Most Recent AGA CGFM Exam Dumps

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.

Reference 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.

Overview of the Prompt Payment Act (PPA):

The Prompt Payment Act (31 U.S.C. Chapter 39) requires federal agencies to pay vendors for goods and services in a timely manner.

If payment is not made within the required time frame (usually 30 days after receiving a proper invoice), the agency must pay interest penalties to the vendor for the late payment.

Explanation of Answer Choices:

A . Invoices immediately when received: Incorrect. Federal agencies are not required to pay invoices immediately; they must process payments within the specified timeframe.

B . Interest when an invoice is paid late: Correct. Agencies must pay interest penalties for late payments.

C . Invoices no later than 60 days after receipt of the invoice: Incorrect. The standard timeframe is 30 days unless otherwise specified in the contract.

D . Interest on intragovernmental invoices: Incorrect. The PPA does not apply to intragovernmental transactions.

Prompt Payment Act, 31 U.S.C. Chapter 39.

Definition of Materiality:

In financial audits, materiality is the threshold above which a misstatement or omission could influence the economic decisions of users of financial statements.

Auditors consider the needs of reasonable users when determining materiality, focusing on what would influence their decision-making.

Explanation of Answer Choices:

A . The auditee determines what is material: Incorrect. The auditor, not the auditee, is responsible for determining materiality.

B . The auditor establishes materiality based on whether a misstatement would influence the judgment made by a reasonable user of the financial statements: Correct. This aligns with auditing standards, such as those in the Yellow Book and AICPA guidance.

C . The entity's main provider of resources typically sets materiality levels: Incorrect. Materiality is not determined by resource providers but by the auditor based on the needs of users.

D . The auditor sets a standard percentage for all entities by transaction class: Incorrect. Materiality varies depending on the entity and its financial circumstances.

GAO, Government Auditing Standards (Yellow Book).

AICPA, Auditing Standards -- Materiality in Planning and Performing an Audit.

What Does OMB Circular A-50 Require?

OMB Circular A-50 establishes policies for resolving and following up on audit findings and recommendations. It assigns personal responsibility to an audit follow-up official within the agency for ensuring that disagreements with audit findings are resolved and that corrective actions are implemented.

Why Is the Audit Follow-Up Official Responsible?

The follow-up official ensures the agency responds appropriately to audit findings, tracks corrective actions, and resolves disagreements in a timely manner. This ensures accountability and compliance with audit recommendations.

Why Other Options Are Incorrect:

A . Comptroller General: The Comptroller General leads the GAO and oversees audits but is not responsible for resolving disagreements within agencies.

B . OMB Deputy Director for Management: Provides guidance on audit policies but does not hold personal responsibility for resolving disagreements.

C . Inspector General: Performs audits and investigations but does not resolve disagreements over audit findings.

Reference and Documents:

OMB Circular A-50: Specifies that the audit follow-up official holds responsibility for resolving disagreements.

GAO Yellow Book: Discusses the roles and responsibilities of various officials in audit processes.

What Is Inventory Control?

Inventory control refers to the processes and systems used to manage stock levels, including determining how much inventory to keep on hand, reordering stock, and maintaining optimal levels to meet operational needs while minimizing costs.

Determining stock levels is a central function of inventory control, ensuring the organization has the right amount of inventory to meet demand without overstocking or understocking.

Why Other Options Are Incorrect:

B . Safeguard control: This refers to protecting inventory from theft, damage, or loss, not determining stock levels.

C . Management control: This is a broader term encompassing oversight and governance, not specific to inventory.

D . Supply control: This typically refers to managing supply chains and suppliers, not the internal control of inventory levels.

Reference and Documents:

GAO Inventory Management Guide: Defines inventory control as the process of determining and maintaining appropriate stock levels.

Best Practices in Government Inventory Management (AGA): Emphasizes the role of inventory control in balancing supply and demand.