AGA CGFM: Chapter 5 Top exam questions with completely
verified answers graded A+. 2024/2025
Related organizations - correct answer disclosed in the notes
Primary gov't is not financially accountable even though it appoints the voting
majority of board. Notes disclose the extent of the primary gov'ts involvement in
the related organization.
Joint ventures - correct answer contractual agreement of two or more
participants. Venture is under joint control and participants have ongoing financial
interest or financial responsibility, the extent of which is disclosed in the notes.
Jointly governed organizations - correct answer similar to joint ventures but
there's no ongoing financial interest or responsibility. Only a disclosure is
required in the notes.
CAFR: Required elements - correct answer -audited basic financial statements
and accompanying notes
-combining statements for nonmajor funds for primary gov't and nonmajor
discretely presented component units
-individual fund stmts and schedules for the funds of the primary gov't and
blended component units
GFOA CAFR requirements: - correct answer Introductory Section
Financial Section
Statistical Section
Financial Trends Information
Revenue Capacity Information
Debt Capacity Information
Demographic & Economic Information
, Operating Information
Narrative Explanations
Introductory Section (CAFR) - correct answer Cover
Title Page
Table of Contents
Letter of Transmittal
List of principal officials
Organization chart
GFOA award for prior period, if received
Letter of Transmittal (CAFR) - correct answer Introductory Section
Not a duplication of MD&A
-applicable accounting standards, mgmts responsibility for report preparation
-profile of gov't (units, method of presentation)
-local economy - effect of economy, key changes, industries
-long-range planning: goals & objectives, results of prior year programs, new
initiatives and effect on long range goals and objectives
-cash management: policies and controls, investment pools
-risk financing: outline of provisions for controlling risk; discussion assumption of
risk for employee benefits
-independent audit: scope of audit engagement
-awards and acknowledgements
Financial Section (CAFR) - correct answer -auditor's report
-MD&A
-Basic Financial Stmts
verified answers graded A+. 2024/2025
Related organizations - correct answer disclosed in the notes
Primary gov't is not financially accountable even though it appoints the voting
majority of board. Notes disclose the extent of the primary gov'ts involvement in
the related organization.
Joint ventures - correct answer contractual agreement of two or more
participants. Venture is under joint control and participants have ongoing financial
interest or financial responsibility, the extent of which is disclosed in the notes.
Jointly governed organizations - correct answer similar to joint ventures but
there's no ongoing financial interest or responsibility. Only a disclosure is
required in the notes.
CAFR: Required elements - correct answer -audited basic financial statements
and accompanying notes
-combining statements for nonmajor funds for primary gov't and nonmajor
discretely presented component units
-individual fund stmts and schedules for the funds of the primary gov't and
blended component units
GFOA CAFR requirements: - correct answer Introductory Section
Financial Section
Statistical Section
Financial Trends Information
Revenue Capacity Information
Debt Capacity Information
Demographic & Economic Information
, Operating Information
Narrative Explanations
Introductory Section (CAFR) - correct answer Cover
Title Page
Table of Contents
Letter of Transmittal
List of principal officials
Organization chart
GFOA award for prior period, if received
Letter of Transmittal (CAFR) - correct answer Introductory Section
Not a duplication of MD&A
-applicable accounting standards, mgmts responsibility for report preparation
-profile of gov't (units, method of presentation)
-local economy - effect of economy, key changes, industries
-long-range planning: goals & objectives, results of prior year programs, new
initiatives and effect on long range goals and objectives
-cash management: policies and controls, investment pools
-risk financing: outline of provisions for controlling risk; discussion assumption of
risk for employee benefits
-independent audit: scope of audit engagement
-awards and acknowledgements
Financial Section (CAFR) - correct answer -auditor's report
-MD&A
-Basic Financial Stmts
