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CGFM Test 2 with Questions and Answers| 100% Passed
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CGFM Test with Questions andAnswers| 100% Passed
Starting a Data Analytic Program - ✔✔Collaborate with other agencies for data collection and sharing
Determine ROI in Analytics Programs
Give leaders clear concise analysis they can use to support data driven programs
Enable employees at all levels to see and utilize data for their needs (not just the needs of senior leaders
Managers to demand the use of data and provide employees with targeted on the job training
Forensic Auditing - ✔✔examination of financial information that is likely to be used for
the investigation and prosecution of financial crimes
Need to have knowledge of basic legal principles, standards for discovery
Steps for Forensic Auditing - ✔✔a) data collection,
b) data preparation,
c) data analysis,
and d) reporting
Benford Digital Analysis - ✔✔based on observation that more transactions begin with the number
one than larger numbers. More transactions will start with number one than number two ... and
more with number two, than number three, etc...
Because there is an expected distribution of numbers, the testing an point out potentially
fraudulent transactions
Competitive Source Analysis - ✔✔Used to determine if there is a benefit to contracting
government services to the private sector:
,1) Conduct a management study
2) Prepare a performance work statement - defines the expected outputs/results
3) Project the in-house and contract costs
4) Select the best alternative - combination of performance and price
Ratio Analysis - ✔✔Active use of numbers to point out problems and indicate performance,
questions to ask, etc. They serve as starting points for further inquiry.
Ex. numbers revealing that receivables are increasing could trigger an increase in debt collection efforts.
Other rations could indicate fiscal stress, adequacy of reserves, liquidity, workloads, response times, and
accuracy rates.
Pure Ratios - ✔✔relating one number to another to create a meaningful indicator of
performance (ex., total expenditures to budget).
Comparative Analysis - ✔✔Comparing entities numbers and ratios to another agency or benchmarks.
Credit rating agencies also publish median ratios by industry and what they consider to be reasonable
ranges and ratios
Time Series Analysis - ✔✔comparing the agency against itself over time, ex. Calculating
the percentage change from year to year
Common Size Statements - ✔✔converts all data elements in a statement to percentages of 100,
Examines expenditures of a function as compared to total expenditures (ex., percentage of total
budget spent on public safety year over year, and if it is growing disproportionately to other programs)
Per Capita Information - ✔✔Debt per capita
Cautionary Note on Ratio Analysis - ✔✔Not an ends unto themselves but serve as a starting point
for further investigation.
,Liquidity Ratios - ✔✔Determines entities ability to meet creditors demands:
1) Current Ratio
2) Quick Ration
Three Broad Government Spending Purposes - ✔✔1) Current Operations
2) Capital Outlays
3) Debt Service
Present Value Analysis - Three Components - ✔✔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 - ✔✔Requires the head of each federal agency
to establish and maintain I/C's.
Federal Managers Financial Integrity Act of 1982 (FMFIA) - ✔✔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) - ✔✔requires the audit of state and local
governments and npo's receiving federal funding
Sarbanes Oxley Act of 2002 - ✔✔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) - ✔✔Internal Controls Over Financial Reporting
, Chief Financial Officers Act of 1990 (CFO Act): - ✔✔required 10 federal agencies to produce
audited annual financial reports that included a report on internal control.
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