CGFM Exam 1 ALL Questions with correct Answers

doctrine of separation of powers provides a foundation for - ANSWER-government financial management govt entity can be classed as - ANSWER-general or special purpose US constitution written - ANSWER-1787 Most sc ...

doctrine of separation of powers provides a foundation for - ANSWER-government financial management govt entity can be classed as - ANSWER-general or special purpose US constitution written - ANSWER-1787 Most school district in US - ANSWER-Independent District Role of federal CFO - ANSWER-codified in the Chief Financial Officer act of 1990 telework - ANSWER-working from home or other remote location Anti-fraud policies - ANSWER-a formal code of conduct frames the behavioral expectations for individuals No. of the Federal Reserve Bank - ANSWER-12 regional banks in major cities if budget has not passed by the start of the new fiscal year - ANSWER-Government does not have legal authority to operate supplemental appropriation budget amendment - ANSWER-executive inform the legislative branch that more funds are needed due to depletion of funds before the end of fiscal year most power in budget - ANSWER-legislative branch Appropriation of funds - ANSWER-budget bill that actually makes funds available Authorization of funds - ANSWER-bill that approves programs it prescribes what an agency will do if funding is available Expanded Government framework - ANSWER-includes these steps: planning, programming, budgeting, operations, accounting, reporting and auditing. Type of performance audit - ANSWER-o Program effectiveness and results audits address the effectiveness of a program and typically measure the extent to which a program is achieving its goals and objectives. o Economy and efficiency audit objectives concern whether an entity is acquiring, protecting and using its resources in the most productive manner to achieve program objectives. o Program effectiveness and results audit objectives, as well as economy and efficiency audit objectives, are often interrelated and may be concurrently addressed in a performance audit. major form of government revenue - ANSWER-tax progressive tax rate - ANSWER-income tax higher incomes, higher tax rate Tax expenditures - ANSWER-Exceptions to tax laws and regulations They cost the public in terms of lost revenue that could otherwise be used to fund programs or reduce tax rate 3 broad categories of tax - ANSWER-income Wealth Consumption Income Tax - ANSWER-Base - all income Graduated tax Exemptions and deductions apply to enhance horizontal and vertical equity Medicare tax rate - ANSWER-1.45% no cap sinking fund - ANSWER-money set aside on a periodic basis to retire term bonds at maturity FSIO - ANSWER-Financial Systems Integration Office (within GSA) SEA - ANSWER-Service Efforts and Accomplishments Attestation engagements (External Audits ) - ANSWER-Engagement primarily concerned with examining, reviewing or performing agreed upon procedures on a subject matter, or an assertion about a subject matter, and reporting on the results. The subject matter may be financial or nonfinancial and can be part of a financial audit or performance audit. Possible subjects include reporting on an entity's internal controls, compliance with law or performance measures. Block grants - ANSWER-Intergovernmental provision of resources for broadly defined purposes. Contrasts with category grants. Category grants - ANSWER-Intergovernmental provision of resources to be used for activities in a specific category of purpose. May be further classified as discretionary grants or formula grants. Contrasts with block grants. Central Management Agencies - ANSWER-Government agencies that provide central management services to other components. Example would be a state government hr office (that serves all state agencies) or the OMB at the federal level. Checks and balances - ANSWER-Process by which one branch of government (legislative, executive or judicial) can constrain actions of the other branches. Flows from separation of powers. No branch of govt is completely independent of other Conflict of interest - ANSWER-Arises when one has personal interest in matters relating to official duties or activities. Such conflicts can destroy objectivity and independence and prevent the exercise of due care COOP-Continuity of Operations - ANSWER-Refers to the efforts to ensure the organization can sustain essential operations regardless of planned or unplanned incidents or disruptions. Earmarking (dedicated collections or tax) - ANSWER-Variation on use of special funds. Revenue from specific taxes or other sources is set aside for specific activities. One example is the earmarking of gasoline taxes for highway improvements project grants/discretionary grant - ANSWER-Form of category grant. Transfers funds between governments for a specific purpose; whether a grant is awarded and the amount of the award depend on discretion of the entity providing the funds Estate tax - ANSWER-Form of wealth tax. Levied on the estate of the deceased person before assets are distributed to heirs Ethics - ANSWER-A set of moral principles and values; the principles of conduct governing an individual or a (professional) group. A complex system of discipline that civilized societies impose on themselves through laws, customs, standards, social etiquette and other rules to govern moral conduct Financial Reports - ANSWER-External reports that depict financial position and financial results of operations of the entity Formula grants - ANSWER-Form of category grants. The amount of the inter-governmental transfer is based on a formula contained in law or regulation, which determines the total amount recipients will receive if basic eligibility requirements are satisfied Income tax - ANSWER-Tax based on income and levied on individuals or corporations. Used most often at national and state levels, though some states allow local governments to impose income taxes. Independence - ANSWER-Free from relationships that may impair, or appear to impair, one's ability to act with objectivity. Independence is the quality of being free of any obligation to particular parties or interests. also free of undue influence. Inheritance Tax - ANSWER-Form of wealth tax. Levied on the person receiving the bequest Myers-Briggs Type Analysis - ANSWER-Personality assessment based on the psychological theory of Carl Jung and the diagnostic instrument developbed by Isabel Briggs-Myers and her mother Katharine Briggs Operating budget - ANSWER-Defines level or resources to be applied in providing government programs and services; usually covers periods of one to two years. Situational Leadership - ANSWER-Leadership model developed by Ken Blanchard and Paul Hersey. Encourages leaders to diagnose developmental level of employees and vary their leadership style accordingly. Serial bonds - ANSWER-A bond issue featuring maturities, every year, over a period of several years. Contrasts with term bonds in which the entire issue matures on the same date or near the same date. Gov't sovereignty vs. Popular sovereignty - ANSWER-The national government cannot be sued by states or citizens without its permission. Pop: Principle that, while governments are sovereign entities, in a democracy, ultimate sovereignty rests with the people. Judicial review - ANSWER-Principle by which the judicial branch may review actions by the legislative and executive branches and, if appropriate, declare them unconstitutional or illegal. Flows from the separation of powers. Appropriation - ANSWER-A legislative enactment (law, statute or ordinance) that creates spending authority; the legal authority to incur expenses and spend money. GAGAS (Generally Accepted Government Auditing Standards) - ANSWER-Issued by the Government Accountability Office (GAO), to define the expected levels of performance for the conduct of an audit or attestation of a government organization, program, activity, or function(also called government auditing standards or Yellow Book). Fundamental Ethical Princile - ANSWER-Public service is a public trust. GPEFR - ANSWER-General Purpose External Financial Reports Government borrowing is constrained by... - ANSWER-...constitutions and statutes, bond covenants, and debt policies. the federal government has ___ but not ___ debt limits. - ANSWER-statutory, but not constitutional wealth taxes - ANSWER-real property, personal property, intangibles and estate and inheritance taxes; costly to administer; major source of revenue for local governments, primarily real property taxes consumption taxes - ANSWER-sales, use, excise, and VAT. Regressive; low compliance rates; major source of financing for most state governments and many local entities 3 long-term financing options; one short - ANSWER-bonds, lease-purchase agreements and CoP; notes 2 typical way gov't lowers interest costs in debt issues - ANSWER-securing third-party insurance; state guarantees The appropriated budget is - ANSWER-primarily legal authority to spend, also an expression of public policy, a financial plan, and an important communications device. The primary purpose of the budget PROCESS is - ANSWER-to prioritize gov't expenditures and allocate financial resources to fund them. separation of power - ANSWER-legislature INFORMS policy, executive IMPLEMENTS policy in ADMINISTRATION, and the judicial exercises JUDICIAL REVIEW. Government authority is founded in... - ANSWER-constitutions or charters PIA - ANSWER-privacy impact assessments; required for federal agencies CAFR - ANSWER-Comprehensive Annual Financial Report CEAR - ANSWER-Certificate of Excellence in Accountability Reporting GAAS - ANSWER-Generally Accepted Auditing Standards Accountability - ANSWER-In a democracy, government operates by the consent of the people. It must answer to, the people for its actions and results, including the taking and using of people's resources CFO (Chief Financial Officers) Act - ANSWER-A 1990 law that, among other provisions, requires the federal government's major executive branch agencies to have a CFO. Prescribes duties and reporting requirements, and requires audited financial statements Discretionary Grant - ANSWER-A term sometimes used to mean "Project Grant"