Financial Planning and Budgeting-GFOA
Certification Program Questions and
Answers Graded A+
Budget Process - Correct answer-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 - Correct answer-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) - Correct answer-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.
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,Principal Steps in Budgeting Process - Correct answer-1. Preparation and Planning
2. Legislative Review and Approval
3. Budget Execution
4. Financial and Performance Audit
Budget - Correct answer-Financial plan: service goals with associated costs and
means for financing
Operating Budget - Correct answer-Budget for ongoing activities that are repeated
year after year
Capital Budget - Correct answer-Plan of capital outlays for upcoming fiscal year -
for equipment, buildings, land, vehicles, etc -along with sources of funding
identified
Capital Plan - Correct answer-Long range (5 years or more) projection of capital
needs and financing
Appropriation - Correct answer-Legislative body's legal limit set on spending:
approved in the form of a law, act, or ordinance
Executive Budget - Correct answer-Compilation of information, proposals, and
estimates prepared and submitted by the chief executive to the legislative body
(GASB)
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
,Allocation - Correct answer-Portion of appropriation set aside for specific
functions or expenditure categories
Line Item Budget - Correct answer-Budget prepared on the basis of object of
expenditure categories
Incremental Budgeting - Correct answer-Method focusing on incremental changes
to individual objects of expenditure over current budget levels - associated with
line item budgeting
Program Budget - Correct answer-Budget focusing on the types of services
provided with subsidiary focus on objects of expenditures
Annualization - Correct answer-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) - Correct
answer-Balanced budgets required; tax levied in year following deficit to cover
State Budge Process - Correct answer-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)
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
, 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 - Correct answer-1. Involvement of
interest groups/agency staff in developing budget requests
2. settling priorities/balancing interests
©COPYRIGHT 2025, ALL RIGHTS RESERVED 4
Certification Program Questions and
Answers Graded A+
Budget Process - Correct answer-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 - Correct answer-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) - Correct answer-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.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,Principal Steps in Budgeting Process - Correct answer-1. Preparation and Planning
2. Legislative Review and Approval
3. Budget Execution
4. Financial and Performance Audit
Budget - Correct answer-Financial plan: service goals with associated costs and
means for financing
Operating Budget - Correct answer-Budget for ongoing activities that are repeated
year after year
Capital Budget - Correct answer-Plan of capital outlays for upcoming fiscal year -
for equipment, buildings, land, vehicles, etc -along with sources of funding
identified
Capital Plan - Correct answer-Long range (5 years or more) projection of capital
needs and financing
Appropriation - Correct answer-Legislative body's legal limit set on spending:
approved in the form of a law, act, or ordinance
Executive Budget - Correct answer-Compilation of information, proposals, and
estimates prepared and submitted by the chief executive to the legislative body
(GASB)
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
,Allocation - Correct answer-Portion of appropriation set aside for specific
functions or expenditure categories
Line Item Budget - Correct answer-Budget prepared on the basis of object of
expenditure categories
Incremental Budgeting - Correct answer-Method focusing on incremental changes
to individual objects of expenditure over current budget levels - associated with
line item budgeting
Program Budget - Correct answer-Budget focusing on the types of services
provided with subsidiary focus on objects of expenditures
Annualization - Correct answer-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) - Correct
answer-Balanced budgets required; tax levied in year following deficit to cover
State Budge Process - Correct answer-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)
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
, 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 - Correct answer-1. Involvement of
interest groups/agency staff in developing budget requests
2. settling priorities/balancing interests
©COPYRIGHT 2025, ALL RIGHTS RESERVED 4
