GFMC Governmental Financial Management and Control Exam Free Dumps

dumps2025-08-13T14:32:37+08:00

GFMC exam is one of three required tests for earning CGFM certification, which demonstrates competency in governmental accounting, auditing, financial reporting, internal controls and budgeting at the federal, state and local levels. Governmental Financial Management and Control GFMC exam is easy to pass now. There are 115 questions in real GFMC exam, and you have two hours and 15 minutes to answer all the questions. We provide the latest Governmental Financial Management and Control GFMC exam dumps, which are valuable for you to pass the test. Free Governmental Financial Management and Control GFMC exam dumps are available below.

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1. Based on the data below, what can be concluded about outsourcing print job?

It is better to keep the printing in-house.

Outsourcing printing is feasible.

Outsourcing printing is necessary.

ABC Printing should be awarded the outsourcing contract.

2. The ratios used to determine an organization's ability to meet its creditor's demands are

A. budgetary cushion ratios.

B. liquidity ratios.

C. debt burden ratios.

D. turnover ratios.

3. Performance measurement assists management in

identifying weaknesses in disaster response preparedness.

tracking actual results against targets.

determining allocation of capital appropriations.

monitoring performance of certified professionals in regulatory fields.

4. The value, in current dollars, of a sum of money to be received in the future describes

A payback value.

B. present value.

C. annuity value.

D. future value.

5. 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 the payback 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

6. In an internal control evaluation, what are the roles of management and the auditor regarding the risk of fraud, waste and abuse?

Management identifies risks, auditors assess control effectiveness.

Auditors identify risks, management implements control measures.

Both management and auditors determine risk tolerance levels.

Management mitigates risks, auditors monitor compliance with controls.

7. For financial audits, generally accepted auditing standards require that auditors accomplish all of the following tasks EXCEPT

adequately plan the work.

make the audit report available to the public.

obtain sufficient appropriate audit evidence.

supervise any assistants.

8. The first step when gathering data for making strategic sourcing decisions is

A. contacting vendors to submit bids under the request for bid process.

B. researching spend data by category for each business unit.

C. contacting business units to find out if there are existing purchasing contracts in place.

D. developing supplier performance measures to add into the purchase agreements.

9. A material weakness in internal control over financial reporting is defined as a deficiency that

A. results in a misstatement to the basic financial statements.

B. results in a material misstatement in other accompanying financial information.

C. did not allow management to perform their assigned responsibility to prevent, detect and correct misstatements in a timely manner.

D. creates a reasonable possibility of a material misstatement to the financial statements that will

not be detected in a timely manner.

10. An agency uses pavement rating scores as a key indicator for a street maintenance program. If the legislature provided the agency with an additional $5 million the new resources should be allocated based upon

A. the number of intersections.

B. historical budgeted amounts.

C. lane miles rated as acceptable by the citizens.

D. lane miles with unmet needs.

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11. The goal of shared gervices is to

A. reduce current staffing levels.

B. transfer responsibilities to another entity.

C. efficiently aggregate resources.

D. provide private business opportunities.

12. A state transfers cagh to a broker and the broker transfers securities to the state, promising to repay the cash plus

interest in exchange for the return of the same securities. This transaction is an example of

A. an arbitrage agreement.

B. a repurchase agreement.

C. a mutual buy-sell agreement.

D. a reverse repurchase agreement.

13. The Federal Credit Reform Act of 1990 prescribes a special budget treatment for direct loans and loan guarantees that measures cash flows to and from the government using which financial analytical technique?

A. future value

B. net present value

C. current value

D. regression analysis

14. In an attestation engagement, which party would make an assertion about a subject matter?

management

auditor

practitioner

user

15. All of the following ae among the stated purposes of GPRA EXCEPT to

help managers improve service delivery.

improve internal management practices.

provide instructions on program reporting.

improve program effectiveness.

16. The Federal Credit Reform Act requires complex calculations, which are likely to include errors. This is an example of

A. audit risk.

B. control risk.

C. detection risk.

D. inherent risk.

17. A variable that would influence management's decision to hire contractors to perform management control evaluations is

lack of management expertise.

availability of qualified contractors.

suspicion of internal fraud.

knowledge of systemic deficiencies.

18. What type of analygis should a finance director use to determine if there will be enough funds available to cover bills due within the next 30 days?

quick/current ratio

receivables turnover ratio

budgetary cushion ratio

debt burden ratio

19. Who is responsible for resolving single audit findings?

A. the awarding agency

B. the recipient agency

C. the audit committee

D. the external auditors

20. The scope of a single audit engagement includes all of the following EXCEPT

A. financial statements.

B. internal controls.

C. performance results.

D. compliance with terms of the award.

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21. The basic steps in fraud audits include all of the following EXCEPT

consulting legal counsel.

reporting the results.

follow-up on control weaknesses.

considering political ramifications.

22. Simplified acquisition processes assist an agency by

A. maintaining the competitive bid requirement and allowing credit card purchases.

B. providing access to bulk purchase discounts and reducing administrative costs.

C. increasing the number of requisitions processed.

D. reducing acquisition staff and managerial oversight.

23. One of the five components of COSO ERM is

performance.

changing environment.

complex calculations.

accepting risk.

24. An evaluation of anggntity’s single year financial statements would use which of the following analyses?

A. comparative

B. horizontal

C. trend

D. vertical

25. What is the formal tam for the listing and assessment of an agency's top risks?

risk profile

risk management plan

risk assessment

risk register

26. Under government fuditing standards, auditors performing financial statement audits must

A. design tests to assess compliance with laws, regulations, contracts and grant agreements.

B. identify violations of laws which could be punishable by monetary penalties.

C. identify expenditures that exceed the related obligations.

D. design tests to detect fraud, waste and abuse.

27. A key element in coputer-assisted audit techniques is

A. writing the system audit program.

B. verifying internal controls.

C. obtaining appropriate data.

D. purchasing data mining software.

28. When reviewing a report on internal control from a shared service provider that noted a weakness, the agency should

A. consider the existence of compensating or mitigating controls.

B. ask the service provider to correct the weakness.

C. dismiss the weakness.

D. refer the weakness to the Contracting Officer.

29. What is the most fupdamental cash control?

A. segregation of duties

B. use of automated systems

C. analysis of cash reports

D. frequent reconciliation of bank accounts

30. Which of the following includes the aggregate level and types of risks that the organization is willing to assume in order to achieve its Strategic objectives?

A. risk register

B. risk and control evaluation matrix

C. risk profile

D. risk and control assessment tool

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31. How may a city parks and recreation director meaningfully assess the performance of the department's grounds maintenance division?

A. use a single measure of citizen satisfaction with parks and recreation

B. evaluate funds spent on grounds maintenance

C. analyze grounds maintenance staffing levels

D. compare cost per acre maintained to cost per acre maintained in another jurisdiction

32. A local government is reviewing the performance of a contractor that is collecting trash for the county. Performance can be measured based upon the cost

A. per mile travelled.

B. per ton of trash collected.

C. comparison with closest comparable jurisdiction.

D. per employee.

33. Management shoulg consider the cost of internal controls in relationship to

A. the available budget.

B. inherent risks.

C. benefits provided.

D. risk of collusion.

34. In a performance aygit, due professional care is used to

A. obtain sufficient and competent evidence.

B. determine scope.

C. set materiality of financial statements.

D. present the findings in accordance with GAAP.

35. A governmental attestation engagement may include a requirement to

A. monitor a subgrantee for compliance to the grant restrictions.

B. establish a policy concerning fraud prevention.

C. monitor purchasing card charges for compliance with travel policies.

D. review the revenue coverage requirements on outstanding bonds.

GFMC Governmental Financial Management and Control Exam Free Dumps

GFMC Governmental Financial Management and Control Exam Free Dumps

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