American Institute of Certified Planners (AICP) Practice Exam

What is the focus of PPBS?

1. Accomplishing financial audits

2. Eliminating unnecessary programs

3. Accomplishing goals set by the department

4. Reducing costs across all departments

The correct answer is: Accomplishing goals set by the department

The focus of Program Planning and Budgeting System (PPBS) is primarily on accomplishing goals set by the department. This system integrates planning and budgeting processes to ensure that resources are allocated effectively towards achieving specific objectives and outcomes. It emphasizes the importance of linking financial planning to operational goals, allowing for a strategic approach to resource allocation. In this context, PPBS enables departments to clearly define their priorities and align their budgets with these priorities, helping to ensure that expenditures support the desired results. This structured approach not only aids in achieving departmental goals but also enhances accountability and performance measurement by focusing on results rather than just the financial aspects. Other choices do not encapsulate the primary purpose of PPBS. Financial audits focus on assessing financial statements rather than planning and program outcomes. Eliminating unnecessary programs, while a possible outcome of effective planning and budgeting, is not the central focus of PPBS, which is more concerned with aligning resources to goals and objectives. Reducing costs may be a beneficial side effect of effective resource allocation, but the primary intention of PPBS is to link budgetary decisions directly to strategic goals.