CGFM Ethics, Accountability, and Professional Standards 2 — Questions and Answers
Question 1: What are the three CGFM examination areas?
- Budgeting, Auditing, and Tax Policy
- Governmental Environment; Governmental Accounting, Financial Reporting, and Budgeting; Governmental Financial Management and Control (Correct answer)
- Federal Finance, State Finance, and Local Finance
- Accounting, Management, and Leadership
Correct answer: Governmental Environment; Governmental Accounting, Financial Reporting, and Budgeting; Governmental Financial Management and Control
The CGFM certification requires passing three exams: Exam 1 (Governmental Environment), Exam 2 (Governmental Accounting, Financial Reporting, and Budgeting), and Exam 3 (Governmental Financial Management and Control).
Question 2: Which concept describes the obligation to use public resources only for their intended purpose?
- Prudence
- Compliance
- Fiduciary duty
- Propriety (Correct answer)
Correct answer: Propriety
Propriety in government financial management means resources are used only for their intended, authorized, and legal purposes, consistent with legislative intent.
Question 3: What is 'whistleblower protection' in the government context?
- Protection for government contractors during bid protests
- Legal protections for government employees who report fraud, waste, abuse, or violations of law (Correct answer)
- Protection for auditors who issue negative audit opinions
- Protection for budget officials who reduce agency spending
Correct answer: Legal protections for government employees who report fraud, waste, abuse, or violations of law
Whistleblower protections shield federal employees from retaliation when they report fraud, waste, abuse, gross mismanagement, or violations of laws and regulations.
Question 4: Which federal law created strong protections against retaliation for federal employee whistleblowers?
- Sarbanes-Oxley Act
- Federal Employees Protection Act
- Whistleblower Protection Act of 1989 (Correct answer)
- Inspector General Act of 1978
Correct answer: Whistleblower Protection Act of 1989
The Whistleblower Protection Act of 1989 (and its 2012 enhancement) protects federal employees who disclose fraud, waste, abuse, or violations of law from retaliation by their agencies.
Question 5: In government ethics, what is a 'conflict of interest'?
- Disagreement between two government agencies over policy
- A situation where a public official's personal interests could improperly influence their official duties (Correct answer)
- A legal dispute between a contractor and an agency
- A budget disagreement between the executive and legislative branches
Correct answer: A situation where a public official's personal interests could improperly influence their official duties
A conflict of interest occurs when a government official has personal financial or other interests that could improperly influence, or appear to influence, their official decisions or actions.
Question 6: What is the purpose of the Standards of Ethical Conduct for Employees of the Executive Branch (5 CFR Part 2635)?
- Setting pay scales for federal employees
- Establishing uniform standards of ethical behavior for all executive branch employees (Correct answer)
- Defining criminal penalties for government fraud
- Setting standards for congressional staff behavior
Correct answer: Establishing uniform standards of ethical behavior for all executive branch employees
5 CFR Part 2635 establishes governmentwide standards of ethical conduct for executive branch employees, covering gifts, conflicts of interest, outside activities, and misuse of position.
CGFM Ethics, Accountability, and Professional Standards 2
What are the three CGFM examination areas?