Public Sector Financial Management and Accountability, Exams of Nursing

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CGFM EXAM 1 QUESTIONS AND ANSWERS NEWEST UPDATE 2024/2025 WITH CORRECT 100% VERIFIED ANSWERS BEST SOLUTION GRADED A+ FOR PASS doctrine of separation of powers provides a foundation for - CORRECT ANSWERS government financial management govt entity can be classed as - CORRECT ANSWERS general or special purpose US constitution written - CORRECT ANSWERS 1787 Most school district in US - CORRECT ANSWERS Independent District Role of federal CFO - CORRECT ANSWERS codified in the Chief Financial Officer act of 1990 telework - CORRECT ANSWERS working from home or other remote location Anti-fraud policies - CORRECT ANSWERS a formal code of conduct frames the behavioral expectations for individuals No. of the Federal Reserve Bank - CORRECT ANSWERS 12 regional banks in major cities if budget has not passed by the start of the new fiscal year - CORRECT ANSWERS Government does not have legal authority to operate supplemental appropriation budget amendment - CORRECT ANSWERS 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 - CORRECT ANSWERS legislative branch CGFM EXAM 1 QUESTIONS AND ANSWERS NEWEST UPDATE 2024/2025 WITH CORRECT 100% VERIFIED ANSWERS BEST SOLUTION GRADED A+ FOR PASS Appropriation of funds - CORRECT ANSWERS budget bill that actually makes funds available Authorization of funds - CORRECT ANSWERS bill that approves programs it prescribes what an agency will do if funding is available Expanded Government framework - CORRECT ANSWERS includes these steps: planning, programming, budgeting, operations, accounting, reporting and auditing. Type of performance audit - CORRECT ANSWERS 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 - CORRECT ANSWERS tax progressive tax rate - CORRECT ANSWERS income tax higher incomes, higher tax rate Tax expenditures - CORRECT ANSWERS 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 - CORRECT ANSWERS income Wealth Consumption CGFM EXAM 1 QUESTIONS AND ANSWERS NEWEST UPDATE 2024/2025 WITH CORRECT 100% VERIFIED ANSWERS BEST SOLUTION GRADED A+ FOR PASS Financial Reports - CORRECT ANSWERS External reports that depict financial position and financial results of operations of the entity Formula grants - CORRECT ANSWERS 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 - CORRECT ANSWERS 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 - CORRECT ANSWERS 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 - CORRECT ANSWERS Form of wealth tax. Levied on the person receiving the bequest Myers-Briggs Type Analysis - CORRECT ANSWERS 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 - CORRECT ANSWERS Defines level or resources to be applied in providing government programs and services; usually covers periods of one to two years. Situational Leadership - CORRECT ANSWERS Leadership model developed by Ken Blanchard and Paul Hersey. Encourages leaders to diagnose developmental level of employees and vary their leadership style accordingly. CGFM EXAM 1 QUESTIONS AND ANSWERS NEWEST UPDATE 2024/2025 WITH CORRECT 100% VERIFIED ANSWERS BEST SOLUTION GRADED A+ FOR PASS Serial bonds - CORRECT ANSWERS 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 - CORRECT ANSWERS 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 - CORRECT ANSWERS 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 - CORRECT ANSWERS 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) - CORRECT ANSWERS 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 - CORRECT ANSWERS Public service is a public trust. GPEFR - CORRECT ANSWERS General Purpose External Financial Reports Government borrowing is constrained by... - CORRECT ANSWERS ...constitutions and statutes, bond covenants, and debt policies. the federal government has ___ but not ___ debt limits. - CORRECT ANSWERS statutory, but not constitutional CGFM EXAM 1 QUESTIONS AND ANSWERS NEWEST UPDATE 2024/2025 WITH CORRECT 100% VERIFIED ANSWERS BEST SOLUTION GRADED A+ FOR PASS wealth taxes - CORRECT ANSWERS 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 - CORRECT ANSWERS 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 - CORRECT ANSWERS bonds, lease-purchase agreements and CoP; notes 2 typical way gov't lowers interest costs in debt issues - CORRECT ANSWERS securing third- party insurance; state guarantees The appropriated budget is - CORRECT ANSWERS 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 - CORRECT ANSWERS to prioritize gov't expenditures and allocate financial resources to fund them. separation of power - CORRECT ANSWERS legislature INFORMS policy, executive IMPLEMENTS policy in ADMINISTRATION, and the judicial exercises JUDICIAL REVIEW. Government authority is founded in... - CORRECT ANSWERS constitutions or charters PIA - CORRECT ANSWERS privacy impact assessments; required for federal agencies CAFR - CORRECT ANSWERS Comprehensive Annual Financial Report CGFM EXAM 1 QUESTIONS AND ANSWERS NEWEST UPDATE 2024/2025 WITH CORRECT 100% VERIFIED ANSWERS BEST SOLUTION GRADED A+ FOR PASS Government type funds - CORRECT ANSWERS Modified accrual basis, focus on flow of current financial resources, and record expenditures Proprietary and fiduciary type funds - CORRECT ANSWERS Accrual basis of accounting, focus on economic resources, and record expenses 5 Types of Government Funds - CORRECT ANSWERS General Fund, Special Revenue Funds, Capital Projects Funds, Debt Service Funds, and Permanent Funds 2 Proprietary Fund Types - CORRECT ANSWERS Enterprise Funds and Internal Service Funds 4 Types of Fiduciary (Trust and Agency) Funds - CORRECT ANSWERS Pension Trust Fund, Agency Funds (i.e. CDBG), Investment Trust Funds, Private-Purpose Trust Funds, and Tax Agency Funds (i.e., Citations) General purpose financial reporting does not assist users by - CORRECT ANSWERS making lease-purchase decisions Program managers have little need for financial statements? - CORRECT ANSWERS False. The needs of program managers focus on day-to-day operations and the delivery of services. Managers also review financial statements to ensure they are operating within budgetary parameters, legal restrictions and regulations, and public policy. GPEFR-Reports produced by General-purpose external financial reports - CORRECT ANSWERS General purpose, external financial reports are prepared primarily to demonstrate accountability. They consist of the financial statements that have been audited by external auditors, along with additional supplementary information. Reports produced by GASB - CORRECT ANSWERS Financial reporting is much broader; it includes internal reports used to manage operations; reports to grantor agencies; offering statements, when governments issue debt; project reports; and popular reports. CGFM EXAM 1 QUESTIONS AND ANSWERS NEWEST UPDATE 2024/2025 WITH CORRECT 100% VERIFIED ANSWERS BEST SOLUTION GRADED A+ FOR PASS Financial reports - CORRECT ANSWERS governments issue reports that focus on performance measures, many of which may be non-financial in nature. Ensuring an accounting principle is used from one year to another is an example of what financial reporting characteristics? - CORRECT ANSWERS Consistency Before financial reports are completed, all information pertaining to financial condition and results of operation should be available. - CORRECT ANSWERS False. In order to issue reports in a timely manner, it may be necessary to make estimates. If the reports are not released in a timely manner, they cannot be useful for making decisions. FASB (Financial Accounting Standards Board) - CORRECT ANSWERS establishes standards for the private sector including not-for-profit entities. GASB -Governmental Accounting Standards Board - CORRECT ANSWERS Defines GAAP for state and local government entities.-establishes standards for governments, excluding federal governments.-established in 1984 Federal Accounting Standards Advisory Board - CORRECT ANSWERS established standards for the federal government. State and local governments never have to follow standards of the Financial Standards Board (FASB - CORRECT ANSWERS True During due process, a standards-setting board mayor may not take a position. Which has a position not to be taken? - CORRECT ANSWERS Discussion memorandum and invitation to comment The following is not a cost of accounting? - CORRECT ANSWERS Making an investment of government funds CGFM EXAM 1 QUESTIONS AND ANSWERS NEWEST UPDATE 2024/2025 WITH CORRECT 100% VERIFIED ANSWERS BEST SOLUTION GRADED A+ FOR PASS Types of costs - CORRECT ANSWERS Costs can be direct or indirect. Direct costs are - CORRECT ANSWERS those that can be directly attributed to a cost objective. Indirect costs are - CORRECT ANSWERS jointly or commonly used by two or more cost objectives and cannot practically or economically be attributed to an objective. Costs should be assigned on a direct basis at all times. - CORRECT ANSWERS False. Although the direct basis is preferred, in many instances, it is neither practical nor economical to assign costs on a direct basis. Which is the preferred sequence for assigning costs? - CORRECT ANSWERS direct tracing, cause-and-effect, and allocation OMB Circular A-87 was established to allow state and local governments to determine indirect costs that could be recovered under federal awards. - CORRECT ANSWERS True. The federal government recognized that state and local governments incurred indirect costs, such as general, administrative and support, on behalf of federal awards. The indirect cost rate determination process is the established mechanism that nonfederal entities must use to claim their fair share of indirect costs under federal awards. Factors which determine if cost is reasonable under the December 2014 OMB Uniform Guidance: - CORRECT ANSWERS A cost is reasonable if it does not exceed that which should be incurred by a prudent person under the circumstances prevailing at the time the decision was made to incur the cost. The question of reasonableness is particularly important when governmental units are predominantly federally funded. Fringe benefits include - CORRECT ANSWERS contribution to retirement system health care contribution for employees, and life insurance contribution. CGFM EXAM 1 QUESTIONS AND ANSWERS NEWEST UPDATE 2024/2025 WITH CORRECT 100% VERIFIED ANSWERS BEST SOLUTION GRADED A+ FOR PASS The first decision package prepared - CORRECT ANSWERS shows the minimum level of funding required. Additional packages are prepared and prioritized. Eventually, the priorities are matched to available revenues. Zero Based Budgeting - CORRECT ANSWERS Starting budget preparation from a zero base is silly- location and level of infrastructure, many policy decisions, etc. are set and it makes no sense to build a budget as if they don't. The ZBB System - CORRECT ANSWERS is in which the budget is built from ranked decision packages (Carter presidency) flowing through the administrative system- stems from the silly idea that scientific, non-political ranking of programs is possible. Zerobased - CORRECT ANSWERS builds the budget from service intentions and resulting input requirements, as opposed to taking the budget from last year and adding some increment to the line items. Capital budgets are funded in the same manner as operating budgets. - CORRECT ANSWERS False. Although capital budgets can be funded with current resources, most are funded through long-term financing options. A government wants to ensure that those who benefit from a capital project should pay the cost of financing. How should a project that has a 20-year useful life be financed? - CORRECT ANSWERS Issue a serial bond with level debt service What is a progressive tax? - CORRECT ANSWERS U.S. Income Tax Why is federal property not taxed? - CORRECT ANSWERS It would violate the efficiency principle. There would be an administrative cost of assessing and collecting the tax, simply to pass money from one government account to another. CGFM EXAM 1 QUESTIONS AND ANSWERS NEWEST UPDATE 2024/2025 WITH CORRECT 100% VERIFIED ANSWERS BEST SOLUTION GRADED A+ FOR PASS Tax Expenditures - CORRECT ANSWERS deduction for interest on home mortgage loans, credit for costs associated with adoption, and deduction for installation of energy-efficient windows The following is not a tax expenditure - CORRECT ANSWERS inflation-based adjustment to real property tax rates Property taxes - CORRECT ANSWERS are a significant source of revenue for local governments. Which is not a relative advantage of income taxes? - CORRECT ANSWERS They are based on expert assessments. What type of tax is least likely to be applied to office furniture owned by a business? - CORRECT ANSWERS Real Property BFELoB (Budget Formulation and Execution Line of Business) - CORRECT ANSWERS The focus is to build a "budget of the future" by promoting information sharing across Government agency budget offices and building a "community of practice." Through collaboration, the budget community can start to identify best practices for all aspects of budget formulation and execution. ERP-Enterprise Resource Planning - CORRECT ANSWERS business process management software that allows an organization to use a system of integrated applications to manage the business and automate many back office functions related to technology, services and human resources. MD&A)Management's Discussion and Analysis - CORRECT ANSWERS Includes: 1. overview of the previous year's operations and how the company performed financially CGFM EXAM 1 QUESTIONS AND ANSWERS NEWEST UPDATE 2024/2025 WITH CORRECT 100% VERIFIED ANSWERS BEST SOLUTION GRADED A+ FOR PASS 2. provide an analysis of the government's overall financial position and results of operations to assist users in assessing whether that financial position has improved or deteriorated as a result of the year's activities. 3. provide an analysis of significant changes that occur in funds and significant budget variances. 4. describe capital asset and long-term debt activity during the year. 5. conclude with a description of currently known facts, decisions, or conditions that are expected to have a significant effect on financial position or results of operations. OMB -Office of Management and Budget - CORRECT ANSWERS The business division of the Executive Office of the President of the United States that administers the United States federal budget and oversees the performance of federal agencies. PAR -Performance and Accountability Report - CORRECT ANSWERS the process of compiling and documenting factors that quantify an institution's profitability, efficiency and adherence to budget, comparing actual results against original targets. SEA (Service Efforts and Accomplishments) - CORRECT ANSWERS a form of general purpose external financial reporting that is intended to include information about the services provided and the effect of those services to assist users in assessing the degree to which the government is achieving its program or government-wide goals. The objective of SEA reporting is to: Assist citizens, elected officials, and other interested parties (collectively referred to as "users") in assessing the performance of services provided SPFI (Summary of Performance and Financial Information) - CORRECT ANSWERS -Overview of the Agency Financial Report (AFR) & Agency performance report -defines what the agency does CGFM EXAM 1 QUESTIONS AND ANSWERS NEWEST UPDATE 2024/2025 WITH CORRECT 100% VERIFIED ANSWERS BEST SOLUTION GRADED A+ FOR PASS Dedicated (collections or Tax) - CORRECT ANSWERS Taxes levied or other revenues collected to finance a specific activity. Proceeds are collected into an account restricted to that activity. Also referred to as earmarked or restricted taxes Earmarking (Funds from dedicated collections) - CORRECT ANSWERS The term is used to signify the legislature reserving a portion of an appropriation for a specific, limited use or purpose. Executive Order - CORRECT ANSWERS Order issued by the president, governor or a local government's chief executive that does not violate laws or statutes, and has substantial impact on policy and procedures in government. It carries less weight than a law because the legislature or next chief executive may overturn the previous order. Federalism - CORRECT ANSWERS Principle that government authority and responsibility is shared among different levels of government.Power is distributed among different level of government. No one level of govt has complete authority over all area (In practice, people often use the term "federal" when referring to the national level of government) GPRA (Government Performance and Results Act) - CORRECT ANSWERS U.S law passed in 1993; requires federal agencies to create long-term strategic plans. The strategic plans are followed by: 1) Annual performance plans (currently performance budgets) 2) Annual performance reports CGFM EXAM 1 QUESTIONS AND ANSWERS NEWEST UPDATE 2024/2025 WITH CORRECT 100% VERIFIED ANSWERS BEST SOLUTION GRADED A+ FOR PASS (The law has been updated with the Government Performance and Results Act Modernization Act, enacted in 2010) Initiative - CORRECT ANSWERS Process that enables citizens to present their view of a problem and a proposed solution, rather than depending on a solution devised and enacted by the legislative branch. Allows direct citizen action to affect laws. (Ex - Prop 13 in CA on property taxes) Object Class - CORRECT ANSWERS Defines level of resources to be applied in providing government programs and services; usually covers periods of one to two years. ex payroll, supplies. PAR -Performance and Accountability Report - CORRECT ANSWERS A single report that combines financial results and performance results. Recent requirement for federal executive agencies, but may be practiced at other levels of government. Federal - CORRECT ANSWERS refers to national government 3 levels of government - CORRECT ANSWERS Federal, State, Local - each may not enact laws that violate the constitutions of those levels of government above it. Share the same primary purpose - to provide services to its citizens Reserved clause /10th Amendment - CORRECT ANSWERS Federal gov't may not dictate how states and locals operate their programs: "The powers not delegated to the US by the Constitution, not prohibited by it to the states, are reserved for the states respectively, or to the people". CGFM EXAM 1 QUESTIONS AND ANSWERS NEWEST UPDATE 2024/2025 WITH CORRECT 100% VERIFIED ANSWERS BEST SOLUTION GRADED A+ FOR PASS State and locals - "laboratories of democracy" - CORRECT ANSWERS because they experiment with politics and procedures that are later adopted at the national level. (ex., performance measurement) 3 Branches of government - same at Federal and State level - CORRECT ANSWERS *legislative (sometimes referred to as the General Assembly at the state level) carry the "power of the purse" *executive *judicial Municipal governments - CORRECT ANSWERS *operate under a charter *(cities, towns, villages) are special corporations Three main types: * mayor-council (executive-legislative) strong mayor - appoints subordinates * council-manager (legislative only) * commission (exec and legis. authority combined). US Constitution - Article 1 - CORRECT ANSWERS powers of legislative branch: * enact laws * collect taxes * coin money * raise and army * declare war CGFM EXAM 1 QUESTIONS AND ANSWERS NEWEST UPDATE 2024/2025 WITH CORRECT 100% VERIFIED ANSWERS BEST SOLUTION GRADED A+ FOR PASS Local Gov't Responsibility - CORRECT ANSWERS building codes and permits, property taxes, police and fire protection. Also sometimes parks/rec. have more interaction with citizens because services generally more visible than other areas of gov't. Types of Gov't Entities - CORRECT ANSWERS General Purpose (federal, state, local) - perform multiple functions. Primarily funded through taxation. Special Purpose - limited authority to one or two functions, e.g., education. Can be established by ordinance. May be dependent on general-purpose gov't for funding, impose taxes, collect user fees, and/or incur debt. Jointly governed organizations - CORRECT ANSWERS coordinate regional type services among two or more government entities led by a board of officials from the participating entities (ex. water, fire, transportation, solid waste management) Sometimes required to receive federal assistance, ex. regional transportation 2012 Census - 90,107 government entities - CORRECT ANSWERS one national 50 state 90,056 local (5 types): General Purpose: County, Municipality, Township Special Purpose: School district, special purpose district * independent school districts (special service governments) trending towards consolidation (67,355 in 1952, 14,178 in 2012) CGFM EXAM 1 QUESTIONS AND ANSWERS NEWEST UPDATE 2024/2025 WITH CORRECT 100% VERIFIED ANSWERS BEST SOLUTION GRADED A+ FOR PASS County Gov't - CORRECT ANSWERS same as parish and borough gov'ts ** some cities exist separate from their adjacent county - 10% of US citizens not served by any county government ** commonly led by Board of Supervisors elected by geographic district and/or "at large". Often appoint a county administrator and other officials. ** larger counties have an elected county executive who functions similar to the mayor. Tribal governments - CORRECT ANSWERS more than 590 in US have a nation-to-nation relationship with US and are not subordinate to states. most based in democracy with elected leaders. limited sovereignty - similar as state limitations, they cannot coin money, wage war, or conduct foreign relations Government Sovereignty - CORRECT ANSWERS fiscal power to: * tax citizens/corporations to raise revenue * establish budgets and spend public funds * borrow money * create money (fed gov't only) Federal Reserve System - politically independent - CORRECT ANSWERS consists of 12 regional banks CGFM EXAM 1 QUESTIONS AND ANSWERS NEWEST UPDATE 2024/2025 WITH CORRECT 100% VERIFIED ANSWERS BEST SOLUTION GRADED A+ FOR PASS impacts money supply by: setting interest rates buying and selling gov't bonds setting the amount of reserves other banks must keep on deposit Legal constraints to gov't borrowing - CORRECT ANSWERS limited by: PURPOSE - often restricted to capital investments (except Fed gov't) TERM - must be repaid within a certain amount of time AMOUNT - states often limit debt to a percentage of the total budget. local gov'ts often limit debt as a percentage of assessed values PROCESS - might only be allowed by referendum Gideon's Trumpet - Courts role in budget - CORRECT ANSWERS Gideon v. Wainwright: Sixth amendment "right to counsel" included the right to one who could not afford to pay for it and set forth the provisions for government paid indigent defense. Budget process - CORRECT ANSWERS never sleeps, is fluid an iterative Strategic plan as precursor to budget - CORRECT ANSWERS * clarify policy and objectives * link budget to performance goals and measures CGFM EXAM 1 QUESTIONS AND ANSWERS NEWEST UPDATE 2024/2025 WITH CORRECT 100% VERIFIED ANSWERS BEST SOLUTION GRADED A+ FOR PASS ** is expanded to recognize gov't need for visibility and accountability Mgmt Cycle Phase 1 - Planning - CORRECT ANSWERS keystone of gov't mgmt cycle primary role is to define mission, goals, key objectives, and consider how they will be achieved most creative part of the process, should occur throughout the year, with consideration to future parts of the process GPRAMA-Government Performance and Results Act Modernization Act- 2010 - CORRECT ANSWERS expands GPRA to: 1) create cross-agency goals 2) require quarterly performance reporting 3) appoint a Chief Operating Officer 4) created the Performance Improvement Council Outcomes of Planning Phase - CORRECT ANSWERS 1) Mission - an ideal statement of what the organization hopes to achieve 2) Goal -broad statement of purpose for a particular program in the agency - derived from the Mission 3) Objective - a measurable accomplishment to be achieved within a specific period of time. Should contain projected, measurable, achievement standards CGFM EXAM 1 QUESTIONS AND ANSWERS NEWEST UPDATE 2024/2025 WITH CORRECT 100% VERIFIED ANSWERS BEST SOLUTION GRADED A+ FOR PASS Mgmt Cycle Phase 2 - Programming - CORRECT ANSWERS determine the most cost effective means for deployment of resources to accomplish goals and objectives review work of other dept's to avoid duplication of efforts "make or buy" decisions anticipate future needs different from budgeting in that generally looking at a multi-year scenario that is cross- departmental Outcomes of Programming Phase - CORRECT ANSWERS specific, measurable objectives with time-frames determine resources needed and what should be requested during budgeting phase and how resources will be distributed among various departments Mgmt Cycle Phase 3 - Budgeting - 3 types - CORRECT ANSWERS 1) operating budget - covers a limited period 2) cash-flow budget - helps plan timing of receipts with expenditure needs 3) capital budget - covers big-ticket items meant to support gov't services over multiple years - items costing more than $5k with a useful life of at least 2 years * sometimes approved separately * CGFM EXAM 1 QUESTIONS AND ANSWERS NEWEST UPDATE 2024/2025 WITH CORRECT 100% VERIFIED ANSWERS BEST SOLUTION GRADED A+ FOR PASS Budgetary Controls - levels of appopriation - CORRECT ANSWERS "program" - expenditures to achieve a program "object" - what the money is spent on (ex., wages, equipment, supplies) "sub-object" - ex., office supplies Forecasting Techniques - CORRECT ANSWERS identifies probabilities and most likely outcomes, by: 1) Expert - economists, etc. 2) Delphi - iterative process of gathering and refining input 3) Extrapolation - assumption that certain trends will continue and charting future results. 4) Leading Indicators - current events provide insight into future conditions. 5) Technology Assessments Mgmt Cycle Phase 4 - Operations - CORRECT ANSWERS services are delivered using policies and procedures to guide daily decisions use of internal controls - to provide reasonable assurance of: * effectiveness/efficiency of operations * reliability of financial reporting * compliance with laws and regulations * and minimize risk of loss, fraud, mismgmt CGFM EXAM 1 QUESTIONS AND ANSWERS NEWEST UPDATE 2024/2025 WITH CORRECT 100% VERIFIED ANSWERS BEST SOLUTION GRADED A+ FOR PASS regressive = sales tax, single tax rate applies regardless of income/ability to pay Taxes - Benefit Received - CORRECT ANSWERS charging those who will benefit from the new services provided by increase tax revenues received Taxes - Collection Efficiency - CORRECT ANSWERS the cost of collecting the taxes should be minimal compared to the revenue generated Taxes - Social and Economic Goals - CORRECT ANSWERS through the creation of exemptions, deductions, deferrals, and credits to accomplish social goals (eg., limiting the tax burden on the elderly) Tax Expenditures - CORRECT ANSWERS exceptions to tax laws and regulations that result in lost revenues (ex. mortgage interest deduction) Over $1 trillion in lost revenue in 2013 FICA - 7.65% - CORRECT ANSWERS considered regressive because same rate for all, but rate of return is higher for those with lower incomes Wealth Tax - Real Property - CORRECT ANSWERS greatest challenge is appraisal and assessment assessed value ranges from 10-100% of market value, depending on the state values may be "equalized" with comparable properties CGFM EXAM 1 QUESTIONS AND ANSWERS NEWEST UPDATE 2024/2025 WITH CORRECT 100% VERIFIED ANSWERS BEST SOLUTION GRADED A+ FOR PASS Wealth Tax - Personal Property - CORRECT ANSWERS difficult to administer because self- reporting items taxed a business level usually not taxed at a personal level (except vehicles and watercraft) Use Tax - CORRECT ANSWERS charged on goods or services purchased out of state and used within the state. The sales tax and the use tax are "mutually exclusive" which means either sales tax or use tax applies to a single transaction. One form of consumption tax. disadvantage is reliance on voluntary compliance. excise tax (sin tax) - CORRECT ANSWERS applied to a particular type of good or service (ex. gas tax). usually tied to funding for specific services also used to discourage behavior (eg. cigarette tax) "sin taxes" = 1790 excise tax on whiskey helped repay Revolutionary War debt VAT -Value Added Tax - CORRECT ANSWERS resembles a sales tax, but rather than paid by the consumer, it is paid at each stage of the development, manufacturing, and distributing process based on the amount by which they increase the value of the items they purchase for resell Grant compliance - CORRECT ANSWERS for both the grantor and grantee A133 -- states that grant revenues may not supplant operational spending already funded. CGFM EXAM 1 QUESTIONS AND ANSWERS NEWEST UPDATE 2024/2025 WITH CORRECT 100% VERIFIED ANSWERS BEST SOLUTION GRADED A+ FOR PASS License fees - CORRECT ANSWERS Fee paid to the government for a specific privilege, often related to an activity. Ranges from recreation (fishing license) to business (real estate license).(CPA or liquor) -dual purpose - to regulate activity and cover the costs associated with regulation User fee - CORRECT ANSWERS used to ensure beneficiaries of discretionary services are paid by those who benefited from the service, covers cost of providing services, and to expand services without raising taxes may also be used to limit demand for service Donations - CORRECT ANSWERS voluntary contributions that confer no rights or benefits to the giver not always voluntary (eg., TSA collecting property left at security checkpoints) Lotteries/Gambling - CORRECT ANSWERS 41 states allow lotteries, generating 1.4% of their self generated revenue in 2008 land and riverboat gambling also a revenue generator in some states (less regulated than lottery systems) Investment Income - CORRECT ANSWERS use of Local Government Investment Pools (LGIP) most entities have an investment policy governing allowable investment vehicles CGFM EXAM 1 QUESTIONS AND ANSWERS NEWEST UPDATE 2024/2025 WITH CORRECT 100% VERIFIED ANSWERS BEST SOLUTION GRADED A+ FOR PASS NIST Security Standards - CORRECT ANSWERS risk based approached, security categories based on level of risk of the following factors: 1) Confidentiality 2) Integrity - need to prevent unauthorized destruction and alterting of data 3) Availability - need to ensure timely and reliable access to info Difference between a budget in public vs. private sector? - CORRECT ANSWERS Public sector = Law/Private sector = benchmark for performance and goals for growth Financial Reports - CORRECT ANSWERS primary mechanism by which public officials are able to demonstrate accountability. They show how much was raised, how it was spent, and whether spending was in compliance with the budget. State Authority - CORRECT ANSWERS All the powers not set forth in the constitution are left to the states Govt Revenues are - CORRECT ANSWERS involuntary revenue source - tax assessments, licenses, fees, permits and user fees legal accountability - CORRECT ANSWERS the need to comply with various laws, rules and regulations performance accountability - CORRECT ANSWERS ensuring that governments act in an efficient, effective or economic manner Fiscal Accountability - CORRECT ANSWERS raising of resources and the allocation of those resources to accomplish objectives. Officials are accountable for the resources raised and how they are used. CGFM EXAM 1 QUESTIONS AND ANSWERS NEWEST UPDATE 2024/2025 WITH CORRECT 100% VERIFIED ANSWERS BEST SOLUTION GRADED A+ FOR PASS Operational Accountability - CORRECT ANSWERS Involves stewardship of public resources. Public officials must ensure resources are used appropriately Which branch is accountable to public for raising of resources and for determining how those resources are to be used? - CORRECT ANSWERS legislative Tax equity - CORRECT ANSWERS current generation of citizens are accountable for paying for current-yr services; can't shift burden to future-yr taxpayers Debt ceiling - CORRECT ANSWERS an accountability mechanism that allows Congress to monitor the financial effects of spending and tax policies Govt Financial Reporting assists with: - CORRECT ANSWERS (1) assess accountability & (2) helps make economic, social, and political decisions point-in-time reports - CORRECT ANSWERS provides current information as of the date of the report. Ex) Balance Sheet Period reports/flow reports - CORRECT ANSWERS period report covers the entity's entire fiscal year. Ex) operating statement or cash slow statement Characteristics of financial reports - CORRECT ANSWERS (1) Understand-ability (2) Reliability (3) Relevance (4) Timeliness (5) Consistency (6) Comparability Sunshine Laws" - CORRECT ANSWERS freedom of information laws; govt should operate in the sunshine Data Transparency and Accountability Act (DATA Act) 2014 - CORRECT ANSWERS established govt-wide financial data standards and the increased availability, accuracy, and usefulness of federal spending info CGFM EXAM 1 QUESTIONS AND ANSWERS NEWEST UPDATE 2024/2025 WITH CORRECT 100% VERIFIED ANSWERS BEST SOLUTION GRADED A+ FOR PASS FFATA -The Federal Funding Accountability and Transparency Act of 2006 - CORRECT ANSWERS enacted to enable taxpayers and policy makers to track federal spending more effectively; precursor to DATA ct 2014 FAF (Financial Accounting Foundation) - CORRECT ANSWERS granted the authority to promulgate accounting and reporting standards from the SEC. Appoints members of the FASB. FASB-Financial Accounting Standards Board - CORRECT ANSWERS has the authority to establish accounting and reporting standards for private sector companies, including not-for- profit organizations. FASAB (Federal Accounting Standards Advisory Board) - CORRECT ANSWERS Established in 1990; responsible for issuing accounting standards for FED govt IPSASB -International Public Sector Accounting Standards Board - CORRECT ANSWERS develops international public sector accounting standards for use by public sector entities around the world for preparation of general purpose financial statements Due process - CORRECT ANSWERS designed to permit a timely, thorough and open study of accounting and financial reporting issues. Discussion memorandum (DM) - CORRECT ANSWERS defines the accounting and reporting issues for a particular project. At this point, a board has no particular view on the issue and respondents are asked to comment on the issues ITC -Invitation to comment - CORRECT ANSWERS a staff document. It may contain the elements of a discussion memorandum, a preliminary views document or both. Respondents are asked to comment on a research report, proposed standard, etc CGFM EXAM 1 QUESTIONS AND ANSWERS NEWEST UPDATE 2024/2025 WITH CORRECT 100% VERIFIED ANSWERS BEST SOLUTION GRADED A+ FOR PASS Article 1, section 8 - CORRECT ANSWERS congress can impose taxes, pay for the military, borrow money, and coin money Article 1, section 9 - CORRECT ANSWERS congress can't withdraw money from treasury without appropriations Article 1, section 10 - CORRECT ANSWERS states can't print money or enter into treaties legal constraints - CORRECT ANSWERS derive from constitutions, statutes, ordinances Statutes - CORRECT ANSWERS (not constitution) limit the amount of debt the Fed government can incur Executive branch - CORRECT ANSWERS implements the budget Special fund - CORRECT ANSWERS Tracks specially identified revenues, as well as dedicated uses for those funds fed Level) appropriations can be made from? - CORRECT ANSWERS general funds, trust funds, or special funds. Primary financial control device used in government? - CORRECT ANSWERS appropriated budget with an accompanying system of budgetary accounting Earmark (dedicated collections or tax) - CORRECT ANSWERS (1) dedicating collections by law for a specific purpose or program. (2) designating any portion of a lump-sum amount for particular purposes through legislative language CGFM EXAM 1 QUESTIONS AND ANSWERS NEWEST UPDATE 2024/2025 WITH CORRECT 100% VERIFIED ANSWERS BEST SOLUTION GRADED A+ FOR PASS 3 components of appropriations - CORRECT ANSWERS PTA: (1) purpose (2) time (3) amount ethical behavior is? - CORRECT ANSWERS self-imposed and is required in all branches and at all levels of government revolving door restrictions - CORRECT ANSWERS example: In CT a former government employee must wait one year before serving as a lobbyist to their former agency. 5 C.F.R. Part 2635 - Standards of Ethical Conduct for Employees of the Executive Branch - CORRECT ANSWERS Legal basis outlining requirements on ethical behavior for Federal employees Hatch Act of 1939 - CORRECT ANSWERS prohibits federal employees from engaging in partisan political activity Recusal - CORRECT ANSWERS written agreements to not participate in specific decisions or matters. These are effective for isolated situations Waivers - CORRECT ANSWERS possible if financial interest is not so substantial as to likely affect services. Waivers are usually granted by the head of the agency FFATA (Federal Funding Accountability and Transparency Act of 2006) - CORRECT ANSWERS mandated USAspending.gov, led to Digital Accountability and Transparency Act (DATA Act) 2014 Data Transparency and Accountability Act (DATA Act) 2014 - CORRECT ANSWERS expand FFATA by promoting the disclosure of direct federal agency expenditures and linking federal contract, loan and grant spending information to the programs of federal agencies CGFM EXAM 1 QUESTIONS AND ANSWERS NEWEST UPDATE 2024/2025 WITH CORRECT 100% VERIFIED ANSWERS BEST SOLUTION GRADED A+ FOR PASS E-reporting - CORRECT ANSWERS access to government financial, non-financial and performance data through a website RSS -really simple syndication/Rich Site Summary - CORRECT ANSWERS used to keep users abreast of developments in areas of interest. E-Government Act Section 208 - CORRECT ANSWERS outlines procedures to safeguard privacy personally identifiable information (PII) - CORRECT ANSWERS information that can be used to identify, locate, or contact a specific individual Integrity - CORRECT ANSWERS refers to the need to prevent unauthorized modification or destruction of data; integrity ensures the information is authentic. Availability - CORRECT ANSWERS refers to the need to ensure timely and reliable access to information. NIST -National Institute of Standards and Technology - CORRECT ANSWERS promulgates standards for data security in government systems 3 criteria federal agencies are required to use to measure the performance of their e-government initiatives? - CORRECT ANSWERS the impact of e-government in helping agencies fulfill strategic goals; customer satisfaction and customer service; productivity in providing e-government services; and incorporation of commercial best practices. Effective internal control - CORRECT ANSWERS helps ensure that resources are applied appropriately and that programs achieve their intended results. CGFM EXAM 1 QUESTIONS AND ANSWERS NEWEST UPDATE 2024/2025 WITH CORRECT 100% VERIFIED ANSWERS BEST SOLUTION GRADED A+ FOR PASS SEA-Service efforts and Accomplishments govt requirements - CORRECT ANSWERS issued by a few state and local governments and agencies Free Press - CORRECT ANSWERS Referred to as the "fourth estate" because they provide unofficial checks and balances on the 3 branches of Govt other post-employment benefits (OPEB) - CORRECT ANSWERS examples are health insurance and life insurance for retirees GASB statement 68 - CORRECT ANSWERS designed to improve accounting and reporting for state and local defined-benefit pension plans CFO-Chief Financial Officers Act of 1990 - CORRECT ANSWERS intended to improve the government's financial management, outlining standards of financial performance and disclosure Budgetary integrity - CORRECT ANSWERS funds are raised and spent according to law. Probity and legal accountability - CORRECT ANSWERS raising and spending funds according to law and regulations Policy accountability - CORRECT ANSWERS implementing appropriate policies, adjusting if they prove ineffective or if priorities change Investors - CORRECT ANSWERS include other entities that participate in joint capital projects and capital leases, as well as individual employees who are vested in a government retirement system. Also includes COPs investors. Oversight hearings - CORRECT ANSWERS major method by which legislators examine and assess the accountability of executive branch activities CGFM EXAM 1 QUESTIONS AND ANSWERS NEWEST UPDATE 2024/2025 WITH CORRECT 100% VERIFIED ANSWERS BEST SOLUTION GRADED A+ FOR PASS Debt-to-GDP ratio - CORRECT ANSWERS reflects that programs to provide healthcare and financial assistance to the aged and the needy are not sustainable under current policies Benchmarking - CORRECT ANSWERS Comparing indicators, such as ratios, across entities or across different fiscal years Accountability in budgeting stage - CORRECT ANSWERS Managers are responsible for upholding budgetary integrity and not spending beyond appropriated authority in terms of purpose, time amount. Accountability in operations stage - CORRECT ANSWERS Managers must implement internal controls to safeguard assets and ensure objectives are met. Performance data is collected. Accountability in accounting stage - CORRECT ANSWERS Managers must create and adhere to accounting structures that help to ensure resources are tracked and expended properly Accountability in reporting stage - CORRECT ANSWERS Managers compile and issue reports that help demonstrate accountability and achievement of goals. Accountability in auditing stage - CORRECT ANSWERS Managers arrange for external as well as internal assessment of results of activities; managers are accountable for fixing problems identified during audit. FAF - CORRECT ANSWERS Financial Accounting Foundation DM - CORRECT ANSWERS discussion memorandum FFATA - CORRECT ANSWERS Federal Funding Accountability and Transparency Act of 2006 CGFM EXAM 1 QUESTIONS AND ANSWERS NEWEST UPDATE 2024/2025 WITH CORRECT 100% VERIFIED ANSWERS BEST SOLUTION GRADED A+ FOR PASS IPSASB - CORRECT ANSWERS International Public Sector Accounting Standards Board Reserved clause /10th Amendment - CORRECT ANSWERS One level can not dictate how another level should operate. Reserves right to the states to implement anything as long as it doesn't conflict with the USC How can one level of government influence another? - CORRECT ANSWERS Grants and other financial arrangements What are the common names of a State legislative branch? - CORRECT ANSWERS Gen. assembly, House of Representatives, House of delegates, assembly Mayor-council - CORRECT ANSWERS Includes strong mayor where the Mayor appoints his or her subordinates and the weak mayor where some of the key positions are appointed by others or even elected What are the seven articles of the US Constitution - CORRECT ANSWERS The legislative branch, the presidency, the judiciary, the states, the amendment process, legal status of the constitution, ratification What are the two additional principles which includes the separation of powers - CORRECT ANSWERS Judicial review and checks and balances What does Congress need to override a veto by the president? - CORRECT ANSWERS Two thirds vote in both houses List some checks and balances examples - CORRECT ANSWERS Veto, override, judicial review, legislative revision, appropriation by legislature, legislative oversight CGFM EXAM 1 QUESTIONS AND ANSWERS NEWEST UPDATE 2024/2025 WITH CORRECT 100% VERIFIED ANSWERS BEST SOLUTION GRADED A+ FOR PASS What is the difference between a special fund and an earmark? - CORRECT ANSWERS Special fund has tracks specific revenue that's dedicated to the use of those revenues. Earmark is an expenditure directed in an appropriation. Types of special funds - CORRECT ANSWERS special revenue, debt service, capital project funds, permanent funds, enterprise funds, and internal service funds What is the problem with earmarks? - CORRECT ANSWERS reduce transparency and accountability in government since they bypass the normal debate and competition for scarce resources What is an authorization? - CORRECT ANSWERS Different from an appropriation. Authorization is a bill that approves a program and prescribes what an agency will do if funding is available. What is an object class? - CORRECT ANSWERS aka "line-item." refers to the specific goods or services (salaries, equipment, supplies, etc.) What is an apportionment? - CORRECT ANSWERS "release" of the appropriation at a given timeframe in order to control the appropriation available for the agency What is reprogramming? - CORRECT ANSWERS Executive branch asks the legislative branch for approval to move funds from one appropriation line item to another. What is often called the keystone in the arch of public management? - CORRECT ANSWERS Planning (the "what" and "how") What does Planning in the management cycle identify? - CORRECT ANSWERS mission and goals as well as key objectives CGFM EXAM 1 QUESTIONS AND ANSWERS NEWEST UPDATE 2024/2025 WITH CORRECT 100% VERIFIED ANSWERS BEST SOLUTION GRADED A+ FOR PASS What are the three different types of budgets? - CORRECT ANSWERS Operational, Cash, and Capital What is the GFOA (Government Finance Officers Association ) recommendation for capitalization projects? - CORRECT ANSWERS Useful life of at least two years and a cost of at least $5,000 for a single item It what ways can a budget be restricted by? - CORRECT ANSWERS by organizational unit, project, program, line item, object or object class What are the different techniques of forecasting? - CORRECT ANSWERS Expert, Delphi, Extrapolation, Leading indicators, and Technology Assessments What is the extrapolation technique in forecasting? - CORRECT ANSWERS assumes certain trends will continue and, based on that assumption, enables charting of future results. (i.e. aging in the baby-boom population and assessing growth of Medicaid requirements) The GAO identifies that Internal Controls provides reasonable assurance that: - CORRECT ANSWERS effectiveness and efficiency of operations; reliability of financial reporting; and, compliance with applicable laws and regulations What is financial accounting used to determine? - CORRECT ANSWERS results of operations (revenues and expenses) and changes in net position (assets, liabilities, and fund balances) What are the three different types of accounting in government? - CORRECT ANSWERS Financial (accrual), Budget (cash basis), and Managerial (aka cost accounting that has financial and nonfinancial info) According to GAGAS, what are the three types of audit engagements? - CORRECT ANSWERS Financial, Performance, and Internal CGFM EXAM 1 QUESTIONS AND ANSWERS NEWEST UPDATE 2024/2025 WITH CORRECT 100% VERIFIED ANSWERS BEST SOLUTION GRADED A+ FOR PASS What is the difference between financial and performance audits? - CORRECT ANSWERS Financial - concerned with providing reasonable assurance on whether the financial statements are presented fairly. Performance - examination on the performance and management of a program. What is tax equity and the two types? - CORRECT ANSWERS taxes should treat taxpayers fairly; horizontal is different taxpayers with the same income level should pay the same amount of tax; vertical (progressive) is taxpayers with different income levels should pay different amounts of tax What is a regressive tax rate? - CORRECT ANSWERS a single sales tax rate applies to everyone. essentially, a lower tax bracket individual would pay a higher proportion of their income What is meant by "benefit received" in tax policy? - CORRECT ANSWERS whether a specific group should bear a specific tax burden for the benefit of the service/good (i.e. sewer on a specific street) What is meant by "collection efficiency" in tax policy? - CORRECT ANSWERS the cost of collecting taxes should be minimal compared to the revenue generated. (i.e. federal gov't taxing itself) What process can be done to encourage social and economic goals in tax policy? - CORRECT ANSWERS creating deductions, credits, exemptions and deferrals in order to limit the burden on individuals, businesses, etc. What is a tax expenditure in tax policy? - CORRECT ANSWERS exceptions to tax laws; they "cost" the public in terms of lost revenue that could otherwise be used to fund programs or reduce tax rates CGFM EXAM 1 QUESTIONS AND ANSWERS NEWEST UPDATE 2024/2025 WITH CORRECT 100% VERIFIED ANSWERS BEST SOLUTION GRADED A+ FOR PASS General Obligation Bonds (GOs) - CORRECT ANSWERS very low interest rates due to the "full faith and credit" backing; secured by the full revenue base of the issuers; more likely to be subject to debt limits; repayment depends on if it is a term or serial bond What is the difference between term and serial bonds? - CORRECT ANSWERS Term issue is a large block of bonds maturing in a single year with a huge payment due at maturity. Serial issue features maturities every year over a period of years with NO payment due at maturity. What is a Certificate of Participation? - CORRECT ANSWERS an alternative to tranditional bond financing; the "participants" are financial institutions and other investors who purchase, not a bond, but the right to participate in the income stream from the lease payments. i.e. investors provide the money to construct, the Gov't make payments to the investors until the end of the agreement. What are the 3 major rating agencies? - CORRECT ANSWERS Standard and Poor's, Moody's, and Fitch What are ways government actions (accountability) is evaluated? - CORRECT ANSWERS oversight hearings, evaluations or investigations, reports, audits and the free press What did the Government Performance and Results Act of 1993 (GPRA) require executive branch agencies to do? - CORRECT ANSWERS develop performance measures for key programs and report their results What are the keys to ethical behavior? - CORRECT ANSWERS Objectivity, Independence, Avoidance of Conflicts of Interest, and Due Care When does a conflict of interest arise? - CORRECT ANSWERS when one has a personal interest in matters relating to official duties or activities CGFM EXAM 1 QUESTIONS AND ANSWERS NEWEST UPDATE 2024/2025 WITH CORRECT 100% VERIFIED ANSWERS BEST SOLUTION GRADED A+ FOR PASS What are the four steps that can frequently be taken to "cure" a conflict of interest? - CORRECT ANSWERS recusal, waiver, qualified blind trust, and divesture US Constitution ratify - CORRECT ANSWERS 1791 Budget appropriation law - CORRECT ANSWERS must be introduced in the house of rep budgets are developed through - CORRECT ANSWERS iterative process influence by all branches of govt as well as citizens and public interest group implements the budget - CORRECT ANSWERS executive branch exercise judicial review when dispute occur - CORRECT ANSWERS judicial branch quasi gov entities - CORRECT ANSWERS govt corporation blend characteristics of govt and for-profit organization businesslike in nature operating expense cover by revenues and fees executive - CORRECT ANSWERS administer law Local govt may not enact laws or policy if - CORRECT ANSWERS it violates the state or national constitution or statutes Most school district govern by - CORRECT ANSWERS Elected school board Special District - CORRECT ANSWERS Perform single function CGFM EXAM 1 QUESTIONS AND ANSWERS NEWEST UPDATE 2024/2025 WITH CORRECT 100% VERIFIED ANSWERS BEST SOLUTION GRADED A+ FOR PASS Very limited function Judicial - CORRECT ANSWERS Interprets law exercise judicial review Govt authority is derived from - CORRECT ANSWERS Constitution or charters Statutes Executive order Regulation Proposed law must be introduced in where - CORRECT ANSWERS Congress Executive branch authority - CORRECT ANSWERS Day to day operation of govt Appoint key official Warren commission - CORRECT ANSWERS Temporary commission on the assassination of JFK Governors - CORRECT ANSWERS Admin authority similar to president Define organization of executive branch agency Legislative branch - CORRECT ANSWERS Ultimate authority over policy General purpose of govt - CORRECT ANSWERS Public works Public Safety Recreation Health CGFM EXAM 1 QUESTIONS AND ANSWERS NEWEST UPDATE 2024/2025 WITH CORRECT 100% VERIFIED ANSWERS BEST SOLUTION GRADED A+ FOR PASS Identify budget requirement Key support to the CEO or agency director - CORRECT ANSWERS CFO Components of financial system - CORRECT ANSWERS Process and procedures Documentation Internal control Personnel System tests an audits Hardware and software FFMIA - CORRECT ANSWERS Federal Financial Management Improvement Act of 1996 FFMIA require - CORRECT ANSWERS all agency to maintain system that comply with federal acct standard require auditors to report on the level of compliance of financial management system Requires agency ti adopt formal remediation plan fraud risk assessment - CORRECT ANSWERS identify the activities that pose the greatest potential and risk for fraud ERP system attempt to - CORRECT ANSWERS integrate all data and processes of an organization into a unified system to help manage and assess complex, interrelated activities. Key feature of ERP - CORRECT ANSWERS common, shared database One time entry of shared data automated integration and sharing of data CGFM EXAM 1 QUESTIONS AND ANSWERS NEWEST UPDATE 2024/2025 WITH CORRECT 100% VERIFIED ANSWERS BEST SOLUTION GRADED A+ FOR PASS Federal Reserve change the supply of money - CORRECT ANSWERS influence interest rate and cost and availability of credit Government borrowing money - CORRECT ANSWERS restricted to capital investment National Government Debt Limit - CORRECT ANSWERS based on the absolute value of the debt Statutes limit the amount Not limited in capital investment State Government Debt limit - CORRECT ANSWERS percentage of the total state budget Prohibit deficit spending for operation Local Government debt Limit - CORRECT ANSWERS tied to assessed value of real estate Prohibit deficit spending for operation government borrowing allowed by - CORRECT ANSWERS referendum Earmark (dedicated collections or tax) - CORRECT ANSWERS refers to specially identified revenues and other financing sources as well as the dedicated use of those resources special fund - CORRECT ANSWERS created through legislation are used to collect designated revenues and other resources and direct them to specific use Apportionment of budget (national Level) - CORRECT ANSWERS dispersal of budgetary authority to an agency or programs by the central management agency CGFM EXAM 1 QUESTIONS AND ANSWERS NEWEST UPDATE 2024/2025 WITH CORRECT 100% VERIFIED ANSWERS BEST SOLUTION GRADED A+ FOR PASS mission - CORRECT ANSWERS ideal statement of what the organization hopes to achieve Goal - CORRECT ANSWERS broad statement of purpose for a particular program within the agency Derived from mission and more specific than mission statement Less specific than an objective Objective - CORRECT ANSWERS measurable accomplishment to be achieved within a specific period of time regressive tax rate - CORRECT ANSWERS sales tax everybody pays same rate Payroll tax - CORRECT ANSWERS Social Security Medicare Not income tax Social Security - CORRECT ANSWERS 6.2% of income up to $106,800 Long Term financing Options - CORRECT ANSWERS bonds Notes Lease-Purchases Certificates of Participation Bonds - CORRECT ANSWERS Legal contract to pay face value of the bond at maturity Issuer pays interest rate at fixed rate CGFM EXAM 1 QUESTIONS AND ANSWERS NEWEST UPDATE 2024/2025 WITH CORRECT 100% VERIFIED ANSWERS BEST SOLUTION GRADED A+ FOR PASS Core principles of AGA code of Ethics? - CORRECT ANSWERS integrity, objectivity, professional competence and due care, and confidentiality. Fundamental accountability for the Govt is established in? - CORRECT ANSWERS constitutions and charters CFO Act created these positions? - CORRECT ANSWERS (1) within the OMB, the Deputy Director for Management, who is the government's chief financial management official;(2) CFOs for each of the (23) federal departments and agencies FASAB: Statement of Federal Financial Accounting Concepts No. 1 - CORRECT ANSWERS addresses National (Fed) governmental accountability by stating govt is accountable for budgetary integrity, operating performance, and stewardship. Operating performance - CORRECT ANSWERS funds have been spent efficiently and programs are effective. GASB: Concepts Statement No. 2, Service Efforts and Accomplishments Reporting - CORRECT ANSWERS addresses state and local govt accountability with 5 levels of accountability: (1) Probity and legal accountability (2) Process accountability; (3)Performance accountability (4) Program accountability; (5) Policy accountability Process accountability - CORRECT ANSWERS using adequate management processes, organization structure and internal control Performance accountability - CORRECT ANSWERS achieving desired outputs with efficiency. CGFM EXAM 1 QUESTIONS AND ANSWERS NEWEST UPDATE 2024/2025 WITH CORRECT 100% VERIFIED ANSWERS BEST SOLUTION GRADED A+ FOR PASS Program accountability - CORRECT ANSWERS effectively achieving desired program outcomes Which branch is responsible for program execution? - CORRECT ANSWERS Executive Branch Creditors - CORRECT ANSWERS individuals or entities who buy government debt instruments Program evaluations - CORRECT ANSWERS Common objective of accountability studies is to judge the appropriateness and cost-effectiveness of program activities To whom are executive branch officials accountable? - CORRECT ANSWERS citizens, public interest groups, legislative and judicial branches, creditors and the media. Govt Sustainability - CORRECT ANSWERS ability to fulfill financial obligations as they come due and to fulfill future service obligations Fed govt sustainability is addressed? - CORRECT ANSWERS FASAB's Statement of Federal Financial Accounting Standards 36, "Reporting Comprehensive Long-Term Fiscal Projections for the U.S. Government" Accountability in planning stage - CORRECT ANSWERS managers are responsible for responding to changing priorities and meeting goals that emerge from the planning process Accountability in programming stage - CORRECT ANSWERS Resources are linked to specific goals. Managers are responsible for ensuring that resources are directed to the appropriate objectives CGFM EXAM 1 QUESTIONS AND ANSWERS NEWEST UPDATE 2024/2025 WITH CORRECT 100% VERIFIED ANSWERS BEST SOLUTION GRADED A+ FOR PASS Tax policies - CORRECT ANSWERS based on considerations such as tax equity, benefit received, and ability to pay and tax xpenditures Deficit spending - CORRECT ANSWERS prohibited by most states and local entities for operational activities Taxes can be assigned to three broad category - CORRECT ANSWERS income, wealth and consumption sales taxes and property taxes - CORRECT ANSWERS main sources of revenue for local government Most familiar form of wealth tax - CORRECT ANSWERS property tax Most common consumption tax - CORRECT ANSWERS sales tax Example of excise tax (sin tax) - CORRECT ANSWERS good: gasoline, activity: gambling Advantage of excise tax (Sin tax) - CORRECT ANSWERS they link taxation to a specific services first form of intergovernmental financing - CORRECT ANSWERS contracts project grants/discretionary grant purposes - CORRECT ANSWERS .fellowships, scholarships, research, training, experimental and demonstration projects, community planning, technical assistance, environmental restoration formula grants example - CORRECT ANSWERS education grants CGFM EXAM 1 QUESTIONS AND ANSWERS NEWEST UPDATE 2024/2025 WITH CORRECT 100% VERIFIED ANSWERS BEST SOLUTION GRADED A+ FOR PASS c. in statutes, the constitution and bond covenants d. in the constitution, statutes and local charters - CORRECT ANSWERS c. in statutes, the constitution and bond covenants What must a debt program provide in order to be effective? a. enough funds to complete the project b. a clause that guarantees restructuring of the debt c. an alternative debt accounting structure d. lower interest rate for revenue bond issues - CORRECT ANSWERS a. enough funds to complete the project Which of the following is of least interest to a credit-rating agency? a. details of the bond covenant b. qualifications and authority of officials who will manage the debt c. economic conditions in neighboring states d. current debt issues outstanding - CORRECT ANSWERS c. economic conditions in neighboring states Which best describes a Local Government Investment Pool (LGIP)? a. It cannot co-mingle from the state and local entities. b. It is created to segregate funds received from local excise taxes c. It resembles a mutual fund d. It is based on a bond covenant - CORRECT ANSWERS c. It resembles a mutual fund What is the most direct impact of having a bond issue insured by a third-party organization, such as Assured Guaranty Corporation or Build America Mutual? a. The government can issue a larger amount of long-term debt b. The government can issue the debt at a lower interest rate CGFM EXAM 1 QUESTIONS AND ANSWERS NEWEST UPDATE 2024/2025 WITH CORRECT 100% VERIFIED ANSWERS BEST SOLUTION GRADED A+ FOR PASS c. The government can extend the maturity period of the debt issue beyond 30 years d. The debt insurance guarantees that the interest payments will be tax-free for the investor - CORRECT ANSWERS b. The government can issue the debt at a lower interest rate commercial property value - CORRECT ANSWERS sometimes based on income generated by the property project grants/discretionary grant - CORRECT ANSWERS usually competitive; the funding entity may use a panel of experts to help review competitive proposals, and uses discretion in whether a grant is awarded and the amount. provide funding for specific purposes for limited periods of time More stable and predictable of the grants - CORRECT ANSWERS Formula grants LGIP -Local Government lnvestment Pool - CORRECT ANSWERS Operate much like a mutual fund, but the investors are exclusively government entities. Tax Anticipation Notes (TANs); revenue anticipation notes (RANs); or grant anticipation notes (GANs) - CORRECT ANSWERS Debt used to provide interim (S-T) financing in anticipation of future receipts Advanced Refunding - CORRECT ANSWERS new debt proceeds are used to buy securities that are placed in escrow; the interest from the escrow account is used to retire the old debt Revenue Bonds - CORRECT ANSWERS bonds that are secured by a specific source of financing, such as revenue from the project being funded or a dedicated tax. (Higher interest rate). Contrasts with general obligation bonds, which are backed by the full faith and credit of government. Purpose of planing - CORRECT ANSWERS identify priorities and determine how goals will be achieved CGFM EXAM 1 QUESTIONS AND ANSWERS NEWEST UPDATE 2024/2025 WITH CORRECT 100% VERIFIED ANSWERS BEST SOLUTION GRADED A+ FOR PASS programming and budgeting have something in common - CORRECT ANSWERS both are derivatives of the planning phase primary purspose of programming - CORRECT ANSWERS determine the most cost effective means for accomplishing goals and objectives Factors to considers in programming phase - CORRECT ANSWERS -entitiy's mission, goals and objectives -policies and guidance of the chief executive and the legislature Outcomes of programming phase - CORRECT ANSWERS -identification of most cost efective means to achieve objectives -identification of personnel, dollars, equipment, resources -specific, measurable objectives -level of resources that will be requested -decision of how resources will be distributed Major types of budget - CORRECT ANSWERS operations, cash, and capital In which way the budgetary information may be organized - CORRECT ANSWERS program or object class Operating budget - CORRECT ANSWERS -cover a limited period, usually 1 or 2 years -specify planned revenues and expenditures through the budget period Cash flow budget - CORRECT ANSWERS -it is concerned with the specific timing of cash receipts and expenditures CGFM EXAM 1 QUESTIONS AND ANSWERS NEWEST UPDATE 2024/2025 WITH CORRECT 100% VERIFIED ANSWERS BEST SOLUTION GRADED A+ FOR PASS a. operations budget b. cash flow budget c. capital budget - CORRECT ANSWERS c. capital budget Which of the following is least supported through financial accounting? a. information about expenses and intergovernmental transfer b. information about funds levels and disbursements c. information about deposits of eamarked receipts d. information about achievement of program outcomes - CORRECT ANSWERS d. information about achievement of program outcomes What is the primary purpose of an external financial audit? a. provide independent assessment of cost-effectiveness of programs b. provide a conclusion that program objectives have been met c. provide an opinion whether or not financial statements are presented fairly in accordance with GAAP - CORRECT ANSWERS c. provide an opinion whether or not financial statements are presented fairly in accordance with GAAP Which entities are required to submit both financial reports and performance reports? a. all state governments b. local governments c. federal agencies d. all of the above - CORRECT ANSWERS c. federal agencies Which entity provides detailed instructions for completing Performance and Accountability Reports at the federal level? a. AGA b. OMB CGFM EXAM 1 QUESTIONS AND ANSWERS NEWEST UPDATE 2024/2025 WITH CORRECT 100% VERIFIED ANSWERS BEST SOLUTION GRADED A+ FOR PASS c. GASB d. FASAB - CORRECT ANSWERS b. OMB programming - CORRECT ANSWERS broad goals are refined into explicit objectives and involves identifying resources required to fulfill the objective Forecasting - CORRECT ANSWERS helps decision-makers predict the level of resources likely to be available. Operations - CORRECT ANSWERS primary output of phase is service to the public. The publication is Standards for Internal Control in the Federal Government, published by GAO - CORRECT ANSWERS publication of the national government that provides an effective guide to internal controls and may be applied at all levels of government Object - CORRECT ANSWERS refers to what money is spent on, rather than the intended outcome of the expenditure Budgetary Accounting - CORRECT ANSWERS Tracks commitments (requirements), obligations (encumbrances), and expenditures by Purpose, Time, and Amount. Financial Accounting - CORRECT ANSWERS Used to determine the results of operations (revs and expenses) and changes in net position (assets, liabilities, and funds balance) CCR (Citizen Centric Report) - CORRECT ANSWERS 4 page report promulgated by the AGA, designed to communicate the business of government to the public at the state and local levels. GPEFR (General-Purpose External Financial Reports) - State and local - CORRECT ANSWERS statement of net assets and statement of activities. CGFM EXAM 1 QUESTIONS AND ANSWERS NEWEST UPDATE 2024/2025 WITH CORRECT 100% VERIFIED ANSWERS BEST SOLUTION GRADED A+ FOR PASS SPFI -Summary of Performance and Financial Info - CORRECT ANSWERS All agencies that prepare APR and AFR instead of PAR must complete this Programming stage outcomes - CORRECT ANSWERS (1) specific, measurable objectives, including time-frames; (2) identification of most cost-effective means to achieve objectives; and others what happen of a budget has not been passed by the start of a new fiscal year? - CORRECT ANSWERS the government does not have legal authority to operate. Objectives of the actual budget are: - CORRECT ANSWERS document policy, guide operations, plan finances, and promote communications. Special funds and legislative earmarks are used to - CORRECT ANSWERS direct public funds to specific purposes Special funds in the state and local government - CORRECT ANSWERS special revenue funds, debt service funds, capital project funds, permanent fund, enterprise funds, and internal service funds Special funds in the federal government - CORRECT ANSWERS special funds, revolving funds and trust funds Program - CORRECT ANSWERS purpose of the spending A state legislature establishes limits on the amount of money that can be spent on salaries, equipment, utilities, supplies and travel. The legislature is imposing what kind of accounting controls? - CORRECT ANSWERS object class CGFM EXAM 1 QUESTIONS AND ANSWERS NEWEST UPDATE 2024/2025 WITH CORRECT 100% VERIFIED ANSWERS BEST SOLUTION GRADED A+ FOR PASS Council-manager - CORRECT ANSWERS Form of municipal government where council members make up the legislative branch but the manager serves at the discretion of of the council, not voters. Commission - CORRECT ANSWERS Form of municipal government where the executive and legislative branches are combined in the authority of the commissioners. Components - CORRECT ANSWERS Divisions of the three branches of government. Executive branch has the most. Commissions - CORRECT ANSWERS Form of government component that can either be permanent to fulfill a regulatory role or temporary to study a particular issue. Temporary Commission - CORRECT ANSWERS The National Commission on Terrorist Attacks Constitution - CORRECT ANSWERS Gives the national government authority over national defense, foreign relations, and interstate commerce. Establishes the federal courts. Rules and Regulations - CORRECT ANSWERS Drafted by executive branch agencies to guide daily administration of policy. Direct Action of Citizens - CORRECT ANSWERS Citizens possess the ultimate authority through the ballot box. Referendum - CORRECT ANSWERS Requires certain legislative actions to be presented to voters for approval. General Purpose Government Entity - CORRECT ANSWERS The three levels of government: national, state, and local. They perform multiple functions such as public works, public safety, recreation, health and law enforcement. CGFM EXAM 1 QUESTIONS AND ANSWERS NEWEST UPDATE 2024/2025 WITH CORRECT 100% VERIFIED ANSWERS BEST SOLUTION GRADED A+ FOR PASS General Purpose Government Entity Revenue Source - CORRECT ANSWERS Property taxes, income taxes, user fees, sales taxes, state/federal aid. Special Purpose Entity - CORRECT ANSWERS Entities that perform just one or two functions. Parent government usually issues a charter/ordinance/legislation prescribing mission and authority. Special Purpose Entity Revenue Source - CORRECT ANSWERS Usually comes from general purpose government, taxes or fees. General Purpose Local Government - CORRECT ANSWERS County, municipality, township Special Purpose Local Government - CORRECT ANSWERS School district, special-purpose district County - CORRECT ANSWERS General purpose governments found in most states. Formed under provisions in state constitutions or statutes. Common County Governance - CORRECT ANSWERS Elected board of supervisors with either an appointed administrator or an elected executive. Municipality - CORRECT ANSWERS Includes entities usually referred to as cities, towns, boroughs, and villages. A general purpose government that is not a county or township. Formed to serve a concentration of people in a given geographic area and as population density changes new ones may be formed. Special Purpose Local School District - CORRECT ANSWERS Primary purpose is to provide elementary, secondary, and/or higher education. Most are independent districts operating within parameters set by state laws. They have fiscal and administrative autonomy. CGFM EXAM 1 QUESTIONS AND ANSWERS NEWEST UPDATE 2024/2025 WITH CORRECT 100% VERIFIED ANSWERS BEST SOLUTION GRADED A+ FOR PASS Special Purpose Local School District Governance - CORRECT ANSWERS Elected school board that appoints a superintendent. Has the power to raise taxes and issue debt. Special Purpose Local District (Non-School) - CORRECT ANSWERS Entities with substantial administrative and fiscal autonomy. Perform a single function or very limited functions. May also be referred to as authorities. Special Purpose Local District Governance (Non-school) - CORRECT ANSWERS Administered by elected officials, appointed officials, or a combination. Parent government may grant authority to levy taxes and issue debt. Explanations for Proliferation of Special Districts - CORRECT ANSWERS 1. Demand for new, specialized services 2. Ability to circumvent debt and tax limitations, more financing options 3. Managerial flexibility - new district may not be subject to same personnel/procurement rules as general purpose Fragmentation and Overlap in Government Services - CORRECT ANSWERS Increased potential for this due to proliferation of quasi-governmental entities and other special purpose districts. Services agreements may help to mitigate. Tribal Governments - CORRECT ANSWERS Councils recognized by the Bureau of Indian Affairs. Have a direct nation-to-nation relationship to the US government and are not subordinate to states but similar to state govt. Tribal Governments Sovereignty - CORRECT ANSWERS Exists within tribal lands. Allows for establishment of businesses and public safety mechanisms, adoption/enforcement of civil codes, and power to eject non-members from land. Can license activities and collect taxes. CGFM EXAM 1 QUESTIONS AND ANSWERS NEWEST UPDATE 2024/2025 WITH CORRECT 100% VERIFIED ANSWERS BEST SOLUTION GRADED A+ FOR PASS Internal Controls - CORRECT ANSWERS Organization and activities designed to ensure programs achieve their intended results, resources are used efficiently and effectively; programs and resources are protected from waste, fraud and mismanagement, laws and regulations are followed; and reliable and timely information is obtained, maintained and reported. Lease-purchase - CORRECT ANSWERS Practice by which a government entity assumes a long-term lease on a capital asset and at the end of the lease period the asset may transfer to the government. Usually these agreements do not include voter approval Notes - CORRECT ANSWERS Form of government debt used as a short-term financing source. Due to the short maturity period, the principle and interest for a note are frequently retired simultaneously upon maturity, so no periodic interest payment Object Class - CORRECT ANSWERS A budget or accounting category that defines the resources to be applied to specific types of inputs, such as personnel, travel, tools or supplies. Objectivity - CORRECT ANSWERS Imposes the obligation to be impartial, intellectually honest and free of conflict of interest. Public officials are objective when they uphold the expectation of fairness, make decisions on merit, and do not allow prejudice or bias to influence their decisions or behavior Ordinance - CORRECT ANSWERS Law enacted by a legislative body below the state level, such as county, city or town Outcome - CORRECT ANSWERS Results of government programs, such as the number of gainfully employed graduates or reduction in road accidents. May take many months or years to achieve. Outcomes are more difficult to measure than outputs. Popular Sovereignty - CORRECT ANSWERS Principle that, while governments are sovereign entities, in a democracy the sovereignty rests with the people. CGFM EXAM 1 QUESTIONS AND ANSWERS NEWEST UPDATE 2024/2025 WITH CORRECT 100% VERIFIED ANSWERS BEST SOLUTION GRADED A+ FOR PASS Recall - CORRECT ANSWERS Process that enables voters to remove elected officials from office. Usually involves collecting signatures on a petition. if enough legitimate signatures are collected, the proposal is put to vote Sales Tax - CORRECT ANSWERS Form of consumption tax based on individual sales transactions; usually collected at point of sale by the vendor who then remits the tax to the government Sovereignty - CORRECT ANSWERS Means possessed supreme power. One consequence of federal government sovereignty is that the federal government cannot be sued without its permission Stewardship - CORRECT ANSWERS Principle that government is accountable for safeguarding assets and promoting long-term economic security of its citizens Vertical Equity - CORRECT ANSWERS Taxpayers with different income levels pay different amount of taxes Warrant - CORRECT ANSWERS A negotiable monetary instrument issued by a state or local government or the federal government AFR - CORRECT ANSWERS Agency Financial Report GAAP - CORRECT ANSWERS Generally Accepted Accounting Principles GAS - CORRECT ANSWERS Government Auditing Standards GPRA - CORRECT ANSWERS Governmental Performance and Results Act CGFM EXAM 1 QUESTIONS AND ANSWERS NEWEST UPDATE 2024/2025 WITH CORRECT 100% VERIFIED ANSWERS BEST SOLUTION GRADED A+ FOR PASS -Designed to improve Government performance management -The GPRA requires federal agencies to engage in performance management tasks such as: 1. setting goals 2. measuring results, and 3. reporting their progress. -multi-year strategic plans -annual performance plans -annual performance reports In order to comply with the GPRA, agencies produce strategic plans, performance plans, and conduct gap analyses of projects. The GPRA of 1993 established project planning, strategic planning, and set up a framework of reporting for agencies to show the progress they make towards achieving their goals. GPRAMA -Government Performance and Results Act Modernization Act- 2010 - CORRECT ANSWERS -The new legislation creates a more defined performance framework by: 1) defining a governance structure 2) Better connecting plans, programs, and performance information. As described in the Senate committee report, the new law requires more frequent reporting and reviews (quarterly instead of annually) that are intended to increase the use of performance information in program decision-making. The law will likely change behaviors in the executive branch by creating a more explicit fact- based decision-making framework to implement programs and be more results-oriented. Specific elements include: 1) Revised agency strategic planning requirements. 2) Revised agency annual performance planning requirements. 3) Revised agency performance reporting requirements. CGFM EXAM 1 QUESTIONS AND ANSWERS NEWEST UPDATE 2024/2025 WITH CORRECT 100% VERIFIED ANSWERS BEST SOLUTION GRADED A+ FOR PASS 4) Make recommendations to the head of the agency regarding the selection of the Deputy Chief Financial Officer of the agency; 5) Direct, manage, and provide policy guidance and oversight of agency financial management personnel, activities, and operations, 6) prepare and transmit, by not later than 60 days afterthe submission of the audit report required by section 3521(f) of this title, an annual report to the agency head and the Director of the Office of Management and Budget, 7) Monitor the financial execution of the budget of the agency in relation to actual expenditures, and prepare and submit to the head of the agency timely performance reports; and 8) Review, on a biennial basis, the fees, royalties, rents, and other charges imposed by the agency for services and things of value it provides, and make recommendations on revising those charges to reflect costs incurred by it in providing those services and things of value. Commission - CORRECT ANSWERS Government component established by law, statute, or ordinance. May be permanent or temporary. Because it is established by law, it may have greater autonomy and authority than government components that are administratively established. Example: Federal Communications Commission Component - CORRECT ANSWERS Organized unit of government, such as: 1. agency, 2. office or 3. department. Found in all branches of government at all levels. Example: U.S. Fish & Wildlife Service is a component of the U.S. Department of the Interior CGFM EXAM 1 QUESTIONS AND ANSWERS NEWEST UPDATE 2024/2025 WITH CORRECT 100% VERIFIED ANSWERS BEST SOLUTION GRADED A+ FOR PASS Due Care - CORRECT ANSWERS To discharge professional responsibilities with competence and diligence, the best of one's ability, and with the same level of ability and skill as other in similar positions. It also means to act in the best interest of those served. ERP- Enterprise resource planning - CORRECT ANSWERS Major "end-to-end" computer system that links many functions and departments. Used to simplify and streamline financial management, and to integrate operations with financial management. excise tax (sin tax) - CORRECT ANSWERS Form of consumption tax. Levied on the consumption of a particular type of good or participation in a certain type of activity. Whereas general sales taxes are broad-based, excise taxes are more narrowly targeted. Fair - CORRECT ANSWERS Free from self-interest, prejudice or favoritism. Implies an elimination of one's own feelings, prejudices and desires so as to achieve a proper balance of conflicting interests. FASAB (Federal Accounting Standards Advisory Board) - CORRECT ANSWERS Defines GAAP for entities of the federal government; this includes the national government as a whole plus distinct components. Financial Statement audit - CORRECT ANSWERS Examination of financial statements, accomplished by an independent auditor. Results in an opinion on whether the financial statements are presented fairly in accordance with GAAP or other comprehensive basis of accounting. General Assembly - CORRECT ANSWERS Name often applied to the legislative branch at the state level General-purpose government - CORRECT ANSWERS Entity at the national, state, or local level that provides a broad range of services. CGFM EXAM 1 QUESTIONS AND ANSWERS NEWEST UPDATE 2024/2025 WITH CORRECT 100% VERIFIED ANSWERS BEST SOLUTION GRADED A+ FOR PASS Government Corporation - CORRECT ANSWERS Quasi-Government entity formed to support businesslike functions where most, if not all, operation expenses are expected to be covered through revenues and fees, rather than from appropriated budget authority. -company created by Congress that is allowed to generate revenue while being exempt from some private-sector regulations -It may incur debt Book: Another common feature is that government corporations (like other special purpose governments) may have fewer management restrictions, such as personnel and procurement rules. In fact, a major reason for establishing government corporations is to achieve some freedom from regulations and the appropriations controls exercised by central management agencies Grant - CORRECT ANSWERS Funds transferred from one level of government to another for specific or broad purposes. Impartial - CORRECT ANSWERS Lack of favoritism. The absence of favor of prejudice. Not partial or biased. Treating or affecting all equally. Intangibles tax - CORRECT ANSWERS Form of wealth tax. Applied to intangible assets such as stocks and bonds, savings accounts, trademarks, and accounts receivable (in the case of a business). Line-item veto - CORRECT ANSWERS Authority that allows the chief executive, such as a governor or mayor, to strike individual line items from the budget without vetoing the entire budget bill. U.S. presidents do not have line-item veto authority. Management Cycle - CORRECT ANSWERS Refers to the sequence of activities entailed in managing a government and/or its operations. The activities include: