AGA CGFM Exam Dumps

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.

Government Finance Officers Association (GFOA), Best Practices in Capital Asset Management.

Federal Highway Administration (FHWA), Performance-Based Planning and Programming Guidebook.

* What Are Simplified Acquisition Processes?

Simplified acquisition processes are procurement methods designed to streamline purchasing for government agencies. These processes reduce the administrative burden for smaller purchases, typically below a certain dollar threshold (as defined in the Federal Acquisition Regulation (FAR)).

* How Do These Processes Assist Agencies?

Bulk Purchase Discounts: Simplified acquisition allows agencies to leverage economies of scale and negotiate bulk purchase discounts for commonly used goods and services.

Reduced Administrative Costs: By simplifying documentation, reducing oversight requirements, and accelerating the approval process, these methods lower administrative costs and increase efficiency.

* Why Other Options Are Incorrect:

A . Maintaining the competitive bid requirement and allowing credit card purchases: While simplified acquisitions may allow credit card purchases, the focus is not maintaining competitive bids but reducing costs and streamlining the process.

C . Increasing the number of requisitions processed: The goal is efficiency, not increasing the volume of requisitions.

D . Reducing acquisition staff and managerial oversight: These processes may simplify oversight but do not aim to reduce staff; instead, they help existing staff work more efficiently.

* Reference and Documents:

Federal Acquisition Regulation (FAR) Part 13: Covers simplified acquisition processes and their intended benefits.

GAO Reports on Federal Procurement (2020): Highlights the cost savings and efficiencies gained through simplified acquisition methods.

* What Is Internal Control Over Financial Reporting?

Internal control over financial reporting (ICFR) ensures the reliability of an entity's financial statements. It focuses on maintaining accurate, complete, and properly valued financial information that complies with accounting standards and meets the needs of users.

* Why Is Option C Correct?

Proper valuation of assets and liabilities is a critical component of ICFR. It ensures that financial statements fairly represent the entity's financial position.

Cost allocation is also essential where applicable, such as assigning costs to programs or projects.

* Why Other Options Are Incorrect:

A . Sufficient spending authority and financial resources exist: This relates to budgetary control, not financial reporting.

B . Physical inventory of capitalized assets: Conducting a physical inventory is part of asset management, not financial reporting assertions.

D . Legislatively directed program goals: Meeting program goals is related to performance reporting, not ICFR.

* Reference and Documents:

GAO Standards for Internal Control (Green Book): Stresses the importance of proper valuation and cost allocation for accurate financial reporting.

COSO Framework: Emphasizes ICFR's role in ensuring reliable and accurate financial statements.

Fraud Audit Objective:

Fraud audits aim to detect and investigate fraudulent activities, strengthen internal controls, and report findings to stakeholders.

Basic Steps in Fraud Audits:

Consulting Legal Counsel: Ensures compliance with legal requirements and protects the organization.

Reporting the Results: Essential to inform stakeholders of findings and corrective actions.

Follow-up on Control Weaknesses: Addresses identified vulnerabilities to prevent future fraud.

Explanation of Incorrect Answer :

D . Considering political ramifications: Irrelevant to fraud audits, as these audits focus on financial and legal matters rather than political considerations.

Association of Certified Fraud Examiners (ACFE), Fraud Examination Manual.

Government Accountability Office (GAO), Fraud Risk Management Framework.

Scope of Single Audit:

The scope includes:

Financial Statements: Ensuring accurate reporting of financial activities.

Internal Controls: Evaluating effectiveness in compliance with federal requirements.

Compliance: Ensuring compliance with the terms and conditions of the award.

Explanation of Answer Choices:

A . Financial statements: Included in the audit.

B . Internal controls: Included to ensure compliance.

C . Performance results: Correct. Single audits do not assess program outcomes or effectiveness.

D . Compliance with terms of the award: Included to ensure federal funds are used appropriately.

Uniform Guidance (2 CFR Part 200), Audit Requirements.

Government Accountability Office (GAO), Yellow Book: Standards for Audits of Federal Awards.