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CGFM - Part 1 Exam with Complete
Solutions
AGA - ANS-Association of Government Accountants AICPA - ANS-American Institute of Certified Public Accountants CAFR - ANS-Comprehensive Annual Financial Report COSO - ANS-Committee of Sponsoring Organizations of the Treadway Commission DATA Act - ANS-Digital Accountability and Transparency Act A law enacted in 2006 whereby loan agencies and federal grant associations must show where funding is allocated in order to show what tax dollars are being used for. ERP - ANS-Enterprise Resource Planning A system that is a central database for all information within an organization. FASAB - ANS-Federal Accounting Standards Advisory Board FASB - ANS-Federal Accounting Standards Board GAAP - ANS-Generally Accepted Accounting Principles GAO - ANS-Government Accountability Office GASB - ANS-Government Accounting Standards Board GFOA - ANS-Government Finance Officers Association GPRA - ANS-Government Performance and Results Act A law designed to improve program management throughout the federal government. OMB - ANS-Office of Management and Budget OPEB - ANS-Other Post-Employment Benefits
Benefits other than pensions for retired employees provided by the government. Ex: healthcare, insurance, disability, legal and other services PAR - ANS-Performance and Accountability Report RSI - ANS-Required Supplementary Information SEA - ANS-Service Efforts and Accomplishments SEC - ANS-Securities and Exchange Commission SFFAS - ANS-Statement of Federal Financial Accounting Standards SSAE - ANS-Statements on Standards for Attestation Engagements According to the AGA Code of Ethics, a vendor using an agency contract monitor as a personal reference on a resume, would constitute a) fraud b) professional incompetence c) a conflict of interest d) nepotism - ANS-c A government agency's mission statement should include the agency a) services and accomplishments b) organizational structure and hierarchy c) purpose and goals d) performance measures and reports - ANS-c One way in which federal and state governments influence local governments is by a) providing block grants b) issuing ordinances c) authorizing debts d) setting budget authority - ANS-a Under the AGA Code of Ethics, which of the following activities require employer approval? a) completing tax returns for remuneration b) making deposits for a church c) volunteering to serve as treasurer for a professional organization d) quoting tax regulations as advice for a friend - ANS-a One method used to assess accountability of state agencies is a) a bond rating review b) program evaluation c) judicial review d) an ordinance compliance audit - ANS-b
The city manager writes a transmittal letter as part of the municipal budget to explain the decision to privatize the city print shop. This letter highlights the budget's role as a a) policy document b) financial plan c) operations guide d) communications device - ANS-d discretionary grant - ANS-grants awarded for scare and critical skills CFO Act of 1990 - ANS-required deputy dirctor of management, who will:
- director resource planning
- monitor and report on budget
- assess staff competency
- provde complete and timeley information to POTUS on activites of the executive branch Which system refers to the three levels of US government working together on an equal basis to ensure that the fundamentals of the Constitution are followed? a) allocation of services b) checks and balances c) separation of powers d) functional consolidation - ANS-b Which power is not granted to Congress under the Constitution? a) regulating the value of money b) declaring war c) creating federal courts superior to the Supreme Court d) levying and collecting taxes - ANS-c The purpose of congressional oversight is to... a) review the actions of the executive branch b) review, monitor and supervise federal agencies and programs c) oversee the implementation of laws made by the judicial branch d) conduct congressional investigations into national matters - ANS-b Which of the following is not a type of governmental entity? a) general purpose government b) special purpose government c) Quasi-governmental entity d) interim government - ANS-d Which statement characterized the concept of popular sovereignty? a) Citizens have ultimate authority over a government through the ballot b) The state legislature controls the actions of the state government
c) A state's laws are independent of federal laws d) The individual is the controller of the individual's life - ANS-a How are spending levels in congressional budget resolutions measured? a) Federal revenues b) Budget authority and outlays c) Offsetting collections and offsetting receipts d) The budget deficit and the federal debt - ANS-b How is earmarking different from the appropriations process? a) Earmarking directs an amount of money toward a federal agency b) Earmarking directs an undetermined amount of money toward a federal project c) Earmarking directs a specific amount of money toward a particular project d) Earmarking and the appropriations process are the same - ANS-c Earmarking is a provision made by the legislative branch of government made by the legislative branch of government that specifies that a specific dollar amount is to be spent on a specific project. In addition, an earmark may direct specific exemptions from taxes or mandated fees. Earmarks can be classified as either Hard (hard marks) or Soft (soft marks). Hardmarks are allocated through legislation so they have the effect of law, and are binding. Softmarks are found in the text of Congressional Committee reports and do not have the effect of law, but are treated as binding. Which statement concerning the tax expenditure budget is accurate? a) the budget reduces the income tax liabilities of individuals and businesses b) the budget indicates where income tax revenues are spent c) the budget increases the income tax liabilities of individuals and businesses d) none of the above - ANS-a The tax expenditure budget consists of the estimated revenue losses to the federal government due to exclusions, exemptions, deductions, credits, deferrals, and preferential rates in the tax code. These tax reductions reduce the income tax liabilities of individuals and businesses. The tax expenditure budget is estimated by the Office of Tax Analysis of the Treasury Department, and the Congressional Joint Committee on Taxation. This information is then published by the Office of Management and Budget. Intergovernmental grants are considered beneficial to local governments when... a) local governments have a surplus of tax revenue b) local governments require short term funding c) local government participate in solving problems that affect the national well being d) local governments require funding and guidance to find solutions to public problems - ANS-d The government would implement a user fee for all purposes except... a) increasing costs b) budget restrictions
b) ensure transactions are processed accurately and completely c) reduce the duplication of data d) help predict areas where fraud may occur - ANS-b The purpose of the performance management system is to... a) predict areas where employees are not complying with job descriptions b) improve employee confidence c) ensure the goals and objectives of the government agency are achieved d) ensure employees are effectively managed - ANS-c earmarking - ANS-Earmarking is a provision made by the legislative branch of government made by the legislative branch of government that specifies that a specific dollar amount is to be spent on a specific project. In addition, an earmark may direct specific exemptions from taxes or mandated fees. Earmarks can be classified as either Hard (hard marks) or Soft (soft marks). Hardmarks are allocated through legislation so they have the effect of law, and are binding. Softmarks are found in the text of Congressional Committee reports and do not have the effect of law, but are treated as binding. Bond covenants requiring or forbidding certain actions of the issuer are specified... a) in the bond indenture b) in the bond underwriting agreement c) on the bond issuer's website d) in the prospectus - ANS-a The bond indenture is a contract that specifies the terms of the bond, the coupon rate, the period to maturity, and special features of the bond. The indenture is summarized in the bond prospectus. The indenture contains a bond covenant, an agreement between the bond's issuer and folder that can either require of forbid specified actions. A positive bond covenant requires the issuer to perform certain actions. A negative bond covenant forbids the issuers from performing specific actions. What is the purpose of the Chief Financial Officers Act of 1990? a) effective general and financial management of the Federal government b) improve accounting systems, financial management and internal control of the Federal government c) provide complete, reliable, timely, and consistent financial information regarding the Federal government d) all of the above - ANS-d The purpose of the CFO Act of 1990 includes:
- Effective general and financial management practices of the federal government by establishing a Deputy Director for Management in the Office of Management and Budget, establishing an Office of Federal Financial Management headed by a Controller, and designating a CFO in each executive department and in each major executive agency in the federal government
- Improvement in accounting systems, financial management, and internal controls in each agency of the Federal Government, assuring reliable financial information and the deterrence of fraud, waste, and abuse of government resources
- Producing complete, reliable, timely, and consistent financial information for use by the executive branch of the government and the Congress in the financing, management, and evaluation of Federal programs Which federal government agency was given greater financial management authority by the CFO Act of 1990? a) the council of economic advisers b) the office of management and budget c) the secretary of commerce d) the secretary of the treasury - ANS-b Which is one of the responsibilities of the Office of Federal Financial Management? a) establishing government financial management policies b) providing performance measurement and performance audits c) providing financial reporting to the executive branch d) providing financial reporting to the legislative branch - ANS-a What set of standards is used when performing financial and performance audits of government agencies? a) AICPA audit standards b) Institute of Internal Auditors c) GAGAS d) INTOSAI Auditing Standards - ANS-c The purpose of oversight hearings is to... a) review the annual financial audit of a federal agency b) focus on the quality of federal programs c) focus on the performance of government officials d) both B and C - ANS-d Oversight hearings are used to review the quality of federal programs and the performance of government officials. The goal of an oversight hearing is to improve the efficiency, economy, and effectiveness of government operations. In addition, oversight by governing authorities is used to detect poor administration, waste and abuse, and illegal and unconstitutional conduct. As a result of this process, the general public becomes informed of the activities of federal programs and government officials, giving the public an opportunity to evaluate executive policies to keep them in the public interest. The Code of Ethics of the AGA obligates its members to be accountable for all conduct except... a) compliance with the standards and rules of the position of financial manager b) personal responsibility for actions and inactions
- Output measures: quantify deliverables. Examples of output measures include the number of products sold or customers serviced.
- Outcome measures: determine the results of the products or services delivered by comparing the actual activity to the planned activity. Examples include percentage of defective products or customers satisfied with services received. bicameral - ANS-A legislature consisting of two parts, or houses Reservation Clause - ANS-Part of the Tenth Amendment to the Constitution that says powers not given to Congress are reserved to the states or to the people. Name some major components of the Legislative branch - ANS-Architect of the Capitol U.S. Botanic Garden General Accounting Office Government Printing Office Library of Congress Congressional Budget Office Name some major components of the Executive branch - ANS-White House Office Office of the Vice President Council of Economic Advisors Council of Environment Quality National Security Council Office of Administration Office of Management and Budget Office of National Drug Control Policy Office of Policy Development Office of Science and Technology Policy Office of the U.S. Trade Representative Department of...
- Agriculture
- Commerce
- Defense
- Education
- Energy
- Health and Human Services
- Homeland Security
- Housing and Urban Development
- The Interior
- Justice
- Labor
- State
- Transportation
- Treasury
- Veterans Affairs
Name some major components of the Judicial branch - ANS-US Courts of Appeals US District Courts Territorial Courts US Court of International Trade US Court of Federal Claims US Court of Appeals for the Armed Forces US Tax Court US Court of Appeals for Veterans Claims Administrative Office of the US Courts Federal Judicial Courts US Sentencing Commission
