CGFM Exam 1- g g
gStudy Guide With Complete Solutions A
g g g g g
lready Graded A+
g g
AGAg-gAnswergAssociationgofgGovernmentgAccountants
CEARg-gAnswergCertificategofgExcellencegingAccountabilitygReporting
CFOg-gAnswergChiefgFinancialgOfficer
CGFMg-gAnswergCertifiedgGovernmentgFinancialgManager
ERPg-gAnswergEnterprisegResourcegPlanning
FASABg-gAnswergFederalgAccountinggStandardsgAdvisorygBoard
FASBg-gAnswergFinancialgAccountinggStandardsgBoard
FSIOg-gAnswergFinancialgSystemsgIntegrationgOfficeg(withingGSA)
GAAPg-gAnswergGenerallygAcceptedgAccountinggPrinciples
GAOg-gAnswergGovernmentgAccountibilitygOffice
GASBg-gAnswergGovernmentgAccountinggStandardsgBoard
GPRAg-gAnswergGovernmentgPerformancegandgResultsgAct
OMBg-gAnswergOfficegofgManagementgandgBudget
PARg-gAnswergPerformancegandgAccountabilitygReport
SEAg-gAnswergServicegEffortsgandgAccomplishments
Accountabilityg-
gAnswergPrinciplegthatgingagdemocracy,ggovernmentgoperatesgatgthegconsentgofgthegp
eople.gThereforegitgmustganswergtogthegpeoplegforgitsgactionsgandgresults,gincludinggt
hegtakinggandgusinggofgthegpeople'sgresources.
Allotmentsg-
gAnswergIngthegfederalggovernment,gangagency'sgdistributiongofgapportionedgbudgeta
rygauthoritygtogvariousgcomponentsgwithingthegagency.gAftergthegexecutivegagencygre
ceivesgitsgapportionment,gitgallotsgbudgetarygauthoritygtogspecificgcomponentsgwithing
thegagency.
Anti-DeficiencygActg-
gAnswergAtgthegfederalglevel,gaglawgstatinggthatgofficialsgcangbegfinedgand/orgjailedgifgt
heygobligategtheggovernmentgtogspendgfundsgbeyondgtheglegallygauthorizedgpurpose,
gtime,gorgamount.
,CGFM Exam 1- g g
gStudy Guide With Complete Solutions A
g g g g g
lready Graded A+
g g
Apportionmnetsg-
gAnswergDefinitionsgmaygvarygatgdifferentglevelsgofggovernment.gAtgthegfederalglevel,g
OMB'sgapprovalgtogusegagprotiongofgtheglegislativelygapprovedgbudgetarygauthority.
AppropriatedgBudgetg-
gAnswergBudgetgthatghasgbeengpassedgbygtheglegistlativegbranch;ghasgeffectgofglaw.
Appropriationg-
gAnswergAglegistlativegenactmentg(law,gstatutegorgordinance)gthatgcreatesgspendingga
uthority;gtheglegalgauthoritygtogincurgexpensesgandgspendgmoney.
Attestationgengagementsg-
gAnswergEngagementgprimarilygconcernedgwithgexamininggorgperforminggagreedgupo
ngproceduresgongagsubjectgmatter,gorgangassertiongaboutgagsubjectgmatter,gandgrepor
tinggongthegresults.gThegsubjectgmattergmaygbegfinancialgorgnonfinancialgandgcangbeg
partgofgagfinancialgauditgorgperformancegaudit.gPossiblegsubjectsgincludegreportinggon
gangentity'sginternalgcontrols,gcompliancegwithglawgorgperformancegmeasures.
Authorizationg-
gAnswergLegislativegenactmentgthatgapprovesgprograms;gprescribesgwhatgactivitiesga
ngagencygmaygpursuegifgfundinggisgavailable.
Blockggrantsg-
gAnswergIntergovernmentalgprovisiongofgresourcesgforgbroadlygdefinedgpurposes.gCo
ntrastsgwithgcategoryggrants.
CapitalgBudgetg-
gAnswergForecastsgandgcontrolsgspendinggforg"biggticket"gitemsgthatgaregacquiredgan
dgusedgovergagperiodgofgseveralgyears,gsuchgasgconstructiongprojectsgandgmajorgequi
pmentgpurchases.gUsedgatgstategandglocalglevels.
Capitalgleaseg-
gAnswergCapitalgleasesgisgagleasegfogrealgpropertygthatgmeetsgdefinedgcriteriagrequiri
nggtheggovernmentgtogreportgthegpropertygasgitgpurchasedglonggtermgdebt
Cash-flowgbudgetg-
gAnswergForecastsgthegtiminggasgwellgasgamountgofgcashgflowsgforgthegyear.gUsedgto
gprojectgrequiredgcashglevels.
Categoryggrantsg-
gAnswergIntergovernmentalgprovisiongofgresourcesgtogbegusedgforgactivitiesgingagspec
ificgcategorygofgpurpose.gMaygbegfurthergclassifiedgasgdiscretionaryggrantsgorgformula
ggrants.gContrastsgwithgblockggrants.
CentralgManagementgAgenciesg-
gAnswergGovernmentgagenciesgthatgprovidegcentralgmanagementgservicesgtogothergc
,CGFM Exam 1- g g
gStudy Guide With Complete Solutions A
g g g g g
lready Graded A+
g g
omponents.gExamplegwouldgbegagstateggovernmentghrgofficeg(thatgservesgallgstategag
encies)gorgthegOMBgatgthegfederalglevel.
CEARg-
gAnswergAngAGAgprogramgthatghelpsgfederalgagenciesgandgtheirgcomponentsgtogpro
ducegeffective,ghigh-qualitygPerformancegandgAccountabilitygReports
CertificategofgParticipationg-
gAnswergFormgofgsharedggovernmentgfinancing.gIngagtypicalgform,gseveralgfinancialgin
stitutionsgsharegingagloangarrangementgwithgaggovernmentgentity.
Charterg-
gAnswergLocalggovernmentgversiongofgagconstitution.gStatesgmaygprovidegforgthegest
ablishmentgofglocalggovernmentsgthroughgcharters
checksgandgbalancesg-
gAnswergProcessgbygwhichgonegbranchgofggovernmentg(legislative,gexecutivgorgjudici
al)gcangconstraingactionsgofgthegothergbranches.gFlowsgfromgseparationgofgpowers.
CFOgActg-
gAnswerg1990glawgthat,gamonggothergprovisions,grequiresgthegfederalggovernment'sg
majorgexecutivegbranchgagenciesgtoghavegagCFO.gPrescribesgdutiesgandgreportinggre
quirements,gandgrequiresgauditedgfinancialgstatements
Commissionsg-
gAnswergGovernmentgcomponentsgestablishedgbyglaw,gstatutedgorgordinance.gMaygb
egpermanentgorgtemporary.gBecausegtheygaregestablishedgbyglaw,gmayghaveggreaterg
autonomygandgauthoritygthanggovernmentgcomponentsgthatgaregadministrativelygesta
blished.gEx.gFederalgCommunicationgCommision
Componentsg-
gAnswergOrganizedgunitsgofggovernmentgsuchgasgagencies,gofficesgandgdepartments.
gFoundgingallgbranchesgofggovernmentgatgallglevels.
Conflictgofginterestg-
gAnswergArisesgwhengoneghasgpersonalginterestgingmattersgrelatinggtogofficialgdutiesg
orgactivities.gSuchgconflictsgcangdestroygobjectivitygandgindependencegandgpreventgth
egexercisegofgduegcare
ConsumptiongTaxesg-
gAnswergBroadgcategorygofgtaxgthatgincludesgsales,guse,gexcisegandgvalue-
addedgtaxes
ContinuitygofgOperationsg-
gAnswergRefersgtogthegeffortsgtogensuregthegorganizationgcangsustaingessentialgopera
tionsgregardlessgofgplannedgorgunplannedgincidentsgorgdisruptions.
, CGFM Exam 1- g g
gStudy Guide With Complete Solutions A
g g g g g
lready Graded A+
g g
Covenantg(bond)g-
gAnswergLegalgrequirementsgpertaininggtogagspecificgbondgissue.gTypicallygdefinegthe
gmaturitygdate,grevenuegstreamgthatgwillgbegusedgtogrepaygthegdebt,ginterestgrategandg
repaymentgschedule.gMaygrequiregagsinkinggfundgandgmaygspecifygconditionsgthatgm
ustgbegmetgbeforegnewgdebtgcangbegissued.
Credit-ratinggagenciesg-
gAnswergIndependentgorganizationsgthatgassessgthegcreditgworthinessgofgdebt.gThree
gmajorgratinggagenciewgaregStandardg&gPoors,gMoody'sgInvestorgServicegandgFitche
sgrating
Datagminingg-gAnswergUsinggspecial,gcomputer-
basedgtechniquesgsuchgasgfiltersgandgalgorithmsgtogextractgmeaningfulginformationgfr
omglargegbodiesgofgdata
Debtg-
gAnswergMoneygowedgbygthegentitygtogindividualgorgorganizationalgcreditors,gususally
gasgagresultgofgplannedgshort-gorglong-
termgborrowinggtogfinanceggovernmentgobjectives
Dedicatedgtaxg-
gAnswergTaxesgleviedgtogfinancegagspecificgactivity.gProceedsgaregdepositedgintogang
accountgrestrictedgtogthatgactivity.gAlsogreferredgtogasgearmarkedgorgrestrictedgtaxes.
Deficitg-
gAnswergOccursgwhenggovernmentgexpendituresgforgagspecificgfiscalgperiodgexceedgr
evenuesgand/orgfinancialgresourceginflows.
Diligenceg-
gAnswergPursuinggangevent,gactiongorgassignmentgtogagtimelygandgsufficientgendgorgcl
ose
Discrestionaryggrantsg-
gAnswergFormgofgcategoryggrant.gTransfersgfundsgbetweenggovernmentsgforgagspecifi
cgpurpose;gwhethergaggrantgisgawardedgandgthegamountgofgthegawardgdependgongdis
cretiongofgthegentitygprovidinggthegfunds
Donationsg-
gAnswergVoluntarygcontributionsgthatgconfergnogrightsgorgbenefitsgongtheggiver
Duegcareg-
gAnswergTogdischargegprofessionalgresponsibilitiesgwithgcompetencegandgdiligence,gt
ogthegbestgofgone'sgability,gandgwithgthegsameglevelgofgabilitygandgskillgasgothersgingsi
milargpositions.gItgalsogmeansgtogactgingthegbestginterestgofgthosegserved.
gStudy Guide With Complete Solutions A
g g g g g
lready Graded A+
g g
AGAg-gAnswergAssociationgofgGovernmentgAccountants
CEARg-gAnswergCertificategofgExcellencegingAccountabilitygReporting
CFOg-gAnswergChiefgFinancialgOfficer
CGFMg-gAnswergCertifiedgGovernmentgFinancialgManager
ERPg-gAnswergEnterprisegResourcegPlanning
FASABg-gAnswergFederalgAccountinggStandardsgAdvisorygBoard
FASBg-gAnswergFinancialgAccountinggStandardsgBoard
FSIOg-gAnswergFinancialgSystemsgIntegrationgOfficeg(withingGSA)
GAAPg-gAnswergGenerallygAcceptedgAccountinggPrinciples
GAOg-gAnswergGovernmentgAccountibilitygOffice
GASBg-gAnswergGovernmentgAccountinggStandardsgBoard
GPRAg-gAnswergGovernmentgPerformancegandgResultsgAct
OMBg-gAnswergOfficegofgManagementgandgBudget
PARg-gAnswergPerformancegandgAccountabilitygReport
SEAg-gAnswergServicegEffortsgandgAccomplishments
Accountabilityg-
gAnswergPrinciplegthatgingagdemocracy,ggovernmentgoperatesgatgthegconsentgofgthegp
eople.gThereforegitgmustganswergtogthegpeoplegforgitsgactionsgandgresults,gincludinggt
hegtakinggandgusinggofgthegpeople'sgresources.
Allotmentsg-
gAnswergIngthegfederalggovernment,gangagency'sgdistributiongofgapportionedgbudgeta
rygauthoritygtogvariousgcomponentsgwithingthegagency.gAftergthegexecutivegagencygre
ceivesgitsgapportionment,gitgallotsgbudgetarygauthoritygtogspecificgcomponentsgwithing
thegagency.
Anti-DeficiencygActg-
gAnswergAtgthegfederalglevel,gaglawgstatinggthatgofficialsgcangbegfinedgand/orgjailedgifgt
heygobligategtheggovernmentgtogspendgfundsgbeyondgtheglegallygauthorizedgpurpose,
gtime,gorgamount.
,CGFM Exam 1- g g
gStudy Guide With Complete Solutions A
g g g g g
lready Graded A+
g g
Apportionmnetsg-
gAnswergDefinitionsgmaygvarygatgdifferentglevelsgofggovernment.gAtgthegfederalglevel,g
OMB'sgapprovalgtogusegagprotiongofgtheglegislativelygapprovedgbudgetarygauthority.
AppropriatedgBudgetg-
gAnswergBudgetgthatghasgbeengpassedgbygtheglegistlativegbranch;ghasgeffectgofglaw.
Appropriationg-
gAnswergAglegistlativegenactmentg(law,gstatutegorgordinance)gthatgcreatesgspendingga
uthority;gtheglegalgauthoritygtogincurgexpensesgandgspendgmoney.
Attestationgengagementsg-
gAnswergEngagementgprimarilygconcernedgwithgexamininggorgperforminggagreedgupo
ngproceduresgongagsubjectgmatter,gorgangassertiongaboutgagsubjectgmatter,gandgrepor
tinggongthegresults.gThegsubjectgmattergmaygbegfinancialgorgnonfinancialgandgcangbeg
partgofgagfinancialgauditgorgperformancegaudit.gPossiblegsubjectsgincludegreportinggon
gangentity'sginternalgcontrols,gcompliancegwithglawgorgperformancegmeasures.
Authorizationg-
gAnswergLegislativegenactmentgthatgapprovesgprograms;gprescribesgwhatgactivitiesga
ngagencygmaygpursuegifgfundinggisgavailable.
Blockggrantsg-
gAnswergIntergovernmentalgprovisiongofgresourcesgforgbroadlygdefinedgpurposes.gCo
ntrastsgwithgcategoryggrants.
CapitalgBudgetg-
gAnswergForecastsgandgcontrolsgspendinggforg"biggticket"gitemsgthatgaregacquiredgan
dgusedgovergagperiodgofgseveralgyears,gsuchgasgconstructiongprojectsgandgmajorgequi
pmentgpurchases.gUsedgatgstategandglocalglevels.
Capitalgleaseg-
gAnswergCapitalgleasesgisgagleasegfogrealgpropertygthatgmeetsgdefinedgcriteriagrequiri
nggtheggovernmentgtogreportgthegpropertygasgitgpurchasedglonggtermgdebt
Cash-flowgbudgetg-
gAnswergForecastsgthegtiminggasgwellgasgamountgofgcashgflowsgforgthegyear.gUsedgto
gprojectgrequiredgcashglevels.
Categoryggrantsg-
gAnswergIntergovernmentalgprovisiongofgresourcesgtogbegusedgforgactivitiesgingagspec
ificgcategorygofgpurpose.gMaygbegfurthergclassifiedgasgdiscretionaryggrantsgorgformula
ggrants.gContrastsgwithgblockggrants.
CentralgManagementgAgenciesg-
gAnswergGovernmentgagenciesgthatgprovidegcentralgmanagementgservicesgtogothergc
,CGFM Exam 1- g g
gStudy Guide With Complete Solutions A
g g g g g
lready Graded A+
g g
omponents.gExamplegwouldgbegagstateggovernmentghrgofficeg(thatgservesgallgstategag
encies)gorgthegOMBgatgthegfederalglevel.
CEARg-
gAnswergAngAGAgprogramgthatghelpsgfederalgagenciesgandgtheirgcomponentsgtogpro
ducegeffective,ghigh-qualitygPerformancegandgAccountabilitygReports
CertificategofgParticipationg-
gAnswergFormgofgsharedggovernmentgfinancing.gIngagtypicalgform,gseveralgfinancialgin
stitutionsgsharegingagloangarrangementgwithgaggovernmentgentity.
Charterg-
gAnswergLocalggovernmentgversiongofgagconstitution.gStatesgmaygprovidegforgthegest
ablishmentgofglocalggovernmentsgthroughgcharters
checksgandgbalancesg-
gAnswergProcessgbygwhichgonegbranchgofggovernmentg(legislative,gexecutivgorgjudici
al)gcangconstraingactionsgofgthegothergbranches.gFlowsgfromgseparationgofgpowers.
CFOgActg-
gAnswerg1990glawgthat,gamonggothergprovisions,grequiresgthegfederalggovernment'sg
majorgexecutivegbranchgagenciesgtoghavegagCFO.gPrescribesgdutiesgandgreportinggre
quirements,gandgrequiresgauditedgfinancialgstatements
Commissionsg-
gAnswergGovernmentgcomponentsgestablishedgbyglaw,gstatutedgorgordinance.gMaygb
egpermanentgorgtemporary.gBecausegtheygaregestablishedgbyglaw,gmayghaveggreaterg
autonomygandgauthoritygthanggovernmentgcomponentsgthatgaregadministrativelygesta
blished.gEx.gFederalgCommunicationgCommision
Componentsg-
gAnswergOrganizedgunitsgofggovernmentgsuchgasgagencies,gofficesgandgdepartments.
gFoundgingallgbranchesgofggovernmentgatgallglevels.
Conflictgofginterestg-
gAnswergArisesgwhengoneghasgpersonalginterestgingmattersgrelatinggtogofficialgdutiesg
orgactivities.gSuchgconflictsgcangdestroygobjectivitygandgindependencegandgpreventgth
egexercisegofgduegcare
ConsumptiongTaxesg-
gAnswergBroadgcategorygofgtaxgthatgincludesgsales,guse,gexcisegandgvalue-
addedgtaxes
ContinuitygofgOperationsg-
gAnswergRefersgtogthegeffortsgtogensuregthegorganizationgcangsustaingessentialgopera
tionsgregardlessgofgplannedgorgunplannedgincidentsgorgdisruptions.
, CGFM Exam 1- g g
gStudy Guide With Complete Solutions A
g g g g g
lready Graded A+
g g
Covenantg(bond)g-
gAnswergLegalgrequirementsgpertaininggtogagspecificgbondgissue.gTypicallygdefinegthe
gmaturitygdate,grevenuegstreamgthatgwillgbegusedgtogrepaygthegdebt,ginterestgrategandg
repaymentgschedule.gMaygrequiregagsinkinggfundgandgmaygspecifygconditionsgthatgm
ustgbegmetgbeforegnewgdebtgcangbegissued.
Credit-ratinggagenciesg-
gAnswergIndependentgorganizationsgthatgassessgthegcreditgworthinessgofgdebt.gThree
gmajorgratinggagenciewgaregStandardg&gPoors,gMoody'sgInvestorgServicegandgFitche
sgrating
Datagminingg-gAnswergUsinggspecial,gcomputer-
basedgtechniquesgsuchgasgfiltersgandgalgorithmsgtogextractgmeaningfulginformationgfr
omglargegbodiesgofgdata
Debtg-
gAnswergMoneygowedgbygthegentitygtogindividualgorgorganizationalgcreditors,gususally
gasgagresultgofgplannedgshort-gorglong-
termgborrowinggtogfinanceggovernmentgobjectives
Dedicatedgtaxg-
gAnswergTaxesgleviedgtogfinancegagspecificgactivity.gProceedsgaregdepositedgintogang
accountgrestrictedgtogthatgactivity.gAlsogreferredgtogasgearmarkedgorgrestrictedgtaxes.
Deficitg-
gAnswergOccursgwhenggovernmentgexpendituresgforgagspecificgfiscalgperiodgexceedgr
evenuesgand/orgfinancialgresourceginflows.
Diligenceg-
gAnswergPursuinggangevent,gactiongorgassignmentgtogagtimelygandgsufficientgendgorgcl
ose
Discrestionaryggrantsg-
gAnswergFormgofgcategoryggrant.gTransfersgfundsgbetweenggovernmentsgforgagspecifi
cgpurpose;gwhethergaggrantgisgawardedgandgthegamountgofgthegawardgdependgongdis
cretiongofgthegentitygprovidinggthegfunds
Donationsg-
gAnswergVoluntarygcontributionsgthatgconfergnogrightsgorgbenefitsgongtheggiver
Duegcareg-
gAnswergTogdischargegprofessionalgresponsibilitiesgwithgcompetencegandgdiligence,gt
ogthegbestgofgone'sgability,gandgwithgthegsameglevelgofgabilitygandgskillgasgothersgingsi
milargpositions.gItgalsogmeansgtogactgingthegbestginterestgofgthosegserved.
