CGFM Exam 3 - Financial Management
Functions Questions with Complete
Answers
Prompt Payment Act - Answer-A federal law that requires federal agencies to pay
interest to companies on bills not paid within 30 days of invoice or completion of work.
Cash Management Improvement Act - Answer-passed to improve the transfer of federal
funds between the federal government and the states, territories, and the District of
Columbia
31 CFR Part 2018 Management of Federal Agency Disbursements - Answer-requires
federal agencies to disburse payments via electronic funds transfer, with few exceptions
Lockbox - Answer-An arrangement whereby receipts are mailed directly from payers to
a post office box that is serviced by a designated bank
float - Answer-the period between the time the check is issued and the time it is
presented for payment at the payer's bank
Zero Balance Account (ZBA) - Answer-account into which cash from a master account
is transferred at the close of the banking day to cover checks and debits presented for
payment
Concentration Bank Services - Answer-expediting the consolidation of geographically
dispersed deposits into a central account
Collection services - Answer-includes over the counter collection for tax and utility bills,
processing paper checks, operating a lockbox
Payment Services - Answer-includes the processing paper checks as well as providing
for electronic payments through the automated clearing house or via wire transfers
short-term borrowings - Answer-lines of credit or revolving credit facilities or as loans to
fund short term cash needs
compensating balance - Answer-A requirement by some banks requiring depositors to
maintain minimum cash balances in their bank accounts.
external shared services providers - Answer-departments/ agencies who provide
services to organizations outside of their own
, internal shared services providers - Answer-larger agencies that decided to consolidate,
standardize and streamline financial and other business processes within their own
department, and leverage a service center approach to provide system hosting
What should be considered when thinking about moving to a shared service provider? -
Answer-the agency's computing platform is no longer capable of being updated to
mandatory requirements, and/or is not supported by the vendor
Payables Management - Answer-payee information maintenance, payment
warehousing, payment execution, and payment confirmation and follow-up
Receivables Management - Answer-customer information maintenance, receivable
establishment, debt management, and collections and offsets
Reporting - Answer-general reporting, external reporting, internal reporting, and
responding to ad hoc queries
Funds Management - Answer-budget preparation, budget formulation, funds allocation,
budget execution, and funds control
Key responsibilities of the financial manager in implementing a new financial
management system - Answer-* Requirements definition
* training
* account cleanup
* data cleanup and conversion
System Development Life Cycle (SDLC) - Answer-
Phases of acquistions - Answer-* establish specifications
* solicit supply sources
* write contracts
* monitor contract performance
Requirements - Answer-* should be clear and precise
* should be stated in terms of performance expectations
* should be established in a manner that allows as broad a potential vendor base as
possible
set aside award goals - Answer-targets for certain types of vendors, such as women
owned or veteran owned businesses and small businesses
Standardization Committee - Answer-establish requirements that meet all user's needs
and keep procurement costs down by reducing phases of different items that
accomplish the same basic purpose
competition - Answer-* procurement strategy
Functions Questions with Complete
Answers
Prompt Payment Act - Answer-A federal law that requires federal agencies to pay
interest to companies on bills not paid within 30 days of invoice or completion of work.
Cash Management Improvement Act - Answer-passed to improve the transfer of federal
funds between the federal government and the states, territories, and the District of
Columbia
31 CFR Part 2018 Management of Federal Agency Disbursements - Answer-requires
federal agencies to disburse payments via electronic funds transfer, with few exceptions
Lockbox - Answer-An arrangement whereby receipts are mailed directly from payers to
a post office box that is serviced by a designated bank
float - Answer-the period between the time the check is issued and the time it is
presented for payment at the payer's bank
Zero Balance Account (ZBA) - Answer-account into which cash from a master account
is transferred at the close of the banking day to cover checks and debits presented for
payment
Concentration Bank Services - Answer-expediting the consolidation of geographically
dispersed deposits into a central account
Collection services - Answer-includes over the counter collection for tax and utility bills,
processing paper checks, operating a lockbox
Payment Services - Answer-includes the processing paper checks as well as providing
for electronic payments through the automated clearing house or via wire transfers
short-term borrowings - Answer-lines of credit or revolving credit facilities or as loans to
fund short term cash needs
compensating balance - Answer-A requirement by some banks requiring depositors to
maintain minimum cash balances in their bank accounts.
external shared services providers - Answer-departments/ agencies who provide
services to organizations outside of their own
, internal shared services providers - Answer-larger agencies that decided to consolidate,
standardize and streamline financial and other business processes within their own
department, and leverage a service center approach to provide system hosting
What should be considered when thinking about moving to a shared service provider? -
Answer-the agency's computing platform is no longer capable of being updated to
mandatory requirements, and/or is not supported by the vendor
Payables Management - Answer-payee information maintenance, payment
warehousing, payment execution, and payment confirmation and follow-up
Receivables Management - Answer-customer information maintenance, receivable
establishment, debt management, and collections and offsets
Reporting - Answer-general reporting, external reporting, internal reporting, and
responding to ad hoc queries
Funds Management - Answer-budget preparation, budget formulation, funds allocation,
budget execution, and funds control
Key responsibilities of the financial manager in implementing a new financial
management system - Answer-* Requirements definition
* training
* account cleanup
* data cleanup and conversion
System Development Life Cycle (SDLC) - Answer-
Phases of acquistions - Answer-* establish specifications
* solicit supply sources
* write contracts
* monitor contract performance
Requirements - Answer-* should be clear and precise
* should be stated in terms of performance expectations
* should be established in a manner that allows as broad a potential vendor base as
possible
set aside award goals - Answer-targets for certain types of vendors, such as women
owned or veteran owned businesses and small businesses
Standardization Committee - Answer-establish requirements that meet all user's needs
and keep procurement costs down by reducing phases of different items that
accomplish the same basic purpose
competition - Answer-* procurement strategy
