CGFM Practice Test

• Differentiating between the levels of government
• Differentiating between the branches of government
• Examining the components of federal, state and local governments
• Identifying the authorities and responsibilities of the government
• Identifying the authorities and responsibilities of the different types of governments

Legally Based Implications of the Government Financial Environment

• Recognizing the implications of sovereignty in the levels of government
• Demonstrating an understanding of the budget
• Recognizing special funds, dedicated revenues, and related legal requirements
• Explaining legislative earmarking

The Government Management System (Cycle)

• Describing the elements of the government management system
• Identifying the interrelationships among the elements of the government management system
• Recognizing the importance of data in decision making in​ the government management system

Governmental Financing Process

• Recognizing the role of taxation
• Explaining intergovernmental and other revenue
• Identifying other forms of financing
• Explaining the role of debt

Concepts, Definitions, and Notions of Public Accountability

• Recognizing the meaning and purpose of accountability in the government environment
• Recognizing the fundamentals​ of accountability
• Identifying the methods used to demonstrate and assess accountability and transparency
• Recognizing the techniques used to assess fiscal sustainability and solvency
• Explaining concepts of open government, data transparency and citizen-centric reporting

Ethics as Applied to the Government Environment

• Applying key concepts related to ethical responsibility to the public, professional conduct
• Determining the steps a government financial manager needs to take to avoid a conflict of interest and to ensure objectivity and independence
• Explaining the concept of due care in the performance of professional duties
• Identifying activities or situations that are inconsistent with the responsibilities of public officials and employees
• Determining the appropriate course of action to avoid the reality or the perception of improper use of one’s office for personal gain
• Explaining personal responsibility as it relates to organizational codes of conduct

Providing Government Services and Information Electronically

• Recognizing delivery of government services and e-government
• Examining stakeholder real-time access to information
• Identifying the use of various media and tools for communications and providing services
• Explaining security, cybersecurity, and privacy considerations

• Analyzing the influences, objectives and role of standards
• Applying the concepts of managerial cost accounting and fee establishment
• Recognizing the concepts of budgeting
• Recognizing the general principles of governmental financial accounting

State and Local Financial Accounting and Reporting

• Applying GASB standards to determine the reporting entity, including component units
• Identifying the purpose of each fund type within each fund category, and its related basis of accounting
• Identifying the form and content of the Annual Comprehensive Financial Report (ACFR)
• Recognizing the purpose of popular reporting
• Identifying the form and content of the basic financial statements
• Determining the reporting of fund balance in governmental funds
• Identifying the form and purpose of required supplementary information (RSI)
• Determining how to measure, record, and report the purchase of capital assets
• Determining how to measure, record, and report the incurrence and repayment of general long-term obligations in a governmental fund
• Determining how to measure, record, and report common, fundamental current assets and liabilities, revenue, expenditures, and other financing sources and uses
• Determining how to measure, record and report common, fundamental assets, liabilities, revenue and expense transactions when using accrual basis of accounting
• Recognizing types of interfund transactions, and how they are accounted for
• Explaining how to consolidate or eliminate transactions between the fund level and the government-wide level for governmental activities
• Recognizing the required disclosures for cash deposits with financial institutions and investment
• Recognizing the option and criteria for using the modified approach for infrastructure
• Recognizing the state and local budgetary equation
• Identifying the entries for recording the budget, modifying the budget and recording encumbrances and expenditures
• Recognizing the differences between budgetary information and the generally accepted accounting principles (GAAP) information
• Explaining how to reconcile the fund financial statements to the government-wide financial statements
• Identifying government combinations

Federal Financial Accounting and Reporting

• Differentiating the role of FASAB and the interrelationships among the OMB, US Department of the Treasury, and the GAO in federal financial accounting and reporting
• Defining key budgetary terms
• Recognizing the federal budgetary equation
• Determining the relationship and differences between budgetary and proprietary accounting
• Identifying types of funds
• Describing the use of the US Standard General Ledger
• Determining how to record common, fundamental budgetary transactions
• Determining how to record common, fundamental proprietary transactions
• Determining the reporting entity
• Identifying the elements of an agency financial report (AFR) and a performance and accountability report (PAR)
• Identifying the purposes, form and content of the basic financial statements
• Recognizing the concepts of consolidation and intragovernmental transactions
• Identifying the purposes and form of the notes to the financial statements
• Identifying the purposes and form of required supplementary information (RSI)
• Recognizing the concept of Fund Balance with Treasury
• Recognizing the concepts of accounting for loans and loan guarantees (Credit Reform Act)
• Identifying basic requirements for the US Consolidated Financial Report

• Recognizing concepts of cash management
• Recognizing concepts of investment management
• Recognizing concepts of loan and loan guarantee programs and debt collection
• Demonstrating an understanding of procurement management
• Recognizing concepts of property management
• Recognizing concepts of operating materials and supplies/inventory management
• Recognizing concepts of financial and other information systems, system development, and technical tools
• Recognizing concepts of shared services
• Recognizing concepts of project management

Financial and Managerial Analysis Techniques

• Conducting the following analyses: present value, future value, cash flow, pay-back, trend, ratio analysis, strategic sourcing, regression analysis, earned value management and flowcharting
• Identifying the sources of information used and reliability of the data for financial and managerial analysis
• Explaining the use of forensic auditing techniques
• Recognizing the concepts and types of data analytics and data analysis​

Internal Control

• Identifying concepts of internal control
• Explaining how to apply internal control
• Recognizing internal control responsibilities
• Recognizing the internal control evaluation process
• Identifying the internal control reporting process
• Recognizing concepts of enterprise risk management (ERM)

Performance Measurement/Metrics/Service Efforts and Accomplishments

• Identifying the objectives of financial and non-financial performance measures
• Recognizing how performance measures relate to organizational goals and objectives
• Identifying how financial and non-financial performance measures are linked
• Recognizing how financial and non-financial performance measures are integrated with the strategic plan and budget
• Describing the uses of performance measurement and reporting to demonstrate public accountability and transparency
• Describing the uses of performance measurement and reporting to improve allocation of resources and oversight of performance
• Describing uses of performance measurement and reporting to improve effectiveness and efficiency
• Recognizing the types of performance measures: inputs, outputs, outcomes and efficiency measures
• Distinguishing between the characteristics of performance measurement data
• Identifying baselines and benchmarks
• Identifying the role of stakeholder input in the performance process
• Recognizing the legal requirement and guidance for performance measurement

Auditing

• Recognizing the role of auditing
• Recognizing the role of auditing​ standards
• Recognizing the responsibilities of the auditee
• Recognizing the components and requirements of the Single Audit Act