TAGME Financial Management 3

Question 1

A GME office is audited and discovers that direct GME payments were used to fund an administrative retreat unrelated to resident education. This is an example of:

Accepted Answer

Misuse of restricted federal education funds

Answer

Direct GME funds are restricted to costs directly related to graduate medical training; using them for unrelated administrative events constitutes misuse.

Question 2

Which financial statement would a program administrator review to determine whether the GME department has sufficient cash to cover payroll at the end of the month?

Accepted Answer

Cash flow statement

Answer

The cash flow statement shows actual cash inflows and outflows, making it the appropriate tool for assessing near-term payroll coverage.

Question 3

In GME financial planning, 'responsibility center budgeting' means:

Accepted Answer

Individual program directors control and are accountable for their own budgets

Answer

Responsibility center budgeting assigns financial accountability to individual program directors who manage their own program budgets.

Question 4

A hospital system is considering consolidating GME administrative services across three programs to reduce overhead. This strategy is best described as seeking:

Accepted Answer

Economies of scale

Answer

Consolidating services to reduce per-unit administrative costs across multiple programs is a classic example of achieving economies of scale.

Question 5

A program administrator receives a purchase order for $4,200 in medical textbooks but the approved budget line is $3,000. The correct compliance step is to:

Accepted Answer

Seek a budget amendment or supplemental approval before committing funds

Answer

Spending in excess of an approved budget line requires prior authorization through a formal amendment process, not retroactive adjustment.

TAGME - Training Administrators of Graduate Medical Education Practice Test

TAGME - Training Administrators of Graduate Medical Education Practice Test

TAGME Financial Management 3