CGFM VALID EXAM FEE - LATEST CGFM TEST ANSWERS

CGFM Valid Exam Fee - Latest CGFM Test Answers

CGFM Valid Exam Fee - Latest CGFM Test Answers

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AGA Certified Government Financial Manager (CGFM) Sample Questions (Q15-Q20):

NEW QUESTION # 15
As the security of Go debt issue, state and local governments pledge their Faith and credit (their general taxing power); however revenue bonds are not backed by full faith or
_, known as the debt
credit. Instead, the bond security agreement pledges a
cover.

  • A. Go debt use capacity
  • B. Go debt capacity
  • C. Rate covenant
  • D. None of These

Answer: C


NEW QUESTION # 16
The most politically sensitive budgetary decisions for government board members center on:

  • A. How much to hold in reserve for emergencies
  • B. Tax and user free rates
  • C. All of there
  • D. Whether to adopt a strategic plan

Answer: B


NEW QUESTION # 17
Which of the following is an example of an internal control weakness?

  • A. The accounting department has one clerk prepare vendor payments and another clerk reconcile bank accounts.
  • B. Management policy allows project managers to oversee controls of companies in which they have a material interest.
  • C. The contract department staff awards contracts and maintains a database for vendor information.
  • D. The budget department staff is responsible for preparing the budget and for reporting on budget cost variances.

Answer: B

Explanation:
* Definition of Internal Control Weakness:Internal control weaknesses occur when controls fail to prevent or detect errors, fraud, or conflicts of interest. Allowing project managers to oversee companies in which they have a material interest introduces aconflict of interest, undermining internal controls.
* Explanation of Answer Choices:
* A. The contract department staff awards contracts and maintains a database for vendor information: While not ideal, this does not automatically signal a critical control weakness.
* B. Management policy allows project managers to oversee controls of companies in which they have a material interest: Correct. This represents a serious conflict of interest and lack of independence.
* C. The budget department staff is responsible for preparing the budget and for reporting on budget cost variances: This may indicate concentration of duties but is less severe than a direct conflict of interest.
* D. The accounting department has one clerk prepare vendor payments and another clerk reconcile bank accounts: This demonstrates good segregation of duties, not a weakness.
References:
* COSO,Internal Control - Integrated Framework.
* GAO,Standards for Internal Control in the Federal Government (Green Book).


NEW QUESTION # 18
Which one of the following options is NOT the part of major steps in Property tax cycle procedure?

  • A. Recommendations
  • B. Asset taxable Value
  • C. Collection
  • D. Appraisal

Answer: A


NEW QUESTION # 19
Use of a lockbox eliminates

  • A. the writing of checks against insufficient funds.
  • B. internal office processing delays occurring prior to making deposits.
  • C. mail and check-clearing time.
  • D. delays in the availability of funds after transaction initiation.

Answer: B

Explanation:
What Is a Lockbox?
* Alockboxis a service provided by banks to streamline the collection of payments. Customers send payments directly to a bank-managed P.O. box, where the bank processes and deposits them on behalf of the organization.
Why Does a Lockbox Eliminate Internal Office Processing Delays?
* Payments are sent directly to the bank, bypassing the organization's internal mail and deposit processes.
This eliminates delays caused by handling checks internally and ensures quicker access to funds.
Why Other Options Are Incorrect:
* B. Mail and check-clearing time:Lockboxes reduce internal processing delays but do not affect the mail delivery time or bank check-clearing processes.
* C. Delays in the availability of funds after transaction initiation:Fund availability depends on banking processes, not the lockbox.
* D. Writing of checks against insufficient funds:Lockboxes do not prevent the issuance of bad checks.
References and Documents:
* Treasury Financial Manual:Describes lockboxes as tools to reduce internal delays in payment processing.
* GAO Financial Management Best Practices:Highlights the benefits of lockboxes in expediting deposits.


NEW QUESTION # 20
......

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