CGFM Test 1 2025 Questions and
Answers
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
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,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
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, 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
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Answers
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
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
,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
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
, 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
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
