CGFM Trivia 5 — Questions and Answers
Question 1: What does 'GPRA' stand for, and what did it require of federal agencies?
- Government Performance and Results Act — strategic plans and performance reports (Correct answer)
- General Program Review Act — annual audits of program efficiency
- Government Procurement Reform Act — competitive bidding requirements
- Grant Program Reporting Act — uniform grant reporting standards
Correct answer: Government Performance and Results Act — strategic plans and performance reports
GPRA (Government Performance and Results Act of 1993) required federal agencies to develop strategic plans, set performance goals, and report annually on results achieved.
Question 2: What is the primary purpose of an 'apportionment' in the federal budget process?
- To allocate funds from Congress to Treasury
- To distribute appropriated funds to agencies over time, preventing premature spending (Correct answer)
- To transfer funds between accounts within an agency
- To report actual expenditures to GAO
Correct answer: To distribute appropriated funds to agencies over time, preventing premature spending
An apportionment is OMB's distribution of appropriated funds to agencies, typically by quarter, ensuring funds are not obligated or spent faster than intended by Congress.
Question 3: The concept of 'interperiod equity' in governmental accounting refers to what?
- Equal treatment of all taxpayers across jurisdictions
- Whether current-year revenues are sufficient to pay for current-year services (Correct answer)
- Consistent application of accounting policies between fiscal years
- Fair allocation of costs between governmental and business-type activities
Correct answer: Whether current-year revenues are sufficient to pay for current-year services
Interperiod equity is a key objective in governmental accounting, assessing whether current-year citizens are paying for current-year services or shifting the burden to future taxpayers.
Question 4: Which type of government fund accounts for resources legally restricted to expenditure for specific purposes like road maintenance or grants?
- General Fund
- Capital Projects Fund
- Special Revenue Fund (Correct answer)
- Permanent Fund
Correct answer: Special Revenue Fund
Special Revenue Funds account for proceeds from specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects.
Question 5: What is the role of the Inspectors General (IG) in the federal government?
- Setting appropriations for agency programs
- Conducting audits and investigations to detect fraud, waste, and abuse within agencies (Correct answer)
- Approving federal procurement contracts above $1 million
- Certifying agency financial statements for Treasury
Correct answer: Conducting audits and investigations to detect fraud, waste, and abuse within agencies
Inspectors General are independent officials within agencies who conduct audits, investigations, and inspections to promote economy and efficiency and prevent fraud, waste, and abuse.
Question 6: What does the term 'unobligated balance' mean in federal appropriations?
- Funds already disbursed but not yet reported
- The portion of an appropriation that has not yet been committed through obligations (Correct answer)
- Funds transferred to another agency's account
- Appropriations cancelled at year-end
Correct answer: The portion of an appropriation that has not yet been committed through obligations
An unobligated balance is the portion of a budget authority that has not yet been obligated and remains available for future obligations within the period of availability.
Question 7: Which GASB statement established the framework for fund accounting and the major fund reporting requirement for state and local governments?
- GASB Statement No. 14
- GASB Statement No. 27
- GASB Statement No. 34 (Correct answer)
- GASB Statement No. 54
Correct answer: GASB Statement No. 34
GASB Statement No. 34 (1999) revolutionized state and local government financial reporting by introducing government-wide statements, major fund reporting, and the management's discussion and analysis (MD&A).
CGFM Trivia 5
What does 'GPRA' stand for, and what did it require of federal agencies?