CGFM EXAM 1- STUDY GUIDE QUESTIONS AND CORRECT ANSWERS

CGFM EXAM 1- STUDY GUIDE
QUESTIONS AND CORRECT
ANSWERS
AGAA2-A2Ans--AssociationA2ofA2GovernmentA2Accountants

CEARA2-A2Ans--CertificateA2ofA2ExcellenceA2inA2AccountabilityA2Reporting

CFOA2-A2Ans--ChiefA2FinancialA2Officer

CGFMA2-A2Ans--CertifiedA2GovernmentA2FinancialA2Manager

ERPA2-A2Ans--EnterpriseA2ResourceA2Planning

FASABA2-A2Ans--FederalA2AccountingA2StandardsA2AdvisoryA2Board

FASBA2-A2Ans--FinancialA2AccountingA2StandardsA2Board

FSIOA2-A2Ans--FinancialA2SystemsA2IntegrationA2OfficeA2(withinA2GSA)

GAAPA2-A2Ans--GenerallyA2AcceptedA2AccountingA2Principles

GAOA2-A2Ans--GovernmentA2AccountibilityA2Office

GASBA2-A2Ans--GovernmentA2AccountingA2StandardsA2Board

GPRAA2-A2Ans--GovernmentA2PerformanceA2andA2ResultsA2Act

OMBA2-A2Ans--OfficeA2ofA2ManagementA2andA2Budget

PARA2-A2Ans--PerformanceA2andA2AccountabilityA2Report

SEAA2-A2Ans--ServiceA2EffortsA2andA2Accomplishments

AccountabilityA2-A2Ans--
PrincipleA2thatA2inA2aA2democracy,A2governmentA2operatesA2atA2theA2consentA2ofA2theA2pe
ople.A2ThereforeA2itA2mustA2answerA2toA2theA2peopleA2forA2itsA2actionsA2andA2results,A2incl
udingA2theA2takingA2andA2usingA2ofA2theA2people'sA2resources.

AllotmentsA2-A2Ans--
InA2theA2federalA2government,A2anA2agency'sA2distributionA2ofA2apportionedA2budgetaryA2a
uthorityA2toA2variousA2componentsA2withinA2theA2agency.A2AfterA2theA2executiveA2agencyA

,2receivesA2itsA2apportionment,A2itA2allotsA2budgetaryA2authorityA2toA2specificA2components
A2withinA2theA2agency.


Anti-DeficiencyA2ActA2-A2Ans--
AtA2theA2federalA2level,A2aA2lawA2statingA2thatA2officialsA2canA2beA2finedA2and/
orA2jailedA2ifA2theyA2obligateA2theA2governmentA2toA2spendA2fundsA2beyondA2theA2legallyA2
authorizedA2purpose,A2time,A2orA2amount.

ApportionmnetsA2-A2Ans--
DefinitionsA2mayA2varyA2atA2differentA2levelsA2ofA2government.A2AtA2theA2federalA2level,A2O
MB'sA2approvalA2toA2useA2aA2protionA2ofA2theA2legislativelyA2approvedA2budgetaryA2authori
ty.

AppropriatedA2BudgetA2-A2Ans--
BudgetA2thatA2hasA2beenA2passedA2byA2theA2legistlativeA2branch;A2hasA2effectA2ofA2law.

AppropriationA2-A2Ans--
AA2legistlativeA2enactmentA2(law,A2statuteA2orA2ordinance)A2thatA2createsA2spendingA2auth
ority;A2theA2legalA2authorityA2toA2incurA2expensesA2andA2spendA2money.

AttestationA2engagementsA2-A2Ans--
EngagementA2primarilyA2concernedA2withA2examiningA2orA2performingA2agreedA2uponA2pr
oceduresA2onA2aA2subjectA2matter,A2orA2anA2assertionA2aboutA2aA2subjectA2matter,A2andA2r
eportingA2onA2theA2results.A2TheA2subjectA2matterA2mayA2beA2financialA2orA2nonfinancialA2
andA2canA2beA2partA2ofA2aA2financialA2auditA2orA2performanceA2audit.A2PossibleA2subjectsA
2includeA2reportingA2onA2anA2entity'sA2internalA2controls,A2complianceA2withA2lawA2orA2perf
ormanceA2measures.

AuthorizationA2-A2Ans--
LegislativeA2enactmentA2thatA2approvesA2programs;A2prescribesA2whatA2activitiesA2anA2ag
encyA2mayA2pursueA2ifA2fundingA2isA2available.

BlockA2grantsA2-A2Ans--
IntergovernmentalA2provisionA2ofA2resourcesA2forA2broadlyA2definedA2purposes.A2Contrast
sA2withA2categoryA2grants.

CapitalA2BudgetA2-A2Ans--
ForecastsA2andA2controlsA2spendingA2forA2"bigA2ticket"A2itemsA2thatA2areA2acquiredA2andA2
usedA2overA2aA2periodA2ofA2severalA2years,A2suchA2asA2constructionA2projectsA2andA2majo
rA2equipmentA2purchases.A2UsedA2atA2stateA2andA2localA2levels.

CapitalA2leaseA2-A2Ans--
CapitalA2leasesA2isA2aA2leaseA2foA2realA2propertyA2thatA2meetsA2definedA2criteriaA2requiring
A2theA2governmentA2toA2reportA2theA2propertyA2asA2itA2purchasedA2longA2termA2debt

,Cash-flowA2budgetA2-A2Ans--
ForecastsA2theA2timingA2asA2wellA2asA2amountA2ofA2cashA2flowsA2forA2theA2year.A2UsedA2to
A2projectA2requiredA2cashA2levels.


CategoryA2grantsA2-A2Ans--
IntergovernmentalA2provisionA2ofA2resourcesA2toA2beA2usedA2forA2activitiesA2inA2aA2specific
A2categoryA2ofA2purpose.A2MayA2beA2furtherA2classifiedA2asA2discretionaryA2grantsA2orA2for
mulaA2grants.A2ContrastsA2withA2blockA2grants.

CentralA2ManagementA2AgenciesA2-A2Ans--
GovernmentA2agenciesA2thatA2provideA2centralA2managementA2servicesA2toA2otherA2comp
onents.A2ExampleA2wouldA2beA2aA2stateA2governmentA2hrA2officeA2(thatA2servesA2allA2state
A2agencies)A2orA2theA2OMBA2atA2theA2federalA2level.


CEARA2-A2Ans--
AnA2AGAA2programA2thatA2helpsA2federalA2agenciesA2andA2theirA2componentsA2toA2produc
eA2effective,A2high-qualityA2PerformanceA2andA2AccountabilityA2Reports

CertificateA2ofA2ParticipationA2-A2Ans--
FormA2ofA2sharedA2governmentA2financing.A2InA2aA2typicalA2form,A2severalA2financialA2insti
tutionsA2shareA2inA2aA2loanA2arrangementA2withA2aA2governmentA2entity.

CharterA2-A2Ans--
LocalA2governmentA2versionA2ofA2aA2constitution.A2StatesA2mayA2provideA2forA2theA2establi
shmentA2ofA2localA2governmentsA2throughA2charters

checksA2andA2balancesA2-A2Ans--
ProcessA2byA2whichA2oneA2branchA2ofA2governmentA2(legislative,A2executivA2orA2judicial)A2
canA2constrainA2actionsA2ofA2theA2otherA2branches.A2FlowsA2fromA2separationA2ofA2powers
.

CFOA2ActA2-A2Ans--
1990A2lawA2that,A2amongA2otherA2provisions,A2requiresA2theA2federalA2government'sA2maj
orA2executiveA2branchA2agenciesA2toA2haveA2aA2CFO.A2PrescribesA2dutiesA2andA2reporting
A2requirements,A2andA2requiresA2auditedA2financialA2statements


CommissionsA2-A2Ans--
GovernmentA2componentsA2establishedA2byA2law,A2statutedA2orA2ordinance.A2MayA2beA2p
ermanentA2orA2temporary.A2BecauseA2theyA2areA2establishedA2byA2law,A2mayA2haveA2grea
terA2autonomyA2andA2authorityA2thanA2governmentA2componentsA2thatA2areA2administrativ
elyA2established.A2Ex.A2FederalA2CommunicationA2Commision

ComponentsA2-A2Ans--
OrganizedA2unitsA2ofA2governmentA2suchA2asA2agencies,A2officesA2andA2departments.A2Fo
undA2inA2allA2branchesA2ofA2governmentA2atA2allA2levels.

, ConflictA2ofA2interestA2-A2Ans--
ArisesA2whenA2oneA2hasA2personalA2interestA2inA2mattersA2relatingA2toA2officialA2dutiesA2or
A2activities.A2SuchA2conflictsA2canA2destroyA2objectivityA2andA2independenceA2andA2preve
ntA2theA2exerciseA2ofA2dueA2care

ConsumptionA2TaxesA2-A2Ans--
BroadA2categoryA2ofA2taxA2thatA2includesA2sales,A2use,A2exciseA2andA2value-addedA2taxes

ContinuityA2ofA2OperationsA2-A2Ans--
RefersA2toA2theA2effortsA2toA2ensureA2theA2organizationA2canA2sustainA2essentialA2operatio
nsA2regardlessA2ofA2plannedA2orA2unplannedA2incidentsA2orA2disruptions.

CovenantA2(bond)A2-A2Ans--
LegalA2requirementsA2pertainingA2toA2aA2specificA2bondA2issue.A2TypicallyA2defineA2theA2m
aturityA2date,A2revenueA2streamA2thatA2willA2beA2usedA2toA2repayA2theA2debt,A2interestA2rat
eA2andA2repaymentA2schedule.A2MayA2requireA2aA2sinkingA2fundA2andA2mayA2specifyA2con
ditionsA2thatA2mustA2beA2metA2beforeA2newA2debtA2canA2beA2issued.

Credit-ratingA2agenciesA2-A2Ans--
IndependentA2organizationsA2thatA2assessA2theA2creditA2worthinessA2ofA2debt.A2ThreeA2m
ajorA2ratingA2agenciewA2areA2StandardA2&A2Poors,A2Moody'sA2InvestorA2ServiceA2andA2Fit
chesA2rating

DataA2miningA2-A2Ans--UsingA2special,A2computer-
basedA2techniquesA2suchA2asA2filtersA2andA2algorithmsA2toA2extractA2meaningfulA2informat
ionA2fromA2largeA2bodiesA2ofA2data

DebtA2-A2Ans--
MoneyA2owedA2byA2theA2entityA2toA2individualA2orA2organizationalA2creditors,A2ususallyA2as
A2aA2resultA2ofA2plannedA2short-A2orA2long-
termA2borrowingA2toA2financeA2governmentA2objectives

DedicatedA2taxA2-A2Ans--
TaxesA2leviedA2toA2financeA2aA2specificA2activity.A2ProceedsA2areA2depositedA2intoA2anA2ac
countA2restrictedA2toA2thatA2activity.A2AlsoA2referredA2toA2asA2earmarkedA2orA2restrictedA2ta
xes.

DeficitA2-A2Ans--
OccursA2whenA2governmentA2expendituresA2forA2aA2specificA2fiscalA2periodA2exceedA2reve
nuesA2and/orA2financialA2resourceA2inflows.

DiligenceA2-A2Ans--
PursuingA2anA2event,A2actionA2orA2assignmentA2toA2aA2timelyA2andA2sufficientA2endA2orA2cl
ose