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CGFM Exam Study Guide 2 with Questions and Answers| 100% Passed
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CGFM Exam Study Guide 2 withQuestions and Answers| 100% Passed
Accountability - ✔✔Principle that in a democracy, government operates at the consent of the
people. Therefore it must answer to the people for its actions and results, including the taking and using
of the people's resources.
Allotments - ✔✔In the federal government, an agency's distribution of apportioned
budgetary authority to various components within the agency. After the executive agency
receives its apportionment, it allots budgetary authority to specific components within the
agency.
Anti-Deficiency Act - ✔✔At the federal level, a law stating that officials can be fined and/or jailed if
they obligate the government to spend funds beyond the legally authorized purpose, time, or amount.
Apportionmnets - ✔✔Definitions may vary at different levels of government. At the federal level,
OMB's approval to use a protion of the legislatively approved budgetary authority.
Appropriated Budget - ✔✔Budget that has been passed by the legistlative branch; has effect of law.
Appropriation - ✔✔A legistlative enactment (law, statute or ordinance) that creates
spending authority; the legal authority to incur expenses and spend money.
Attestation engagements - ✔✔Engagement primarily concerned with examining 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.
Authorization - ✔✔Legislative enactment that approves programs; prescribes what activities
an agency may pursue if funding is available.
,Block grants - ✔✔Intergovernmental provision of resources for broadly defined purposes. Contrasts
with category grants.
Capital Budget - ✔✔Forecasts and controls spending for "big ticket" items that are acquired and
used over a period of several years, such as construction projects and major equipment purchases.
Used at state and local levels.
Capital lease - ✔✔Capital leases is a lease fo real property that meets defined criteria requiring
the government to report the property as it purchased long term debt
Cash-flow budget - ✔✔Forecasts the timing as well as amount of cash flows for the year. Used to
project required cash levels.
Category grants - ✔✔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 - ✔✔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.
CEAR - ✔✔An AGA program that helps federal agencies and their components to produce
effective, high-quality Performance and Accountability Reports
Certificate of Participation - ✔✔Form of shared government financing. In a typical form, several
financial institutions share in a loan arrangement with a government entity.
Charter - ✔✔Local government version of a constitution. States may provide for the establishment
of local governments through charters
checks and balances - ✔✔Process by which one branch of government (legislative, executiv
or judicial) can constrain actions of the other branches. Flows from separation of powers.
,CFO Act - ✔✔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
Commissions - ✔✔Government components established by law, statuted or ordinance. May
be permanent or temporary. Because they are established by law, may have greater autonomy
and authority than government components that are administratively established. Ex. Federal
Communication Commision
Components - ✔✔Organized units of government such as agencies, offices and departments.
Found in all branches of government at all levels.
Conflict of interest - ✔✔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
Consumption Taxes - ✔✔Broad category of tax that includes sales, use, excise and value-added taxes
Continuity of Operations - ✔✔Refers to the efforts to ensure the organization can sustain
essential operations regardless of planned or unplanned incidents or disruptions.
Covenant (bond) - ✔✔Legal requirements pertaining to a specific bond issue. Typically define the
maturity date, revenue stream that will be used to repay the debt, interest rate and repayment
schedule. May require a sinking fund and may specify conditions that must be met before new debt
can be issued.
Credit-rating agencies - ✔✔Independent organizations that assess the credit worthiness of debt.
Three major rating agenciew are Standard & Poors, Moody's Investor Service and Fitches rating
Data mining - ✔✔Using special, computer-based techniques such as filters and algorithms to
extract meaningful information from large bodies of data
, Debt - ✔✔Money owed by the entity to individual or organizational creditors, ususally as a result
of planned short- or long-term borrowing to finance government objectives
Dedicated tax - ✔✔Taxes levied to finance a specific activity. Proceeds are deposited into an account
restricted to that activity. Also referred to as earmarked or restricted taxes.
Deficit - ✔✔Occurs when government expenditures for a specific fiscal period exceed
revenues and/or financial resource inflows.
Diligence - ✔✔Pursuing an event, action or assignment to a timely and sufficient end or close
Discrestionary grants - ✔✔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
Donations - ✔✔Voluntary contributions that confer no rights or benefits on the giver
Due care - ✔✔To discharge professional responsibilities with competence and diligence, to the best
of one's ability, and with the same level of ability and skill as others in similar positions. It also means to
act in the best interest of those served.
Earmarking - ✔✔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
Enterprise Resoure Planning System - ✔✔Major "end-to-end" computer system that links many
functions and departments. Used to simplify and streamline financial management, and to
integrate operation with financial management
Estate tax - ✔✔Form of wealth tax. Levied on the estate of the deceased person before assets
are distributed to heirs
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