CGFM EXAM 1 – STUDY GUIDE WITH 100%
g g g g g g g
COMPLETE SOLUTIONS RATED A (830 Q
g g g g g
UESTIONS AND CORRECT ANSWERS) | 20
g g g g g
24 UPDATE g
"BudgetgCareergRoadmap"g-
g✔✔✔gCorrectgAnswerg>gdocumentgpublishedgbygBFELoBgthatgcoversgarraygofgcom
petenciesgincludinggbudgetgdevelopmentgandgjustification;gbudgetarygaccountingg
andgcontrol;gplanninggandgperformancegevaluation;gandgfinancialganalysis,gforecas
tinggandgmodeling.
"SunshinegLaws"g-
g✔✔✔gCorrectgAnswerg>gfreedomgofginformationglaws;ggovtgshouldgoperategingthe
gsunshine
(fedgLevel)gappropriationsgcangbegmadegfrom?g-
g✔✔✔gCorrectgAnswerg>ggeneralgfunds,gtrustgfunds,gorgspecialgfunds.
(RSS)greallygsimplegsyndication/RichgSitegSummaryg-
g✔✔✔gCorrectgAnswerg>gusedgtogkeepgusersgabreastgofgdevelopmentsgingareasgofgi
nterest.
1) BudgetarygControlg-gACCOUNTgSTRUCTURESg-
g✔✔✔gCorrectgAnswerg>gbudgetgdefinedgbygprogramgangobjectgclassg(line-item)
managergmustggetgapprovalgtogmovegfundinggfromgonegsourcegtoganother
10thgAmendmentg-greservedgclauseg-
g✔✔✔gCorrectgAnswerg>gFederalggov'tgmaygnotgdictateghowgstatesgandglocalsgoper
ategtheirgprograms:
"ThegpowersgnotgdelegatedgtogthegUSgbygthegConstitution,gnotgprohibitedgbygitgtogt
hegstates,garegreservedgforgthegstatesgrespectively,gorgtogthegpeople".
2gProprietarygFundgTypesg-
g✔✔✔gCorrectgAnswerg>gEnterprisegFundsgandgInternalgServicegFunds
,2) BudgetarygControlg-gAPPORTIONMENTg&gALLOTMENTSg-g✔✔✔gCorrectgAnswer
>gFundsgaregapportionedgtogthegagency,gthengallotedgtogthegdepartmentgorgprogra
m
distributiongofgfundsgongscheduleg(i.e.gquarterly)gtogpreventgspendinggfundsgtogqui
cklygandgallowgforgmid-yeargreprogramming.
2012gCensusg-g90,107ggovernmentgentitiesg-
✔✔✔gCorrectgAnswerg>gonegnationalg50gstate
g
90,056glocalg(5gtypes):
GeneralgPurpose:gCounty,gMunicipality,gTown
ship
SpecialgPurpose:gSchoolgdistrict,gspecialgpurpo
segdistrict
* independentgschoolgdistrictsg(specialgserviceggovernments)gtrendinggtowards
gconsolidationg(67,355ging1952,g14,178ging2012)
3g"E's"gofgGovernmentgDebtg-g✔✔✔gCorrectgAnswerg>g*gEquityg-
gdebtgshouldgbegpaidgbygthosegbenefitinggfromgthegproject
* Effectivenessg-gshouldgprovidegsufficientgfundsgforgthegproject
* Efficiencyg-gshouldgbegobtainedgatgtheglowestgcostgpossiblegrelativegtogrisk
3gcomponentsgofgappropriationsg-
g✔✔✔gCorrectgAnswerg>gPTA:g(1)gpurposeg(2)gtimeg(3)gamount
3gmaingpurposesgofgGovtgbudgetg-
g✔✔✔gCorrectgAnswerg>g(1)gpolicygdocument;g(2)gSetsgfinancialgplan;g(3)gCommsgdevic
e
,3-Esgofggovernmentgdebtg-g✔✔✔gCorrectgAnswerg>gEquityg-
grepaymentgofgdebtgshouldgbegbornegbygthosegbenefitinggfromgthegproject
Effectivenessg-gthegdebtgissuegshouldgprovidegsufficientgfundsgforgthegproject
Efficiency-
gloanedgfundsgshouldgbegobtainedgatgtheglowestgcostgpossiblegrelativegtogrisk.
3) BudgetarygControlg-gACCOUNTINGg-
g✔✔✔gCorrectgAnswerg>gsystemgofgrequisitions,gencumbrances,gandgrec
onciliationsgtogpreventgfraud
4gTypesgofgFiduciaryg(TrustgandgAgency)gFundsg-
g✔✔✔gCorrectgAnswerg>gPensiongTrustgFund,gAgencygFundsg(i.e.gCDBG),gInvestme
ntgTrustgFunds,gPrivate-
PurposegTrustgFunds,gandgTaxgAgencygFundsg(i.e.,gCitations)
4) BudgetarygControlg-gAUDITINGg-
g✔✔✔gCorrectgAnswerg>gInternalgandgexternalgauditinggtestsgthegeffectivenessgo
fginternalgcontrolsgandgaccuracygofgfinancialgstatements.
Seekgang"unmodifiedgopinion"gofgfinancialgreports
5gC.F.R.gPartg2635g-
gStandardsgofgEthicalgConductgforgEmployeesgofgthegExecutivegBranchg-
g✔✔✔gCorrectgAnswerg>gLegalgbasisgoutlininggrequirementsgongethicalgbehaviorgf
orgFederalgemployees
5gTypesgofgGovernmentgFundsg-
g✔✔✔gCorrectgAnswerg>gGeneralgFund,gSpecialgRevenuegFunds,gCapitalgProjectsgFund
s,gDebtgServicegFunds,gandgPermanentgFunds
Aggovernmentgwantsgtogensuregthatgthosegwhogbenefitgfromgagcapitalgprojectgsho
uldgpaygthegcostgofgfinancing.gHowgshouldgagprojectgthatghasgag20-
yeargusefulglifegbegfinanced?g-
g✔✔✔gCorrectgAnswerg>gIssuegagserialgbondgwithglevelgdebtgservice
Aggovernment'sgbudgetgshouldgincorporategonlygagshort-
termgperspectivegbecausegthegbudgetgisgonlygforgagone-yeargperiod.g-
g✔✔✔gCorrectgAnswerg>gFalse.gAlthoughgthegbudgetgisgonlygforgagone-
yeargperiod,gangeffectivegbudgetgincorporatesgaglong-
, gtermgperspectivegfocusinggonglonggrangeggoalsgandgobjectives,gThegbudgetgthen,gi
s
g g g g g g g
COMPLETE SOLUTIONS RATED A (830 Q
g g g g g
UESTIONS AND CORRECT ANSWERS) | 20
g g g g g
24 UPDATE g
"BudgetgCareergRoadmap"g-
g✔✔✔gCorrectgAnswerg>gdocumentgpublishedgbygBFELoBgthatgcoversgarraygofgcom
petenciesgincludinggbudgetgdevelopmentgandgjustification;gbudgetarygaccountingg
andgcontrol;gplanninggandgperformancegevaluation;gandgfinancialganalysis,gforecas
tinggandgmodeling.
"SunshinegLaws"g-
g✔✔✔gCorrectgAnswerg>gfreedomgofginformationglaws;ggovtgshouldgoperategingthe
gsunshine
(fedgLevel)gappropriationsgcangbegmadegfrom?g-
g✔✔✔gCorrectgAnswerg>ggeneralgfunds,gtrustgfunds,gorgspecialgfunds.
(RSS)greallygsimplegsyndication/RichgSitegSummaryg-
g✔✔✔gCorrectgAnswerg>gusedgtogkeepgusersgabreastgofgdevelopmentsgingareasgofgi
nterest.
1) BudgetarygControlg-gACCOUNTgSTRUCTURESg-
g✔✔✔gCorrectgAnswerg>gbudgetgdefinedgbygprogramgangobjectgclassg(line-item)
managergmustggetgapprovalgtogmovegfundinggfromgonegsourcegtoganother
10thgAmendmentg-greservedgclauseg-
g✔✔✔gCorrectgAnswerg>gFederalggov'tgmaygnotgdictateghowgstatesgandglocalsgoper
ategtheirgprograms:
"ThegpowersgnotgdelegatedgtogthegUSgbygthegConstitution,gnotgprohibitedgbygitgtogt
hegstates,garegreservedgforgthegstatesgrespectively,gorgtogthegpeople".
2gProprietarygFundgTypesg-
g✔✔✔gCorrectgAnswerg>gEnterprisegFundsgandgInternalgServicegFunds
,2) BudgetarygControlg-gAPPORTIONMENTg&gALLOTMENTSg-g✔✔✔gCorrectgAnswer
>gFundsgaregapportionedgtogthegagency,gthengallotedgtogthegdepartmentgorgprogra
m
distributiongofgfundsgongscheduleg(i.e.gquarterly)gtogpreventgspendinggfundsgtogqui
cklygandgallowgforgmid-yeargreprogramming.
2012gCensusg-g90,107ggovernmentgentitiesg-
✔✔✔gCorrectgAnswerg>gonegnationalg50gstate
g
90,056glocalg(5gtypes):
GeneralgPurpose:gCounty,gMunicipality,gTown
ship
SpecialgPurpose:gSchoolgdistrict,gspecialgpurpo
segdistrict
* independentgschoolgdistrictsg(specialgserviceggovernments)gtrendinggtowards
gconsolidationg(67,355ging1952,g14,178ging2012)
3g"E's"gofgGovernmentgDebtg-g✔✔✔gCorrectgAnswerg>g*gEquityg-
gdebtgshouldgbegpaidgbygthosegbenefitinggfromgthegproject
* Effectivenessg-gshouldgprovidegsufficientgfundsgforgthegproject
* Efficiencyg-gshouldgbegobtainedgatgtheglowestgcostgpossiblegrelativegtogrisk
3gcomponentsgofgappropriationsg-
g✔✔✔gCorrectgAnswerg>gPTA:g(1)gpurposeg(2)gtimeg(3)gamount
3gmaingpurposesgofgGovtgbudgetg-
g✔✔✔gCorrectgAnswerg>g(1)gpolicygdocument;g(2)gSetsgfinancialgplan;g(3)gCommsgdevic
e
,3-Esgofggovernmentgdebtg-g✔✔✔gCorrectgAnswerg>gEquityg-
grepaymentgofgdebtgshouldgbegbornegbygthosegbenefitinggfromgthegproject
Effectivenessg-gthegdebtgissuegshouldgprovidegsufficientgfundsgforgthegproject
Efficiency-
gloanedgfundsgshouldgbegobtainedgatgtheglowestgcostgpossiblegrelativegtogrisk.
3) BudgetarygControlg-gACCOUNTINGg-
g✔✔✔gCorrectgAnswerg>gsystemgofgrequisitions,gencumbrances,gandgrec
onciliationsgtogpreventgfraud
4gTypesgofgFiduciaryg(TrustgandgAgency)gFundsg-
g✔✔✔gCorrectgAnswerg>gPensiongTrustgFund,gAgencygFundsg(i.e.gCDBG),gInvestme
ntgTrustgFunds,gPrivate-
PurposegTrustgFunds,gandgTaxgAgencygFundsg(i.e.,gCitations)
4) BudgetarygControlg-gAUDITINGg-
g✔✔✔gCorrectgAnswerg>gInternalgandgexternalgauditinggtestsgthegeffectivenessgo
fginternalgcontrolsgandgaccuracygofgfinancialgstatements.
Seekgang"unmodifiedgopinion"gofgfinancialgreports
5gC.F.R.gPartg2635g-
gStandardsgofgEthicalgConductgforgEmployeesgofgthegExecutivegBranchg-
g✔✔✔gCorrectgAnswerg>gLegalgbasisgoutlininggrequirementsgongethicalgbehaviorgf
orgFederalgemployees
5gTypesgofgGovernmentgFundsg-
g✔✔✔gCorrectgAnswerg>gGeneralgFund,gSpecialgRevenuegFunds,gCapitalgProjectsgFund
s,gDebtgServicegFunds,gandgPermanentgFunds
Aggovernmentgwantsgtogensuregthatgthosegwhogbenefitgfromgagcapitalgprojectgsho
uldgpaygthegcostgofgfinancing.gHowgshouldgagprojectgthatghasgag20-
yeargusefulglifegbegfinanced?g-
g✔✔✔gCorrectgAnswerg>gIssuegagserialgbondgwithglevelgdebtgservice
Aggovernment'sgbudgetgshouldgincorporategonlygagshort-
termgperspectivegbecausegthegbudgetgisgonlygforgagone-yeargperiod.g-
g✔✔✔gCorrectgAnswerg>gFalse.gAlthoughgthegbudgetgisgonlygforgagone-
yeargperiod,gangeffectivegbudgetgincorporatesgaglong-
, gtermgperspectivegfocusinggonglonggrangeggoalsgandgobjectives,gThegbudgetgthen,gi
s
