CGAP Government Financial Management 3

Question 1

Under the federal budget process, what happens to unobligated appropriations at the end of the fiscal year for most annual appropriations?

Accepted Answer

They expire and are no longer available for new obligations

Answer

Most annual appropriations expire at the end of the fiscal year, meaning no new obligations can be incurred after that date.

Question 2

What is the role of the Government Accountability Office (GAO) in relation to government financial management?

Accepted Answer

Audits federal agencies and reports to Congress

Answer

The GAO is an independent legislative branch agency that conducts audits, investigations, and evaluations and reports its findings to Congress.

Question 3

Which statement best describes a 'continuing resolution' in federal budgeting?

Accepted Answer

Temporary legislation that funds government operations when a regular appropriations act has not been enacted

Answer

A continuing resolution provides stop-gap funding to keep government operating at prior-year levels when Congress has not passed regular appropriations by the start of the fiscal year.

Question 4

What is 'cost allocation' in the context of government financial management?

Accepted Answer

Distributing shared costs among programs, grants, or cost objectives based on a reasonable methodology

Answer

Cost allocation assigns shared or indirect costs to programs or grants using a rational, consistent methodology that reflects actual resource consumption.

Question 5

Which document guides cost principles for non-federal entities receiving federal awards?

Accepted Answer

2 CFR Part 200 (Uniform Guidance)

Answer

2 CFR Part 200, the Uniform Administrative Requirements, Cost Principles, and Audit Requirements, governs federal grant management for non-federal entities.

CGAP - Certified Government Auditing Professional Practice Test

CGAP - Certified Government Auditing Professional Practice Test

CGAP Government Financial Management 3