CPM Government Financial Stewardship 2

Question 1

How should a CPM handle a budget shortfall in the middle of a fiscal year?

Accepted Answer

Analyze spending patterns, prioritize essential services, and develop a corrective action plan

Answer

Analyzing spending patterns, prioritizing essential services, and developing a corrective action plan provides a strategic, responsible approach to mid-year budget shortfalls.

Question 2

What is the purpose of a single audit in government financial management?

Accepted Answer

To provide a comprehensive audit of federal award expenditures and internal controls

Answer

A single audit provides a comprehensive review of federal award expenditures and internal controls, ensuring that federal funds are spent properly and in compliance with grant requirements.

Question 3

Which principle requires government financial reports to present all relevant financial information?

Accepted Answer

Full disclosure principle

Answer

The full disclosure principle requires government financial reports to present all relevant financial information necessary for users to make informed decisions.

Question 4

What role does capital improvement planning play in public management?

Accepted Answer

It strategically plans for major long-term infrastructure investments and their funding

Answer

Capital improvement planning strategically addresses major long-term infrastructure investments, their funding sources, and their impact on the community and operating budgets.

Question 5

How does grant management fit into the CPM's financial stewardship responsibilities?

Accepted Answer

CPMs must ensure grants are spent according to terms, tracked separately, and reported accurately

Answer

CPMs must ensure that grant funds are spent according to their specific terms and conditions, tracked separately from other funds, and reported accurately to granting agencies.

(CPM) Certified Public Manager Practice Test

(CPM) Certified Public Manager Practice Test

CPM Government Financial Stewardship 2