CGFM TEST 3 questions well
answered already passed
1) Current Operations
2) Capital Outlays
3) Debt Service - correct answer ✔✔Three Broad Government Spending Purposes
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 - - correct answer ✔✔Present Value Analysis - Three Components
Requires the head of each federal agency to establish and maintain I/C's. - correct answer
✔✔Budget Accounting and Procedures Act of 1950
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") ** - correct answer ✔✔Federal Managers Financial Integrity
Act of 1982 (FMFIA)
requires the audit of state and local governments and npo's receiving federal funding - correct
answer ✔✔Single Audit Act of 1984 (amended in 1996)
Placed restrictions on publicly traded companies following Enron scandal. Requires mgmt to
report on I/C's for financial reporting in its annual report. - correct answer ✔✔Sarbanes Oxley
Act of 2002
,Internal Controls Over Financial Reporting - correct answer ✔✔(ICOFR)
required 10 federal agencies to produce audited annual financial reports that included a report
on internal control.
expanded in 1994 by GMRA - correct answer ✔✔Chief Financial Officers Act of 1990 (CFO Act):
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). -
correct answer ✔✔INTERNAL CONTROLS
Used in consideration of capital budgeting
1) Present Value Analysis
2) Future Value Analysis
3) Payback Analysis - correct answer ✔✔TIME VALUE OF MONEY
Iterative process requiring changes throughout development, each step represents a decision,
also used to evaluate processes for effective internal controls - correct answer ✔✔Flowcharting
,project mgmt system that weighs both schedule and cost performance to determine if a project
is delivering expected results on time and within budget - correct answer ✔✔Earned Value
Management (EVM)
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 - correct answer ✔✔Regression Analysis
Determines the degree of accuracy the analysis (variables) can be used to predict results
(1=perfect correlation
.85 considered reliable for forecasting) - correct answer ✔✔Correlation Coefficient
analyzes multiple IV's and look for items with the highest correlation coefficient as being the
most like predictors - correct answer ✔✔Multiple Regressions
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 - correct answer ✔✔Limits of Regression Analysis
, inspecting, cleaning, transforming, and modeling data to find useful information, conclusions,
and support decision making - correct answer ✔✔Data Analytics
(Predictive) sorting through large data sets and using filters and algorithms to pick out
relationships
** See strengths and weaknesses - correct answer ✔✔Data Mining
data collected through a variety of techniques to analyze current and historical facts to make
predictions about future events - correct answer ✔✔Predictive Analytics
* 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 -
correct answer ✔✔Data Mining Strengths and Weaknesses
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 -
correct answer ✔✔Starting a Data Analytic Program
answered already passed
1) Current Operations
2) Capital Outlays
3) Debt Service - correct answer ✔✔Three Broad Government Spending Purposes
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 - - correct answer ✔✔Present Value Analysis - Three Components
Requires the head of each federal agency to establish and maintain I/C's. - correct answer
✔✔Budget Accounting and Procedures Act of 1950
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") ** - correct answer ✔✔Federal Managers Financial Integrity
Act of 1982 (FMFIA)
requires the audit of state and local governments and npo's receiving federal funding - correct
answer ✔✔Single Audit Act of 1984 (amended in 1996)
Placed restrictions on publicly traded companies following Enron scandal. Requires mgmt to
report on I/C's for financial reporting in its annual report. - correct answer ✔✔Sarbanes Oxley
Act of 2002
,Internal Controls Over Financial Reporting - correct answer ✔✔(ICOFR)
required 10 federal agencies to produce audited annual financial reports that included a report
on internal control.
expanded in 1994 by GMRA - correct answer ✔✔Chief Financial Officers Act of 1990 (CFO Act):
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). -
correct answer ✔✔INTERNAL CONTROLS
Used in consideration of capital budgeting
1) Present Value Analysis
2) Future Value Analysis
3) Payback Analysis - correct answer ✔✔TIME VALUE OF MONEY
Iterative process requiring changes throughout development, each step represents a decision,
also used to evaluate processes for effective internal controls - correct answer ✔✔Flowcharting
,project mgmt system that weighs both schedule and cost performance to determine if a project
is delivering expected results on time and within budget - correct answer ✔✔Earned Value
Management (EVM)
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 - correct answer ✔✔Regression Analysis
Determines the degree of accuracy the analysis (variables) can be used to predict results
(1=perfect correlation
.85 considered reliable for forecasting) - correct answer ✔✔Correlation Coefficient
analyzes multiple IV's and look for items with the highest correlation coefficient as being the
most like predictors - correct answer ✔✔Multiple Regressions
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 - correct answer ✔✔Limits of Regression Analysis
, inspecting, cleaning, transforming, and modeling data to find useful information, conclusions,
and support decision making - correct answer ✔✔Data Analytics
(Predictive) sorting through large data sets and using filters and algorithms to pick out
relationships
** See strengths and weaknesses - correct answer ✔✔Data Mining
data collected through a variety of techniques to analyze current and historical facts to make
predictions about future events - correct answer ✔✔Predictive Analytics
* 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 -
correct answer ✔✔Data Mining Strengths and Weaknesses
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 -
correct answer ✔✔Starting a Data Analytic Program
