CGFM Trivia 3 — Questions and Answers
Question 1: Which OMB circular governs requirements for grants and federal financial assistance?
- OMB Circular A-11
- OMB Circular A-123
- 2 CFR Part 200 (Correct answer)
- OMB Circular A-136
Correct answer: 2 CFR Part 200
2 CFR Part 200 (Uniform Guidance) superseded several OMB circulars and provides uniform administrative requirements, cost principles, and audit requirements for federal awards.
Question 2: In government budgeting, what is a 'continuing resolution'?
- A law permanently setting agency spending levels
- Temporary legislation funding government operations when a regular appropriation has not been enacted (Correct answer)
- A resolution to reduce the national debt
- An executive order authorizing emergency spending
Correct answer: Temporary legislation funding government operations when a regular appropriation has not been enacted
A continuing resolution is temporary legislation that allows federal agencies to continue operating at prior-year funding levels when Congress has not passed a regular appropriations bill.
Question 3: What year was the Federal Accounting Standards Advisory Board (FASAB) established?
- 1984
- 1990 (Correct answer)
- 1999
- 2002
Correct answer: 1990
FASAB was established in 1990 by a memorandum of understanding among the Treasury, OMB, and GAO to develop accounting standards for the federal government.
Question 4: The Single Audit Act requires audits of non-federal entities that expend how much in federal awards annually?
- $250,000 or more
- $500,000 or more
- $750,000 or more (Correct answer)
- $1,000,000 or more
Correct answer: $750,000 or more
The Single Audit threshold is $750,000 in federal expenditures per year, as updated by 2 CFR Part 200; entities above this threshold must obtain a single or program-specific audit.
Question 5: What governmental fund type is used to account for general government activities not assigned to another fund?
- Special Revenue Fund
- General Fund (Correct answer)
- Capital Projects Fund
- Debt Service Fund
Correct answer: General Fund
The General Fund is the primary operating fund of a government, used to account for all financial resources not required to be accounted for in another fund.
Question 6: Which federal law requires agencies to annually assess and report on the effectiveness of internal controls over financial reporting?
- Federal Managers' Financial Integrity Act (FMFIA) (Correct answer)
- Inspector General Act
- Antideficiency Act
- Improper Payments Elimination Act
Correct answer: Federal Managers' Financial Integrity Act (FMFIA)
The FMFIA of 1982 requires agency heads to assess and report annually on the adequacy of their internal accounting and administrative controls.
Question 7: What is the term for the point in time when a government's obligation to spend funds legally arises, creating a legal liability?
- Apportionment
- Allotment
- Obligation (Correct answer)
- Outlay
Correct answer: Obligation
An obligation is a binding agreement that will result in outlays, representing a legal commitment of the government to pay, such as signing a contract or placing an order.
CGFM Trivia 3
Which OMB circular governs requirements for grants and federal financial assistance?