CGFM EXAM 1 – STUDY GUIDE WITH 100% m m m m m m m
COMPLETE SOLUTIONS RATED A (830 Q m m m m m
UESTIONS AND CORRECT ANSWERS) | 2 m m m m m
024 UPDATE m
"Budget Career Roadmap" -
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m✔✔✔ Correct Answer > document published by BFELoB that covers array of co
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mpetencies including budget development and justification; budgetary accounti
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ng and control; planning and performance evaluation; and financial analysis, for
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ecasting and modeling. m m
"Sunshine Laws" - m m
m✔✔✔ Correct Answer > freedom of information laws; govt should operate in th
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e sunshine
m
(fed Level) appropriations can be made from? -
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m✔✔✔ Correct Answer > general funds, trust funds, or special funds.
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(RSS) really simple syndication/Rich Site Summary -
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m✔✔✔ Correct Answer > used to keep users abreast of developments in areas o
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f interest.
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1) Budgetary Control - ACCOUNT STRUCTURES -
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m✔✔✔ Correct Answer > budget defined by program an object class (line-
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item)
manager must get approval to move funding from one source to another
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10th Amendment - reserved clause -
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m✔✔✔ Correct Answer > Federal gov't may not dictate how states and locals op
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erate their programs:
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"The powers not delegated to the US by the Constitution, not prohibited by it to
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mthe states, are reserved for the states respectively, or to the people".
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2 Proprietary Fund Types -
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,m ✔✔✔ Correct Answer > Enterprise Funds and Internal Service Funds
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,2) Budgetary Control - APPORTIONMENT & ALLOTMENTS - ✔✔✔ Correct Answer
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> Funds are apportioned to the agency, then alloted to the department or progr
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am
distribution of funds on schedule (i.e. quarterly) to prevent spending funds to q
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uickly and allow for mid-year reprogramming.
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2012 Census - 90,107 government entities -
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m ✔✔✔ Correct Answer > one national 50 state
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90,056 local (5 types):
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General Purpose: County, Municipality, Town
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ship
Special Purpose: School district, special purp
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ose district
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* independent school districts (special service governments) trending toward
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s consolidation (67,355 in 1952, 14,178 in 2012)
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3 "E's" of Government Debt - ✔✔✔ Correct Answer > * Equity -
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mdebt should be paid by those benefiting from the project
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* Effectiveness - should provide sufficient funds for the project
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* Efficiency - should be obtained at the lowest cost possible relative to risk
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3 components of appropriations -
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m✔✔✔ Correct Answer > PTA: (1) purpose (2) time (3) amount
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3 main purposes of Govt budget -
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m✔✔✔ Correct Answer > (1) policy document; (2) Sets financial plan; (3) Comms dev
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ice
, 3-Es of government debt - ✔✔✔ Correct Answer > Equity -
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mrepayment of debt should be borne by those benefiting from the project
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Effectiveness - the debt issue should provide sufficient funds for the project
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Efficiency-
mloaned funds should be obtained at the lowest cost possible relative to risk.
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3) Budgetary Control - ACCOUNTING - m m m m
m✔✔✔ Correct Answer > system of requisitions, encumbrances, and re
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conciliations to prevent fraud m m m
4 Types of Fiduciary (Trust and Agency) Funds -
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m✔✔✔ Correct Answer > Pension Trust Fund, Agency Funds (i.e. CDBG), Investm
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ent Trust Funds, Private-
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Purpose Trust Funds, and Tax Agency Funds (i.e., Citations)
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4) Budgetary Control - AUDITING - m m m m
m✔✔✔ Correct Answer > Internal and external auditing tests the effectiveness
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of internal controls and accuracy of financial statements.
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Seek an "unmodified opinion" of financial reports
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5 C.F.R. Part 2635 -
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mStandards of Ethical Conduct for Employees of the Executive Branch -
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m✔✔✔ Correct Answer > Legal basis outlining requirements on ethical behavior
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for Federal employees
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5 Types of Government Funds -
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m✔✔✔ Correct Answer > General Fund, Special Revenue Funds, Capital Projects Fun
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ds, Debt Service Funds, and Permanent Funds
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A government wants to ensure that those who benefit from a capital project sh
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ould pay the cost of financing. How should a project that has a 20-
m m m m m m m m m m m m m
year useful life be financed? -
m m m m m
m✔✔✔ Correct Answer > Issue a serial bond with level debt service
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A government's budget should incorporate only a short-
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term perspective because the budget is only for a one-year period. -
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m✔✔✔ Correct Answer > False. Although the budget is only for a one-
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year period, an effective budget incorporates a long-
m m m m m m m
COMPLETE SOLUTIONS RATED A (830 Q m m m m m
UESTIONS AND CORRECT ANSWERS) | 2 m m m m m
024 UPDATE m
"Budget Career Roadmap" -
m m m
m✔✔✔ Correct Answer > document published by BFELoB that covers array of co
m m m m m m m m m m m m
mpetencies including budget development and justification; budgetary accounti
m m m m m m m
ng and control; planning and performance evaluation; and financial analysis, for
m m m m m m m m m m
ecasting and modeling. m m
"Sunshine Laws" - m m
m✔✔✔ Correct Answer > freedom of information laws; govt should operate in th
m m m m m m m m m m m m
e sunshine
m
(fed Level) appropriations can be made from? -
m m m m m m m
m✔✔✔ Correct Answer > general funds, trust funds, or special funds.
m m m m m m m m m m
(RSS) really simple syndication/Rich Site Summary -
m m m m m m
m✔✔✔ Correct Answer > used to keep users abreast of developments in areas o
m m m m m m m m m m m m m
f interest.
m
1) Budgetary Control - ACCOUNT STRUCTURES -
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m✔✔✔ Correct Answer > budget defined by program an object class (line-
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item)
manager must get approval to move funding from one source to another
m m m m m m m m m m m
10th Amendment - reserved clause -
m m m m m
m✔✔✔ Correct Answer > Federal gov't may not dictate how states and locals op
m m m m m m m m m m m m m
erate their programs:
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"The powers not delegated to the US by the Constitution, not prohibited by it to
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mthe states, are reserved for the states respectively, or to the people".
m m m m m m m m m m m
2 Proprietary Fund Types -
m m m m
,m ✔✔✔ Correct Answer > Enterprise Funds and Internal Service Funds
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,2) Budgetary Control - APPORTIONMENT & ALLOTMENTS - ✔✔✔ Correct Answer
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> Funds are apportioned to the agency, then alloted to the department or progr
m m m m m m m m m m m m m
am
distribution of funds on schedule (i.e. quarterly) to prevent spending funds to q
m m m m m m m m m m m m
uickly and allow for mid-year reprogramming.
m m m m m
2012 Census - 90,107 government entities -
m m m m m m
m ✔✔✔ Correct Answer > one national 50 state
m m m m m m m
90,056 local (5 types):
m m m
General Purpose: County, Municipality, Town
m m m m
ship
Special Purpose: School district, special purp
m m m m m
ose district
m
* independent school districts (special service governments) trending toward
m m m m m m m
s consolidation (67,355 in 1952, 14,178 in 2012)
m m m m m m m
3 "E's" of Government Debt - ✔✔✔ Correct Answer > * Equity -
m m m m m m m m m m m m
mdebt should be paid by those benefiting from the project
m m m m m m m m m
* Effectiveness - should provide sufficient funds for the project
m m m m m m m m
* Efficiency - should be obtained at the lowest cost possible relative to risk
m m m m m m m m m m m m
3 components of appropriations -
m m m m
m✔✔✔ Correct Answer > PTA: (1) purpose (2) time (3) amount
m m m m m m m m m m
3 main purposes of Govt budget -
m m m m m m
m✔✔✔ Correct Answer > (1) policy document; (2) Sets financial plan; (3) Comms dev
m m m m m m m m m m m m m
ice
, 3-Es of government debt - ✔✔✔ Correct Answer > Equity -
m m m m m m m m m m
mrepayment of debt should be borne by those benefiting from the project
m m m m m m m m m m m
Effectiveness - the debt issue should provide sufficient funds for the project
m m m m m m m m m m m
Efficiency-
mloaned funds should be obtained at the lowest cost possible relative to risk.
m m m m m m m m m m m m
3) Budgetary Control - ACCOUNTING - m m m m
m✔✔✔ Correct Answer > system of requisitions, encumbrances, and re
m m m m m m m m m
conciliations to prevent fraud m m m
4 Types of Fiduciary (Trust and Agency) Funds -
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m✔✔✔ Correct Answer > Pension Trust Fund, Agency Funds (i.e. CDBG), Investm
m m m m m m m m m m m
ent Trust Funds, Private-
m m m
Purpose Trust Funds, and Tax Agency Funds (i.e., Citations)
m m m m m m m m
4) Budgetary Control - AUDITING - m m m m
m✔✔✔ Correct Answer > Internal and external auditing tests the effectiveness
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of internal controls and accuracy of financial statements.
m m m m m m m
Seek an "unmodified opinion" of financial reports
m m m m m m
5 C.F.R. Part 2635 -
m m m m
mStandards of Ethical Conduct for Employees of the Executive Branch -
m m m m m m m m m m
m✔✔✔ Correct Answer > Legal basis outlining requirements on ethical behavior
m m m m m m m m m m m
for Federal employees
m m
5 Types of Government Funds -
m m m m m
m✔✔✔ Correct Answer > General Fund, Special Revenue Funds, Capital Projects Fun
m m m m m m m m m m m
ds, Debt Service Funds, and Permanent Funds
m m m m m m
A government wants to ensure that those who benefit from a capital project sh
m m m m m m m m m m m m m
ould pay the cost of financing. How should a project that has a 20-
m m m m m m m m m m m m m
year useful life be financed? -
m m m m m
m✔✔✔ Correct Answer > Issue a serial bond with level debt service
m m m m m m m m m m m
A government's budget should incorporate only a short-
m m m m m m m
term perspective because the budget is only for a one-year period. -
m m m m m m m m m m m
m✔✔✔ Correct Answer > False. Although the budget is only for a one-
m m m m m m m m m m m m
year period, an effective budget incorporates a long-
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