FINANCIAL PLANNING AND BUDGETING-GFOA CERTIFICATION PROGRAM QUESTIONS AND CORRECT ANSWERS

FINANCIAL PLANNING AND
BUDGETING-GFOA CERTIFICATION
PROGRAM QUESTIONS AND
CORRECT ANSWERS
BudgetA2ProcessA2-A2Ans--
TheA2budgetA2processA2consistsA2ofA2activitiesA2thatA2encompassA2theA2development,A2im
plementation,A2andA2evaluation,A2ofA2aA2planA2forA2theA2provisionA2ofA2servicesA2andA2capi
talA2assets.

MissionA2ofA2BudgetA2ProcessA2-A2Ans--
TheA2missionA2ofA2theA2budgetA2processA2isA2toA2helpA2decisionA2makersA2makeA2informe
dA2choicesA2forA2theA2provisionA2ofA2servicesA2andA2capitalA2assetsA2andA2toA2promoteA2st
akeholderA2participationA2inA2theA2decisionA2process.

StatementA2ofA2Principals:A2BudgetingA2andA2BudgetaryA2ControlA2(GASB,A2SectionA2170
0.1xx)A2-A2Ans--
1.A2AnA2annualA2budgetA2shouldA2beA2adoptedA2byA2everyA2governmentalA2unit.
2.A2TheA2accountingA2systemA2shouldA2provideA2theA2basisA2forA2appropriateA2budgetaryA
2control.
3.A2AA2commonA2terminologyA2andA2classificationA2shouldA2beA2usedA2consistentlyA2throu
ghoutA2theA2budget,A2theA2accounts,A2andA2financialA2reportsA2ofA2eachA2fund.

PrincipalA2StepsA2inA2BudgetingA2ProcessA2-A2Ans--1.A2PreparationA2andA2Planning
2.A2LegislativeA2ReviewA2andA2Approval
3.A2BudgetA2Execution
4.A2FinancialA2andA2PerformanceA2Audit

BudgetA2-A2Ans--
FinancialA2plan:A2serviceA2goalsA2withA2associatedA2costsA2andA2meansA2forA2financing

OperatingA2BudgetA2-A2Ans--
BudgetA2forA2ongoingA2activitiesA2thatA2areA2repeatedA2yearA2afterA2year

CapitalA2BudgetA2-A2Ans--PlanA2ofA2capitalA2outlaysA2forA2upcomingA2fiscalA2yearA2-
A2forA2equipment,A2buildings,A2land,A2vehicles,A2etcA2-
alongA2withA2sourcesA2ofA2fundingA2identified

CapitalA2PlanA2-A2Ans--
LongA2rangeA2(5A2yearsA2orA2more)A2projectionA2ofA2capitalA2needsA2andA2financing

, AppropriationA2-A2Ans--
LegislativeA2body'sA2legalA2limitA2setA2onA2spending:A2approvedA2inA2theA2formA2ofA2aA2law
,A2act,A2orA2ordinance

ExecutiveA2BudgetA2-A2Ans--
CompilationA2ofA2information,A2proposals,A2andA2estimatesA2preparedA2andA2submittedA2b
yA2theA2chiefA2executiveA2toA2theA2legislativeA2bodyA2(GASB)

AllocationA2-A2Ans--
PortionA2ofA2appropriationA2setA2asideA2forA2specificA2functionsA2orA2expenditureA2categori
es

LineA2ItemA2BudgetA2-A2Ans--
BudgetA2preparedA2onA2theA2basisA2ofA2objectA2ofA2expenditureA2categories

IncrementalA2BudgetingA2-A2Ans--
MethodA2focusingA2onA2incrementalA2changesA2toA2individualA2objectsA2ofA2expenditureA2
overA2currentA2budgetA2levelsA2-A2associatedA2withA2lineA2itemA2budgeting

ProgramA2BudgetA2-A2Ans--
BudgetA2focusingA2onA2theA2typesA2ofA2servicesA2providedA2withA2subsidiaryA2focusA2onA2
objectsA2ofA2expenditures

AnnualizationA2-A2Ans--
InA2governmentalA2budgeting,A2theA2fundingA2requiredA2inA2yearA2twoA2toA2fullyA2fundA2anA
2itemA2partiallyA2fundedA2inA2yearA2one


SCA2ConstitutionalA2RequirementsA2(ArticleA2X,A2Sec.A27A2ofA2Constitution)A2-A2Ans--
BalancedA2budgetsA2required;A2taxA2leviedA2inA2yearA2followingA2deficitA2toA2cover

StateA2BudgeA2ProcessA2-A2Ans--1.A2AgencyA2BudgetA2RequestA2(July-Sept)
2.A2Gov/ExA2BudgetA2OfcA2PrepA2RecA2BudgetA2(Oct-A2Dec)
3.A2GovA2BudgetA2ProposalA2PrepA2(Dec-Jan)
4.A2AppropriationsA2BillA2toA2GenlA2AssyA2(Jan)
5.A2BoardA2ofA2EconA2AdvisorsA2(Nov-FebA215)
6.A2HouseA2WaysA2&A2MeansA2CommA2(Jan-March)
7.A2HouseA2BudgetA2DeliberaionsA2(Feb-March)
8.A2HouseA2BillA2toA2SenateA2(March)
9.A2SenA2FinanceA2BudgetA2DeliberationsA2(April)
10.A2SenateA2BudgetA2DeliberationsA2(April-May)
11.A2SenateA2AppropriationsA2BillA2(May)
12.A2ConferenceA2Comm.A2Delib./AgreementA2(May)
13.A2Hse/SenateA2ApproveA2ConfA2BillA2(July-Sept)
14.A2AppropriationsA2BillA2toA2GovernorA2(June)
15.A2GovA2VetoesA2&A2GenlA2AssyA2OverridesA2(June)
16.A2AppropriationsA2ActA2(June)