Share Latest Aug-2025 CGFM DUMP with 115 Questions and Answers [Q47-Q62]

CGFM AGA

admin • August 14, 2025

Share Latest Aug-2025 CGFM DUMP with 115 Questions and Answers [Q47-Q62]

Rate this post

Share Latest Aug-2025 CGFM DUMP with 115 Questions and Answers

PDF Dumps 2025 Exam Questions with Practice Test

NO.47 A county fire department receives property tax revenue on a 55% (December), 40% (April),
5% (June) basis. The uncollectible portion is .05%. If the department received $5.1 million in December, the annual property tax revenues will be:

$10,200,000.

$ 9,272,727.

$ 9,268,091.

$ 8,809,091.

NO.48 A city decides to invest in a new piece of equipment and wants to know how long it will take to recover the amount invested by using thepayback analysis technique. The city uses the following assumptions in its analysis:
* The cost of the equipment is $500,000.
* The equipment will generate $200,000 in revenue per year.
* The variable costs of operating the equipment will be $100,000 per year.
* The depreciation on the equipment will be $20,000 per year.
How long will it take the city to recover the amount invested in the new equipment?

2 years and 6 months

2 years and 9 months

Syears

6 years and 3 months

NO.49 Given the information below, which control would be the lowest priority?
Asset$Amount at RiskCost of Control

AssetA $ 150,000$15,000

Asset B$6,000$ 2,500

Asset C$2,000,000$50,000

Asset D$500,000$20,000

How to Prioritize Controls Based on Cost and Risk:
* The priority of a control is based on its cost-effectiveness. Controls that protect assets with higher risk exposure relative to the cost of the control should be prioritized. The formula to calculate cost- effectiveness is: Cost-Effectiveness=Cost of ControlAsset Amount at Risk\text{Cost-Effectiveness} =
\frac{\text{Cost of Control}}{\text{Asset Amount at Risk}}Cost-
Effectiveness=Asset Amount at RiskCost of Control
* Lower ratios indicate more cost-effective controls.
Calculations:
* Asset A:$15,000 / $150,000 = 0.10 (10%)
* Asset B:$2,500 / $6,000 = 0.42 (42%)
* Asset C:$50,000 / $2,000,000 = 0.025 (2.5%)
* Asset D:$20,000 / $500,000 = 0.04 (4%)
Lowest Priority:
* Asset Bhas the highest ratio (42%), meaning it is the least cost-effective and should be the lowest priority for controls.
References and Documents:
* COSO Internal Control Framework:Discusses cost-benefit analysis for prioritizing controls.
* GAO Risk Management Guide:Emphasizes evaluating control cost-effectiveness relative to asset risk.

NO.50 All of the following represent selection criteria used to make contract awards EXCEPT contractor

staff expertise.

past performance records.

union affiliations.

financial position.

* Selection Criteria for Contract Awards:
* When awarding contracts, federal, state, and local governments typically evaluate contractors based on objective criteria like staff expertise, past performance, and financial position to ensure the contractor can successfully fulfill the contract requirements.
* Union affiliationis irrelevant to the contractor’s ability to meet the contractual obligations and is not a valid selection criterion.
* Explanation of Answer Choices:
* A. Staff expertise: Correctly used to ensure the contractor has qualified personnel.
* B. Past performance records: Correctly used to evaluate the contractor’s historical success in fulfilling similar contracts.
* C. Union affiliations: Correct. This is not considered a valid selection criterion for contract awards.
* D. Financial position: Correctly used to assess the contractor’s financial stability.
References:
* Federal Acquisition Regulation (FAR) Part 15,Contracting by Negotiation.
* Office of Management and Budget (OMB) Circular A-102,Grant and Contract Management Requirements.

NO.51 The financial adviser gives advice regarding the financial feasibility of a bond. Thus, the financial adviser’s fee should not be contingent on a bond’s sale because of:

The potential conflict of interest

The nonequilibrium of market prices

Unavailability of large local units

None of these

NO.52 aims to beat the average market rate of
In contrast to ,
return.

Active investing, passive investment management

Passive investment management active investing

Active investment, match disbursements

Cash horizon, match disbursements

NO.53 The tax, though regressive is more popular among tax-players than the income tax because its full cost to the taxpayer is hidden among the large no of transactions.

Proportional tax

Corporate tax

Sales tax

State tax

NO.54 To issue bonds, a government depends on many specialists including:

Consulting engineer

Financial adviser

Bond counsel

All of these

NO.55 In issuing bonds, Governments usually take following steps EXCEPT:

Compensation balance

Decision on the advisability of issuing debt

How to finance the debt

Preparation, selling and administration of repayments.

NO.56 What is the most fupdamental cash control?

segregation of duties

use of automated systems

analysis of cash reports

frequent reconciliation of bank accounts

* Cash Control Fundamentals:
* The primary goal of cash controls is to safeguard assets and prevent fraud, errors, or misappropriation.
* Frequent bank reconciliations ensure that recorded cash balances match actual bank balances, detecting discrepancies quickly.
* Explanation of Answer Choices:
* A. Segregation of duties: While critical for cash management, it is not the most fundamental cash control.
* B. Use of automated systems: Helpful for efficiency but not a fundamental control.
* C. Analysis of cash reports: Important, but reconciling bank accounts is more critical for detecting errors or fraud.
* D. Frequent reconciliation of bank accounts: Correct. This is the most fundamental and widely recognized control for safeguarding cash.
References:
* Association of Government Accountants (AGA),Cash Management Best Practices.
* Government Finance Officers Association (GFOA),Bank Reconciliation Best Practices.

NO.57 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?

$325 per vehicle

$375 per vehicle

$370 per vehicle

$380 per vehicle

NO.58 type of coverage for
Coverage for losses due to employee dishonesty is
crimes in bond issues.

On-Promise

Fidelity

Off-Promise

Forgery

NO.59 Governmental funds, by comparison, focus on current financial resources, asking:

What is the statement of changes in fiduciary assets?

What transaction and events increased or decreased the resources available for spending in the near future?

What is government-wide statement of activities?

Both A & C

NO.60 Non-reciprocal interfund activities include interfund transfers of assets (e.g. cash, or goods) without repayment and .

Interfund reimbursement

Interfund exchange

Cost Allocation

Both A&B

NO.61 Government performance measurement promotes

responsibility.

profitability.

accountability.

cash availability.

What Is Government Performance Measurement?Government performance measurement is the process of setting goals, tracking progress, and evaluating outcomes for government programs and services. This system ensures that public funds are used effectively and that programs achieve intended results.
How Does It Promote Accountability?
* Accountability is the primary goal of performance measurement. It holds government officials and agencies responsible for managing public resources efficiently and achieving measurable outcomes.
* By measuring performance, governments can transparently demonstrate how resources are being used and whether programs are meeting their objectives.
Why Other Options Are Incorrect:
* A. Responsibility:While responsibility is important, it refers more to the assignment of duties, not the system of holding entities accountable.
* B. Profitability:Governments are not profit-driven organizations; their focus is on service delivery, not profits.
* D. Cash Availability:Performance measurement focuses on outcomes, not managing cash flows.
References and Documents:
* Government Performance and Results Act (GPRA):Promotes accountability through performance measurement and reporting.
* GAO Report on Performance Accountability:Emphasizes the role of performance measurement in achieving government accountability.

NO.62 Which of the following is not included in principal investment strategies?

Interest Rate anticipation

Sector Allocation

Yield curve anticipation

None of these

Loading …