CGFM TEST 3 Questions and Answers
(Latest Update 2024)
Three Broad Government Spending Purposes - Correct Answer ✅ 1)
Current Operations
2) Capital Outlays
3) Debt Service
Present Value Analysis - Three Components - Correct Answer ✅
Determines what $$ Rec'd in Future is Worth Today
1) inflation component - year over year loss in value
2) enterprise component - inherent risk
3) unique component -
Budget Accounting and Procedures Act of 1950 - Correct Answer ✅
Requires the head of each federal agency to establish and maintain I/C's.
Federal Managers Financial Integrity Act of 1982 (FMFIA) - Correct Answer
✅ requires the head of each agency to evaluate controls on an annual basis,
reporting any weakness along with a corrective action plan
** (resulted in the "green book") **
Single Audit Act of 1984 (amended in 1996) - Correct Answer ✅ requires
the audit of state and local governments and npo's receiving federal funding
Sarbanes Oxley Act of 2002 - Correct Answer ✅ Placed restrictions on
publicly traded companies following Enron scandal. Requires mgmt to report
on I/C's for financial reporting in its annual report.
(ICOFR) - Correct Answer ✅ Internal Controls Over Financial Reporting
,CGFM TEST 3 Questions and Answers
(Latest Update 2024)
Chief Financial Officers Act of 1990 (CFO Act): - Correct Answer ✅ required
10 federal agencies to produce audited annual financial reports that included
a report on internal control.
expanded in 1994 by GMRA
INTERNAL CONTROLS - Correct Answer ✅ systems and techniques
managers use to provide reasonable assurance that agency objectives met
in an effective/efficient manner, in compliance with laws/regulations, and to
safeguard assets.
Implemented to accomplish certain results, prevent problems, or detect
problems that have occurred.
Some controls can both detect and prevent problems (but only if their
existence is known).
TIME VALUE OF MONEY - Correct Answer ✅ Used in consideration of capital
budgeting
1) Present Value Analysis
2) Future Value Analysis
3) Payback Analysis
Flowcharting - Correct Answer ✅ Iterative process requiring changes
throughout development, each step represents a decision, also used to
evaluate processes for effective internal controls
,CGFM TEST 3 Questions and Answers
(Latest Update 2024)
Earned Value Management (EVM) - Correct Answer ✅ project mgmt
system that weighs both schedule and cost performance to determine if a
project is delivering expected results on time and within budget
Regression Analysis - Correct Answer ✅ Predicts the relationship between
variables:
1) Direct Linear Regression
2) Indirect Linerar Regression
3) Non-linear Regression
4) No Relationship
** See Limits of Regression Analysis
Correlation Coefficient - Correct Answer ✅ Determines the degree of
accuracy the analysis (variables) can be used to predict results (1=perfect
correlation
.85 considered reliable for forecasting)
Multiple Regressions - Correct Answer ✅ analyzes multiple IV's and look
for items with the highest correlation coefficient as being the most like
predictors
Limits of Regression Analysis - Correct Answer ✅ Data ranges must be
relevant (e.g., sample size might be too small to project on a larger
population)
Difficult to find data sets with high correlation coefficients
Bad data = bad results (garbage in, garbage out)
, CGFM TEST 3 Questions and Answers
(Latest Update 2024)
Correlation is not Causation, have to be able to explain how one set of data
would influence another
Data Analytics - Correct Answer ✅ inspecting, cleaning, transforming, and
modeling data to find useful information, conclusions, and support decision
making
Data Mining - Correct Answer ✅ (Predictive) sorting through large data
sets and using filters and algorithms to pick out relationships
** See strengths and weaknesses
Predictive Analytics - Correct Answer ✅ data collected through a variety of
techniques to analyze current and historical facts to make predictions about
future events
Data Mining Strengths and Weaknesses - Correct Answer ✅ * Strengths
Analyst is able to review complete data sets
Ability to link together multiple data sources
* Weaknesses
Must have quality data
Must have ability to understand program requirements and how this is
represented in the data
Starting a Data Analytic Program - Correct Answer ✅ Collaborate with
other agencies for data collection and sharing
Determine ROI in Analytics Programs
(Latest Update 2024)
Three Broad Government Spending Purposes - Correct Answer ✅ 1)
Current Operations
2) Capital Outlays
3) Debt Service
Present Value Analysis - Three Components - Correct Answer ✅
Determines what $$ Rec'd in Future is Worth Today
1) inflation component - year over year loss in value
2) enterprise component - inherent risk
3) unique component -
Budget Accounting and Procedures Act of 1950 - Correct Answer ✅
Requires the head of each federal agency to establish and maintain I/C's.
Federal Managers Financial Integrity Act of 1982 (FMFIA) - Correct Answer
✅ requires the head of each agency to evaluate controls on an annual basis,
reporting any weakness along with a corrective action plan
** (resulted in the "green book") **
Single Audit Act of 1984 (amended in 1996) - Correct Answer ✅ requires
the audit of state and local governments and npo's receiving federal funding
Sarbanes Oxley Act of 2002 - Correct Answer ✅ Placed restrictions on
publicly traded companies following Enron scandal. Requires mgmt to report
on I/C's for financial reporting in its annual report.
(ICOFR) - Correct Answer ✅ Internal Controls Over Financial Reporting
,CGFM TEST 3 Questions and Answers
(Latest Update 2024)
Chief Financial Officers Act of 1990 (CFO Act): - Correct Answer ✅ required
10 federal agencies to produce audited annual financial reports that included
a report on internal control.
expanded in 1994 by GMRA
INTERNAL CONTROLS - Correct Answer ✅ systems and techniques
managers use to provide reasonable assurance that agency objectives met
in an effective/efficient manner, in compliance with laws/regulations, and to
safeguard assets.
Implemented to accomplish certain results, prevent problems, or detect
problems that have occurred.
Some controls can both detect and prevent problems (but only if their
existence is known).
TIME VALUE OF MONEY - Correct Answer ✅ Used in consideration of capital
budgeting
1) Present Value Analysis
2) Future Value Analysis
3) Payback Analysis
Flowcharting - Correct Answer ✅ Iterative process requiring changes
throughout development, each step represents a decision, also used to
evaluate processes for effective internal controls
,CGFM TEST 3 Questions and Answers
(Latest Update 2024)
Earned Value Management (EVM) - Correct Answer ✅ project mgmt
system that weighs both schedule and cost performance to determine if a
project is delivering expected results on time and within budget
Regression Analysis - Correct Answer ✅ Predicts the relationship between
variables:
1) Direct Linear Regression
2) Indirect Linerar Regression
3) Non-linear Regression
4) No Relationship
** See Limits of Regression Analysis
Correlation Coefficient - Correct Answer ✅ Determines the degree of
accuracy the analysis (variables) can be used to predict results (1=perfect
correlation
.85 considered reliable for forecasting)
Multiple Regressions - Correct Answer ✅ analyzes multiple IV's and look
for items with the highest correlation coefficient as being the most like
predictors
Limits of Regression Analysis - Correct Answer ✅ Data ranges must be
relevant (e.g., sample size might be too small to project on a larger
population)
Difficult to find data sets with high correlation coefficients
Bad data = bad results (garbage in, garbage out)
, CGFM TEST 3 Questions and Answers
(Latest Update 2024)
Correlation is not Causation, have to be able to explain how one set of data
would influence another
Data Analytics - Correct Answer ✅ inspecting, cleaning, transforming, and
modeling data to find useful information, conclusions, and support decision
making
Data Mining - Correct Answer ✅ (Predictive) sorting through large data
sets and using filters and algorithms to pick out relationships
** See strengths and weaknesses
Predictive Analytics - Correct Answer ✅ data collected through a variety of
techniques to analyze current and historical facts to make predictions about
future events
Data Mining Strengths and Weaknesses - Correct Answer ✅ * Strengths
Analyst is able to review complete data sets
Ability to link together multiple data sources
* Weaknesses
Must have quality data
Must have ability to understand program requirements and how this is
represented in the data
Starting a Data Analytic Program - Correct Answer ✅ Collaborate with
other agencies for data collection and sharing
Determine ROI in Analytics Programs
