CGFO Cheat Sheet 2026

The 30 highest-yield CGFO facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. What is a capital budget used for? → For long-term investments and capital projects
2. Which concept describes the situation where a single insurance contract covers multiple government entities under one consolidated policy? → Master policy arrangement
3. Which personal protective equipment (PPE) principle applies to ALL CGFO certified professionals regardless of their specific role? → PPE must be properly fitted, maintained, and replaced as needed
4. The 'prudent investor rule' in pension fund management requires trustees to: → Manage the portfolio as a whole with risk-return considerations
5. Which of the following is a characteristic of 'outcome measures' in performance budgeting? → They indicate the impact or result of a government program on the community
6. A government's total cost of risk (TCOR) calculation should include all of the following EXCEPT: → Projected future tax revenue from insured properties
7. Which type of fund is primarily used for day-to-day operations? → General fund
8. Which of the following is a characteristic of a 'revenue bond' compared to a 'general obligation bond'? → Repayment depends on revenues generated by a specific project
9. A zero-balance account (ZBA) structure in government banking is designed to: → Automatically sweep subsidiary account balances to a master concentration account daily
10. Under GASB 33, a capital grant restricted to capital acquisition should be recognized as revenue when: → All eligibility requirements have been met
11. A Cost-of-Living Adjustment (COLA) in a government pension plan is typically funded by: → Actuarial valuation projections built into contribution rates
12. In a competitive bond sale, what document invites underwriters to submit bids? → Notice of sale
13. A government's accounts payable clerk creates a vendor, then approves invoices from that vendor. This situation illustrates a failure in: → Segregation of duties
14. What is a key role of a compliance officer? → To enforce legal and policy compliance
15. In a government entity, a 'compensating control' is best described as: → A control that mitigates risk when a primary control cannot be implemented
16. When a government entity adopts a formal ethics policy, which element is considered most critical for the policy to be effective? → Tone at the top with visible leadership commitment
17. Under SEC Rule 15c2-12, which entities are primarily responsible for filing continuing disclosure documents? → Issuers or obligated persons
18. Which federal tax law change in 2017 significantly impacted advance refunding of tax-exempt municipal bonds? → The Tax Cuts and Jobs Act eliminated tax-exempt advance refunding
19. Which of the following scenarios represents a 'management override' of internal controls? → A supervisor approves a journal entry outside the normal approval process
20. Which report is NOT typically required in a Single Audit? → Report on the entity's investment portfolio valuation
21. In a Single Audit, what is the purpose of the Schedule of Expenditures of Federal Awards (SEFA)? → To summarize the entity's federal award activity during the fiscal year
22. Which of the following is an example of an 'off-budget' item that can obscure a government's true fiscal position? → Pension obligations accounted for outside the main budget
23. Under Uniform Guidance, which of the following is NOT one of the basic criteria required for a cost to be allowable under a federal award? → The cost must receive prior written approval from the federal agency
24. Under GAGAS, a 'significant deficiency' in internal controls is best described as: → A deficiency less severe than a material weakness but important enough to merit attention
25. What is the value of continuing education in internal controls for CGFO professionals? → It keeps professionals current with evolving standards and practices
26. Under the Uniform Guidance (2 CFR Part 200), what is the micro-purchase threshold for federal awards? → $10,000
27. A government finance officer uses 'sensitivity analysis' in budget forecasting primarily to: → Identify which revenue sources are most affected by changes in key assumptions
28. When conducting a risk assessment for CGFO operations, which factor should receive the HIGHEST priority? → Probability and severity of potential harm
29. Under GASB 87, a government that is a lessee under a lease agreement with a term greater than 12 months must recognize which of the following on day one? → A right-to-use lease asset and a corresponding lease liability
30. Which skill is most critical for effective revenue administration? → Communication and stakeholder engagement