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CGFM Exam 1 with 100% Correct
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Correct Answer: perform multiple functions, while special-purpose governments are typically formed to perform one or two specific functions. - ANSWER-I1. A significant difference between special-purpose and general-purpose governments is that general- purpose governments Correct Answer: jointly-governed organization. - ANSWER-I2. A commission that manages water and sewer services for several counties is an example of a Correct Answer: the county commission - ANSWER-I3. A county commission meets to address the budget. In attendance are the five members of the county commission the district attorney, the county executive officer and the county sheriff. If the county budget officer presents the annual budget, who will enact it? Correct Answer: seek interpretation and challenge legislation. - ANSWER-I4. The primary role of the judicial branch is to hear cases that Correct Answer: approve the budget. - ANSWER-I5. Every state legislature has the authority to Correct Answer: license professionals, such as attorneys - ANSWER-I6. Which of the following is a state government responsibility allowed by the U.S. Constitution? Correct Answer: issue and enforce regulations required by statute. - ANSWER-I7. The executive branch of the U.S. government has the ability to Correct Answer: official documents specifying policy and procedures for government. - ANSWER-I8. Executive orders are defined as Correct Answer: U.S. Constitution, state constitution, state laws, state rules and regulations. - ANSWER-I9. The hierarchy of government authority is Correct Answer: popular sovereignty. - ANSWER-I10. The key principles in the relationship among the three branches of government include all of the following EXCEPT Correct Answer: the president, the Supreme Court and Congress - ANSWER-I11. The U.S. Constitution provides for separation of powers between which of the following?
Correct Answer: to regulate commerce with Native American tribal governments - ANSWER-I12. Which of the following powers was granted exclusively to the federal government in the U.S. Constitution? Correct Answer: special-purpose district - ANSWER-I13. A conservation authority is established in a state to focus solely on swamp conservation efforts; the authority has the power to levy taxes. This is an example of which type of government? Correct Answer: limit government spending. - ANSWER-I14. The legislative branch of the U.S. government has the ability to Correct Answer: county executive officer. - ANSWER-I15. If a citizen complains about trash in a county park the responsibility for addressing the complaint resides with the Correct Answer: the U.S. Constitution, federal laws, and executive orders issued by the president. - ANSWER-I16. Regulations promulgated by federal agencies must comply with Correct Answer: charter. - ANSWER-I17. A local government's authority is outlined in its constitution or Correct Answer: special-purpose government. - ANSWER-I18. A county-wide utility district is an example of a Correct Answer: manage the program more effectively and efficiently. - ANSWER-I19. Several local school districts are forming a jointly-governed district to provide education services to disabled students in a central location. The primary reason for forming such an organization is to Correct Answer: an ordinance. - ANSWER-I20. A document is issued with the following title: "Amending Title 10 of the Philadelphia Code entitled 'Regulation of Individual Conduct and Activity' by allowing the granting of permanent licenses for guide dogs for the blind handicapped persons or government-owned dogs used for law enforcement; all under certain terms and conditions." This is an example of Correct Answer: tribes have limited sovereignty over tribal lands and are subject to certain U.S. government jurisdictions. - ANSWER-I21. With regard to lands held by Native American tribal governments the U.S. Constitution and subsequent Supreme Court decisions affirm that Correct Answer: legislative - ANSWER-I22. A city council is representative of which branch of government? Correct Answer: Congress may pass laws pertaining to commerce with tribal governments. - ANSWER-I23. What type of laws may the U.S. Congress pass with respect to tribal governments?
Correct Answer: prioritize government expenditures and allocate resources. - ANSWER-II 10. The primary objective of the budget process is to Correct Answer: charters, constitutions, laws and ordinances. - ANSWER-II 11. A sovereign entity's ability to tax, spend and borrow is limited by Correct Answer: serve as a financial plan and reflect the priorities of elected officials. - ANSWER-II 12. A government budget is intended to Correct Answer: special revenue funds. - ANSWER-II 13. Collections that are legally restricted to expenditures for specific purposes would be recorded in Correct Answer: a continuing resolution. - ANSWER-II 14. If an appropriation law for the budget year is not enacted before the start of the fiscal year, Congress may pass Correct Answer: provide a specific benefit to the constituency of a particular elected official. - ANSWER-II 15. A legislative earmark is intended to Correct Answer: establish budgets and spend public funds for authorized purposes. - ANSWER-II 16. All local sovereign governmental entities have the ability to Correct Answer: a vision document. - ANSWER-II 17. A budget at any governmental level serves as all of the following EXCEPT Correct Answer: apportionment - ANSWER-II 18. After the president has signed an appropriation into law, the OMB may further control a federal agency's budget authority using which of the following? Correct Answer: U.S. Constitution - ANSWER-II 19. What legal authority establishes the U.S. government's right to coin money, while prohibiting states from taking the same action? Correct Answer: the amount of the appropriation, the time period during which the appropriation is unexpired, and the purpose for the appropriation - ANSWER-II 20. Which of the following limits are used in appropriations laws to control federal spending? Correct Answer: request an adjustment to the apportionment distribution - ANSWER-II
- The table to the left provides details on the Transportation Security Administration's annual operating appropriation. The budget authority has been apportioned on a quarterly basis with object class breakouts. Figures below are in millions of dollars. The Transportation Security Administration's financial managers estimate Q2 labor costs will be approximately $8.5 million. Based on this information the Transportation Security Administration staff should take which of following actions?
Correct Answer: special funds. - ANSWER-II 22. The September 11th Victim Compensation Fund and similar funds established to settle class-action lawsuits are examples of Correct Answer: means that the U. S. government cannot be sued without its permission. - ANSWER-II 23. The concept of sovereign immunity Correct Answer: quarter. - ANSWER-II 24. Apportionments and allotments are typically distributed by Correct Answer: allotments. - ANSWER-II 25. An apportionment may be subdivided by a federal agency into Correct Answer: the supreme power the people possess over government and public policies. - ANSWER-II 26. Popular Sovereignty is Correct Answer: Congressional Appropriations Bill. - ANSWER-II 27. From the perspective of the federal government, legislative earmarking is a provision inserted into a discretionary spending by the Correct Answer: levy a tax on interstate internet sales. - ANSWER-II 28. The fiscal powers of a local government include all of the following abilities EXCEPT Correct Answer: appropriation - ANSWER-II 29. Time constraints for an agency's spending are imposed by which budgetary control? Correct Answer: decisions made by the state supreme courts. - ANSWER-II 30. All of the following are constraints on the supreme sovereignty of the federal government EXCEPT the Correct Answer: earmarks. - ANSWER-II 31. Language that members of Congress insert into bills or conference reports, usually near the end of the legislative process, to fund specific projects are commonly referred to as Correct Answer: issuing decisions that restrain actions related to programs. - ANSWER- II 32. The judicial branch of the government influences the budget by Correct Answer: a state entity doing business with the federal government directly bills the tax to the federal agency. - ANSWER-II 33. Under the doctrine of sovereign immunity and the Supremacy Clause of the Constitution - as interpreted by the Supreme Court - the federal government will appropriately refuse to pay taxes when Correct Answer: GFOA - ANSWER-II 34. Which organization publishes a guide to best practices in budgeting?
Correct Answer: planning, budgeting, operations and auditing. - ANSWER-III 13. Some of the steps of the government management cycle, in order, include Correct Answer: accounting - ANSWER-III 14. A city prepares journal entries to record the effects of financial events on the city's financial position. This function demonstrates which element of the government management cycle? Correct Answer: programming, planning and/or programming, operations, accounting, reporting - ANSWER-III 15. A federal government entity manages tracts of land that are habitat for several endangered species; the agency is responsible for their protection. The entity performs the following tasks related to managing this land: - assesses the impact of a planned adjacent state game reserve - sets a goal of making 95% of the land habitable for endangered species - hires experts to assess the food supply for the endangered species - captures cost by endangered species type - assembles data to document progress toward goals. Match the tasks described above with the government management cycle phases in which the tasks would be accomplished. Correct Answer: programming - ANSWER-III 16. The following statement is an example of which phase in the government management cycle? The transportation department has 9 snow plows. They have determined that they will need 11 snow plows to achieve their objective this winter. Correct Answer: extrapolation - ANSWER-III 17. Which forecasting technique assumes certain trends will continue and, based on that assumption, enables charting of future results? Correct Answer: planning - ANSWER-III 18. During which phase of the government management cycle are the mission and goals of the organization identified? Correct Answer: Both are derived from the planning process, however, programming tends to cover a more extensive period of time than budgeting. - ANSWER-III 19. How are programming and budgeting in the government management cycle similar to and different from each other? Correct Answer: specifies expenditures and means to finance those expenditures. - ANSWER-III 20. The federal budget is a document that Correct Answer: an analysis of revenues of activities offered at different parks - ANSWER-III 21. Which of the following activities would be most closely associated with managerial accounting? Correct Answer: programming - ANSWER-III 22. A homeless shelter has established a new program with a mission of reducing the number of individuals living at the shelter. The main goal is to help the homeless secure employment, gradually reducing the time individuals spend in the shelter. A task force was appointed to develop the requirements of one of the objectives: reducing a barrier to employment by providing suitable clothing
for interviewing and subsequent work. In which phase of the government management cycle is this task force activity? Correct Answer: refined objectives and identified resources required to meet objectives
- ANSWER-III 23. Under the government management cycle, what outputs from the programming phase are also inputs to the budgeting phase? Correct Answer: performance reports. - ANSWER-III 24. Reports that link financial resources to service outputs and outcomes achieved are Correct Answer: reporting - ANSWER-III 25. Which phase of the government management cycle immediately follows the accounting phase? Correct Answer: programming - ANSWER-III 26. Identifying specific and measurable objectives is performed during which phase of the government management cycle? Correct Answer: assess the effectiveness of a program in meeting its goals. - ANSWER-III 27. Under the auditing phase of the government management cycle, performance audits are completed in order to Correct Answer: capital - ANSWER-III 28. Typically, a highway construction project would be planned using which of the following types of budget? Correct Answer: financial accounting. - ANSWER-III 29. External users primarily use reports generated from Correct Answer: desired interest rates. - ANSWER-IV 1. The city's decision to purchase bond insurance for park enhancement debt should include consideration of Correct Answer: to provide an independent assessment of the entity's risk of default on payments - ANSWER-IV 2. What role do credit rating agencies serve in the issuance of local government debt? Correct Answer: may be used for operating expenses. - ANSWER-IV 3. A characteristic of debt issued by the federal government compared to debt issued by state or local governments is that federal debt Correct Answer: operating expenses of the existing airport. - ANSWER-IV 4. A city is considering financing the construction of an international airport. All of the following factors are pertinent to this consideration EXCEPT the Correct Answer: a public-private partnership. - ANSWER-IV 5. A real estate development corporation built a level 1 trauma center hospital in a city for a cost of $ million. The city signed a 25-year lease with the corporation in conjunction with the development effort. This financing arrangement is an example of
principal and interest payable for a debt guarantee. A school district issued a 10-year bond at the par amount of 50 million dollars with a simple interest rate of 1.5%. The state treasurer would charge Correct Answer: fund capital improvements. - ANSWER-IV 19. The most common purpose of debt at state and local levels is to Correct Answer: block grants - ANSWER-IV 20. Which type of grant provides the grantee the greatest amount of discretion regarding the use of the grant funds? Correct Answer: equity. - ANSWER-IV 21. A city issues debt to construct a bridge, primarily for the purpose of financing the cost of the bridge over its expected useful life. This is an example of Correct Answer: $122,000 - ANSWER-IV 22. On January 1, a small museum signed a 5-year operating lease for a sales office for some of its collections at $120,000 per year. The lease includes a provision of additional rent 2% of annual sales in excess of $1,000,000. The museum is expected to collect $1,100,000 sales revenue in its first year. The museum's rental expense for the year will be Correct Answer: tax credits that encourage certain behaviors by individuals or businesses - ANSWER-IV 23. Which of the following is an example of a tax expenditure? Correct Answer: establishing a lower interest rate than a Caa rated issuance. - ANSWER-IV 24. A Moody's bond rating of Aa will affect a local government debt issuance by Correct Answer: Congress. - ANSWER-IV 25. Limits on federal debt are set by Correct Answer: grants, shared revenues and contracts. - ANSWER-IV 26. The most common forms of intergovernmental revenues include Correct Answer: collection efficiency - ANSWER-IV 27. The cost of levying a tax should be minimal compared to the revenue generated. This is an example of which consideration when setting tax policy? Correct Answer: the ability of the county to repay the debt - ANSWER-IV 28. Prior to entering into a long-term debt arrangement to fund the construction of new library, a county reviewed the annual revenue generated by the existing tax base that is available to go toward debt payments. In this example, the county has considered which of the following necessary factors before issuing debt? Correct Answer: smooth out cash flows and provide essential services. - ANSWER-IV
- Long-term debt held by the government affects current operations by allowing the government to
Correct Answer: It is regressive. - ANSWER-IV 30. Which of the following describes consumption tax? Correct Answer: state. - ANSWER-IV 31. A municipal government may not impose a sales tax without authorization from the Correct Answer: expand the capacity of the program. - ANSWER-IV 32. A local library program currently serves 50 children, but it would like to serve 200 children. The library is considering charging a user fee of $2 to attend the program. This is an example of establishing a user fee to Correct Answer: general obligation bonds. - ANSWER-IV 33. A city issues $100 million in debt to raise capital to construct two new high schools. This debt instrument is an example of Correct Answer: relatively easy to administer. - ANSWER-IV 34. An advantage of an income tax is that it is Correct Answer: the current interest rate is at the lowest in 10 years. - ANSWER-IV 35. A city is considering using pay-as-you-go financing for water tower upgrades, which will be completed in one year. All of the following factors support the use of this financing option EXCEPT Correct Answer: vertical equity. - ANSWER-IV 36. Taxpayer 1 has an income of $40,000, and Taxpayer 2 has an income of $50,000. The tax type or tax principle used to ensure that the two taxpayers will pay different amounts of income tax is Correct Answer: term bond - ANSWER-IV 37. Which of the following is generally associated with a sinking fund? Correct Answer: purchasing fire hoses that need to be replaced, biannually. - ANSWER- IV 38. A city is in fiscal distress and is considering using long-term financing for most of its projects for the upcoming year. All of the following would be appropriate considerations for this situation EXCEPT Correct Answer: pool admission fees. - ANSWER-IV 39. A city builds a new swimming pool. To fund the development of the new pool, the city issues $5 million in revenue bonds. Based on this information, the bonds will be repaid using Correct Answer: discretionary grants - ANSWER-IV 40. Which types of grants are typically awarded on a competitive basis? Correct Answer: revenue bonds. - ANSWER-IV 41. A city plans to raise $300 million to build a new professional baseball stadium. To service the debt, a special sales tax will
previously destroyed by a forest fire. In this role, the Department of the Interior is being accountable to which group? Correct Answer: investors - ANSWER-V 8. Both government and private businesses are legally accountable to which of the following stakeholders? Correct Answer: the executive branch enacting the program. - ANSWER-V 9. Government program execution is the responsibility of Correct Answer: program evaluations - ANSWER-V 10. Which method of demonstrating and assessing government accountability is used when the objective is to judge appropriateness and cost-effectiveness? Correct Answer: organizational accountability. - ANSWER-V 11. A formal job description that establishes a public servant's responsibilities is an example of Correct Answer: carrying out programs - ANSWER-V 12. For what is the executive branch primarily accountable? Correct Answer: legislative branch - ANSWER-V 13. What area of the government is held accountable for the oversight of programs? Correct Answer: financial accountability. - ANSWER-V 14. Compliance with the legally adopted budget is an example of Correct Answer: organizational structure. - ANSWER-V 15. A key attribute of public accountability at lower levels of government is Correct Answer: public hearings - ANSWER-V 16. Which of the following is an institutional device that encourages public accountability and is a decisive driving process of governmental units in the United States? Correct Answer: deputy director for management position in OMB and specifying the deputy director's duties and reporting requirements. - ANSWER-V 17. By enacting the CFO Act of 1990, Congress established a framework for agency accountability by creating the Correct Answer: debt to gross domestic product ratio. - ANSWER-V 18. A technique used to assess government's long-term fiscal sustainability is called the Correct Answer: performance accountability - ANSWER-V 19. Which of the following terms is used to describe a government entity's responsibility to efficiently achieve desired outputs? Correct Answer: audited by external parties to demonstrate accountability. - ANSWER- V 20. A characteristic of financial reports is that they are
Correct Answer: mutual accountability. - ANSWER-V 21. The legislature passes a law requiring children under the age of five to use a car seat with a five-point harness. The legislative branch appropriates funds for outreach activities and the executive branch carries out the program as authorized by the legislation. The actions taken by the executive and legislative branch are examples of Correct Answer: competence and diligence. - ANSWER-VI 1. Due care refers to an employee's obligation to discharge his or her professional duties with Correct Answer: decline to participate with the procurement office activities due to a conflict of interest, which would harm the reputation of the agency's procurement processes and requirements. - ANSWER-VI 2. A CGFM in a government transportation agency has served as a volunteer for an organization that sets standards to help reduce the cost of large-scale transportation acquisitions. The agency procurement office may be adding a requirement that contracts adhere to these standards; this will likely translate into additional revenue for the standards-setting organization. The procurement office has instructed the CGFM to take on a role in having these standards included in future contracts. In this situation the CGFM should Correct Answer: placing a political sign in his or her yard. - ANSWER-VI 3. All of the following activities represent a violation of the responsibilities of a CGFM serving as a public official EXCEPT Correct Answer: conflict of interest - ANSWER-VI 4. A senior auditor works for the Office of the Inspector General, and is auditing a government agency. Prior to the end of the audit, the agency offers the senior auditor a job. If the senior auditor accepts the job offer, it would be a violation of which ethical behavior required of public officials? Correct Answer: disclose to the agency's management that his daughter has been hired and turn over the contract monitoring to a fellow buyer. - ANSWER-VI 5. The buyer at a state agency contracts for cafeteria service. Soon after the contract is awarded, the contractor hires the buyer's daughter as the cafeteria manager. In order to avoid a conflict of interest, the buyer should Correct Answer: due care - ANSWER-VI 6. A CGFM, who is also a CPA, is the managing partner of a CPA firm, specializing in audits of local governments. The audit of a mid-sized local government is being led by the managing partner's brother. Because of staff turnover, the audit team is comprised of six recent college graduates, none with more than nine months of experience and most with three or fewer months of experience. The CPA firm has a major ongoing growth initiative, which will consume 100 per cent of the managing partner's brother's time for six months, leaving no time to oversee the work of the audit team. The managing partner tells the audit team just to update last year's audit work papers and that he will check back with them every three weeks to answer any question's they may have. Based on this scenario, which ethical principle is being compromised?
ANSWER-VII 5. Computers and internet technologies impact government services and operations in all of the following ways EXCEPT Correct Answer: program beneficiaries. - ANSWER-VII 6. E-reporting can include access to information on all of the following EXCEPT Correct Answer: privacy impact assessments. - ANSWER-VII 7. When federal agencies and their contractors analyze and describe factors, such as what information is to be collected and its source; why the information is being collected and its intended use; with whom information will be shared; and how information will be secured, this represents Correct Answer: a listserv. - ANSWER-VII 8. The Department of Natural Resources sends an email to interested participants when registration opens for an annual bass fishing competition. This email is an example of marketing through use of
