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CGFM Test 1 Questions and Correct
Answers/ Latest Update / Already Graded
Accountability
Ans: 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
Ans: 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
Ans: 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
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Ans: 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
Ans: Budget that has been passed by the legislative branch
(and signed by the chief executive, if required); has effect of
law
Appropriation
Ans: A legislative enactment (law, statute, or ordinance) that
created spending authority; the legal authority to incur
expenses and spend money
Attestation Engagement
Ans: 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
All rights reserved © 2025/ 2026 |
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Ans: Legislative enactment that approves programs; prescribes
what activities an agency may pursue if funding is available
Block Grant
Ans: 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
Ans: 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
Ans: 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
Ans: Forecasts the timing, as well as amount of cash flows, for
a period. Use to project required cash levels
All rights reserved © 2025/ 2026 |
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Categorical grant
Ans: One type of formula grant that can be used for a narrowly
defined purpose
Central management agencies
Ans: 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)
Ans: An AGA program that helps federal agencies and their
components produce effective, high-quality Performance and
Accountability Reports/Agency Financial Reports
Certificate of participation
Ans: Form of share government financing. In a typical form,
several financial institutions share in a loan arrangement with a
government entity
Charter
All rights reserved © 2025/ 2026 |
CGFM Test 1 Questions and Correct
Answers/ Latest Update / Already Graded
Accountability
Ans: 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
Ans: 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
Ans: 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
All rights reserved © 2025/ 2026 |
, Page |2
Ans: 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
Ans: Budget that has been passed by the legislative branch
(and signed by the chief executive, if required); has effect of
law
Appropriation
Ans: A legislative enactment (law, statute, or ordinance) that
created spending authority; the legal authority to incur
expenses and spend money
Attestation Engagement
Ans: 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
All rights reserved © 2025/ 2026 |
, Page |3
Ans: Legislative enactment that approves programs; prescribes
what activities an agency may pursue if funding is available
Block Grant
Ans: 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
Ans: 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
Ans: 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
Ans: Forecasts the timing, as well as amount of cash flows, for
a period. Use to project required cash levels
All rights reserved © 2025/ 2026 |
, Page |4
Categorical grant
Ans: One type of formula grant that can be used for a narrowly
defined purpose
Central management agencies
Ans: 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)
Ans: An AGA program that helps federal agencies and their
components produce effective, high-quality Performance and
Accountability Reports/Agency Financial Reports
Certificate of participation
Ans: Form of share government financing. In a typical form,
several financial institutions share in a loan arrangement with a
government entity
Charter
All rights reserved © 2025/ 2026 |
