1.Who should create a multiyear financial plan?
A. Only local governments under fiscal control boards
B. Only cities and villages required to complete plans by State law
C. Only cities and counties
D. All local governments
2. What is the purpose of multiyear financial planning?
A. It authorizes expenditures for multiple years, allowing a municipality to save money on the budget process in off-years.
B. It allows decision-makers to set long term priorities and work toward goals.
C. It allows a municipality to determine how it can increase its Constitutional Tax and Debt Limits.
D. It allows a municipality more flexibility in using its reserved fund balance.
3. The biggest item of expense for most local governments is personal service. What two controllable factors mainly affect these costs?
A. Health care costs and pensions
B. Post-retirement benefits
C. Number of departments
D. Number of staff and contracts with collective bargaining units
4. What are recommended uses for an unexpected, one-time revenue?
1. One-time needs --- 2. Build reserves ---- 3. Fixing a structural imbalance between revenues and expenditures
A. All of the above
B. 1 and 2, but not 3
C. 1 and 3, but not 2
D. 2 and 3, but not 1
5. A plan should project expenditures:
A. By budget line item in all cases
B. Aggregated by object of expense in all cases
C. Aggregated by function of expense in all cases
D. Any of the above, depending on the needs of the local government
6. A multiyear financial plan should, at a minimum, project:
A. Only those major revenues and expenditures that can be predicted with accuracy
B. Major categories of revenues and expenditures along with totals of each
C. Major categories of revenues and expenditures along with totals of each, and total surplus or deficit
D. All revenues and expenditures in detail
7. It is important to show unreserved fund balance:
A. Because it shows the local government's cash position
B. Because appropriating fund balance annually is a good long-term strategy to promote fiscal security
C. To show the effect of appropriating fund balance to cover deficits over multiple years
D. To demonstrate the use of reserve funds
8. To be reasonably comprehensive, a multiyear financial plan must show:
A. All funds, including enterprise funds
B. Just the general fund
C. The general fund and major operating governmental funds supported by the general fund
D. The general fund, capital fund, and debt service fund
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