AGA CGFM Government environment Examination sample
prep Questions and Answers; certified for accuracy
2024/2025
Solvency - correct answer Ability to generate future revenues and meet long-
term obligations.
Sustainability - correct answer Ability and willingness of the gov't. To meet
financial obligations as they come due and meet service commitments.
GFOA - correct answer Government Finance Officers Association
Benchmarking - correct answer Comparing indicators, such as ratios, across
entities or across different fiscal years.
Benefit of Sustainability Assessment - correct answer Alerts public officials and
citizens to the need for policy changes before the "fix" becomes too costly to
implement.
Techniques used to Demonstrate Accountability - correct answer Oversight
hearings, evaluations, reports and audits.
Governmental Long-term Accountability - correct answer Stewardship of
heritage assets, economic security, and defense of freedom.
Opebs - correct answer Other post-employment benefits. For example, health
insurance and life insurance for retirees.
GASB Statement 68 - correct answer Designed to improve accounting and
reporting for defined-benefit pension plans.
,Public Law 107-347 - correct answer The E-Government Act. Requires federal
agencies to use Internet-based information technology to enhance citizen access
to government information and services, and also requires numerous safeguards
to personal privacy.
OEG - correct answer Office of Electronic Government. Established within the
Office of Management & Budget (OMB) by the E-Gov't Act.
Responsibilities of OEG - correct answer Assist all federal agencies in
developing system architecture to support electronic gov't; ensure
interconnectivity and interoperability across gov't websites; sponsor activities to
engage the general public in developing programs and information portals that
serve the needs of the public; and develop cost-effective security measures for
web-based information.
GSA - correct answer General Services Administration. Works closely with the
OMB's OEG by providing supply schedules to help all federal agencies enhance
their internet-based initiatives.
Interconnectivity - correct answer Key to successful online access. Allows for
rapid integration of information across the websites of different government
agencies. Can improve crisis preparedness and response.
Performance Criteria for e-Gov Initiatives - correct answer Impact of e-Gov in
helping agencies fulfill strategic goals; customer satisfaction and customer
service; productivity in providing e-Gov services; and incorporation of commercial
best practices.
Example of e-Gov at Federal Level - correct answer Electronic Filing of tax
returns, or IRS e-file; usaspending.gov, which provides immediate, transparent
information on federal contracts.
,Charter - correct answer Basic authority by which a local gov't operates,
comparable to a state's constitution.
Ordinance - correct answer Local law, comparable to a state statute or U.S.
Code.
"Power of the Purse" - correct answer Executive branch components can only
spend what has been authorized and appropriated by the legislative branch.
Permanent Commission - correct answer Governmental components created to
fulfill a regulatory role. For example, FTC and SEC, at the nat'l level, created by
acts of Congress.
Temporary Commission - correct answer Governmental components created to
study a particular case, such as National Commission on Terrorist Attacks Upon
the US and the Warren Commission.
Government Budget - correct answer A control device that limits expenditures
by purpose, time and amount. The budget may further restrict spending by fund,
object class and program. Subject to judicial review.
Budget Process - correct answer The executive branch proposes to the
legislative branch the amount it believes should be spent on various programs,
and the legislative branch concurs or directs that the amounts be modified. The
primary purpose is to prioritize gov't expenditures and to allocate the financial
resources to be raised to finance said expenditures. Many budgets also identify
the sources of revenues. In prioritizing and constraining expenditures, a budget
guides the operations of various gov't organizations.
Budgetary Control - Legislative - correct answer Separation of powers as
budgetary control: Creates the budget through laws & ordinances.
, Budgetary Control - Executive - correct answer Separation of powers as
budgetary control: Implements the budget through various programs & services.
Budgetary Control - Judicial - correct answer Separation of powers as
budgetary control: Settles disputes over the formation & execution of the budget.
Government Management Cycle - correct answer Planning, Programming,
Budgeting, Operations, Accounting, Reporting, Auditing
Appropriated Budget - correct answer Provides legal authority to spend as well
as a legal constraint on government spending.
Debt - correct answer Planned, short- or long-term borrowing to finance gov't
objectives. The Nat'l gov't incurs this to finance both current operations & capital
investments. State & local gov'ts restrict this to capital investments (not current
operations).
Deficit - correct answer When gov't expenditures for a specific fiscal period
exceed revenues. Often leads to borrowing & thus to debt, esp. At the Nat'l level.
Most state & local gov'ts are prohibited from this type of spending.
Private Sector Budget - correct answer Has fewer controls and much greater
flexibility than gov't budget. One of many management tools. Can be revised
throughout the year in response to changing markets and revenue-generating
opportunities.
Strategic Planning - correct answer Precursor to the budget. Clarifies policies
and objectives, and, thus, reduces the level of policy deliberations during the
formal budget process. Must be integrated with the budget process.
Special Fund - correct answer A permanent fund to be used for a specific
purpose. Tracks specially identified revenues, as well as those dedicated uses
prep Questions and Answers; certified for accuracy
2024/2025
Solvency - correct answer Ability to generate future revenues and meet long-
term obligations.
Sustainability - correct answer Ability and willingness of the gov't. To meet
financial obligations as they come due and meet service commitments.
GFOA - correct answer Government Finance Officers Association
Benchmarking - correct answer Comparing indicators, such as ratios, across
entities or across different fiscal years.
Benefit of Sustainability Assessment - correct answer Alerts public officials and
citizens to the need for policy changes before the "fix" becomes too costly to
implement.
Techniques used to Demonstrate Accountability - correct answer Oversight
hearings, evaluations, reports and audits.
Governmental Long-term Accountability - correct answer Stewardship of
heritage assets, economic security, and defense of freedom.
Opebs - correct answer Other post-employment benefits. For example, health
insurance and life insurance for retirees.
GASB Statement 68 - correct answer Designed to improve accounting and
reporting for defined-benefit pension plans.
,Public Law 107-347 - correct answer The E-Government Act. Requires federal
agencies to use Internet-based information technology to enhance citizen access
to government information and services, and also requires numerous safeguards
to personal privacy.
OEG - correct answer Office of Electronic Government. Established within the
Office of Management & Budget (OMB) by the E-Gov't Act.
Responsibilities of OEG - correct answer Assist all federal agencies in
developing system architecture to support electronic gov't; ensure
interconnectivity and interoperability across gov't websites; sponsor activities to
engage the general public in developing programs and information portals that
serve the needs of the public; and develop cost-effective security measures for
web-based information.
GSA - correct answer General Services Administration. Works closely with the
OMB's OEG by providing supply schedules to help all federal agencies enhance
their internet-based initiatives.
Interconnectivity - correct answer Key to successful online access. Allows for
rapid integration of information across the websites of different government
agencies. Can improve crisis preparedness and response.
Performance Criteria for e-Gov Initiatives - correct answer Impact of e-Gov in
helping agencies fulfill strategic goals; customer satisfaction and customer
service; productivity in providing e-Gov services; and incorporation of commercial
best practices.
Example of e-Gov at Federal Level - correct answer Electronic Filing of tax
returns, or IRS e-file; usaspending.gov, which provides immediate, transparent
information on federal contracts.
,Charter - correct answer Basic authority by which a local gov't operates,
comparable to a state's constitution.
Ordinance - correct answer Local law, comparable to a state statute or U.S.
Code.
"Power of the Purse" - correct answer Executive branch components can only
spend what has been authorized and appropriated by the legislative branch.
Permanent Commission - correct answer Governmental components created to
fulfill a regulatory role. For example, FTC and SEC, at the nat'l level, created by
acts of Congress.
Temporary Commission - correct answer Governmental components created to
study a particular case, such as National Commission on Terrorist Attacks Upon
the US and the Warren Commission.
Government Budget - correct answer A control device that limits expenditures
by purpose, time and amount. The budget may further restrict spending by fund,
object class and program. Subject to judicial review.
Budget Process - correct answer The executive branch proposes to the
legislative branch the amount it believes should be spent on various programs,
and the legislative branch concurs or directs that the amounts be modified. The
primary purpose is to prioritize gov't expenditures and to allocate the financial
resources to be raised to finance said expenditures. Many budgets also identify
the sources of revenues. In prioritizing and constraining expenditures, a budget
guides the operations of various gov't organizations.
Budgetary Control - Legislative - correct answer Separation of powers as
budgetary control: Creates the budget through laws & ordinances.
, Budgetary Control - Executive - correct answer Separation of powers as
budgetary control: Implements the budget through various programs & services.
Budgetary Control - Judicial - correct answer Separation of powers as
budgetary control: Settles disputes over the formation & execution of the budget.
Government Management Cycle - correct answer Planning, Programming,
Budgeting, Operations, Accounting, Reporting, Auditing
Appropriated Budget - correct answer Provides legal authority to spend as well
as a legal constraint on government spending.
Debt - correct answer Planned, short- or long-term borrowing to finance gov't
objectives. The Nat'l gov't incurs this to finance both current operations & capital
investments. State & local gov'ts restrict this to capital investments (not current
operations).
Deficit - correct answer When gov't expenditures for a specific fiscal period
exceed revenues. Often leads to borrowing & thus to debt, esp. At the Nat'l level.
Most state & local gov'ts are prohibited from this type of spending.
Private Sector Budget - correct answer Has fewer controls and much greater
flexibility than gov't budget. One of many management tools. Can be revised
throughout the year in response to changing markets and revenue-generating
opportunities.
Strategic Planning - correct answer Precursor to the budget. Clarifies policies
and objectives, and, thus, reduces the level of policy deliberations during the
formal budget process. Must be integrated with the budget process.
Special Fund - correct answer A permanent fund to be used for a specific
purpose. Tracks specially identified revenues, as well as those dedicated uses
