CGFM Flashcards

Under GASB 68, state and local government employers must report their proportionate share of a cost-sharing pension plan's:

Answer: Net pension liability on the face of the financial statements

GASB 68 requires employers to recognize their proportionate share of the collective net pension liability directly on the Statement of Net Position.

Which internal audit standard requires that internal auditors be free from conditions that threaten their ability to carry out their responsibilities objectively?

Answer: The standard of independence

The IIA standard on independence requires that internal audit functions be free from organizational and individual impairments that compromise objectivity.

A government's 'fund balance' in a governmental fund represents:

Answer: The difference between assets/deferred outflows and liabilities/deferred inflows

Fund balance equals assets plus deferred outflows of resources minus liabilities minus deferred inflows of resources in governmental fund statements.

A federal agency's 'obligation' under budget law is best defined as:

Answer: A legally binding commitment that will require payment

An obligation is a binding legal commitment — such as a signed contract — that will result in outlays immediately or in the future.

Which approach to governmental performance measurement compares program outcomes to pre-established targets or benchmarks?

Answer: Results-based accountability

Results-based accountability (RBA) focuses on measuring and reporting actual outcomes against predetermined performance targets.

Under the Yellow Book (GAGAS), a performance audit must include which of the following?

Answer: Criteria against which audit evidence is evaluated

Performance audits under GAGAS require auditors to establish criteria — standards or measures — to evaluate whether program objectives are being met.

Which federal financial management reform required agencies to integrate budget and performance information?

Answer: Government Performance and Results Modernization Act of 2010

The GPRAMA of 2010 strengthened GPRA requirements and mandated integration of performance goals with budget submissions across federal agencies.