CGFM Exam 1 ALL Questions and
Answers UPDATED 2025
doctrine of separation of powers provides a foundation for - ANSWER-
government financial management
govt entity can be classed as - ANSWER-general or special purpose
US constitution written - ANSWER-1787
Most school district in US - ANSWER-Independent District
Role of federal CFO - ANSWER-codified in the Chief Financial Officer act of
1990
telework - ANSWER-working from home or other remote location
Anti-fraud policies - ANSWER-a formal code of conduct
frames the behavioral expectations for individuals
No. of the Federal Reserve Bank - ANSWER-12 regional banks in major cities
if budget has not passed by the start of the new fiscal year - ANSWER-
Government does not have legal authority to operate
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,supplemental appropriation
budget amendment - ANSWER-executive inform the legislative branch that more
funds are needed due to depletion of funds before the end of fiscal year
most power in budget - ANSWER-legislative branch
Appropriation of funds - ANSWER-budget bill that actually makes funds available
Authorization of funds - ANSWER-bill that approves programs
it prescribes what an agency will do if funding is available
Expanded Government framework - ANSWER-includes these steps: planning,
programming, budgeting, operations, accounting, reporting and auditing.
Type of performance audit - ANSWER-o Program effectiveness and results audits
address the effectiveness of a program and typically measure the extent to which a
program is achieving its goals and objectives.
o Economy and efficiency audit objectives concern whether an entity is acquiring,
protecting and using its resources in the most productive manner to achieve
program objectives.
o Program effectiveness and results audit objectives, as well as economy and
efficiency audit objectives, are often interrelated and may be concurrently
addressed in a performance audit.
major form of government revenue - ANSWER-tax
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,progressive tax rate - ANSWER-income tax
higher incomes, higher tax rate
Tax expenditures - ANSWER-Exceptions to tax laws and regulations
They cost the public in terms of lost revenue that could otherwise be used to fund
programs or reduce tax rate
3 broad categories of tax - ANSWER-income
Wealth
Consumption
Income Tax - ANSWER-Base - all income
Graduated tax
Exemptions and deductions apply to enhance horizontal and vertical equity
Medicare tax rate - ANSWER-1.45% no cap
sinking fund - ANSWER-money set aside on a periodic basis to retire term bonds
at maturity
FSIO - ANSWER-Financial Systems Integration Office (within GSA)
SEA - ANSWER-Service Efforts and Accomplishments
Attestation engagements (External Audits ) - ANSWER-Engagement primarily
concerned with examining, reviewing or performing agreed upon procedures on a
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, 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 - ANSWER-Intergovernmental provision of resources for broadly
defined purposes. Contrasts with category grants.
Category grants - ANSWER-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 - ANSWER-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 - ANSWER-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 - ANSWER-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
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 4
Answers UPDATED 2025
doctrine of separation of powers provides a foundation for - ANSWER-
government financial management
govt entity can be classed as - ANSWER-general or special purpose
US constitution written - ANSWER-1787
Most school district in US - ANSWER-Independent District
Role of federal CFO - ANSWER-codified in the Chief Financial Officer act of
1990
telework - ANSWER-working from home or other remote location
Anti-fraud policies - ANSWER-a formal code of conduct
frames the behavioral expectations for individuals
No. of the Federal Reserve Bank - ANSWER-12 regional banks in major cities
if budget has not passed by the start of the new fiscal year - ANSWER-
Government does not have legal authority to operate
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
,supplemental appropriation
budget amendment - ANSWER-executive inform the legislative branch that more
funds are needed due to depletion of funds before the end of fiscal year
most power in budget - ANSWER-legislative branch
Appropriation of funds - ANSWER-budget bill that actually makes funds available
Authorization of funds - ANSWER-bill that approves programs
it prescribes what an agency will do if funding is available
Expanded Government framework - ANSWER-includes these steps: planning,
programming, budgeting, operations, accounting, reporting and auditing.
Type of performance audit - ANSWER-o Program effectiveness and results audits
address the effectiveness of a program and typically measure the extent to which a
program is achieving its goals and objectives.
o Economy and efficiency audit objectives concern whether an entity is acquiring,
protecting and using its resources in the most productive manner to achieve
program objectives.
o Program effectiveness and results audit objectives, as well as economy and
efficiency audit objectives, are often interrelated and may be concurrently
addressed in a performance audit.
major form of government revenue - ANSWER-tax
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
,progressive tax rate - ANSWER-income tax
higher incomes, higher tax rate
Tax expenditures - ANSWER-Exceptions to tax laws and regulations
They cost the public in terms of lost revenue that could otherwise be used to fund
programs or reduce tax rate
3 broad categories of tax - ANSWER-income
Wealth
Consumption
Income Tax - ANSWER-Base - all income
Graduated tax
Exemptions and deductions apply to enhance horizontal and vertical equity
Medicare tax rate - ANSWER-1.45% no cap
sinking fund - ANSWER-money set aside on a periodic basis to retire term bonds
at maturity
FSIO - ANSWER-Financial Systems Integration Office (within GSA)
SEA - ANSWER-Service Efforts and Accomplishments
Attestation engagements (External Audits ) - ANSWER-Engagement primarily
concerned with examining, reviewing or performing agreed upon procedures on a
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
, 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 - ANSWER-Intergovernmental provision of resources for broadly
defined purposes. Contrasts with category grants.
Category grants - ANSWER-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 - ANSWER-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 - ANSWER-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 - ANSWER-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
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 4
