Shared Flashcard Set


CGFM Government Environment Section VII
Section VII of the CGFM Government Environment Study Guide
Undergraduate 4

Additional Accounting Flashcards




Identify core responsibilities of a CFO.

  • Ensure effective accounting and financial systems are in place
  • ensure adequate financial management activities and operationis are designed and implemented by a well-qualified staff
  • prepare annual financial reports
  • identify budget requirements and monitor budget execution

What alternate titles are sometime used for individuals fulfilling the CFO role at state and local levels?
Comptroller and Chief Fiscal Officer
Identify two sources of guidelines on recommended standards and capabilities for financial management.


  • OMB publishes Circular A-127: Financial Management Systems
  • Core Financial System Requirements is published by the Financial Systems Intergration Office (FSIO) of GSA
  • States also establish specific requirements for their systems


Identify four pieces of a financial management system.

  • Hardware
  • Software
  • Policies and Procedures
  • Trained Personnel

What are some generic features of a fraud prevention program?


  • Fraud risk assesment- Identify the activites that pose the greatest potential and risk for fraud 
  • Anti-fraud policies- A formal code of conduct
  • Education and training- Employees at all levels are trained on the potential damage of fraud
  • Monitoring- This includes periodic test of the effectivness of internal controls and taking swift action when faced with suspected, fraudulent activity
  • Forensic auditing-


Name some distinguishing characteristics of an ERP.


The goal of an ERP is to integrate the previous, stand-alone systems into an integrated approach that supports information processing needs across the entity.  
  • A common, shared database
  • one-time entry of shared data
  • Automated integration and sharing of data across business funtion


Is a CFO typically appointed or elected?
For the federal government, CFO's are appointed officials.  At the state and local levels, the person is often elected.
Describe the CFO Act of 1990.

This law establishes a leadership structure, provides for long-range planning and requires audited financial statements from federal agenciess.  Primary duties include:

  • Ensure effective accounting and financial systems
  • Ensure adequate FM activities and operations are designed and implemented by qualified staff
  • Prepare annual financial reports
  • Identify budget requirements and monitor budget execution

Describe the CFO's leadership role.

The CFO is in charge of compliance and must ensure the entity conforms with all laws and regulations pertaining to management of public resources.  Beyond compliance they must be "trusted advisors"

-Develop and market a vision that demands quality and attracts and retain qualied motivated personnel

-Create an atmosphere that eliminates impediments and promots innovation, collaboration and cross-servicing.

-Establish and maintain integrated accounting and financial management systems

-Provide timely and cost-effective reports, analyses and advice to management, clients and decision makers

-Help agency personnel and clients restructure work processes to improve financial management and data

-Promote strategic planning and performance measurement and reporting.

Define financial management systems and their components.

An organized means for the collection, processing, transmission and dissemination of financial information.

Components of a financial system include processes and procedures (manual and automated), documentation, internal controls, personnel, system tests an audits, and hardware and software.





A financial management system contains applications to support:

  • Collection, processing, maintenance, transmission and reporting of data about financial events
  • Financial planning and budgeting activities
  • Accumulations, reporting and anlysis of cost information
  • Preparation and dissemination of financial statements and other reports

Describe some of the important guidelines of OMB A-127.

  • Document instructions for both manual and automated systems (Complete documention of computer code of Auto systems)
  • Apply internal controls to all system inputs, processing and outputs to ensure the validity and confidentiality of information.
  • Provide adequate training and support to users and operators
  • Provide on-going maintenance to ensure efficiency and effectiness 

Explain some of FFMIA's requirements.
FFMIA provides guidence to agencies, including indicators for use in evaluating finanical statement systems.  It requires agencies to maintain systems that comply with federal accounting standards and the USSGL.  It also requires auditors to report on the level of compliance of financial management systems and requires agencies to adopt formal remediation plans if their systems fall short of requirements.
What are some major advantages of an ERP.


  • Reduced cost
  • Reduced errors
  • Improved coordination across functional departments
  • Increased flexibility in report writing and query capibilities
  • Improved analysis and decisions making via real-time access to enterprise wide data
  • Built in features that capture cost data

Streamlining and standardization of business processes during the analysis phase.  Although, this can be done without ERP 


What are some disadvantages of an ERP system.

  • Investment in time and money to implement
  • Greater risk of loss (due to fraud or faulty controls) 
  • Difficulty of acheiving agreement across functions
  • Sizeable cost of employee training and retraining
  • Entity is "captive" to vendor for cost of future upgrades and license fees.
  • Personnel turnover during development and implementaion phase can jeopardize success.

Define a continuity of operations plan.
A COOP refers to the efforts of an organization to ensure it can sustain essential operations regardless of planned or unplanned incidents.  Historically, COOP planning has included successioin planning for top government leaders; preparation of secret, alternative locations for government operations; and specially equipped vehicles and communications systems.
What are some common objectives of a COOP?


  • Ensure continued performance of essential functions
  • Reduce loss of life and minimize damage to property and infrastructure
  • Ensure succession to key leadership positions
  • Reduce/mitigate disruptions to governmental operations
  • Protect public assets and confidential information
  • Achieve timely recovery of normal operation (Reconstitution)
  • Assess response and identify lessons learned for future planning.


What timeframe should agencies aim for in the restoration of operations? 
Agency plans should aim within a minimum period, such as 12 hours following activitation of the plan.  A further objection is ability to sustain the plan for a minimum duration (many are 30 days).  This may be insufficient in some cases.
What are some essential COOP planning elements?

  • Essential functions
  • Delegations of Authority
  • Succession planning
  • Alternate facilities
  • Alternate and interoperable communications
  • Vital Records and databases
  • Human capital
  • Devolution and reconstitution
  • Tes, training and exercise

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