MCQ Flashcards

In federal financial management, an 'apportionment' is issued by:

Answer: The Office of Management and Budget (OMB)

OMB issues apportionments to divide an agency's appropriation into segments (usually quarterly) to control the rate of spending.

The Yellow Book (Government Auditing Standards) is published by:

Answer: The Government Accountability Office (GAO)

The GAO publishes Government Auditing Standards (the Yellow Book), which establishes standards for audits of government entities and entities receiving government funds.

Which type of government audit focuses on whether a program is achieving its intended results?

Answer: Performance audit

Performance audits examine program effectiveness, efficiency, and economy — assessing whether programs achieve their intended results.

Under GASB 68, a government employer that participates in a cost-sharing multiple-employer pension plan must report:

Answer: Its proportionate share of the collective net pension liability

GASB 68 requires each employer in a cost-sharing plan to report its proportionate share of the collective net pension liability.

The Federal Managers' Financial Integrity Act (FMFIA) requires federal agency heads to:

Answer: Evaluate and report on the adequacy of internal controls and financial systems

FMFIA requires agency heads to annually evaluate and report to the President and Congress on the adequacy of internal controls and financial management systems.

A government's 'fund balance' for a governmental fund is best described as:

Answer: The difference between current financial resources and current financial claims

Fund balance in governmental funds represents the excess of current financial resources (assets) over current financial claims (liabilities) using the modified accrual basis.

Which OMB circular establishes requirements for the financial management systems of federal agencies?

Answer: OMB Circular A-127

OMB Circular A-127 establishes policies and standards for executive branch financial management systems.