CGFM Trivia 4 — Questions and Answers
Question 1: What does 'IPERA' stand for in federal financial management?
- Improper Payments Elimination and Recovery Act (Correct answer)
- Internal Payment Enforcement and Reporting Act
- Integrated Program Efficiency and Review Act
- Inspector Payment Evaluation and Reporting Act
Correct answer: Improper Payments Elimination and Recovery Act
IPERA stands for the Improper Payments Elimination and Recovery Act of 2010, which expanded requirements for agencies to identify, report on, and reduce improper payments.
Question 2: Which basis of accounting is required for governmental fund financial statements under GASB?
- Full accrual basis
- Cash basis
- Modified accrual basis (Correct answer)
- Budgetary basis
Correct answer: Modified accrual basis
GASB requires governmental funds (General, Special Revenue, Debt Service, Capital Projects, and Permanent funds) to use the modified accrual basis of accounting.
Question 3: The Anti-Deficiency Act prohibits federal agencies from doing what?
- Hiring contractors without competitive bids
- Obligating or expending funds in excess of amounts appropriated (Correct answer)
- Publishing financial statements without audit opinions
- Transferring funds between programs without OMB approval
Correct answer: Obligating or expending funds in excess of amounts appropriated
The Anti-Deficiency Act prohibits federal agencies from obligating or expending funds exceeding amounts made available by Congress through appropriations.
Question 4: What is the name of the annual financial report that the federal government as a whole is required to publish?
- Combined Federal Financial Statements
- Federal Consolidated Financial Report
- Financial Report of the United States Government (Correct answer)
- Annual Federal Budget Statement
Correct answer: Financial Report of the United States Government
The Financial Report of the United States Government is published annually by the Treasury Department and presents the consolidated financial position of the federal government.
Question 5: Under GASB Statement No. 34, which financial statement replaced the 'General Purpose Financial Statements' as the primary operating statement?
- Statement of Net Position
- Statement of Activities (Correct answer)
- Statement of Revenues, Expenditures, and Changes in Fund Balance
- Combining Statement of Activities
Correct answer: Statement of Activities
GASB 34 introduced the government-wide Statement of Activities, which presents the cost of each governmental function and the revenues generated by those functions.
Question 6: What is a 'Prompt Payment Act' penalty designed to address?
- Fraud by government contractors
- Late payments by the federal government to vendors (Correct answer)
- Unauthorized commitments of funds
- Delays in budget submission to Congress
Correct answer: Late payments by the federal government to vendors
The Prompt Payment Act requires federal agencies to pay invoices within specified time limits (generally 30 days) and imposes automatic interest penalties for late payments to vendors.
Question 7: Which concept in government accounting represents the difference between assets and liabilities in a proprietary or trust fund?
- Fund Balance
- Retained Earnings
- Net Position (Correct answer)
- Equity Reserve
Correct answer: Net Position
Net Position is used in proprietary funds and government-wide financial statements to represent the residual interest (assets minus liabilities), replacing the term 'equity' used in commercial accounting.
CGFM Trivia 4
What does 'IPERA' stand for in federal financial management?