CGFM EVALUATION EXAM 2026 QUESTIONS AND
SOLUTIONS GRADED A+
✔✔Cost Reimbursement Contracts
tend to be more expensive than fixed price - ✔✔* Cost plus fixed fee
* Cost plus incentive fee
* Cost with no fee
* Cost sharing contracts
* Time and material - contractor receives a flat hourly/daily rate plus the cost of
materials
✔✔Monitoring Contract Performance - ✔✔1) timeliness of delivery
2) quantity delivered
3) quality of product/service
4) costs - prevent overruns by setting clear requirements in ITB/RFP
✔✔Federal Real Property Profile (FRPP) - ✔✔maintained by GSA; comprehensive data
base of all real property controlled by all executive branch agencies.
✔✔Property Management - 4 activities - ✔✔1) Recordkeeping, asset management
system
2) Maximize utility
3) Safeguarding, esp. high value, small items
4) Maintenance - to maximize assets life, gov't tendency to defer
✔✔Heritage Property a.k.a.
Works of Art and Historical Treasure - ✔✔Assets that do not support the gov't in
providing goods/services, but have historic, cultural, artistic, or other significance. Eg.
monuments, public lands.
No $$ amount used for reporting, however their existence is disclosed in a footnote to
the financial statements
✔✔OMB - 4 criteria for property disposal consideration: - ✔✔1)is it needed to carry out
a critical mission
2) the extent to which it is utilized
3) condition
4) cost to operate property
* also, can it be used for an alternate purpose?
✔✔Disposal methods - ✔✔* scrap - easiest
* trade
* give to another gov't agency
,* sell
Gov't must always be good stewards of public resources.
✔✔Inventory Risks - ✔✔1) not having enough
2) having too much - timing up funds and eating space
3) loss due to pilferage, spoilage, deterioration, or obsolescence
✔✔Inventory Management System - Supply Control - ✔✔1) When to order - "reorder
point"
** consider usage, days for order processing and delivery, and reasonable level of
stock for contingency **
2) How much to order - dependent on admin cost of procurement and the cost of
carrying the materials in inventory.
✔✔Economic Order Quantity (EOQ) - ✔✔EOQ = square root of 2DS/CI
D= annual demand
S = order cost
C = unit cost
I = carrying cost
✔✔Inventory Control - Major Activities - ✔✔* receiving and inspecting
* placing in inventory
* tracking movement and disposition:
** sold, placed in production, used in operations, placed into repair, loaned **
*valuing inventory: FIFO, LIFO, Avg Cost
✔✔Inventory - Major Internal Controls - ✔✔* policies and procedures
* separation of duties
* ensuring inspections accuracy
* storage (to avoid damage)
* safeguarding - asset tagging
* physical verification - annual counts
Inventory write-offs approved by management before processed
✔✔Inventory Management/Performance Reporting
Supply, Manufacturing, Retail, Budgeting Activities
periodic user survey to gauge effectiveness - ✔✔**Supply Activities:
1) out of stock instances
2) dollar amount of unfilled orders
3) inactive, excess, or absolute stock
, 4) inventory difference ratio
5) inventory turn over ratio
**Manufacturing Activities:
1) days of supply on hand
2) breakage and spoilage
** Retail Activities:
1) pilferage
** Budget Activities:
1) Budget Vs. Actual
✔✔Financial Management System - Definition - ✔✔people, processes and technology
to capture, classify, summarize, and report data in a meaningful manner to support
business decisions.
✔✔Core Components of a Financial Management System - ✔✔1) maintain chart of
accounts
2) account for basic financial transactions
3) monitoring budget execution
4) managing financial assets, esp. cash
5) A/P
6) maintaining financial controls
7) reporting financial position and results.
✔✔Data Visualization - Definition - ✔✔creation and study of visual representation of
data with goal of communicating complex insights in a meaningful way.
✔✔Data Acquisition - Definition - ✔✔sampling of real world facts/figures to generate
data that can be manipulated by a computer
✔✔Data Analysis - Definition - ✔✔process of studying and summarizing data with the
intent of extracting useful information to develop conclusions
✔✔Data Dashboards - 4 key elements - ✔✔1) simple, communicates easily
2) specific and measurable metrics
3) minimum distractions
4) applies human visual perception/presentation
✔✔Data Dashboard - Purposes - ✔✔1) Strategic - high level static snap-shots that are
updated periodically
2) Analytical - more context, historical comparison, subtle performance indicators (ability
to drill down)
SOLUTIONS GRADED A+
✔✔Cost Reimbursement Contracts
tend to be more expensive than fixed price - ✔✔* Cost plus fixed fee
* Cost plus incentive fee
* Cost with no fee
* Cost sharing contracts
* Time and material - contractor receives a flat hourly/daily rate plus the cost of
materials
✔✔Monitoring Contract Performance - ✔✔1) timeliness of delivery
2) quantity delivered
3) quality of product/service
4) costs - prevent overruns by setting clear requirements in ITB/RFP
✔✔Federal Real Property Profile (FRPP) - ✔✔maintained by GSA; comprehensive data
base of all real property controlled by all executive branch agencies.
✔✔Property Management - 4 activities - ✔✔1) Recordkeeping, asset management
system
2) Maximize utility
3) Safeguarding, esp. high value, small items
4) Maintenance - to maximize assets life, gov't tendency to defer
✔✔Heritage Property a.k.a.
Works of Art and Historical Treasure - ✔✔Assets that do not support the gov't in
providing goods/services, but have historic, cultural, artistic, or other significance. Eg.
monuments, public lands.
No $$ amount used for reporting, however their existence is disclosed in a footnote to
the financial statements
✔✔OMB - 4 criteria for property disposal consideration: - ✔✔1)is it needed to carry out
a critical mission
2) the extent to which it is utilized
3) condition
4) cost to operate property
* also, can it be used for an alternate purpose?
✔✔Disposal methods - ✔✔* scrap - easiest
* trade
* give to another gov't agency
,* sell
Gov't must always be good stewards of public resources.
✔✔Inventory Risks - ✔✔1) not having enough
2) having too much - timing up funds and eating space
3) loss due to pilferage, spoilage, deterioration, or obsolescence
✔✔Inventory Management System - Supply Control - ✔✔1) When to order - "reorder
point"
** consider usage, days for order processing and delivery, and reasonable level of
stock for contingency **
2) How much to order - dependent on admin cost of procurement and the cost of
carrying the materials in inventory.
✔✔Economic Order Quantity (EOQ) - ✔✔EOQ = square root of 2DS/CI
D= annual demand
S = order cost
C = unit cost
I = carrying cost
✔✔Inventory Control - Major Activities - ✔✔* receiving and inspecting
* placing in inventory
* tracking movement and disposition:
** sold, placed in production, used in operations, placed into repair, loaned **
*valuing inventory: FIFO, LIFO, Avg Cost
✔✔Inventory - Major Internal Controls - ✔✔* policies and procedures
* separation of duties
* ensuring inspections accuracy
* storage (to avoid damage)
* safeguarding - asset tagging
* physical verification - annual counts
Inventory write-offs approved by management before processed
✔✔Inventory Management/Performance Reporting
Supply, Manufacturing, Retail, Budgeting Activities
periodic user survey to gauge effectiveness - ✔✔**Supply Activities:
1) out of stock instances
2) dollar amount of unfilled orders
3) inactive, excess, or absolute stock
, 4) inventory difference ratio
5) inventory turn over ratio
**Manufacturing Activities:
1) days of supply on hand
2) breakage and spoilage
** Retail Activities:
1) pilferage
** Budget Activities:
1) Budget Vs. Actual
✔✔Financial Management System - Definition - ✔✔people, processes and technology
to capture, classify, summarize, and report data in a meaningful manner to support
business decisions.
✔✔Core Components of a Financial Management System - ✔✔1) maintain chart of
accounts
2) account for basic financial transactions
3) monitoring budget execution
4) managing financial assets, esp. cash
5) A/P
6) maintaining financial controls
7) reporting financial position and results.
✔✔Data Visualization - Definition - ✔✔creation and study of visual representation of
data with goal of communicating complex insights in a meaningful way.
✔✔Data Acquisition - Definition - ✔✔sampling of real world facts/figures to generate
data that can be manipulated by a computer
✔✔Data Analysis - Definition - ✔✔process of studying and summarizing data with the
intent of extracting useful information to develop conclusions
✔✔Data Dashboards - 4 key elements - ✔✔1) simple, communicates easily
2) specific and measurable metrics
3) minimum distractions
4) applies human visual perception/presentation
✔✔Data Dashboard - Purposes - ✔✔1) Strategic - high level static snap-shots that are
updated periodically
2) Analytical - more context, historical comparison, subtle performance indicators (ability
to drill down)
