GFOA Budget Exam Questions with Correct Answers Latest Update 2025/2026
Which program encourages and assists "state and local governments to prepare budget
documents of the very highest quality?" - Answers Distinguished Budget Presentation Awards
Program (DBP)
How many criteria does the DBP have? - Answers 27
When was the DBP formed? - Answers 1984
Which document was created by the National Advisory Council on State and Local Budgeting? -
Answers Recommended Budget Practices, A Framework for Improved State and Local
Government Budgeting (RBP)
Which organization focuses on the budget document? - Answers DBP
Which organization focuses on the budget process? - Answers RBP
Which organization defines the budget process as "activities that encompass the development,
implementation, and evaluation of a plan for the provision of services and capital assets?" -
Answers RBP
Whose mission is "to help decision makers make informed choices about the provision of
services and capital assets to promote stakeholder participation in the process?" - Answers RBP
How many principles, elements, and recommendations fall under the RBP? - Answers 4
principles, 12 elements, and 59 recommendations
Where can you find the statutory requirements for local government budgets? - Answers -Cities:
Chapter 102 Local Government Code
-Counties: Chapter 111 Local Government Code
-Special Districts: Chapter 140 Local Government Code
-School Districts: Chapter 44 of State's education Code
According to Chapter 102, who is the budget officer? - Answers 1. City Manager
2. Mayor if no City Manager
According to Chapter 102, how often does a budget have to be prepared? - Answers Annually
According to Chapter 102, how must the budget itemize expenditures? - Answers a clear
comparison between the proposed budget and prior year actuals
, According to Chapter 102, the budget must include one of the following six items? - Answers 1.
The outstanding obligations (or debt)
2. the cash (Fund Balance) on hand to the credit of each fund
3. the funds received from all sources the preceding year
4. the funds available from all sources during the ensuring year
5. the estimated revenue available to cover the proposed budget
6. the estimated tax rate required to cover the proposed budget
when does the proposed budget need to be filed with the municipal clerk? - Answers 30 days
prior to the date of the council vote on the proposed tax rate and levy
If the property tax raises even a $1, what must be included in the budget? - Answers a cover
sheet in 18-point or larger font that says "This budget will raise more total property taxes than
last year's budget"
When must the city hold a public hearing on the proposed budget? - Answers no sooner than 15
days before the filing
how much the public hearing be advertised? - Answers in at least one newspaper in general
circulation in the county?
what is the most important aspect of a budget? - Answers That it reflects the goals and policies
of an organization.
What is the first area that receives attention from both the DBP and RBP? - Answers The vision
What is the first criterion of the DBP award program? - Answers The document should include a
coherent statement of organization-wide strategic goals and strategies that address long-term
concerns and issues.
what is the RBP's first foundational principle? - Answers A government should have broad goals
that provide the overall direction for the government and serve as a basis for decision making.
What are the 5 levels of the goals pyramid? - Answers 1. Vision
2. Mission
3. Organizational goals
4. Organizational Policies
5. Budget Initiative
Which program encourages and assists "state and local governments to prepare budget
documents of the very highest quality?" - Answers Distinguished Budget Presentation Awards
Program (DBP)
How many criteria does the DBP have? - Answers 27
When was the DBP formed? - Answers 1984
Which document was created by the National Advisory Council on State and Local Budgeting? -
Answers Recommended Budget Practices, A Framework for Improved State and Local
Government Budgeting (RBP)
Which organization focuses on the budget document? - Answers DBP
Which organization focuses on the budget process? - Answers RBP
Which organization defines the budget process as "activities that encompass the development,
implementation, and evaluation of a plan for the provision of services and capital assets?" -
Answers RBP
Whose mission is "to help decision makers make informed choices about the provision of
services and capital assets to promote stakeholder participation in the process?" - Answers RBP
How many principles, elements, and recommendations fall under the RBP? - Answers 4
principles, 12 elements, and 59 recommendations
Where can you find the statutory requirements for local government budgets? - Answers -Cities:
Chapter 102 Local Government Code
-Counties: Chapter 111 Local Government Code
-Special Districts: Chapter 140 Local Government Code
-School Districts: Chapter 44 of State's education Code
According to Chapter 102, who is the budget officer? - Answers 1. City Manager
2. Mayor if no City Manager
According to Chapter 102, how often does a budget have to be prepared? - Answers Annually
According to Chapter 102, how must the budget itemize expenditures? - Answers a clear
comparison between the proposed budget and prior year actuals
, According to Chapter 102, the budget must include one of the following six items? - Answers 1.
The outstanding obligations (or debt)
2. the cash (Fund Balance) on hand to the credit of each fund
3. the funds received from all sources the preceding year
4. the funds available from all sources during the ensuring year
5. the estimated revenue available to cover the proposed budget
6. the estimated tax rate required to cover the proposed budget
when does the proposed budget need to be filed with the municipal clerk? - Answers 30 days
prior to the date of the council vote on the proposed tax rate and levy
If the property tax raises even a $1, what must be included in the budget? - Answers a cover
sheet in 18-point or larger font that says "This budget will raise more total property taxes than
last year's budget"
When must the city hold a public hearing on the proposed budget? - Answers no sooner than 15
days before the filing
how much the public hearing be advertised? - Answers in at least one newspaper in general
circulation in the county?
what is the most important aspect of a budget? - Answers That it reflects the goals and policies
of an organization.
What is the first area that receives attention from both the DBP and RBP? - Answers The vision
What is the first criterion of the DBP award program? - Answers The document should include a
coherent statement of organization-wide strategic goals and strategies that address long-term
concerns and issues.
what is the RBP's first foundational principle? - Answers A government should have broad goals
that provide the overall direction for the government and serve as a basis for decision making.
What are the 5 levels of the goals pyramid? - Answers 1. Vision
2. Mission
3. Organizational goals
4. Organizational Policies
5. Budget Initiative
