5. Board of Econ Advisors (Nov-Feb 15)
6. House Ways & Means Comm (Jan-March)
7. House Budget Deliberaions (Feb-March)
8. House Bill to Senate (March)
9. Sen Finance Budget Deliberations (April)
10. Senate Budget Deliberations (April-May)
11. Senate Appropriations Bill (May)
12. Conference Comm. Delib./Agreement (May)
13. Hse/Senate Approve Conf Bill (July-Sept)
14. Appropriations Bill to Governor (June)
15. Gov Vetoes & Genl Assy Overrides (June)
16. Appropriations Act (June)
SC Budget - Agency Budget Development - verified answers; 1. Involvement of interest groups/agency
staff in developing budget requests
2. settling priorities/balancing interests
3. governing board involvement under commission form of government: use of finance committee
and official approval of request by body
4. chief executive and budget staff preparation of budget
Approved State Budget: Appropriations Act - verified 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
Budget Reform in State Government - verified 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)
Certification Program questions with correct
answers,18
Budget Process - verified 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.
Mission of Budget Process - verified answers; The mission of the budget process is to help decision
makers make informed choices for the provision of services and capital assets and to promote
stakeholder participation in the decision process.
Statement of Principals: Budgeting and Budgetary Control (GASB, Section 1700.1xx) - verified answers;
1. An annual budget should be adopted by every governmental unit.
2. The accounting system should provide the basis for appropriate budgetary control.
3. A common terminology and classification should be used consistently throughout the budget, the
accounts, and financial reports of each fund.
Principal Steps in Budgeting Process - verified answers; 1. Preparation and Planning
2. Legislative Review and Approval
3. Budget Execution
4. Financial and Performance Audit
Budget - verified answers; Financial plan: service goals with associated costs and means for financing
Operating Budget - verified answers; Budget for ongoing activities that are repeated year after year
,Capital Budget - verified answers; Plan of capital outlays for upcoming fiscal year - for equipment,
buildings, land, vehicles, etc -along with sources of funding identified
Capital Plan - verified answers; Long range (5 years or more) projection of capital needs and financing
Appropriation - verified answers; Legislative body's legal limit set on spending: approved in the form
of a law, act, or ordinance
Executive Budget - verified answers; Compilation of information, proposals, and estimates prepared
and submitted by the chief executive to the legislative body (GASB)
Allocation - verified answers; Portion of appropriation set aside for specific functions or expenditure
categories
Line Item Budget - verified answers; Budget prepared on the basis of object of expenditure categories
Incremental Budgeting - verified answers; Method focusing on incremental changes to individual
objects of expenditure over current budget levels - associated with line item budgeting
Program Budget - verified answers; Budget focusing on the types of services provided with subsidiary
focus on objects of expenditures
Annualization - verified answers; In governmental budgeting, the funding required in year two to fully
fund an item partially funded in year one
SC Constitutional Requirements (Article X, Sec. 7 of Constitution) - verified answers; Balanced budgets
required; tax levied in year following deficit to cover
State Budge Process - verified answers; 1. Agency Budget Request (July-Sept)
2. Gov/Ex Budget Ofc Prep Rec Budget (Oct- Dec)
3. Gov Budget Proposal Prep (Dec-Jan)
4. Appropriations Bill to Genl Assy (Jan)
, 5. Board of Econ Advisors (Nov-Feb 15)
6. House Ways & Means Comm (Jan-March)
7. House Budget Deliberaions (Feb-March)
8. House Bill to Senate (March)
9. Sen Finance Budget Deliberations (April)
10. Senate Budget Deliberations (April-May)
11. Senate Appropriations Bill (May)
12. Conference Comm. Delib./Agreement (May)
13. Hse/Senate Approve Conf Bill (July-Sept)
14. Appropriations Bill to Governor (June)
15. Gov Vetoes & Genl Assy Overrides (June)
16. Appropriations Act (June)
SC Budget - Agency Budget Development - verified answers; 1. Involvement of interest groups/agency
staff in developing budget requests
2. settling priorities/balancing interests
3. governing board involvement under commission form of government: use of finance committee
and official approval of request by body
4. chief executive and budget staff preparation of budget
Approved State Budget: Appropriations Act - verified 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
Budget Reform in State Government - verified 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)
