Download CGFM Exam Dumps Questions to get 100% Success in AGA
100% Accurate Answers! CGFM Actual Real Exam Questions
Introduction to AGA CGFM: Certified Government Financial Manager (CGFM) Exam
Certified State Financial Manager is a professional certification given by AGA, showing expertise in federal, state and local government accounting, auditing, financial reporting, internal control and management. CGFM is a recognized certification that acknowledges the specific expertise and knowledge that a successful financial manager of the Government needs. You may increase your professional possibilities and differentiate yourself from the others in your industry by becoming a CGFM. AGA CGFM exam dumps is the best way to learn all the concepts of the examination.
The Certified Government Financial Manager (CGFM) certification is open to anyone who has a four-year degree from an accredited university and has appropriate work experience. The program is also open to individuals who do not have a four-year degree but have enough years of experience working in the financial management of government agencies.
NEW QUESTION # 48
The CAFR includes all of the following EXCEPT the:
- A. RSI.
- B. basic financial statements.
- C. MD&A.
- D. PAR.
Answer: D
NEW QUESTION # 49
Because of the current financial measurement focus of the Governmental Funds, they do not report:
- A. Cash equivalents
- B. Long-term debt
- C. Either A or B
- D. Capital Assets
Answer: C
NEW QUESTION # 50
Pension system may be operated by:
- A. All of these
- B. A single nonprofit or government
- C. Multiple organizations that engage a management agent
- D. Multiple organization that share costs
Answer: A
NEW QUESTION # 51
The principal advantage of a CIP (Capital improvement Program) is that______________, including their project designs, land acquisition, permitting, and acquiring financing.
- A. None of these
- B. ensures the orderly replacement of capital facilities
- C. Minimal costs of putting the asset in operating conditions
- D. It provides for sufficient lead time to plan for projects.
Answer: D
NEW QUESTION # 52
Which of the following would auditors issue an opinion on?
- A. forensic audits
- B. financial statement audits
- C. compliance audits
- D. performance audits
Answer: B
Explanation:
* Audit Opinions:
* Auditors issue opinions onfinancial statement auditsto provide assurance about whether the financial statements are presented fairly in accordance with applicable accounting standards (e.g., GAAP).
* Other types of audits, such as performance or forensic audits, do not typically result in opinions but may provide findings or recommendations.
* Explanation of Answer Choices:
* A. Performance audits: These assess efficiency, effectiveness, or economy but do not include an opinion.
* B. Compliance audits: These assess adherence to laws or regulations and may include findings but not an opinion.
* C. Financial statement audits: Correct. These audits include an auditor's opinion on the fairness of the financial statements.
* D. Forensic audits: These focus on fraud investigation and result in findings, not an opinion.
References:
* AICPA,Audit Opinions on Financial Statements.
* GAO,Government Auditing Standards (Yellow Book).
NEW QUESTION # 53
What is the present value of $25,000 to be received 10 years from today if the opportunity rate is 4%, the current tax rate is 1% and the expected future value is 9%?
- A. $10,550
- B. $16,900
- C. $15,295
- D. $ 9,706
Answer: B
NEW QUESTION # 54
All of the following are core banking services EXCEPT:
- A. Investment management
- B. Security services
- C. Reconciliation Services
- D. Concentration and Zero balance
Answer: A
NEW QUESTION # 55
All of the following ae among the stated purposes of GPRA EXCEPT to
- A. improve program effectiveness.
- B. help managers improve service delivery.
- C. improve internal management practices.
- D. provide instructions on program reporting.
Answer: D
Explanation:
What Is GPRA?TheGovernment Performance and Results Act (GPRA)of 1993 was designed to improve the performance of federal programs by requiring federal agencies to establish goals, measure performance, and report on their progress.
Stated Purposes of GPRA:
* Improve Service Delivery (Option A):GPRA helps agencies align performance goals with customer needs, improving service delivery.
* Improve Internal Management Practices (Option B):By requiring performance metrics and evaluations, GPRA enhances internal management and decision-making processes.
* Improve Program Effectiveness (Option D):GPRA aims to make federal programs more effective by fostering accountability and linking resources to results.
Why Option C Is Incorrect:
* GPRA does not provide detailedinstructions on program reporting.While it requires agencies to report on their performance, it does not dictate the specific steps or instructions for reporting. Instead, agencies design their own reporting processes within the GPRA framework.
References and Documents:
* Government Performance and Results Act of 1993:Stipulates the law's objectives but does not mention program reporting instructions.
* GAO Report on GPRA Implementation:Highlights GPRA's purpose to improve performance management and accountability without prescribing reporting instructions.
NEW QUESTION # 56
Small local governments in states not requiring a financial audit may choose:
- A. A compilation
- B. Review or Member's audit
- C. Any of these
- D. Agreed-upon procedures D.
Answer: C
NEW QUESTION # 57
According to the AGA Code of Ethics, a government agency contract manager using a vendor as a personal reference would constitute:
- A. nepotism.
- B. fraud.
- C. professional incompetence.
- D. a conflict of interest.
Answer: D
NEW QUESTION # 58
Which of the following opinions is not expressed by auditors as to whether financial statements are expressed fairly in all material respects with respect to generally accepted accounting principles?
- A. Reversal opinion
- B. Qualified opinion
- C. Unqualified opinion
- D. Disclaimer
Answer: A
NEW QUESTION # 59
The first step in investment management is to
- A. develop a consensus among managers of the investment objectives.
- B. ensure all employees understand their investment options.
- C. develop an investment policy manual.
- D. establish criteria for divesting.
Answer: A
Explanation:
Investment Management Basics:The first step in investment management is establishing theobjectivesof the investment program. This requires consensus among key stakeholders, such as managers, on what the investment goals are (e.g., risk tolerance, return expectations, liquidity needs).
* Without clear objectives, subsequent steps like developing policies or selecting investments cannot be effectively carried out.
Why Consensus Is Important:
* Investment objectives must align with the organization's mission, risk tolerance, and financial goals.
* Consensus ensures that all managers are on the same page before developing specific strategies or policies.
Why Other Options Are Incorrect:
* A. Ensure employees understand their investment options:Employee understanding is not the first step; it comes later when the investment strategy is implemented.
* C. Develop an investment policy manual:This happens after the objectives have been established.
* D. Establish criteria for divesting:Divestment criteria are part of the investment policy and are determined later.
References and Documents:
* GAO Financial Management Guide:Highlights setting objectives as the first step in investment management.
* COSO Framework for Investment Risk Management:Stresses the importance of aligning objectives before policy development.
NEW QUESTION # 60
Auditors may limit their public reporting in attestation engagements when the
- A. audit report would compromise ongoing legal proceedings.
- B. auditors detect material fraud.
- C. entity management fails to satisfy legal requirements.
- D. auditor detects non-compliance with provisions of law.
Answer: A
Explanation:
* Limiting Public Reporting in Attestation Engagements:
* Government auditing standards allow auditors to limit public reporting in rare cases, such as when disclosing certain information could compromise sensitive or ongoing legal proceedings.
* The goal is to protect the integrity of investigations or legal actions while maintaining transparency where possible.
* Explanation of Answer Choices:
* A. Auditors detect material fraud: Auditors are required to report material fraud to appropriate authorities, not limit reporting unless legal proceedings are affected.
* B. Audit report would compromise ongoing legal proceedings: Correct. This is a valid reason to limit public reporting under auditing standards.
* C. Auditor detects non-compliance with provisions of law: Non-compliance must be disclosed unless legal considerations warrant confidentiality.
* D. Entity management fails to satisfy legal requirements: This would typically be reported, not withheld.
References:
* GAO,Government Auditing Standards (Yellow Book).
* AICPA,Attestation Standards and Public Reporting Guidance.
NEW QUESTION # 61
"Don't risk a lot for a little." This principle should be followed during:
- A. Charging losses
- B. Using insurance deductibles
- C. Assumption of risk
- D. Small and infrequent losses
Answer: C
NEW QUESTION # 62
States require that:
- A. The Governor makes across-the-Board cuts
- B. None of there
- C. Local units adopt balanced budgets but are silent about year-end balances
- D. Strategic planners first conduct SWOT analysis
Answer: C
Explanation:
Explanation/Reference:
NEW QUESTION # 63
Bond proceeds funds capital assets (Known as fixed assets) that typically have useful lives of at least five or six years. These assets include:
- A. All of these
- B. Utility plant construction
- C. Recreational facilities
- D. Utility lines
Answer: A
NEW QUESTION # 64
Using purchasing cards for contract purchases creates efficiencies for all of the following EXCEPT:
- A. streamlining payment in the accounts payable system.
- B. improved cash flow for the vendor.
- C. savings in transaction costs.
- D. detection of fraudulent purchases.
Answer: D
Explanation:
Explanation
NEW QUESTION # 65
generally protects the organization, its employees, governing
board members, other board members, and volunteer from third-party claims alleging property damage, bodily injury, and personal injury.
- A. Excess Liability
- B. Police professional Liability
- C. Commercial General Liability (CGL)
- D. All of the above
Answer: C
NEW QUESTION # 66
......
AGA CGFM certification is a prestigious certification offered to government financial managers who aim to demonstrate their proficiency in governmental accounting, auditing, and financial reporting. Certified Government Financial Manager (CGFM) certification is a rigorous process that is recognized worldwide as a standard of excellence in the field of government accounting.
Best Value Available! Realistic Verified Free CGFM Exam Questions: https://2cram.actualtestsit.com/AGA/CGFM-exam-prep-dumps.html