CGFM TEST 3 2026 correct
answers
Three Broad Government Spending Purposes - correct answers 1) Current Operations
2) Capital Outlays
3) Debt Service
Present Value Analysis - Three Components - correct answers Determines what $$ Rec'd in
Future is Worth Today
1) inflation component - year over year loss in value
2) enterprise component - inherent risk
3) unique component -
Budget Accounting and Procedures Act of 1950 - correct answers Requires the head of each
federal agency to establish and maintain I/C's.
Federal Managers Financial Integrity Act of 1982 (FMFIA) - correct answers requires the head of
each agency to evaluate controls on an annual basis, reporting any weakness along with a
corrective action plan
** (resulted in the "green book") **
Single Audit Act of 1984 (amended in 1996) - correct answers requires the audit of state and
local governments and npo's receiving federal funding
,Sarbanes Oxley Act of 2002 - correct answers Placed restrictions on publicly traded companies
following Enron scandal. Requires mgmt to report on I/C's for financial reporting in its annual
report.
(ICOFR) - correct answers Internal Controls Over Financial Reporting
Chief Financial Officers Act of 1990 (CFO Act): - correct answers required 10 federal agencies to
produce audited annual financial reports that included a report on internal control.
expanded in 1994 by GMRA
INTERNAL CONTROLS - correct answers systems and techniques managers use to provide
reasonable assurance that agency objectives met in an effective/efficient manner, in compliance
with laws/regulations, and to safeguard assets.
Implemented to accomplish certain results, prevent problems, or detect problems that have
occurred.
Some controls can both detect and prevent problems (but only if their existence is known).
TIME VALUE OF MONEY - correct answers Used in consideration of capital budgeting
1) Present Value Analysis
2) Future Value Analysis
3) Payback Analysis
Flowcharting - correct answers Iterative process requiring changes throughout development,
each step represents a decision, also used to evaluate processes for effective internal controls
,Earned Value Management (EVM) - correct answers project mgmt system that weighs both
schedule and cost performance to determine if a project is delivering expected results on time
and within budget
Regression Analysis - correct answers Predicts the relationship between variables:
1) Direct Linear Regression
2) Indirect Linerar Regression
3) Non-linear Regression
4) No Relationship
** See Limits of Regression Analysis
Correlation Coefficient - correct answers Determines the degree of accuracy the analysis
(variables) can be used to predict results (1=perfect correlation
.85 considered reliable for forecasting)
Multiple Regressions - correct answers analyzes multiple IV's and look for items with the highest
correlation coefficient as being the most like predictors
Limits of Regression Analysis - correct answers Data ranges must be relevant (e.g., sample size
might be too small to project on a larger population)
Difficult to find data sets with high correlation coefficients
Bad data = bad results (garbage in, garbage out)
Correlation is not Causation, have to be able to explain how one set of data would influence
another
, Data Analytics - correct answers inspecting, cleaning, transforming, and modeling data to find
useful information, conclusions, and support decision making
Data Mining - correct answers (Predictive) sorting through large data sets and using filters and
algorithms to pick out relationships
** See strengths and weaknesses
Predictive Analytics - correct answers data collected through a variety of techniques to analyze
current and historical facts to make predictions about future events
Data Mining Strengths and Weaknesses - correct answers * Strengths
Analyst is able to review complete data sets
Ability to link together multiple data sources
* Weaknesses
Must have quality data
Must have ability to understand program requirements and how this is represented in the data
Starting a Data Analytic Program - correct answers Collaborate with other agencies for data
collection and sharing
Determine ROI in Analytics Programs
Give leaders clear concise analysis they can use to support data driven programs
Enable employees at all levels to see and utilize data for their needs (not just the needs of
senior leaders
Managers to demand the use of data and provide employees with targeted on the job training
answers
Three Broad Government Spending Purposes - correct answers 1) Current Operations
2) Capital Outlays
3) Debt Service
Present Value Analysis - Three Components - correct answers Determines what $$ Rec'd in
Future is Worth Today
1) inflation component - year over year loss in value
2) enterprise component - inherent risk
3) unique component -
Budget Accounting and Procedures Act of 1950 - correct answers Requires the head of each
federal agency to establish and maintain I/C's.
Federal Managers Financial Integrity Act of 1982 (FMFIA) - correct answers requires the head of
each agency to evaluate controls on an annual basis, reporting any weakness along with a
corrective action plan
** (resulted in the "green book") **
Single Audit Act of 1984 (amended in 1996) - correct answers requires the audit of state and
local governments and npo's receiving federal funding
,Sarbanes Oxley Act of 2002 - correct answers Placed restrictions on publicly traded companies
following Enron scandal. Requires mgmt to report on I/C's for financial reporting in its annual
report.
(ICOFR) - correct answers Internal Controls Over Financial Reporting
Chief Financial Officers Act of 1990 (CFO Act): - correct answers required 10 federal agencies to
produce audited annual financial reports that included a report on internal control.
expanded in 1994 by GMRA
INTERNAL CONTROLS - correct answers systems and techniques managers use to provide
reasonable assurance that agency objectives met in an effective/efficient manner, in compliance
with laws/regulations, and to safeguard assets.
Implemented to accomplish certain results, prevent problems, or detect problems that have
occurred.
Some controls can both detect and prevent problems (but only if their existence is known).
TIME VALUE OF MONEY - correct answers Used in consideration of capital budgeting
1) Present Value Analysis
2) Future Value Analysis
3) Payback Analysis
Flowcharting - correct answers Iterative process requiring changes throughout development,
each step represents a decision, also used to evaluate processes for effective internal controls
,Earned Value Management (EVM) - correct answers project mgmt system that weighs both
schedule and cost performance to determine if a project is delivering expected results on time
and within budget
Regression Analysis - correct answers Predicts the relationship between variables:
1) Direct Linear Regression
2) Indirect Linerar Regression
3) Non-linear Regression
4) No Relationship
** See Limits of Regression Analysis
Correlation Coefficient - correct answers Determines the degree of accuracy the analysis
(variables) can be used to predict results (1=perfect correlation
.85 considered reliable for forecasting)
Multiple Regressions - correct answers analyzes multiple IV's and look for items with the highest
correlation coefficient as being the most like predictors
Limits of Regression Analysis - correct answers Data ranges must be relevant (e.g., sample size
might be too small to project on a larger population)
Difficult to find data sets with high correlation coefficients
Bad data = bad results (garbage in, garbage out)
Correlation is not Causation, have to be able to explain how one set of data would influence
another
, Data Analytics - correct answers inspecting, cleaning, transforming, and modeling data to find
useful information, conclusions, and support decision making
Data Mining - correct answers (Predictive) sorting through large data sets and using filters and
algorithms to pick out relationships
** See strengths and weaknesses
Predictive Analytics - correct answers data collected through a variety of techniques to analyze
current and historical facts to make predictions about future events
Data Mining Strengths and Weaknesses - correct answers * Strengths
Analyst is able to review complete data sets
Ability to link together multiple data sources
* Weaknesses
Must have quality data
Must have ability to understand program requirements and how this is represented in the data
Starting a Data Analytic Program - correct answers Collaborate with other agencies for data
collection and sharing
Determine ROI in Analytics Programs
Give leaders clear concise analysis they can use to support data driven programs
Enable employees at all levels to see and utilize data for their needs (not just the needs of
senior leaders
Managers to demand the use of data and provide employees with targeted on the job training
