CERTIFIED GOVERNMENT FINANCIAL MANAGER (CGFM) EXAM
STUDY GUIDE | QUESTIONS & ANSWERS | NEW 2026/2027 UPDATE |
GRADED A+| 100% CORRECT (VERIFIED SOLUTIONS)
Accountability -
ANSWER
Principle that, in a democracy, government operates by the consent of the people. Therefore, it is
responsible to, and must
ANSWER
to, the people for its actions and results, including the taking and using of the people's resources
Allotment -
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
Anti-Deficiency Act -
ANSWER
At the federal level, a law stating that officials can be fined and/or jailed if they obligate the
government to spend funds beyond the legally authorized purpose, time, or amount
Apportionment -
ANSWER
Definitions may vary at different levels of government. At the federal level, this is OMB's approval to
use a portion of the legislatively approved budgetary authority
Appropriated Budget -
ANSWER
Budget that has been passed by the legislative branch (and signed by the chief executive, if
required); has effect of law
Appropriation -
ANSWER
,A legislative enactment (law, statute, or ordinance) that created spending authority; the legal
authority to incur expenses and spend money
Attestation Engagement -
ANSWER
Engagement concerning with examining, reviewing, or performing agreed-upon procedures on a
limited subject matter, or a limited assertion about a subject matter, and reporting on the results.
The subject matter may be financial or nonfinancial
Authorization -
ANSWER
Legislative enactment that approves programs; prescribes what activities an agency may pursue if
funding is available
Block Grant -
ANSWER
One type of formula grant. Block grants combine several service categories into one grant and, thus,
allow maximum flexibility to the grantee to use the funds to meet local needs
Capital Budget -
ANSWER
Forecasts and controls spending for "big-ticket" items that are acquired and used over a period of
several years, such as construction projects and major equipment purchases. Used at state and local
levels
Capital Lease -
ANSWER
A lease of real property that meets defined criteria requiring the government to report the property
as if it were purchased with the proceeds of long-term debt
Cash-flow budget -
ANSWER
Forecasts the timing, as well as amount of cash flows, for a period. Use to project required cash
levels
, Categorical grant -
ANSWER
One type of formula grant that can be used for a narrowly defined purpose
Central management agencies -
ANSWER
Government agencies that provide central management services to other components. An example
would be a state government's human resource office (that serves all state agencies) or the OMB at
the federal level
Certificate of Excellence in Accountability Reporting (CEAR) -
ANSWER
An AGA program that helps federal agencies and their components produce effective, high-quality
Performance and Accountability Reports/Agency Financial Reports
Certificate of participation -
ANSWER
Form of share government financing. In a typical form, several financial institutions share in a loan
arrangement with a government entity
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, executive, or judicial) can constrain actions
of the other branches. Flows from separation of powers
Chief Financial Officers (CFO) Act -
ANSWER
STUDY GUIDE | QUESTIONS & ANSWERS | NEW 2026/2027 UPDATE |
GRADED A+| 100% CORRECT (VERIFIED SOLUTIONS)
Accountability -
ANSWER
Principle that, in a democracy, government operates by the consent of the people. Therefore, it is
responsible to, and must
ANSWER
to, the people for its actions and results, including the taking and using of the people's resources
Allotment -
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
Anti-Deficiency Act -
ANSWER
At the federal level, a law stating that officials can be fined and/or jailed if they obligate the
government to spend funds beyond the legally authorized purpose, time, or amount
Apportionment -
ANSWER
Definitions may vary at different levels of government. At the federal level, this is OMB's approval to
use a portion of the legislatively approved budgetary authority
Appropriated Budget -
ANSWER
Budget that has been passed by the legislative branch (and signed by the chief executive, if
required); has effect of law
Appropriation -
ANSWER
,A legislative enactment (law, statute, or ordinance) that created spending authority; the legal
authority to incur expenses and spend money
Attestation Engagement -
ANSWER
Engagement concerning with examining, reviewing, or performing agreed-upon procedures on a
limited subject matter, or a limited assertion about a subject matter, and reporting on the results.
The subject matter may be financial or nonfinancial
Authorization -
ANSWER
Legislative enactment that approves programs; prescribes what activities an agency may pursue if
funding is available
Block Grant -
ANSWER
One type of formula grant. Block grants combine several service categories into one grant and, thus,
allow maximum flexibility to the grantee to use the funds to meet local needs
Capital Budget -
ANSWER
Forecasts and controls spending for "big-ticket" items that are acquired and used over a period of
several years, such as construction projects and major equipment purchases. Used at state and local
levels
Capital Lease -
ANSWER
A lease of real property that meets defined criteria requiring the government to report the property
as if it were purchased with the proceeds of long-term debt
Cash-flow budget -
ANSWER
Forecasts the timing, as well as amount of cash flows, for a period. Use to project required cash
levels
, Categorical grant -
ANSWER
One type of formula grant that can be used for a narrowly defined purpose
Central management agencies -
ANSWER
Government agencies that provide central management services to other components. An example
would be a state government's human resource office (that serves all state agencies) or the OMB at
the federal level
Certificate of Excellence in Accountability Reporting (CEAR) -
ANSWER
An AGA program that helps federal agencies and their components produce effective, high-quality
Performance and Accountability Reports/Agency Financial Reports
Certificate of participation -
ANSWER
Form of share government financing. In a typical form, several financial institutions share in a loan
arrangement with a government entity
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, executive, or judicial) can constrain actions
of the other branches. Flows from separation of powers
Chief Financial Officers (CFO) Act -
ANSWER
