CGFO Budgeting Practices 3

Question 1

Which budget format presents expenditures organized by government programs and their goals rather than by object of expenditure?

Accepted Answer

Program budget

Answer

A program budget organizes spending by programs or activities and links resources to specific government goals and outcomes.

Question 2

A government finance officer calculates that revenues will fall $2 million short of the adopted budget mid-year. The FIRST recommended action is to:

Accepted Answer

Reduce discretionary expenditures or implement a spending freeze

Answer

A spending freeze or reduction in discretionary expenditures is the prudent first response to a mid-year revenue shortfall before pursuing borrowing options.

Question 3

What distinguishes 'appropriations' from 'allotments' in government budgeting?

Accepted Answer

Appropriations are legislative authorizations; allotments are executive subdivisions of those authorizations

Answer

Appropriations are the legal spending authority granted by the legislature, while allotments are the executive branch's internal subdivision of those appropriations into time periods or organizational units.

Question 4

Which of the following best describes a 'contingency appropriation' in a government budget?

Accepted Answer

A reserve appropriation for unforeseen expenditures during the fiscal year

Answer

A contingency appropriation is a budgetary reserve set aside to handle unanticipated expenditure needs that arise during the fiscal year.

Question 5

Under GFOA best practices, what is the recommended minimum level for a government's unassigned general fund balance?

Accepted Answer

5% of general fund revenues or expenditures

Answer

GFOA recommends that governments maintain an unassigned general fund balance of no less than two months (approximately 17%) or at a minimum 5-15% of general fund revenues or expenditures.

(CGFO) Certified Government Finance Officer Practice Test

(CGFO) Certified Government Finance Officer Practice Test

CGFO Budgeting Practices 3