CERTIFIED GOVERNMENT FINANCIAL MANAGER (CGFM) EXAM
STUDY GUIDE | QUESTIONS & ANSWERS | NEW 2026/2027 UPDATE |
GRADED A+| 100% CORRECT (VERIFIED SOLUTIONS)
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
STUDY GUIDE | QUESTIONS & ANSWERS | NEW 2026/2027 UPDATE |
GRADED A+| 100% CORRECT (VERIFIED SOLUTIONS)
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
