Education > EXAM > CGFM TEST 3 Questions and Answers 2023 (All)

CGFM TEST 3 Questions and Answers 2023

Document Content and Description Below

Three Broad Government Spending Purposes - 1) Current Operations 2) Capital Outlays 3) Debt Service Present Value Analysis - Three Components - Determines what $$ Rec'd in Future is Worth Today ... 1) inflation component - year over year loss in value 2) enterprise component - inherent risk 3) unique component - Budget Accounting and Procedures Act of 1950 - Requires the head of each federal agency to establish and maintain I/C's. Federal Managers Financial Integrity Act of 1982 (FMFIA) - requires the head of each agency to evaluate controls on an annual basis, reporting any weakness along with a corrective action plan ** (resulted in the "green book") ** Single Audit Act of 1984 (amended in 1996) - requires the audit of state and local governments and npo's receiving federal funding Sarbanes Oxley Act of 2002 - Placed restrictions on publicly traded companies following Enron scandal. Requires mgmt to report on I/C's for financial reporting in its annual report. (ICOFR) - Internal Controls Over Financial Reporting Chief Financial Officers Act of 1990 (CFO Act): - required 10 federal agencies to produce audited annual financial reports that included a report on internal control. expanded in 1994 by GMRA INTERNAL CONTROLS - systems and techniques managers use to provide reasonable assurance that agency objectives met in an effective/efficient manner, in compliance with laws/regulations, and to safeguard assets. Implemented to accomplish certain results, prevent problems, or detect problems that have occurred. Some controls can both detect and prevent problems (but only if their existence is known). TIME VALUE OF MONEY - Used in consideration of capital budgeting 1) Present Value Analysis 2) Future Value Analysis 3) Payback Analysis Flowcharting - Iterative process requiring changes throughout development, each step represents a decision, also used to evaluate processes for effective internal controls Earned Value Management (EVM) - project mgmt system that weighs both schedule and cost performance to determine if a project is delivering expected results on time and within budget Regression Analysis - Predicts the relationship between variables: 1) Direct Linear Regression 2) Indirect Linerar Regression 3) Non-linear Regression 4) No Relationship ** See Limits of Regression Analysis Correlation Coefficient - Determines the degree of accuracy the analysis (variables) can be used to predict results (1=perfect correlation .85 considered reliable for forecasting) Multiple Regressions - analyzes multiple IV's and look for items with the highest correlation coefficient as being the most like predictors Limits of Regression Analysis - Data ranges must be relevant (e.g., sample size might be too small to project on a larger population) Difficult to find data sets with high correlation coefficients Bad data = bad results (garbage in, garbage out) Correlation is not Causation, have to be able to explain how one set of data would influence another Data Analytics - inspecting, cleaning, transforming, and modeling data to find useful information, conclusions, and support decision making Data Mining - (Predictive) sorting through large data sets and using filters and algorithms to pick out relationships ** See strengths and weaknesses Predictive Analytics - data collected through a variety of techniques to analyze current and historical facts to make predictions about future events Data Mining Strengths and Weaknesses - * Strengths Analyst is able to review complete data sets Ability to link together multiple data sources * Weaknesses Must have quality data Must have ability to understand program requirements and how this is represented in the data Starting a Data Analytic Program - Collaborate with other agencies for data collection and sharing Determine ROI in Analytics Programs Give leaders clear concise analysis they can use to support data driven programs Enable employees at all levels to see and utilize data for their needs (not just the needs of senior leaders Managers to demand the use of data and provide employees with targeted on the job training Forensic Auditing - examination of financial information that is likely to be used for the investigation and prosecution of financial crimes Need to have knowledge of basic legal principles, standards for discovery Steps for Forensic Auditing - a) data collection, b) data preparation, c) data analysis, and d) reporting Benford Digital Analysis - based on observation that more transactions begin with the number one than larger numbers. More transactions will start with number one than number two ... and more with number two, than number three, etc... Because there is an expected distribution of numbers, the testing an point out potentially fraudulent transactions Competitive Source Analysis - Used to determine if there is a benefit to contracting government services to the private sector: 1) Conduct a management study 2) Prepare a performance work statement - defines the expected outputs/results 3) Project the in-house and contract costs 4) Select the best alternative - combination of performance and price Ratio Analysis - Active use of numbers to point out problems and indicate performance, questions to ask, etc. They serve as starting points for further inquiry. Ex. numbers revealing that receivables are increasing could trigger an increase in debt collection efforts. Other rations could indicate fiscal stress, adequacy of reserves, liquidity, workloads, response times, and accuracy rates. Pure Ratios - relating one number to another to create a meaningful indicator of performance (ex., total expenditures to budget). Comparative Analysis - Comparing entities numbers and ratios to another agency or benchmarks. Credit rating agencies also publish median ratios by industry and what they consider to be reasonable ranges and ratios Time Series Analysis - comparing the agency against itself over time, ex. Calculating the percentage change from year to year Common Size Statements - converts all data elements in a statement to percentages of 100, Examines expenditures of a function as compared to total expenditures (ex., percentage of total budget spent on public safety year over year, and if it is growing disproportionately to other programs) Per Capita Information - Debt per capita Cautionary Note on Ratio Analysis - Not an ends unto themselves but serve as a starting point for further investigation. Liquidity Ratios - Determines entities ability to meet creditors demands: 1) Current Ratio 2) Quick Ration Current Ratio = current assets/current liabilities - current assets = cash and those assets that will become cash within one year (including inventories) Current liabilities = those that are due and payable within one year Should be a ratio of 2:1 Quick Ratio = Cash and equivalents, and receivables/current liabilities - Removes the uncertainty over inventories Ideal ration should be 1:1 Asset efficiency and Turn-Over ratios - Efficiency in using assets and converting them to cash. 1) Receivables Ratios 2) Inventory Ratios Receivables Ratios - ex., percentage of tax collections/taxes levied. Rating agencies expect 98-99% range. Days outstanding = Avg receivables/Annual revenues x 365 Avg receivables = (Beg of year receivables + end of year receivables)/2 Inventory Ratios - helps determine risk of loss from spoilage, pilfering, obsolescence, etc. Inventory turnover = Revenues from sales of inventory/Avg inventory during the period Avg inventory = 365/Inventory Turnover Operating Costs and Budgetary Cushions - Extent to which entities revenues are sufficient to cover costs, or build balances for working capital, rainy day funds, emergency needs, or debt service coverage. Budgetary cushion is considered to be one of the most important financial ratios for state and local governments Need to watch out for balancing the budget with one time inflows Debt Burden - Burden of 15-20% and above considered "high" by rating agencies. Measured by: * outstanding LTD/population * outstanding LTD/assessed property values Ability to repay Debt - Excess revenues over operating expenditures/ Principal payment + interest expense Government Mgmt Reform Act of 1994 (GMRA) - Expanded CFO Act to require 24 agencies to prepare an audited annual consolidated financial statement for the executive branch of the federal government Federal Financial Mgmt Improvement Act of 1996 (FFMIA) - requirement to follow federal accounting standards, a standardized financial mgmt system, and standard general ledger (sgl) at the transaction level Accountability of Tax Dollars Act of 2002 - Annual audit requirement expanded to include ALL federal agencies * OMB Circular A-123 - Mgmts Responsibility for Internal Control - Mgmt responsible for: 1) develop/implement cost effective I/C's 2) assess the adequacy of I/C's in programs/ operations 3) assess/correct ICOFR 4) identify needed improvements 5) take corresponding corrective action 6) report annually on I/C through mgm Statement of Assurance (SOA) Appendix A - strengthened process for ICOFR Appendix B - mgmt of gov't charge card programs Appendix C - measurement and remediation of improper payments Appendix D (2013) - FFMIA guidance for agencies subject to CFO Act OMB Circular A-130 Mgmt of Federal Information Resources - establishes minimum set of controls in federal automated information security programs GAO Standards for I/C in Fed Gov't - See Appendix 2 Government Accountability w/Reasonable Assurance of ... - 1) achieving program objectives/mission 2) using resources efficiently 3) complying with legal requirements 4) accurate and reliable financial reporting 5) safeguarding resources/assets Five Internal Control Components/Standards - Development - Developed by the Committee of Sponsoring Organizations (COSO) in 1992, updated in 2013 Per COSO, Internal controls are intended to meet three major objectives: 1) Operations, 2) Reporting, 3) Compliance Five Internal Control Components/Standards - TRIANGLE - 1) Control Environment - Base -> most important 2) Risk Assessment 3) Control Activities 4) Info and Communication 5) Monitoring IC Standard 1: Control Environment - 5 Principles - Five principles of Control Environment: 1) Commitment to integrity and ethical values 2) Independence of oversight body and mgmt 3) Establish structures, reporting lines, and responsibilities 4) retain competent individuals in alignment with objectives 5) individuals held accountable for their I/C responsibilities * Most important component of Internal Control Control Environment - Commitment to Integrity - Demonstrated by: * code of conduct that reflects organizational core values * employees understand what is ethical by mgmt communications and actions * employees know how to act if they see unethical behavior * management does not routinely override controls * management emphasizes long-term goals instead of short term gains * management actively discourages unethical behavior Control Environment - Commitment to Competence - Demonstrated by: * clearly defined KSA's assigned to job functions * ambiguous and unrealistic job descriptions revised when necessary * periodic EE evaluations and counseling * EE training and development programs * Appropriate levels of supervision * promotions/compensation consistent with evaluation results Control Environment - Mgmt Philosophy and Operating Style - * overly aggressive = values short term over long term and results over integrity * turn over in key positions a red fla [Show More]

Last updated: 1 year ago

Preview 1 out of 39 pages

Reviews( 0 )

Recommended For You

 Human Nutrition> EXAM > 111 ServSafe Manager Exam 2022/2023 Questions and 100% correct answers (All)

preview
111 ServSafe Manager Exam 2022/2023 Questions and 100% correct answers

111 ServSafe Manager Exam 2022/2023 Questions and 100% correct answers Which food item has been associated with Salmonella Typhi? -ANSWER- Beverages What symptom requires a food handler to be exc...

By Professor Lynne , Uploaded: Aug 08, 2022

$12

 Health Care> EXAM > WGU C182 Exam 2023 Questions and Answers (Graded A) (All)

preview
WGU C182 Exam 2023 Questions and Answers (Graded A)

WGU C182 Exam 2023 Questions and Answers (Graded A)

By Vati Comprehesive Guru , Uploaded: May 01, 2023

$12.5

 *NURSING> EXAM > NR 509 Pharmacology HESI Practice Exam 3 Questions And Answers (All)

preview
NR 509 Pharmacology HESI Practice Exam 3 Questions And Answers

HESI PRACTICE EXAM 3 PHARMACOLOGY A client with mild parkinsonism is started on oral amantadine (Symmetrel). What statement accurately describes the action of this medication?

By Axel , Uploaded: Nov 14, 2021

$16

 Education> EXAM > PSY 330 Chapter 13 Questions and Answers Graded A+ (All)

preview
PSY 330 Chapter 13 Questions and Answers Graded A+

Which of the following provides evidence of stereotype threat? - ANSWER Women perform worse on math tests when they believe that the test is important, but they perform the same as men when they belie...

By MARKALLAN , Uploaded: Aug 10, 2022

$6

 Education> EXAM > PSY 330 Chapter 13 Questions and Answers Graded A+ (All)

preview
PSY 330 Chapter 13 Questions and Answers Graded A+

Which of the following provides evidence of stereotype threat? - ANSWER Women perform worse on math tests when they believe that the test is important, but they perform the same as men when they belie...

By Nancylect , Uploaded: Aug 10, 2022

$9

 *NURSING> EXAM > Chicago State University: NURS MISC Exam 3 Questions and Answers,100% CORRECT (All)

preview
Chicago State University: NURS MISC Exam 3 Questions and Answers,100% CORRECT

Chicago State University: NURS MISC Exam 3 Questions and Answers A 30-year-old African American had surgery 6 months ago and the incision site is now raised,indurated, and shiny. This is most likely...

By securegrades , Uploaded: Aug 09, 2022

$16

 Health Care> EXAM > First Aid USMLE Step 3 Questions And Answers With Complete Solutions (All)

preview
First Aid USMLE Step 3 Questions And Answers With Complete Solutions

First Aid USMLE Step 3 Questions And Answers With Complete Solutions A 42 year old woman presents with HA, nausea, vomiting, and a red eye that has progressively worsened since this morning. She al...

By Crum , Uploaded: Aug 06, 2022

$11

 Health Care> EXAM > USMLE Step 3 Questions And Answers Latest Solution (All)

preview
USMLE Step 3 Questions And Answers Latest Solution

USMLE Step 3 Questions And Answers Latest Solution Pseudogout associations Correct Answer: hemochromatosis, hyperparathyroidism, acromegaly, hypothyroidism Gout crystals Correct Answer: negati...

By Crum , Uploaded: Aug 06, 2022

$14

 Health Care> EXAM > USMLE Step 1 Exam 2022/2023 Questions and Answers (All)

preview
USMLE Step 1 Exam 2022/2023 Questions and Answers

What areas do the cervical lymph nodes drain? - ANSWER Head and neck What areas do the hilar lymph nodes drain? - ANSWER Lungs What areas do the mediastinal lymph nodes drain? - ANSWER Trachea a...

By MARKALLAN , Uploaded: Aug 05, 2022

$7

 Health Care> EXAM > USMLE Step 1 Exam 2022/2023 Questions and Answers (All)

preview
USMLE Step 1 Exam 2022/2023 Questions and Answers

What areas do the cervical lymph nodes drain? - ANSWER Head and neck What areas do the hilar lymph nodes drain? - ANSWER Lungs What areas do the mediastinal lymph nodes drain? - ANSWER Trachea a...

By Nancylect , Uploaded: Aug 05, 2022

$7

$10.00

Add to cart

Instant download

Can't find what you want? Try our AI powered Search

OR

GET ASSIGNMENT HELP
45
0

Document information


Connected school, study & course



About the document


Uploaded On

Jan 13, 2023

Number of pages

39

Written in

Seller


seller-icon
Nancylect

Member since 1 year

97 Documents Sold


Additional information

This document has been written for:

Uploaded

Jan 13, 2023

Downloads

 0

Views

 45

Document Keyword Tags

THE BEST STUDY GUIDES

Avoid resits and achieve higher grades with the best study guides, textbook notes, and class notes written by your fellow students

custom preview

Avoid examination resits

Your fellow students know the appropriate material to use to deliver high quality content. With this great service and assistance from fellow students, you can become well prepared and avoid having to resits exams.

custom preview

Get the best grades

Your fellow student knows the best materials to research on and use. This guarantee you the best grades in your examination. Your fellow students use high quality materials, textbooks and notes to ensure high quality

custom preview

Earn from your notes

Get paid by selling your notes and study materials to other students. Earn alot of cash and help other students in study by providing them with appropriate and high quality study materials.


$10.00

WHAT STUDENTS SAY ABOUT US


What is Browsegrades

In Browsegrades, a student can earn by offering help to other student. Students can help other students with materials by upploading their notes and earn money.

We are here to help

We're available through e-mail, Twitter, Facebook, and live chat.
 FAQ
 Questions? Leave a message!

Follow us on
 Twitter

Copyright © Browsegrades · High quality services·