LARGE_Session 1

Expenses include personnel services, maintenance and other operating expenses and capital outlay.

• TRUE

• FALSE

Answer explanation

EXPENDITURES, not expenses, include personnel services, maintenance and other operating expenses and capital outlay.

Budgeting is part of the process of appropriation.

• TRUE

• FALSE

Answer explanation

It should be “Appropriation is part of the process of budgeting.”

When an agency is operating under a reenacted budget, disbursements are based on the budget of the current year.

• TRUE

• FALSE

Answer explanation

When an agency is operating under a reenacted budget, disbursements are based on the budget of the preceding year.

The Sangguniang Panlalawigan reviews the budget of component cities and municipalities.

• TRUE

• FALSE

The Annual Budget of the Agency takes effect at the beginning of the fiscal year.

• TRUE

• FALSE

Supplemental Budget may be made if estimated income exceeds actual income.

• TRUE

• FALSE

Answer explanation

Supplemental Budget may be made if actual income exceeds estimated income.

Budget for vacant positions and leaves of absence without pay may be a source of savings of the agency.

• TRUE

• FALSE

Savings from personnel services expense may be used to augment the appropriation for MOOE provided a law is enacted for that purpose.

• TRUE

• FALSE

Answer explanation

Savings from personnel services expense may NOT be used to augment the appropriation for MOOE since the law allows only augmentation or transfer from savings in other items within the same expense class.

All laws and regulations applicable to financial transactions shall be faithfully adhered to.

• TRUE

• FALSE

The public purpose requirement is only met when an expenditure benefits the community as a body.

• TRUE

• FALSE

Answer explanation

Jurisprudence provides for a broader definition of public purpose. Expenditures designed to promote social justice, public interest although may Incidentally benefits a limited number of persons may still pass the public purpose requirement of the law.