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CGFM Exam 1 Section 3 Government Management Cycle, Exams of Advanced Education

CGFM Exam 1 Section 3 Government Management Cycle

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2024/2025

Available from 07/13/2025

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CGFM Exam 1: Section 3: Government
Management Cycle
Government Management Model Phases - ANS-1. Planning
2. Programming
3. Budgeting
4. Operations
5. Accounting
6. Reporting
7. Auditing
Classic Management Cycle - ANS-Planning, organizing, directing, and controlling.
Planning - ANS-The "keystone" in the arch of public management. Addresses the "what"
and the "how" of agency operations. The primary role of this in government organization
is to define goals.
Strategic Planning Model - ANS-1. Develop a mission
2. Scan the environment
3. Develop key objectives
4. Develop strategic initiatives
5. Conduct activities
6. Conduct monitoring and evaluation
Mission - ANS-An ideal statement of what the organization hopes to achieve
Goal - ANS-A broad statement of purpose for a particular program within the agency. It
is derived from the mission and is more specific than the mission statement, but less
specific than an objective.
Objective - ANS-A measurable accomplishment to be achieve within a specific period of
time. All objectives should contain projected, measurable, and achievement standards
Programming - ANS-Primary purpose is to determine the most cost-effective means for
accomplishing goals and objectives, more prosaic and deadline-driven.
Outcomes of Programming Phase - ANS--Specific, measurable objectives with time-
frames
-Identification of most cost-effective means to achieve objectives
-Identification of personnel, dollars, equipment and other resources needed to achieve
objectives
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CGFM Exam 1: Section 3: Government

Management Cycle

Government Management Model Phases - ANS-1. Planning

  1. Programming
  2. Budgeting
  3. Operations
  4. Accounting
  5. Reporting
  6. Auditing Classic Management Cycle - ANS-Planning, organizing, directing, and controlling. Planning - ANS-The "keystone" in the arch of public management. Addresses the "what" and the "how" of agency operations. The primary role of this in government organization is to define goals. Strategic Planning Model - ANS-1. Develop a mission
  7. Scan the environment
  8. Develop key objectives
  9. Develop strategic initiatives
  10. Conduct activities
  11. Conduct monitoring and evaluation Mission - ANS-An ideal statement of what the organization hopes to achieve Goal - ANS-A broad statement of purpose for a particular program within the agency. It is derived from the mission and is more specific than the mission statement, but less specific than an objective. Objective - ANS-A measurable accomplishment to be achieve within a specific period of time. All objectives should contain projected, measurable, and achievement standards Programming - ANS-Primary purpose is to determine the most cost-effective means for accomplishing goals and objectives, more prosaic and deadline-driven. Outcomes of Programming Phase - ANS--Specific, measurable objectives with time- frames -Identification of most cost-effective means to achieve objectives -Identification of personnel, dollars, equipment and other resources needed to achieve objectives

-Level of resources that will be requested during the budgeting phase -Decisions on how resources will be distributed among various offices and programs to achieve objectives Budgeting - ANS-A central control device in the government management cycle. They are laws or ordinances that reelect the priorities and objectives of government and the citizens observed. Types of Budgets - ANS-Operating, cash-flow, capital Operating Budgets - ANS-- Cover a limited period, usually one or two years

  • Specify planned revenues and expenditures throughout the budget period
  • They cover expenditures for salaries, supplies, utilities. and other noncapital items
  • Anticipates total revenues (sales taxes, property taxes, and inter-gvoernmental transfers)
  • Anticipates costs -Mid-term adjustments are required if revenues fall short of expenditures or if costs of goods and services are higher than planned Cash-Flow Budget - ANS-- Concerned with the specific timing of cash receipts and expenditures.
  • Derived from the operating budget, forecasts the timing, as well as amount of cash flows for the year Capital Budget - ANS-- Cover big ticket items that will support government operations for several years, and that may also be acquired over several years Example: What type of budget is this: The purchase of five, stand-alone laptop computers - ANS-Operating Budget Example: What type of budget is this: The purchase of an integrated computer system to support finance and accounting transaction across several departments - ANS-Capital Budget Example: What type of budget is this: The construction of a new building - ANS-Capital Budget Example: What type of budget is this: The refurbishment of an existing building - ANS-Borderline project, it may be covered on an operating budget or a capital budget, depending on the costs, the extent of the work, and the number of future years benefit from the refurbishment Role of Forecasting - ANS-Identifies probabilities - the most likely outcomes
  • Usually start with current levels of activity and then make adjustments for economic assumptions
  • Make adjustments for planned or actual changes in policies

CCR - ANS-Citizen Centric Report - designed to communicate the business of government to the public at the state and local levels, also encouraged for Federal Agencies - FOUR PAGES PAR - ANS-Performance and accountability report - combines financial data and performance measures AFRs - ANS-Agency financial reports APRs - ANS-Agency performance reports SPFI - ANS-Summary of Performance and Financial Information Popular reports - ANS-Provide financial information in summary form and highlight significant financial trends, thus making it easier for the average citizens to understand the financial status of the government. Performance Reports - ANS-Indicate what has been accomplished with the resources consumed by the government. At state and local levels, these are often referred to as reports on service efforts and accomplishments. The service efforts are the dollars, work years, supplies, equipment, and capital assets consumed in government operations. The accomplishments are the outputs and outcomes as a result of operations Internal Reports - ANS-Help government officials make decisions to improve operations. Potential topics include:

  • Budget status
  • Convention center receipts
  • age of receivables
  • new hires per month
  • out-of-stock items
  • dollar discounts from vendor per quarter
  • length of time complete hiring of new personnel AICPA - ANS-American Institute of Certified Public Accountants; establishes standards for financial audits that are used by many non-publicly traded companies and not-for- profit entities GAO's definition of Internal Control - ANS-An integral component of an organization's management that provides reasonable assurance that the following objectives are being achieved:
  • effectiveness and efficiency of operations
  • reliability if financial reporting
  • compliance with applicable laws and regulations

Management Reserve - ANS-Each level in the chain of command retains a small portion of budgetary authority before allotting it to lower levels. These reserve funds provide some operational flexibility for authorized purposes Different Types of Accounting - ANS-Financial, Budgetary, and Managerial (Cost) Financial Accounting - ANS-Designed to serve the needs of external users and is the form of accounting that leads to preparation of external financial reports. It tracks the effects of financial events on the financial position of the entity. Guided by GASB and FASAB GAAS - ANS-Generally Accepted Auditing Standards PCAOB - ANS-Public Company Accounting Oversight Board; establishes standards for financial audits of publicly traded companies GAGAS - ANS-Generally Accepted Government Auditing Standards GAO - ANS-Government Accountability Office - the investigative arm of the US Congress Types of Audit Engagements - ANS-Financial audits, performance audits, and attestation engagements Financial Audits - ANS-Primarily concerned with providing reasonable assurance on whether financial statements are prepared fairly in conformity with GAAP. Other objectives include: auditing compliance with regulations to federal award expenditures in conjunction with a financial statement audit Attestation Audits - ANS-Concern examining, reviewing or performing agreed-upon procedures on a limited subject matter, or an assertion about a limited subject matter, and reporting on the results. The subject matter may be financial or nonfinanical Performance Audits - ANS-Entail an examination of the performance and management of a program against objective criteria:

  • 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
  • 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
  • Program effectiveness and results audit objectives, as well as economy and efficiency audit objectives, are often interrelated and may be concurrently addressed in this type of audit External Financial Audit - ANS-Provides an independent examination of an entity's financial statements. Have long been required for business corporations in the private