Prelim Quiz 2

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The key takeaways are about budgeting processes and procurement procedures based on the Philippine budgeting system.

In obligational based budgeting, contracts can be delivered and payments can be made beyond the fiscal year, unlike other types of budgeting.

The BAC Secretariat assists the Bids and Awards Committee while the Technical Working Group assists in shortlisting consultants and reviewing bidding documents.

CMPC 311 PRELIM QUIZ 2

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MULTIPLE CHOICE
Choose the best answer from the choices given.

S1: Budget deliberations in the Senate formally start after the House of
Representatives transmits the GAB. S2: The Senate Financing Committee and
Sub-Committees cannot start hearings on the GAB until House deliberations are
finished. *
A. Only Statement 1 is true
B. Only Statement 2 is true
C. Both statements are true
D. Both statements are false

Which of the following is not a budgetary account? *


A. Obligation
B. Disbursement
C. Appropriation
D. Allotment

Can a bidder be disqualified for failure to attend the pre-bid conference? *


A. No. Attendance to the Pre-bid Conference is not mandatory.
B. Yes. Attendance to the Pre-bid Conference is mandatory.
C. It depends. When the reason for not attending is allowed by the GPRA.
D. It depends. If the bidder is already short-listed, it is disqualified for not attending the Pre-bid
Conference.

Document issued to agencies authorizing them to liquidate obligations incurred. *


A. Obligation Authority
B. Disbursement Authority
C. General Allotment Release Order
D. General Appropriations Act Release Document

S1: In obligational based budgeting, contracts awarded within the fiscal year may
be delivered for one year after the end of the fiscal year. S2: In obligational based
budgeting, inspection, verification and payment may only be made within the fiscal
year *
A. Only Statement 1 is true
B. Only Statement 2 is true
C. Both statements are true
D. Both statements are false
They are tasked to assist the BAC in Shortlisting of consultants and Review of
Bidding Documents, among others. *
A. Observers
B. Heads of Procuring Entity
C. BAC Secretariat
D. Technical Working Group

S1: Executive reviews are conducted after departments and agencies submit their
Agency Budget Proposal to the DBM. S2: Deliberations in the Executive Review
entail a careful prioritization of programs and corresponding support, vis-a vis the
priority agenda of the national government. *
A. Only Statement 1 is true
B. Only Statement 2 is true
C. Both statements are true
D. Both statements are false

These are liabilities legally incurred, which the government will pay for. *
A. Contracts
B. Obligations
C. Pledges
D. Loans

It is a phase in the budget cycle which begins with issuance by the DBM of
guidelines on the release and utilization of funds *
A. Budget preparation
B. Budget legislation
C. Budget execution
D. Budget accountability

Which of the following statements does not cause a failure of bidding? *


A. No bids are received.
B. No bid qualifies as the Lowest Calculated Response Bid or Highest Rated Responsive Bid.
C. The winning bidder refuses to accept the award of the contract.
D. All the choices are correct.

Which of the following procurement is not governed by the GPRA? *


A. Lease of construction and office equipment.
B. Lease of computers, communication and information technology equipment.
C. Purchase of construction and office equipment and computers, communications and
information technology equipment.
D. All of the choices are subject to the same public bidding and to the processes prescribed
under the GPRA.

Authorization issued by DBM to an agency, which allows the latter to incur


obligation for specified amounts contained in a legislative appropriation. *
A. Appropriation
B. Allotment
C. Notice of Cash Allocation
D. Non-cash availment authority

Which of the following is a fundamental principle governing budget activity? *


A. All laws and regulations applicable to financial transaction shall be faithfully adhered to.
B. Trust funds shall be available and may be spent on any project or activity that is for the
benefit of the constituent of a government agency.
C. Fiscal responsibility shall be bared solely by the officer who is responsible for the
disbursement of government funds.
D. None of the above

Which of the following is covered by consulting services? *


A. Janitorial.
B. Security
C. Copying services.
D. Feasibility studies

Who will finally resolve a protest on the procurement process? *


A. The Bids and Awards Committee as a collegial body.
B. The Technical Working Group as a collegial body.
C. The HOPE.
D. The Regional Trial Court.

The responsibility for monitoring budget execution and operation rest primarily on
_. *
A. DBM
B. COA
C. BTr
D. Government Agencies

This feature in the budget preparation seeks to increase citizen participation in the
budget process where departments and agencies are tasked to partner with civil
society organizations (CSOs) as they prepare their agency budget proposals *
A. Budget call
B. Executive review
C. Stakeholder engagement
D. Consolidation, validation and confirmation

Direct Contracting may be resorted to only under the following conditions, except: *
A. There was a prior failed competitive/bidding process.
B. Procurement of goods of proprietary nature, which can be obtained only from the
proprietary source.
C. When the procurement of critical components from a specific manufacturer, supplier or
distributor is a condition precedent to hold a contractor to guarantee its project performance,
in accordance with the provisions of his contract.
D. Those sold by an exclusive dealer or manufacturer, which does not have sub-dealers
selling at lower prices and for which no suitable substitute can be obtained at more
advantageous terms to the Government.
S1: The president’s budget explains the policy framework and priorities in the
budget S2: The budget preparation phase ends with the submission of the
proposed national budget –the “President’s Budget” to the senate. *
A. Only Statement 1 is true
B. Only Statement 2 is true
C. Both statements are true
D. Both statements are false

Additional appropriation authorized by law to augment the original appropriations


which proved to be inadequate or insufficient for the particular purpose intended
due to current economic, political or social conditions. *
A. General Appropriation
B. Unprogrammed Appropriation
C. Supplemental Appropriation
D. Automatic Appropriation

This is a phase in the budget cycle which requires the executive to implement the
enacted budget faithfully and that Congress, the DBM, the COA, and the citizens
are able to scrutinize how public funds are spent. *
A. Budget preparation
B. Budget legislation
C. Budget execution
D. Budget accountability

Cash authority issued quarterly by the DBM to central, regional and provincial
offices and operating units to cover the cash requirements of the agencies. *
A. Appropriation
B. Allotment
C. Notice of Cash Allocation
D. Non-cash availment authority

S1: Included in the DBM’s jurisdiction is auditing, which is essential in ensuring


accountability of agencies in the use of public funds. S2: Failure to submit BFARs
to DBM is subject to the penalty of not appropriating budget for the agency in the
next fiscal year. *
A. Only Statement 1 is true
B. Only Statement 2 is true
C. Both statements are true
D. Both statements are false

These documents outline agency plans and performance targets. *


A. Disbursement Authorities
B. Budget Execution Documents
C. Budget and Financial Accountability Reports
D. Fund Release Documents
This occurs when revenues collected equal cash disbursements, excluding debt
repayments and payments on non- budgetary accounts, of the National
Government during a given year. *
A. Zero based budget
B. National budget
C. Balanced budget
D. Special Budget

S1: When the GAA is not enacted before fiscal year starts, the previous year’s GAA
is automatically reenacted. S2: Once submitted to the President for his approval,
the GAB is considered enrolled. *
A. Only Statement 1 is true
B. Only Statement 2 is true
C. Both statements are true
D. Both statements are false

Which of the following is not classified as Goods under the GPRA? *


A. Common-use supplies.
B. Inventory items.
C. Services.
D. None of the choices.

This provides the means for controlling the estimated amount to be raised and the
proposed amount to be spent for a specified project. *
A. Appropriations
B. Allotments
C. Budgets
D. All of the above

What is a performance security? *


A. It is the guarantee for the faithful performance of the bidding process.
B. It is the guarantee for the faithful performance of and compliance with the obligations by
the winning bidder under the contract.
C. It is the guarantee by the procuring entity that payment will be paid and the compliance of
the contract on time by the winning bidder.
D. All of the choices are correct.

The president’s budget contains the following except: *


A. Details of actual expenditures for each department and agency
B. Details of Selected program and projects
C. Details of spending for each department and agency
D. Summary of the staffing complement of each department and agency

In this stage of the budget cycle, there are deliberations by the DBCC to determine
the agency and sectoral allocation of the approved total expenditure ceiling, in line
with the macroeconomic and fiscal program where heads of major departments are
invited. *
A. Budget call
B. Executive review
C. Stakeholder engagement
D. Consolidation, validation and confirmation

This is a commitment by the implementing agency or GOCC that the annual


funding requirements for projects with implementation period of more than one year
shall be included in its budget proposals or corporate operating budget for the
covered years. *
A. Multiyear public private partnership agreement
B. Multiyear contractual authority
C. Multiyear project agreement
D. Multiyear obligational contract

This is an estimated schedule of expenditures, based on either obligations or cash


concepts and sources of financing, either from revenues, borrowings or cash
balance drawdowns *
A. National Expenditure Program
B. Details of Selected Programs and Projects
C. Cash Allocation
D. Budget

S1: As soon as the GAA is enacted, the government can implement its priority
programs and project S2: To authorize an agency to pay the obligations it incurs,
DBM issues a disbursement authority. *
A. Only Statement 1 is true
B. Only Statement 2 is true
C. Both statements are true
D. Both statements are false

S1: Accounting for budgetary accounts commences three months after enactment
of the General Appropriation Act S2: The level of allotments defines the amount of
cash allocations which will be released by the DBM. *
A. Only Statement 1 is true
B. Only Statement 2 is true
C. Both statements are true
D. Both statements are false

It is the sum of revenues and gross borrowings for a given period *


A. Income
B. Receipts
C. Resources
D. Revenues

This is a budgeting method where all items in the budget need justification *
A. Performance budgeting
B. Line-item budgeting
C. Zero-based budgeting
D. Special budgeting

S1: The Budget Execution Documents (BEDs) cannot be changed after the
approval of the General Appropriations Act S2: BEDs should be submitted on or
before November 30 before the financial year, without waiting for the approval of
the General Appropriation Act (GAA) *
A. Only Statement 1 is true
B. Only Statement 2 is true
C. Both statements are true
D. Both statements are false

Who wins in a competitive bidding under the GPRA? *


A. Highest bidder.
B. Lowest bidder.
C. Highest rated responsive bidder.
D. Lowest rated responsive bidder.

The alternative modes can be resorted to by the procuring entity when the following
conditions are met, except: *
A. Approved by the Head of the Procuring Entity or his duly authorized representative.
B. Justified by the conditions provided in GPRA.
C. There was a prior failed competitive/bidding process.
D. The procuring entity is promoting economic and efficient method in its procurement.

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CMPC 311 PRELIM QUIZ 2


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TRUE OR FALSE
For the following items, analyze the statements and decide whether each is true or false.
In all instances of the alternative methods of procurement, the procuring entity may
dispense with the advertisement in PhilGEPS *
True
False

In cases where contracts are rescinded or terminated and immediate action is


necessary to prevent damage to or loss of property or restore vital public services,
infrastructure facilities and other public utilities, agency to agency type of
negotiated procurement can be arranged *
True
False

Advance payment to contractors in the procurement of goods, supplies and


materials is allowed in accordance with PD 1445, but only after prior approval of
the President and should not exceed 15% of the contract amount unless otherwise
directed by the President. *
True
False

The Head of Procuring Entity or any approving authority can be the Chairperson or
a member of the Bids and Awards Committee (BAC) in extreme circumstances *
True
False

If there is a conflict among consulting projects, there consultant, including its


personnel and subcontractors, subsidiaries or entities controlled by such consultant
should not be recruited for the relevant project. *
True
False

In limited source bidding, the Head of the procuring entity directly invites all
suppliers or consultants appearing in the pre-selected list. *
True
False

To ensure transparency and accurate representation of the bid submission, the


BAC Chairman should notify in writing all bidders whose bids were received trough
the PhilGEPS - registered physical address or official e-mail address. *
True
False

The post-qualification process should be completed within twelve working days


from the determination of the Lowest Calculated Bid or Highest Rated Bid, which
maybe extended for not more than 45 days for goods and 30 days for consulting
services. *
True
False

To determine the reason for failed bidding, the BAC should conduct a mandatory
review and evaluation of the terms, conditions and specifications in the bidding
documents including its cost estimates. *
True
False

Ordinary or regular office supplies and equipment is understood to include


supplies, commodities, or materials necessary in the transaction of official
businesses and consumed in the day to day operations. *
True
False

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