Exam One—Governmental Environment
115 questions
Two Hours and 15 minutes
1. Organization, Structure
and Authority of Government 15%
A. Demonstrate an
understanding of the Levels of Government including:
1. The three
levels of government (i.e., state, federal, local).
2. The interrelationships among the various levels of
government (i.e., state, federal, local).
3. The
components of federal, state, and local governments (e.g.,
departments, agencies, special
purpose governments, tribal governments).
B. Demonstrate an
understanding of the Branches of Government—legislative, executive,
judicial—
including:
1. The roles of
the three branches.
2. The interrelationships among the three branches.
3. The checks and balances applied by the three branches.
C. Demonstrate an
understanding of the Authorities and Responsibilities of the Government
(government-wide and departmental)
including:
1. The Federal
Government, its hierarchy, and the limitations thereon (e.g., United
States
Constitution, federal laws, executive orders, rules and regulations).
2. The state governments, their hierarchies, and the
limitations thereon (e.g., United States
Constitution, State Constitutions, state laws, executive orders, rules
and regulations).
3. The local governments, their hierarchies, and the
limitations thereon (e.g., State
Constitutions, state laws, local charters, local ordinances, executive
orders, rules and regulations).
D. Demonstrate an
understanding of the Authorities and Responsibilities of Special-Purpose
Governments/Quasi-Governmental
Entities including:
1. The
differentiation between general purpose governments and special purpose
governments/quasi-governmental entities (e.g., federal, state, cities,
counties vs. authorities,
education districts, ambulance districts; government corporations,
government-sponsored
enterprises, revolving funds).
2. The interrelationships among the various special-purpose
governments/quasi-governmental
entities and the general purpose governments.
2. Legal and Other Aspects
of the Government Environment 25%
A. Demonstrate an
understanding of the Implications of Sovereignty in the levels
of government
including:
1. The concept
of separation of powers.
2. The meaning, implication, and limitations of sovereign
authority.
3. The power of government to tax and borrow.
4. The power of the Federal Government to establish
monetary policy.
B. Demonstrate an
understanding of the budget process including:
1. The role and
significance of the budget in government.
2. The objectives of the budget process (e.g., define
priorities, debate policy, allocate resources,
identify revenue sources).
3. The objectives of the budget (e.g., policy document,
operations guide, financial plan,
communications device).
4. The
legal aspects of the government budget (e.g., control levels, spending
limits).
5. The
principles of legislative control over governmental finance (e.g.,
appropriate funds, establish
spending levels, establish spending conditions).
6. How the executive branch controls spending (e.g.,
monitoring budget execution, planning for
allocation of resources over time and between programs).
7. How judicial decisions affect government spending.
8.
Other budget control devices (e.g., fund, function, department,
activity, object, subject).
C. Demonstrate an
understanding of how establishing special funds or earmarking funds
helps fulfill
legal requirements.
3. Demonstrate an
understanding of the Government Management System including the
Interrelationships among Planning, Programming, Budgeting,
Operations, Accounting, Reporting, and
Auditing (15%)
A. Strategic planning
and its relationship to other elements in the system (e.g., setting,
mission, vision,
long-range goals and objectives).
B. Programming and its
relationship to other elements in the system (e.g., how, when, and where
activities will be executed).
C. Budgeting and its
relationship to other elements in the system.
D. Operations and its
relationship to other elements in the system.
E. Accounting and its
relationship to other elements in the system.
F. Reporting and its
relationship to other elements in the system.
G. Auditing and its
relationship to other elements in the system.
4. Governmental Financing
Process (25%)
A. Demonstrate an
understanding of the role of Taxation including:
1. How tax
policies are established (e.g., what to tax, who to tax, how much to
tax, and why to tax). 2. The various types of taxes for each
level of government and the roles and advantages of each type
(e.g., income, wealth and consumption).
3. The nature
and role of tax expenditures.
4. Tax
limitations.
B. Demonstrate an
understanding of Intergovernmental Grants and Shared Revenues including:
1. The
differences among contracts, grants, and shared revenues.
2. The differences among the types of grants (e.g., formula
grants, discretionary grants, block grants). 3. The
requirements and expectations of the grantor and grantee.
C. Demonstrate an
understanding of other forms of Financing including:
1. Other forms of
government revenues (e.g., investments, user fees, licenses, lotteries,
donations). 2. The rationales for establishing user fees
(e.g., recover costs, expand, encourage, or limit use of
services).
3. The use of public-private partnerships.
D. Demonstrate an
understanding of the role of Debt including:
1. Purposes of
entering into debt.
2. Factors that should be considered before entering into
debt (e.g., ability to pay, purpose, interest
rate, tax base).
3. Factors that should be included in debt policies (e.g.,
available tax base, capitalized interest, debt
maturities).
4. The
various types of financing options (e.g., bonds, T-bills, notes, lease-
purchase, certificates of
participation).
5. The types
of debt limitations (e.g., statutory, bond covenants).
6. The
sources and methods of repaying debt (e.g., earmarked taxes, user fees,
general revenues). 7. The role of credit rating agencies in
the debt issuance process.
5. Identify the concepts,
definitions, and notions of Public Accountability including: (5%)
A. The meaning and
purpose of accountability in the government environment (e.g. The CFO
Act of
1990).
B. The key attributes
of accountability (e.g., disclosure, organization structure, reporting).
C. The role and
interrelationships among key attributes of accountability (e.g.,
disclosure, organization
structure, reporting).
D. The primary
stakeholders in accountability (e.g., legislators, taxpayers, other
governments,
investors, creditors, underwriters,
analysts, future generations).
E. The groups that help
to establish and maintain accountability (e.g., legislative bodies,
media,
management, employees, tax payers).
F. Criteria for which a
government should be accountable (e.g., performance,
financial, compliance,
efficiency, and effectiveness,
stewardship of assets).
G. The methods used to
demonstrate and assess accountability (e.g., audit reports, performance
reports, oversight hearings, program
evaluations, service efforts and accomplishment (SEA)
reports).
6. Demonstrate an
understanding of the role of Ethics in Government, and Ethical Practice
as a
Government Financial Manager including: (5%)
A. The sources of
guidance for professional conduct.
B. The key concepts
related to ethical responsibility to the public (e.g., independence,
objectivity,
avoiding actual or perceived conflict
of interest, due care).
C. The steps a
governmental financial manager needs to take to avoid a conflict of
interest.
D. The steps a
governmental financial manager needs to take to assure objectivity and
independence.
E. The relationship of
competence in education, knowledge, and experience to the practice of
due care
in the performance of professional
duties.
F. Activities or
situations which are inconsistent with the responsibilities of public
officials and
employees.
G. The appropriate
course of action to avoid the reality or the perception of improper use
of one's
office for personal gain.
7. Demonstrate an
understanding of Financial Management Responsibilities and Skills
including: (10%)
A. The functions and
responsibilities of a chief financial officer in government.
B. The role of
Enterprise Resource Planning systems (ERPs).
C. The role of
financial management systems, automated data systems development,
documentation,
data administration policies, concepts,
tools, and standards.
D. The role of computer
applications, automated data processing systems, tools, systems and
internet
capabilities.
E. The responsibilities
for continuity of operations programming (e.g., disaster planning).
F. The components of a
comprehensive fraud program.