CGFM EXAM 1- STUDY GUIDE
CORRECT 100%
AGA - ANSWERAssociation of Government Accountants
CEAR - ANSWERCertificate of Excellence in Accountability Reporting
CFO - ANSWERChief Financial Officer
CGFM - ANSWERCertified Government Financial Manager
ERP - ANSWEREnterprise Resource Planning
FASAB - ANSWERFederal Accounting Standards Advisory Board
FASB - ANSWERFinancial Accounting Standards Board
FSIO - ANSWERFinancial Systems Integration Office (within GSA)
GAAP - ANSWERGenerally Accepted Accounting Principles
GAO - ANSWERGovernment Accountibility Office
GASB - ANSWERGovernment Accounting Standards Board
GPRA - ANSWERGovernment Performance and Results Act
OMB - ANSWEROffice of Management and Budget
PAR - ANSWERPerformance and Accountability Report
SEA - ANSWERService Efforts and Accomplishments
Accountability - ANSWERPrinciple that in a democracy, government operates at the
consent of the people. Therefore it must answer to the people for its actions and results,
including the taking and using of the people's resources.
Allotments - ANSWERIn the federal government, an agency's distribution of apportioned
budgetary authority to various components within the agency. After the executive
agency receives its apportionment, it allots budgetary authority to specific components
within the agency.
,Anti-Deficiency Act - ANSWERAt the federal level, a law stating that officials can be
fined and/or jailed if they obligate the government to spend funds beyond the legally
authorized purpose, time, or amount.
Apportionmnets - ANSWERDefinitions may vary at different levels of government. At the
federal level, OMB's approval to use a protion of the legislatively approved budgetary
authority.
Appropriated Budget - ANSWERBudget that has been passed by the legistlative
branch; has effect of law.
Appropriation - ANSWERA legistlative enactment (law, statute or ordinance) that
creates spending authority; the legal authority to incur expenses and spend money.
Attestation engagements - ANSWEREngagement primarily concerned with examining
or performing agreed upon procedures on a subject matter, or an assertion about a
subject matter, and reporting on the results. The subject matter may be financial or
nonfinancial and can be part of a financial audit or performance audit. Possible subjects
include reporting on an entity's internal controls, compliance with law or performance
measures.
Authorization - ANSWERLegislative enactment that approves programs; prescribes
what activities an agency may pursue if funding is available.
Block grants - ANSWERIntergovernmental provision of resources for broadly defined
purposes. Contrasts with category grants.
Capital Budget - ANSWERForecasts and controls spending for "big ticket" items that
are acquired and used over a period of several years, such as construction projects and
major equipment purchases. Used at state and local levels.
Capital lease - ANSWERCapital leases is a lease fo real property that meets defined
criteria requiring the government to report the property as it purchased long term debt
Cash-flow budget - ANSWERForecasts the timing as well as amount of cash flows for
the year. Used to project required cash levels.
Category grants - ANSWERIntergovernmental provision of resources to be used for
activities in a specific category of purpose. May be further classified as discretionary
grants or formula grants. Contrasts with block grants.
Central Management Agencies - ANSWERGovernment agencies that provide central
management services to other components. Example would be a state government hr
office (that serves all state agencies) or the OMB at the federal level.
,CEAR - ANSWERAn AGA program that helps federal agencies and their components to
produce effective, high-quality Performance and Accountability Reports
Certificate of Participation - ANSWERForm of shared government financing. In a typical
form, several financial institutions share in a loan arrangement with a government entity.
Charter - ANSWERLocal government version of a constitution. States may provide for
the establishment of local governments through charters
checks and balances - ANSWERProcess by which one branch of government
(legislative, executiv or judicial) can constrain actions of the other branches. Flows from
separation of powers.
CFO Act - ANSWER1990 law that, among other provisions, requires the federal
government's major executive branch agencies to have a CFO. Prescribes duties and
reporting requirements, and requires audited financial statements
Commissions - ANSWERGovernment components established by law, statuted or
ordinance. May be permanent or temporary. Because they are established by law, may
have greater autonomy and authority than government components that are
administratively established. Ex. Federal Communication Commision
Components - ANSWEROrganized units of government such as agencies, offices and
departments. Found in all branches of government at all levels.
Conflict of interest - ANSWERArises when one has personal interest in matters relating
to official duties or activities. Such conflicts can destroy objectivity and independence
and prevent the exercise of due care
Consumption Taxes - ANSWERBroad category of tax that includes sales, use, excise
and value-added taxes
Continuity of Operations - ANSWERRefers to the efforts to ensure the organization can
sustain essential operations regardless of planned or unplanned incidents or
disruptions.
Covenant (bond) - ANSWERLegal requirements pertaining to a specific bond issue.
Typically define the maturity date, revenue stream that will be used to repay the debt,
interest rate and repayment schedule. May require a sinking fund and may specify
conditions that must be met before new debt can be issued.
Credit-rating agencies - ANSWERIndependent organizations that assess the credit
worthiness of debt. Three major rating agenciew are Standard & Poors, Moody's
Investor Service and Fitches rating
, Data mining - ANSWERUsing special, computer-based techniques such as filters and
algorithms to extract meaningful information from large bodies of data
Debt - ANSWERMoney owed by the entity to individual or organizational creditors,
ususally as a result of planned short- or long-term borrowing to finance government
objectives
Dedicated tax - ANSWERTaxes levied to finance a specific activity. Proceeds are
deposited into an account restricted to that activity. Also referred to as earmarked or
restricted taxes.
Deficit - ANSWEROccurs when government expenditures for a specific fiscal period
exceed revenues and/or financial resource inflows.
Diligence - ANSWERPursuing an event, action or assignment to a timely and sufficient
end or close
Discrestionary grants - ANSWERForm of category grant. Transfers funds between
governments for a specific purpose; whether a grant is awarded and the amount of the
award depend on discretion of the entity providing the funds
Donations - ANSWERVoluntary contributions that confer no rights or benefits on the
giver
Due care - ANSWERTo discharge professional responsibilities with competence and
diligence, to the best of one's ability, and with the same level of ability and skill as others
in similar positions. It also means to act in the best interest of those served.
Earmarking - ANSWERVariation on use of special funds. Revenue from specific taxes
or other sources is set aside for specific activities. One example is the earmarking of
gasoline taxes for highway improvements
Enterprise Resoure Planning System - ANSWERMajor "end-to-end" computer system
that links many functions and departments. Used to simplify and streamline financial
management, and to integrate operation with financial management
Estate tax - ANSWERForm of wealth tax. Levied on the estate of the deceased person
before assets are distributed to heirs
Ethics - ANSWERA set of moral principles and values; the principles of conduct
governing an individual or a (professional) group. A complex system of discipline that
civilized societies impose on themselves through laws, customs, standards, social
etiquette and other rules to govern moral conduct
CORRECT 100%
AGA - ANSWERAssociation of Government Accountants
CEAR - ANSWERCertificate of Excellence in Accountability Reporting
CFO - ANSWERChief Financial Officer
CGFM - ANSWERCertified Government Financial Manager
ERP - ANSWEREnterprise Resource Planning
FASAB - ANSWERFederal Accounting Standards Advisory Board
FASB - ANSWERFinancial Accounting Standards Board
FSIO - ANSWERFinancial Systems Integration Office (within GSA)
GAAP - ANSWERGenerally Accepted Accounting Principles
GAO - ANSWERGovernment Accountibility Office
GASB - ANSWERGovernment Accounting Standards Board
GPRA - ANSWERGovernment Performance and Results Act
OMB - ANSWEROffice of Management and Budget
PAR - ANSWERPerformance and Accountability Report
SEA - ANSWERService Efforts and Accomplishments
Accountability - ANSWERPrinciple that in a democracy, government operates at the
consent of the people. Therefore it must answer to the people for its actions and results,
including the taking and using of the people's resources.
Allotments - ANSWERIn the federal government, an agency's distribution of apportioned
budgetary authority to various components within the agency. After the executive
agency receives its apportionment, it allots budgetary authority to specific components
within the agency.
,Anti-Deficiency Act - ANSWERAt the federal level, a law stating that officials can be
fined and/or jailed if they obligate the government to spend funds beyond the legally
authorized purpose, time, or amount.
Apportionmnets - ANSWERDefinitions may vary at different levels of government. At the
federal level, OMB's approval to use a protion of the legislatively approved budgetary
authority.
Appropriated Budget - ANSWERBudget that has been passed by the legistlative
branch; has effect of law.
Appropriation - ANSWERA legistlative enactment (law, statute or ordinance) that
creates spending authority; the legal authority to incur expenses and spend money.
Attestation engagements - ANSWEREngagement primarily concerned with examining
or performing agreed upon procedures on a subject matter, or an assertion about a
subject matter, and reporting on the results. The subject matter may be financial or
nonfinancial and can be part of a financial audit or performance audit. Possible subjects
include reporting on an entity's internal controls, compliance with law or performance
measures.
Authorization - ANSWERLegislative enactment that approves programs; prescribes
what activities an agency may pursue if funding is available.
Block grants - ANSWERIntergovernmental provision of resources for broadly defined
purposes. Contrasts with category grants.
Capital Budget - ANSWERForecasts and controls spending for "big ticket" items that
are acquired and used over a period of several years, such as construction projects and
major equipment purchases. Used at state and local levels.
Capital lease - ANSWERCapital leases is a lease fo real property that meets defined
criteria requiring the government to report the property as it purchased long term debt
Cash-flow budget - ANSWERForecasts the timing as well as amount of cash flows for
the year. Used to project required cash levels.
Category grants - ANSWERIntergovernmental provision of resources to be used for
activities in a specific category of purpose. May be further classified as discretionary
grants or formula grants. Contrasts with block grants.
Central Management Agencies - ANSWERGovernment agencies that provide central
management services to other components. Example would be a state government hr
office (that serves all state agencies) or the OMB at the federal level.
,CEAR - ANSWERAn AGA program that helps federal agencies and their components to
produce effective, high-quality Performance and Accountability Reports
Certificate of Participation - ANSWERForm of shared government financing. In a typical
form, several financial institutions share in a loan arrangement with a government entity.
Charter - ANSWERLocal government version of a constitution. States may provide for
the establishment of local governments through charters
checks and balances - ANSWERProcess by which one branch of government
(legislative, executiv or judicial) can constrain actions of the other branches. Flows from
separation of powers.
CFO Act - ANSWER1990 law that, among other provisions, requires the federal
government's major executive branch agencies to have a CFO. Prescribes duties and
reporting requirements, and requires audited financial statements
Commissions - ANSWERGovernment components established by law, statuted or
ordinance. May be permanent or temporary. Because they are established by law, may
have greater autonomy and authority than government components that are
administratively established. Ex. Federal Communication Commision
Components - ANSWEROrganized units of government such as agencies, offices and
departments. Found in all branches of government at all levels.
Conflict of interest - ANSWERArises when one has personal interest in matters relating
to official duties or activities. Such conflicts can destroy objectivity and independence
and prevent the exercise of due care
Consumption Taxes - ANSWERBroad category of tax that includes sales, use, excise
and value-added taxes
Continuity of Operations - ANSWERRefers to the efforts to ensure the organization can
sustain essential operations regardless of planned or unplanned incidents or
disruptions.
Covenant (bond) - ANSWERLegal requirements pertaining to a specific bond issue.
Typically define the maturity date, revenue stream that will be used to repay the debt,
interest rate and repayment schedule. May require a sinking fund and may specify
conditions that must be met before new debt can be issued.
Credit-rating agencies - ANSWERIndependent organizations that assess the credit
worthiness of debt. Three major rating agenciew are Standard & Poors, Moody's
Investor Service and Fitches rating
, Data mining - ANSWERUsing special, computer-based techniques such as filters and
algorithms to extract meaningful information from large bodies of data
Debt - ANSWERMoney owed by the entity to individual or organizational creditors,
ususally as a result of planned short- or long-term borrowing to finance government
objectives
Dedicated tax - ANSWERTaxes levied to finance a specific activity. Proceeds are
deposited into an account restricted to that activity. Also referred to as earmarked or
restricted taxes.
Deficit - ANSWEROccurs when government expenditures for a specific fiscal period
exceed revenues and/or financial resource inflows.
Diligence - ANSWERPursuing an event, action or assignment to a timely and sufficient
end or close
Discrestionary grants - ANSWERForm of category grant. Transfers funds between
governments for a specific purpose; whether a grant is awarded and the amount of the
award depend on discretion of the entity providing the funds
Donations - ANSWERVoluntary contributions that confer no rights or benefits on the
giver
Due care - ANSWERTo discharge professional responsibilities with competence and
diligence, to the best of one's ability, and with the same level of ability and skill as others
in similar positions. It also means to act in the best interest of those served.
Earmarking - ANSWERVariation on use of special funds. Revenue from specific taxes
or other sources is set aside for specific activities. One example is the earmarking of
gasoline taxes for highway improvements
Enterprise Resoure Planning System - ANSWERMajor "end-to-end" computer system
that links many functions and departments. Used to simplify and streamline financial
management, and to integrate operation with financial management
Estate tax - ANSWERForm of wealth tax. Levied on the estate of the deceased person
before assets are distributed to heirs
Ethics - ANSWERA set of moral principles and values; the principles of conduct
governing an individual or a (professional) group. A complex system of discipline that
civilized societies impose on themselves through laws, customs, standards, social
etiquette and other rules to govern moral conduct
