AGA CGFM Preliminary baseline test knowledge training
Questions and all Questions Accurately Answered Latest
2024/2025
Arbitrage - correct answer difference between an interest rate paid for funds
and the interest rate earned on the investment of those funds
Tax Reform Act of 1986 - correct answer clarified regulations for dealing with
arbitrage with state and local governments
Repurchase agreement - correct answer Short-term overnight loans and its an
arrangement between entity's and a counter party to lend cash on a short-term
basis obtaining securities as collateral
Debenture - correct answer Debt certificate but only backed by credit of issuer
and not their assets thereby giving it a higher interest rate
Yankee Bonds - correct answer these are foreign bonds denominated in US
dollars and issued in the US by foreign banks and corporations
Interest Rate Swaps - correct answer exchange of interest payments, but not
ownership of the underlying bond or principal
Prudent Person Rule - correct answer Those selected to monitor and select
investments must know what they are doing and must solely do it in the interest
of the participants or beneficiaries without any conflicts of interest
Direct Loan - correct answer This exists when the government agency
disburses funds directly to a borrower and is repaid directly by the borrower
,Loan Guarantees - correct answer The applicant applies to the lending
institution who then sees if they meets the requirements set by the government
and approves the loan. The loan repayment is made directly to the institution and
if the applicant defaults then the government agency makes the remaining
payment to the institution
Debt Collection Improvement Act of 1996 - correct answer Authorizes the
agencies to also report all credit extended to individuals to credit bureaus. This
lets other lenders know how much debt the individual owes the fed govt.
Escrow - correct answer Assure that monies are available to pay taxes,
insurance in the commercial space and this practice should be done in the govt.
Space as well to assure that funds are available for unique, designated needs
Debt Collection Improvement Act of 1996 - correct answer Federal agencies
are required to transfer most debt that is delinquent for over 180 days to the Dept
of Treasury or a Debt Collection Center designated by the Dept. For further
collection action
Dunning Procedures - correct answer Series of demand letters expressing
increasing concern and urgency can be sent to the debtor notifying him or her of
the default and listing of the consequences of not bringing the account into status
(i.e. Report to Credit Bureau as default borrower)
Administrative Offset - correct answer Govt. Makes payments to for-profit, non-
profit, individuals under the course of normal business for goods or services,
grants. These parties that the govt. Is paying might owe the govt. Money for
unpaid loans, improper payments, disallowed grant costs. It does not make
sense for the govt. To keep paying those individuals if they are not honoring their
debts. The government can figure out if other programs within the govt. Or
agency intend to pay the defaulting borrower and if so offset the delinquent debt
against those payments
, Collection Agencies - correct answer Govt. Can contract with a private
collection agency to go after delinquent debt and then deduct the fee from the
money they collected
Asset Sale - correct answer Federal law authorizes agencies to sell non-tax
debt owed to the US that is more than 90 days delinquent. I.e. "Sherriff Sales"
that allow the public to bid on property that is delinquent in the payment of
property taxes
Close Out - correct answer A program determines that a debt is uncollectible,
steps should be taken to remove the debt form the books and close out the
account
Enterprise Risk Management (ERM) - correct answer a process, effected by
an entity's board of directors, management and other personnel, applied in both
strategy setting and across the entity, designed to identify potential events that
may affect the entity, to manage risks, and to provide reasonable assurance
regarding the achievement of the entity's objective
Enterprise Resource Planning (ERP) system - correct answer Administrative
support systems that encompass all administrative support functions that are fully
integrated
Explanatory Information - correct answer Quantitative and narrative
information included in a performance report to help users better understand
performance measures, to assess the entity's performance, and to describe the
significance of underlying factors that may have affected the entity's
performance. These factors include both outside and within the control of entity
Fast pay procedures - correct answer Procedures that allow payment under
limited conditions prior to verification of delivery and acceptance of supplies
Questions and all Questions Accurately Answered Latest
2024/2025
Arbitrage - correct answer difference between an interest rate paid for funds
and the interest rate earned on the investment of those funds
Tax Reform Act of 1986 - correct answer clarified regulations for dealing with
arbitrage with state and local governments
Repurchase agreement - correct answer Short-term overnight loans and its an
arrangement between entity's and a counter party to lend cash on a short-term
basis obtaining securities as collateral
Debenture - correct answer Debt certificate but only backed by credit of issuer
and not their assets thereby giving it a higher interest rate
Yankee Bonds - correct answer these are foreign bonds denominated in US
dollars and issued in the US by foreign banks and corporations
Interest Rate Swaps - correct answer exchange of interest payments, but not
ownership of the underlying bond or principal
Prudent Person Rule - correct answer Those selected to monitor and select
investments must know what they are doing and must solely do it in the interest
of the participants or beneficiaries without any conflicts of interest
Direct Loan - correct answer This exists when the government agency
disburses funds directly to a borrower and is repaid directly by the borrower
,Loan Guarantees - correct answer The applicant applies to the lending
institution who then sees if they meets the requirements set by the government
and approves the loan. The loan repayment is made directly to the institution and
if the applicant defaults then the government agency makes the remaining
payment to the institution
Debt Collection Improvement Act of 1996 - correct answer Authorizes the
agencies to also report all credit extended to individuals to credit bureaus. This
lets other lenders know how much debt the individual owes the fed govt.
Escrow - correct answer Assure that monies are available to pay taxes,
insurance in the commercial space and this practice should be done in the govt.
Space as well to assure that funds are available for unique, designated needs
Debt Collection Improvement Act of 1996 - correct answer Federal agencies
are required to transfer most debt that is delinquent for over 180 days to the Dept
of Treasury or a Debt Collection Center designated by the Dept. For further
collection action
Dunning Procedures - correct answer Series of demand letters expressing
increasing concern and urgency can be sent to the debtor notifying him or her of
the default and listing of the consequences of not bringing the account into status
(i.e. Report to Credit Bureau as default borrower)
Administrative Offset - correct answer Govt. Makes payments to for-profit, non-
profit, individuals under the course of normal business for goods or services,
grants. These parties that the govt. Is paying might owe the govt. Money for
unpaid loans, improper payments, disallowed grant costs. It does not make
sense for the govt. To keep paying those individuals if they are not honoring their
debts. The government can figure out if other programs within the govt. Or
agency intend to pay the defaulting borrower and if so offset the delinquent debt
against those payments
, Collection Agencies - correct answer Govt. Can contract with a private
collection agency to go after delinquent debt and then deduct the fee from the
money they collected
Asset Sale - correct answer Federal law authorizes agencies to sell non-tax
debt owed to the US that is more than 90 days delinquent. I.e. "Sherriff Sales"
that allow the public to bid on property that is delinquent in the payment of
property taxes
Close Out - correct answer A program determines that a debt is uncollectible,
steps should be taken to remove the debt form the books and close out the
account
Enterprise Risk Management (ERM) - correct answer a process, effected by
an entity's board of directors, management and other personnel, applied in both
strategy setting and across the entity, designed to identify potential events that
may affect the entity, to manage risks, and to provide reasonable assurance
regarding the achievement of the entity's objective
Enterprise Resource Planning (ERP) system - correct answer Administrative
support systems that encompass all administrative support functions that are fully
integrated
Explanatory Information - correct answer Quantitative and narrative
information included in a performance report to help users better understand
performance measures, to assess the entity's performance, and to describe the
significance of underlying factors that may have affected the entity's
performance. These factors include both outside and within the control of entity
Fast pay procedures - correct answer Procedures that allow payment under
limited conditions prior to verification of delivery and acceptance of supplies
