CGFM EXAM 1 STUDY GUIDE
QUESTIONS & ANSWERS.
GRADED A+
QUESTIONS AND ANSWERS
ERP. ANSWER - Enterprise Resource Planning
FSIO. ANSWER - Financial Systems Integration Office (within GSA)
GAO. ANSWER - Government Accountibility Office
GASB. ANSWER - Government Accounting Standards Board
OMB. ANSWER - Office of Management and Budget
SEA. ANSWER - Service Efforts and Accomplishments
Allotments. ANSWER - In 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.
Apportionmnets. ANSWER - Definitions may vary at different levels of
government. At the federal level, OMB's approval to use a protion of the
legislatively approved budgetary authority.
Attestation engagements. ANSWER - Engagement 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.
Block grants. ANSWER - Intergovernmental provision of resources for broadly
defined purposes. Contrasts with category grants.
Category grants. ANSWER - Intergovernmental 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. ANSWER - Government 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.
Charter. ANSWER - Local government version of a constitution. States may
provide for the establishment of local governments through charters
Checks and balances. ANSWER - Process by which one branch of government
(legislative, executiv or judicial) can constrain actions of the other branches.
Flows from separation of powers.
Conflict of interest. ANSWER - Arises 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
,Continuity of Operations. ANSWER - Refers to the efforts to ensure the
organization can sustain essential operations regardless of planned or
unplanned incidents or disruptions.
Data mining. ANSWER - Using special, computer-based techniques such as
filters and algorithms to extract meaningful information from large bodies of
data
Diligence. ANSWER - Pursuing an event, action or assignment to a timely and
sufficient end or close
Discrestionary grants. ANSWER - Form 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
Due care. ANSWER - To 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. ANSWER - Variation 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
Estate tax. ANSWER - Form of wealth tax. Levied on the estate of the deceased
person before assets are distributed to heirs
Ethics. ANSWER - A 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
Excise tax. ANSWER - Form of consumption tax.
FASAB. ANSWER - Defines GAAP for entities of the federal government; this
includes the national government as a whole plus distinct components.
FASB. ANSWER - Defines GAAP for private sector entities. Occasionally, GASB
and FASAB make FASB standards applicable to national, state or local
government
Financial Management System. ANSWER - Organized means for the collection,
processing, transmission and dissemination of financial information. Includes
policies and procedures and trained personnel as well as any applicable
computer hardware and software
Financial Reports. ANSWER - External reports that depict financial position
and financial results of operations of the entity
Formula grants. ANSWER - Form of category grants. The amount of the inter-
governmental transfer is based on a formula contained in law or regulation,
which determines the total amount recipients will receive if basic eligibility
requirements are satisfied
Forensic auditing. ANSWER - "Forensic" implies that the results will be
admissable as legal evidence. Forensic auditing combines the skills of auditors
and accountants with investigative techniques, useful for both detection and
prevention of fraud
QUESTIONS & ANSWERS.
GRADED A+
QUESTIONS AND ANSWERS
ERP. ANSWER - Enterprise Resource Planning
FSIO. ANSWER - Financial Systems Integration Office (within GSA)
GAO. ANSWER - Government Accountibility Office
GASB. ANSWER - Government Accounting Standards Board
OMB. ANSWER - Office of Management and Budget
SEA. ANSWER - Service Efforts and Accomplishments
Allotments. ANSWER - In 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.
Apportionmnets. ANSWER - Definitions may vary at different levels of
government. At the federal level, OMB's approval to use a protion of the
legislatively approved budgetary authority.
Attestation engagements. ANSWER - Engagement 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.
Block grants. ANSWER - Intergovernmental provision of resources for broadly
defined purposes. Contrasts with category grants.
Category grants. ANSWER - Intergovernmental 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. ANSWER - Government 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.
Charter. ANSWER - Local government version of a constitution. States may
provide for the establishment of local governments through charters
Checks and balances. ANSWER - Process by which one branch of government
(legislative, executiv or judicial) can constrain actions of the other branches.
Flows from separation of powers.
Conflict of interest. ANSWER - Arises 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
,Continuity of Operations. ANSWER - Refers to the efforts to ensure the
organization can sustain essential operations regardless of planned or
unplanned incidents or disruptions.
Data mining. ANSWER - Using special, computer-based techniques such as
filters and algorithms to extract meaningful information from large bodies of
data
Diligence. ANSWER - Pursuing an event, action or assignment to a timely and
sufficient end or close
Discrestionary grants. ANSWER - Form 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
Due care. ANSWER - To 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. ANSWER - Variation 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
Estate tax. ANSWER - Form of wealth tax. Levied on the estate of the deceased
person before assets are distributed to heirs
Ethics. ANSWER - A 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
Excise tax. ANSWER - Form of consumption tax.
FASAB. ANSWER - Defines GAAP for entities of the federal government; this
includes the national government as a whole plus distinct components.
FASB. ANSWER - Defines GAAP for private sector entities. Occasionally, GASB
and FASAB make FASB standards applicable to national, state or local
government
Financial Management System. ANSWER - Organized means for the collection,
processing, transmission and dissemination of financial information. Includes
policies and procedures and trained personnel as well as any applicable
computer hardware and software
Financial Reports. ANSWER - External reports that depict financial position
and financial results of operations of the entity
Formula grants. ANSWER - Form of category grants. The amount of the inter-
governmental transfer is based on a formula contained in law or regulation,
which determines the total amount recipients will receive if basic eligibility
requirements are satisfied
Forensic auditing. ANSWER - "Forensic" implies that the results will be
admissable as legal evidence. Forensic auditing combines the skills of auditors
and accountants with investigative techniques, useful for both detection and
prevention of fraud
