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CGFM Test 1 Terms
Terms in this set (132)
Agency Financial Report
Association of Government Accountants
Budget Formulation and Execution Line of Business
Comprehensive Annual Financial Report
Certificate of Excellence in Accountability Reporting
Chief Financial Officer
Certified Government Financial Manager
Enterprise Resource Planning
Federal Accounting Standards Advisory Board
Financial Accounting Standards Board
Generally Accepted Accounting Principles
Generally Accepted Auditing Standards
Generally Accepted Government Auditing Standards
Government Accountability Office
Government Auditing Standards
Governmental Accounting Standards Board
Government Performance and Results Act
Government Performance and Results Act Modernization Act
Management Discussion and Analysis
National Institute of Standards and Technology
Office of Management and Budget
Performance and Accountability Report
Service Efforts and Accomplishments
Summary of Performance and Financial Information
In a democracy, government operates by the consent of the people. It must answer to, the people for its actions and results, including the taking and using of people's resources
In the federal government, an agency's distribution of apportioned budgetary authority to various components within the agency. After the executive agency receives its apportionment, it gives budgetary authority to specific components within the agency.
At the federal level, a law stating that officials can be fined/jailed if they obligate the government to spend funds beyond legally authorized purpose, time or amount.
At the federal level, OMB approval to use a portion of the legislatively approved budgetary authority.
Budget that has been passed by the legislative branch, signed by chief executive if required, and has the effect of law.
Engagement concerned with examining, reviewing or performing agreed-upon procedures on a limited subject matter, or limited assertion about a subject matter, and reporting the results. The subject matter may be financial or nonfinancial.
Legislative enactment that approves programs, prescribes what activities an agency may pursue if funding is available.
One type of formula grant. Block grants combine several service categories into one grant and thus allow maximum flexibility to the grantee to use the funds to meet local needs.
Forecasts and controls spending for "big ticket" items that are acquired and used over a period of several years, such as construction projects and major equipment purchases. Used at state and local level.
A lease of real property that meets defined criteria requiring the government to repot the property as if it were purchased with the proceeds of long-term debt
Cash Flow Budget
Forecasts the timing as well as amount of cash flows, for a period. Used to project required cash levels.
One type of formula grant that can be used only for a narrowly defined purpose
Central Management Agencies
Government agencies that provide central management services to other components. Ex: Office of Management and Budget at the federal level
Certificate of Excellence in Accountability Reporting (CEAR)
AGA program that helps federal agencies and their components produce effective, high quality Performance and Accountability Reports/Agency Financial Reports
Certificate of Participation
Form of shared government financing. In a typical form, several financial institutions share in a loan arrangement with a government entity
Local government version of a constitution. States may provide for the establishment of local governments through charters
Checks and balances
process by which one branch of government can constrain the actions of another branches. Flows from separation of powers.
Chief Financial Officers (CFO) Act
A 1990 law that, among other provisions, requires the federal government's major executive branch agencies to have a CFO. Prescribes duties and reporting requirements, and requires audited financial statements
government component established by law, statue or ordinance. May be permanent or temporary. Because its established by law, it may have greater autonomy and authority than government components that are administratively established Ex: FCC
Organized unit of government, such as an agency, office of department. Found in all branches of government at all levels. Ex: US Fish and Wildlife Service is a component of the Department of the Interior
Comprehensive Annual Financial Report (CAFR)
A financial report that includes MD&A, basic financial statements, footnotes, and other required supplementary information, as well as an introductory section, additional financial information (i.e. combining and individual fund schedules, if applicable) and a statistical section
Conflict of Interest
Arises when one has a personal interest in matters relating to official duties or activities. Such conflicts can destroy objectivity and independence and prevent the exercise of due care
Broad category of tax that includes sales, use, excise, and value-added tax
Continuity of Operations
Refers to efforts to ensure the organization can sustain essential operation, regardless of planned or unplanned incidents or disruptions
Legal requirements pertaining to a specific bond issue. Typically defines the maturity date, revenue stream, that will be used to repay the debt, interest rate and repayment schedule. May require sinking fund and may specify conditions that must be met while the bonds are outstanding, and/or before new debt can be issued
Credit Rating Agency
Independent organization that assesses the credit worthiness of a borrower. Three major rating agencies are S&P, Moody's and Fitch
Using special, computer based techniques, such as filters or algorithms, to extract meaningful information from large bodies of data
Money owed by the entity to individual or organizational creditors, usually as a result of planned short or long term borrowing to finance government objectives
Taxes levied or other revenues collected to finance a specific activity. Proceeds are deposited into an account restricted to that activity. Also known as earmarks or restricted taxes
Occurs when government expenditures for a specific fiscal period exceed revenues and other financial resource inflows
Pursuing an event, action or assignment to a timely and sufficient end or close
A term sometimes used to mean "Project Grant"
Voluntary contribution that confers no rights or benefits on the giver
To discharge professional responsibilities with competence and diligence to the best of one's ability, and with the same level of ability and skill as others in similar positions. It also means to act in the best interest of those served.
Variation on the use of a special fund. Revenue from specific taxes or other sources is set aside for specific activities. One example is the use of gasoline taxes for highway improvements. Also referred to as "dedicated collections". The term is also used to signify the legislature reserving a portion of an appropriation for a specific, limited purpose
Enterprise Resource Planning (ERP) System
Major "end-to-end" computer system that links many functions and departments. Used to simplify and streamline financial management, and to integrate operations with financial management
Form of wealth tax. Levied on the estate of the deceased person before his or her assets are distributed to heirs
A complex system of discipline that civilized societies impose on themselves through laws, customs, standards, social etiquette and other rules to govern moral conduct
Form of consumption tax. Levied on the consumption of a particular type of good or participation in a certain activity. Whereas general sales taxes are broad based, excise taxes are more narrowly targeted.
Order issued by the president, governor or local government's chief executive that does not violate laws or statues, and has substantial impact on policy and procedures of government. It carries less weight than a law because the legislature or next chief executive may overturn the previous order.
Free from self-interest, prejudice or favoritism. Implies an elimination of one's own feelings, prejudices and desires so as to achieve a proper balance of conflicting interests
Federal Accounting Standards Advisory Board (FASAB)
Defines GAAP for entities of the federal government, this includes the national government as a whole plus distinct components
Principle that government authority and responsibility is shared among different levels of government
Financial Accounting Standards Board (FASB)
Defines GAAP for private sector entities. Occasionally, GASB and FASAB make FASB standards applicable to state or local or the national governments
Financial Management System
Organized means for the collection, processing, transmission, and dissemination of financial information. Includes policies and procedures and trained personnel, as well as any applicable computer hardware and software.
Financial Statement Audit
Examination of financial statements, accomplished by an independent auditor. Results in an opinion on whether the financial statements are presented fairly in accordance with GAAP or other comprehensive basis of accounting.
External report that depicts financial position and financial results of an entity
A type of intergovernmental grant that includes both categorical grants and block grants, in which the amount of the grant is based on a formula, contained in law or regulation that determines the total amount each recipient will receive, if basic eligibility requirements are satisfied.
Accounting that implies that the results will be admissible as legal evidence. This type of accounting combines the skills of auditors and accountants with investigative techniques, useful for both detection and prevention of fraud.
Name often applied to the legislative branch at the state level.
General Obligation Bond
Form of government debt that is backed by the full faith and credit of the government.
General Purpose Government
Entity at the national, state, and local level that provides a broad range of services
Generally Accepted Government Auditing Standards (GAGAS)
Issued by the GAO, to define the expected levels of performance for the conduct of an audit or attestation of a government organization, program, activity, or function. Also known as the Yellow Book or government auditing standards
Governmental Accounting Standards Board (GASB)
Defines GAAP for state and local government entities
Quasi-government entity formed to support businesslike functions where most, if not all, operating expenses are expected to be covered through revenues and fees, rather than from appropriated budget authority
Government Performance and Results Act (GPRA)
requires federal agencies to create long-term strategic plans. These plans are followed by annual performance plans (currently performance budgets) and annual performance reports.
Funds transferred from one level of government to another for specific and broad purposes
Lack of favoritism, not partial or biased, and treating or affecting all equally
Tax based on income and levied on individuals or corporations. Used most often at national and state levels, though some states allow local governments to impose income taxes
Free of relationships that may impair, or appear to impair, one's ability to act with objectivity. Independence is the quality of being free of any obligation to particular parties or interests
Levied on a person receiving a bequest and is a form of wealth tax
Process that enables citizens to present their view of a problem and a proposed solution, rather than depending on a solution devised or enacted by the legislative branch. Allows direct citizen action to affect laws.
Applied to assets such as stocks, bonds, savings accounts, trademarks, and accounts receivable and is a form of wealth tax
Organization and activities designed to ensure programs achieve their intended results, resources are used efficiently and effectively; programs and resources are protected from waste, fraud and mismanagement, laws and regulations are followed; and reliable and timely information is obtained, maintained and reported.
Principle by which the judicial branch may review actions by the legislative and executive branches and if appropriate, declare them unconstitutional or illegal. Flows from separation of powers.
Practice by which a government entity assumes a long-term lease on a capital asset and at the end of the lease period the asset may transfer to the government. Usually these agreements do not include voter approval
Fee paid to the government for a specific privilege, often related to an activity. Ranges from recreation to business. Fishing License and Real Estate License
Authority that allow the chief executive to strike individual line items from the budget without vetoing the entire budget bill. US presidents do not have this authority.
State-controlled gambling, used in many states as a source or revenue.
Refers to the sequence of activities entailed in managing a government and/or its operations. The activities include planning, programming, budgeting, operations, accounting, reporting and auditing
Form of conflict resolution that involves objective, third-party mediator who tries to bring the disputants together. Mediation is normally voluntary and non-binding
Form of government debt used as a short-term financing source. Due to the short maturity period, the principle and interest for a note are frequently retired simultaneously upon maturity, so no periodic interest payment
A budget or accounting category that defines the resources to be applied to specific types of inputs, such as personnel, travel, tools or supplies.
Imposes the obligation to be impartial, intellectually honest and free of conflict of interest. Public officials are objective when they uphold the expectation of fairness, make decisions on merit, and do not allow prejudice or bias to influence their decisions or behavior
Defines level of resources to be applied in providing government programs and services; usually covers periods of one to two years.
Law enacted by a legislative body below the state level, such as county, city or town
Results of government programs, such as the number of gainfully employed graduates or reduction in road accidents. May take many months or years to achieve. Outcomes are more difficult to measure than outputs.
Performance and Accountability Reports
A single report that combines financial results and performance results. Recent requirement for federal executive agencies, but may be practice at other levels of government
Examination of performance and management of program against objective criteria. Contrasts with a financial audit which is limited to financial information.
External report that indicates what has been accomplished with the resources consumed by a government
Personal Property Tax
This type of property differs from real property in that it is not attached to the ground and can be transferred from one location to another
Condensed form of external financial report that provides basic financial information and other performance data in short, easy to read format
Principle that, while governments are sovereign entities, in a democracy the sovereignty rests with the people.
A type of grant that provides funding for specific purposes for limited periods of time. In contrast to formula grants, these grants are competitive and receipt of funding is less assured. Also known as discretionary grants.
Entities that blend characteristics of governments and the private sector.
Process that enables voters to remove elected officials from office. Usually involves collecting signatures on a petition. if enough legitimate signatures are collected, the proposal is put to vote
Process by which certain legislative actions are presented to voters before taking effect
The powers not delegated by the US by the Constitution, nor prohibited by it to the states, are reserved to the states respectively, or to the people. 10th Amendment
Form of debt that is secured by a specific source of financing, such as revenue from the project being funded. Contrasts with general obligation bonds, which are backed by the full faith and credit of government
Form of consumption tax based on individual sales transactions; usually collected at point of sale by the vendor who then remits the tax to the government
Separation of Powers
Principle that each branch of government possesses certain powers with regard to the other branches and acts in some ways to constrain the other branches.
A bond issue featuring maturities, every year, over a period of several years. Contrasts with term bonds in which the entire issue matures on the same date or near the same date
Service efforts and accomplishments (SEA)
A generic term for a program to measure performance, including the inputs to government programs like financial resources, work hours, or supplies and the outputs and outcomes achieved through application of those resources such as the number of students graduated or the number of students moving to the next level
Usually associated with revenue sharing between the state and local governments In most instances, shared revenue funds are provided with few constraints so that local entities can use the funds as needed
Encourages leaders to diagnose developmental level of employees and vary their leadership style accordingly
Means possessed supreme power. One consequence of federal government sovereignty is that the federal government cannot be sued without its permission
Special Purpose Government
organized for a single purpose or a few closely related purposes. Examples include school districts and conservation districts.
Principle that government is accountable for safeguarding assets and promoting long-term economic security of its citizens
Principle that taxes should treat tax payer's fairly.
When it comes to income tax means that different taxpayers with the same income level pay the same amount of taxes
Taxpayers with different income levels pay different amount of taxes
Provision of tax law or regulation that uses tax deductions, tax credits, or income exemptions to encourage certain behavior by individuals or businesses. It's an expenditure because it achieves, through the tax system, certain political, economic or social goals that the government would otherwise have to expend monies to accomplish
A block of bonds in which all bonds in the issue mature on the same date or near the same date, usually many years after issuance. Contrasts with serial bonds.
Tax charged on goods purchased from out-of-state and used within the state. Tax is levied for the right to use the item in the state. One form of a consumption tax.
Fee imposed on the specific beneficiary of a good or service. These fees range from the admission charge for a museum, to tuition at a municipal day care center
Value added tax (VAT)
An indirect tax on consumption that resembles a sales tax, but is paid at each stage in the development, manufacturing or distribution process by the person or organization adding value to the product.
A negotiable monetary instrument issued by a state or local government or the federal government
Category of taxation that includes real property, personal property, intangibles, estate and inheritance taxes
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