CGFM Exam with Questions and
Answers| 100% Passed
Attestation engagements (External Audits ) - ✔✔Engagement primarily concerned with examining,
reviewing 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 - ✔✔Intergovernmental provision of resources for broadly defined purposes.
Contrasts with category grants.
Category grants - ✔✔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 - ✔✔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.
Checks and balances - ✔✔Process by which one branch of government (legislative, executive or
judicial) can constrain actions of the other branches. Flows from separation of powers. No branch
of govt is completely independent of other
,Conflict of interest - ✔✔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
COOP-Continuity of Operations - ✔✔Refers to the efforts to ensure the organization can
sustain essential operations regardless of planned or unplanned incidents or disruptions.
Earmarking (dedicated collections or tax) - ✔✔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
project grants/discretionary grant - ✔✔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
Estate tax - ✔✔Form of wealth tax. Levied on the estate of the deceased person before assets
are distributed to heirs
Ethics - ✔✔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
Financial Reports - ✔✔External reports that depict financial position and financial results
of operations of the entity
Formula grants - ✔✔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
Income tax - ✔✔Tax based on income and levied on individuals or corporations. Used most often
at national and state levels, though some states allow local governments to impose income taxes.
,Independence - ✔✔Free from relationships that may impair, or appear to impair, one's ability to
act with objectivity. Independence is the quality of being free of any obligation to particular parties or
interests. also free of undue influence.
Inheritance Tax - ✔✔Form of wealth tax. Levied on the person receiving the bequest
Myers-Briggs Type Analysis - ✔✔Personality assessment based on the psychological theory of Carl
Jung and the diagnostic instrument developbed by Isabel Briggs-Myers and her mother Katharine
Briggs
Operating budget - ✔✔Defines level or resources to be applied in providing government
programs and services; usually covers periods of one to two years.
Situational Leadership - ✔✔Leadership model developed by Ken Blanchard and Paul Hersey.
Encourages leaders to diagnose developmental level of employees and vary their leadership style
accordingly.
Serial bonds - ✔✔A bond issue featuring maturities, every year, over a period of several years.
Contrasts with term bonds in which the entire issue matures on the same date or near the same date.
Gov't sovereignty vs. Popular sovereignty - ✔✔The national government cannot be sued by states
or citizens without its permission. Pop: Principle that, while governments are sovereign entities, in a
democracy, ultimate sovereignty rests with the people.
Judicial review - ✔✔Principle by which the judicial branch may review actions by the legislative
and executive branches and, if appropriate, declare them unconstitutional or illegal. Flows from the
separation of powers.
Appropriation - ✔✔A legislative enactment (law, statute or ordinance) that creates
spending authority; the legal authority to incur expenses and spend money.
GAGAS (Generally Accepted Government Auditing Standards) - ✔✔Issued by the Government
Accountability Office (GAO), to define the expected levels of performance for the conduct of an audit or
, attestation of a government organization, program, activity, or function(also called government
auditing standards or Yellow Book).
Fundamental Ethical Princile - ✔✔Public service is a public trust.
GPEFR - ✔✔General Purpose External Financial Reports
Government borrowing is constrained by... - ✔✔...constitutions and statutes, bond covenants, and
debt policies.
the federal government has ___ but not ___ debt limits. - ✔✔statutory, but not constitutional
wealth taxes - ✔✔real property, personal property, intangibles and estate and inheritance
taxes; costly to administer; major source of revenue for local governments, primarily real property
taxes
consumption taxes - ✔✔sales, use, excise, and VAT. Regressive; low compliance rates; major
source of financing for most state governments and many local entities
3 long-term financing options; one short - ✔✔bonds, lease-purchase agreements and CoP; notes
2 typical way gov't lowers interest costs in debt issues - ✔✔securing third-party insurance; state
guarantees
The appropriated budget is - ✔✔primarily legal authority to spend, also an expression of
public policy, a financial plan, and an important communications device.
The primary purpose of the budget PROCESS is - ✔✔to prioritize gov't expenditures and
allocate financial resources to fund them.
separation of power - ✔✔legislature INFORMS policy, executive IMPLEMENTS policy
in ADMINISTRATION, and the judicial exercises JUDICIAL REVIEW.
Answers| 100% Passed
Attestation engagements (External Audits ) - ✔✔Engagement primarily concerned with examining,
reviewing 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 - ✔✔Intergovernmental provision of resources for broadly defined purposes.
Contrasts with category grants.
Category grants - ✔✔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 - ✔✔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.
Checks and balances - ✔✔Process by which one branch of government (legislative, executive or
judicial) can constrain actions of the other branches. Flows from separation of powers. No branch
of govt is completely independent of other
,Conflict of interest - ✔✔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
COOP-Continuity of Operations - ✔✔Refers to the efforts to ensure the organization can
sustain essential operations regardless of planned or unplanned incidents or disruptions.
Earmarking (dedicated collections or tax) - ✔✔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
project grants/discretionary grant - ✔✔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
Estate tax - ✔✔Form of wealth tax. Levied on the estate of the deceased person before assets
are distributed to heirs
Ethics - ✔✔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
Financial Reports - ✔✔External reports that depict financial position and financial results
of operations of the entity
Formula grants - ✔✔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
Income tax - ✔✔Tax based on income and levied on individuals or corporations. Used most often
at national and state levels, though some states allow local governments to impose income taxes.
,Independence - ✔✔Free from relationships that may impair, or appear to impair, one's ability to
act with objectivity. Independence is the quality of being free of any obligation to particular parties or
interests. also free of undue influence.
Inheritance Tax - ✔✔Form of wealth tax. Levied on the person receiving the bequest
Myers-Briggs Type Analysis - ✔✔Personality assessment based on the psychological theory of Carl
Jung and the diagnostic instrument developbed by Isabel Briggs-Myers and her mother Katharine
Briggs
Operating budget - ✔✔Defines level or resources to be applied in providing government
programs and services; usually covers periods of one to two years.
Situational Leadership - ✔✔Leadership model developed by Ken Blanchard and Paul Hersey.
Encourages leaders to diagnose developmental level of employees and vary their leadership style
accordingly.
Serial bonds - ✔✔A bond issue featuring maturities, every year, over a period of several years.
Contrasts with term bonds in which the entire issue matures on the same date or near the same date.
Gov't sovereignty vs. Popular sovereignty - ✔✔The national government cannot be sued by states
or citizens without its permission. Pop: Principle that, while governments are sovereign entities, in a
democracy, ultimate sovereignty rests with the people.
Judicial review - ✔✔Principle by which the judicial branch may review actions by the legislative
and executive branches and, if appropriate, declare them unconstitutional or illegal. Flows from the
separation of powers.
Appropriation - ✔✔A legislative enactment (law, statute or ordinance) that creates
spending authority; the legal authority to incur expenses and spend money.
GAGAS (Generally Accepted Government Auditing Standards) - ✔✔Issued by the Government
Accountability Office (GAO), to define the expected levels of performance for the conduct of an audit or
, attestation of a government organization, program, activity, or function(also called government
auditing standards or Yellow Book).
Fundamental Ethical Princile - ✔✔Public service is a public trust.
GPEFR - ✔✔General Purpose External Financial Reports
Government borrowing is constrained by... - ✔✔...constitutions and statutes, bond covenants, and
debt policies.
the federal government has ___ but not ___ debt limits. - ✔✔statutory, but not constitutional
wealth taxes - ✔✔real property, personal property, intangibles and estate and inheritance
taxes; costly to administer; major source of revenue for local governments, primarily real property
taxes
consumption taxes - ✔✔sales, use, excise, and VAT. Regressive; low compliance rates; major
source of financing for most state governments and many local entities
3 long-term financing options; one short - ✔✔bonds, lease-purchase agreements and CoP; notes
2 typical way gov't lowers interest costs in debt issues - ✔✔securing third-party insurance; state
guarantees
The appropriated budget is - ✔✔primarily legal authority to spend, also an expression of
public policy, a financial plan, and an important communications device.
The primary purpose of the budget PROCESS is - ✔✔to prioritize gov't expenditures and
allocate financial resources to fund them.
separation of power - ✔✔legislature INFORMS policy, executive IMPLEMENTS policy
in ADMINISTRATION, and the judicial exercises JUDICIAL REVIEW.
