CGFM Test 3 (2) UPDATED ACTUAL
Exam Questions and CORRECT Answers
Activity Measure - CORRECT ANSWER - A measure to monitor a credit program. Indicates
the volume of activity performed. Ex: # of loans outstanding, $ of loans outstanding, volume of
loans generated during the past year, quarter or month...
Effectiveness measures - CORRECT ANSWER - A measure to monitor a credit program.
Indicates the extent to which the program is achieving the intended results and the effectiveness
of different collection techniques. Ex: % of enrollment increase per million dollars of student
loans, # of jobs created per million dollars of small business loans
Status Measures - CORRECT ANSWER - A measure to monitor a credit program. Indicates
the quantity and quality of the loans made and retained. Ex: # of delinquent accounts, $ amount
of delinquent accounts
Efficiency Measures - CORRECT ANSWER - A measure to monitor a credit program.
Indicators of the cost per unit of various operations, including the various collection techniques.
Ex: Cost per Loan processed, cost per dollar collected...
Request for Qualification (RFQ) - CORRECT ANSWER - Used to pre-qualify vendors, based
on factors like level of experience to perform types of services, background of employed staff,
previous work, financial capacity. This allows the government to limit the proposal it has to look
at.
Blanket Purchase Agreement - CORRECT ANSWER - Individual govts. or agencies may
enter bulk purchases for specific items needed for a specified period of time. Components then
issue Purchase Orders against the contract.
Small Purchase Procedures - CORRECT ANSWER - Laws or regulations may define small
purchases as up to $10k as representing small purchases. Auditors should be wary to circumvent
the dollar amounts by splitting up large orders into several small ones.
, Fixed Price Contract - CORRECT ANSWER - Contracts in which prices are not subject to
adjustment, regardless of the contractor's cost experience
Cost Reimbursable Contract - CORRECT ANSWER - payment of allowable costs incurred to
the extent specified in the contract
Cost plus fixed fee - CORRECT ANSWER - Type of Cost Reimbursable Contract. Contractor
receives allowable costs plus a fixed amount of fee specified in the contract.
Cost plus Incentive Fee - CORRECT ANSWER - Type of Cost Reimbursable Contract.
Contractor receives allowable costs plus a fee that varies inversely with the amount of cost
incurred
Cost with no Fee - CORRECT ANSWER - Type of Cost Reimbursable Contract. Contractor
is reimbursed for only allowable costs (typical with universities, non-profit, and R&D contracts)
Cost Sharing Contract - CORRECT ANSWER - Type of Cost Reimbursable Contract.
Contractor and government share the costs and the contractor receives no fees
Time and Materials Contract - CORRECT ANSWER - Type of Cost Reimbursable Contract.
Contractor receives flat rate per hour or day for labor, plus the costs of materials. Risky for
government because the contractor has no incentive to keep the number of hours down.
Real Property - CORRECT ANSWER - Leased or owned and includes land, land rights and
anything else attached to the land (except natural resources), buildings and infrastructure
Personal Property - CORRECT ANSWER - Equipment, furniture, fixtures, supplies,
hardware, software. It can include intellectual property like copyrights, bonds, stocks...
Inventory - CORRECT ANSWER - Tangible property that is held for sale or in the process of
production for sale or in the process of production for sale, or to e consumed in the production of
goods for sale or in the provision of services for a fee
Exam Questions and CORRECT Answers
Activity Measure - CORRECT ANSWER - A measure to monitor a credit program. Indicates
the volume of activity performed. Ex: # of loans outstanding, $ of loans outstanding, volume of
loans generated during the past year, quarter or month...
Effectiveness measures - CORRECT ANSWER - A measure to monitor a credit program.
Indicates the extent to which the program is achieving the intended results and the effectiveness
of different collection techniques. Ex: % of enrollment increase per million dollars of student
loans, # of jobs created per million dollars of small business loans
Status Measures - CORRECT ANSWER - A measure to monitor a credit program. Indicates
the quantity and quality of the loans made and retained. Ex: # of delinquent accounts, $ amount
of delinquent accounts
Efficiency Measures - CORRECT ANSWER - A measure to monitor a credit program.
Indicators of the cost per unit of various operations, including the various collection techniques.
Ex: Cost per Loan processed, cost per dollar collected...
Request for Qualification (RFQ) - CORRECT ANSWER - Used to pre-qualify vendors, based
on factors like level of experience to perform types of services, background of employed staff,
previous work, financial capacity. This allows the government to limit the proposal it has to look
at.
Blanket Purchase Agreement - CORRECT ANSWER - Individual govts. or agencies may
enter bulk purchases for specific items needed for a specified period of time. Components then
issue Purchase Orders against the contract.
Small Purchase Procedures - CORRECT ANSWER - Laws or regulations may define small
purchases as up to $10k as representing small purchases. Auditors should be wary to circumvent
the dollar amounts by splitting up large orders into several small ones.
, Fixed Price Contract - CORRECT ANSWER - Contracts in which prices are not subject to
adjustment, regardless of the contractor's cost experience
Cost Reimbursable Contract - CORRECT ANSWER - payment of allowable costs incurred to
the extent specified in the contract
Cost plus fixed fee - CORRECT ANSWER - Type of Cost Reimbursable Contract. Contractor
receives allowable costs plus a fixed amount of fee specified in the contract.
Cost plus Incentive Fee - CORRECT ANSWER - Type of Cost Reimbursable Contract.
Contractor receives allowable costs plus a fee that varies inversely with the amount of cost
incurred
Cost with no Fee - CORRECT ANSWER - Type of Cost Reimbursable Contract. Contractor
is reimbursed for only allowable costs (typical with universities, non-profit, and R&D contracts)
Cost Sharing Contract - CORRECT ANSWER - Type of Cost Reimbursable Contract.
Contractor and government share the costs and the contractor receives no fees
Time and Materials Contract - CORRECT ANSWER - Type of Cost Reimbursable Contract.
Contractor receives flat rate per hour or day for labor, plus the costs of materials. Risky for
government because the contractor has no incentive to keep the number of hours down.
Real Property - CORRECT ANSWER - Leased or owned and includes land, land rights and
anything else attached to the land (except natural resources), buildings and infrastructure
Personal Property - CORRECT ANSWER - Equipment, furniture, fixtures, supplies,
hardware, software. It can include intellectual property like copyrights, bonds, stocks...
Inventory - CORRECT ANSWER - Tangible property that is held for sale or in the process of
production for sale or in the process of production for sale, or to e consumed in the production of
goods for sale or in the provision of services for a fee
