Real CGFM Exam Questions & CGFM Regualer Update
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AGA Certified Government Financial Manager (CGFM) Sample Questions (Q32-Q37):
NEW QUESTION # 32
An agency uses pavement rating scores as a key indicator for a street maintenance program. If the legislature provided the agency with an additional $5 millionjthe new resources should be allocated based upon
Answer: D
Explanation:
* Understanding Resource Allocation in Street Maintenance:When additional resources are provided for street maintenance, their allocation should address the most pressing infrastructure needs to maximize impact and public benefit.
* Key Indicator (Pavement Rating Scores):Pavement rating scores are used to evaluate the condition of roads. Areas with the lowest scores (representing unmet needs) require prioritized funding to bring the infrastructure to acceptable levels.
* Explanation of Answer Choices:
* A. Number of intersections: The number of intersections is not directly related to road conditions or pavement scores.
* B. Historical budgeted amounts: Allocating based on past budgets does not address current infrastructure conditions or unmet needs.
* C. Lane miles rated as acceptable by citizens: Roads already rated as "acceptable" do not require immediate attention.
* D. Lane miles with unmet needs: Correct, as this aligns with addressing the most critical deficiencies based on the pavement scores.
References:
* Government Finance Officers Association (GFOA),Best Practices in Capital Asset Management.
* Federal Highway Administration (FHWA),Performance-Based Planning and Programming Guidebook.
NEW QUESTION # 33
The local car dealer in town can provide the 10 new cars the city needs at cost of $150,000. If local preferences were given, what would the preference margin (PM) be, assuming the dealer pays $50,000 in local property and sales taxes and that the total sales by the dealer are $2,000,000?
Answer: D
NEW QUESTION # 34
Which action represents an internal control deficiency in an agency responsible for building and maintaining dams?
Answer: D
Explanation:
What Is an Internal Control Deficiency?
* Aninternal control deficiencyoccurs when an organization fails to implement controls to prevent or detect risks effectively.
* In this case, responding only to maintenance needs when complaints are received demonstrates a lack of proactive controls, increasing the risk of issues going unnoticed or escalating over time.
Why Is Option C Correct?
* Proactive maintenance schedules and inspections are essential for ensuring the safety and functionality of critical infrastructure like dams. Relying solely on complaints or employee reports is a reactive approach and represents a deficiency in internal controls.
Why Other Options Are Incorrect:
* A. Inspecting completed work:This is a proper control to ensure compliance with contract specifications.
* B. Releasing the bond after work completion:This ensures contractual obligations are met and is a good control practice.
* D. Checking bidder references:This is part of the procurement process and a valid internal control.
References and Documents:
* GAO Standards for Internal Control (Green Book):Emphasizes proactive controls and monitoring for critical operations.
* Federal Infrastructure Maintenance Best Practices:Highlights proactive inspections and maintenance as essential controls.
NEW QUESTION # 35
Vendors sometimes attempt to unduly influence governing board members, the CEO, and agency personnel to buy their goods or services. To avoid such situations, the governing board of a government should adopt an ethics policy. The NIGP recommends a policy that governments and non-profits might want to:
Answer: B
Explanation:
Explanation
NEW QUESTION # 36
This exhibit shows that management should give thoughts to its coding system. A coding system structure with too many accounts is redundant but a too-abbreviated system does not sufficiently permit cost performance evaluation. Minimally organizations should budget by:
Answer: C
NEW QUESTION # 37
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