CGFM Terms Flashcards
Accountability
Principle that, in a democracy, government operates by the consent of the people. Therefore, it is responsible to, and must answer to, the people for its actions and results, including the taking and using of the people’s resources.
Allotment
In the federal government, an agency distributes apportioned budgetary authority to various components within the agency. After the executive agency receives its apportionment, it allots budgetary authority to specific components within the agency.
Annual Comprehensive Financial Report (ACFR)
A financial report that includes an MD&A (Management’s Discussion and analysis) basic financial statements, footnotes, and other required supplementary information, as well as an introductory section, additional financial information (i.g., combining and individual fund schedules, if applicable), and a statistical section.
Antideficiency Act
Federal law states that officials can be fined and/or jailed if they obligate the government to spend funds beyond the legally authorized purpose, time, or amount.
Apportionment
Definitions may vary at different levels of government. At the federal level, this is OMB’s approval to use a portion of the legislatively approved budgetary authority.
Appropriated budget
The Budget passed by the legislative branch (and signed by the chief executive, if required) has the effect of law.
Appropriation
A legislative enactment (law, statute, or ordinance) that creates spending authority, the legal authority to incur expenses and spend money.
Authorization
Legislative enactment that approves programs prescribes what activities an agency may pursue if funding is available.
Block grant
One type of formula grant. Block grants combine several service categories into one grant and, thus, allow maximum flexibility to the grantee to use the funds to meet local needs. (Also see “Categorical grant.”)
Capital Budget
Forecasts and controls spending for “big-ticket” items that are acquired and used over several years, such as construction projects and major equipment purchases. Used at the state and local levels.
Capital Lease
A lease of real property that meets defined criteria requires the government to report the property as if it were purchased with long-term debt proceeds.
Cash-flow budget
Forecasts the timing, as well as the amount of cash flows, for a period. Used to project required cash levels.
Categorical Grant
One tyoe of formula grant that can be used ony for a narrowly defined purpose (also see “Block grant”)
Central Management Agencies
Government agencies that provide central management services to other components. An example would be a state government’s human resources office (that serves all state agencies) or the Office of Management and Budget at the federal level.
Certificate of Excellence in Accountability Reporting (CEAR)
An AGA program that helps federal agencies and their performance and accountability reports/agency financial reports.
Certificate of participation
Form of shared government financing. In a typical form, several financial institutions share in a loan arrangement with a government entity.
Charter
Local government version of a constitution. States may provide for the establishment of local governments through charters.
Checks and Balances
Process by which one branch of government (legislative, executive or judicial) can constrain actions of the other branches. Flows from separation of powers.
Chief Financial Officers (CFO) Act
A 1990 law that, among other provisions, requires the federal government’s major executive branch agencies to have a Chief Financial Officer. Prescribes duties and reporting requirements, and requires audited financial statements.
Commission
Government component established by law, statute or ordinance. May be permanent or temporary. Because it is established by law, it may have greater autonomy and authority than government components that are administratively established. Example: Federal Communications Commission.
Component
Organized unit of government, such as agency, office or department. Found in all branches of government at all levels. Example: U.S. Fish & Wildlife Service is a component of the U.S. Department of the Interior.
Conflict of Interest
Arises when one has a personal interest in matters relating to official duties or activities. Such conflicts can destroy objectivity and independence and prevent the exercise of due care.
Consumption tax
Broad category of tax that includes sales, use, excise and value-added taxes.
Continuity of Operations
Refers to efforts to ensure the organization can sustain essential operations, regardless of planned or unplanned incidents or disruptions.
Covenant (bond)
Legal requirements pertaining to a specific bond issue. Typically defines the maturity date, revenue stream that will be used to repay the debt, interest rate and repayment schedule. May require a sinking fund and may specify conditions that must be met while the bonds are outstanding, and/or before new debt can be issued.
Credit-rating agency
Independent organization that assesses the credit worthiness of borrower. Three major rating agencies are Standard & Poors, Moody’s Investor Service and Fitch Ratings.
Data mining
Using special, computer-based techniques, such as filters and algorithms, to extract meaningful information from large bodies of data.
Debt
Money owed by the entity to individual or organizational creditors, usually as a result of planned short-or long-term borrowing to finance government objectives.
Dedicated Collections
Taxes levied or other revenues collected to finance a specific activity. Proceeds are deposited into an account restricted to that activity. Also referred to as earmarked or restricted taxes.
Deficit
Occurs when government expenditures for a specific fiscal period exceed revenues and other financial resource inflows.
Diligence
Pursuing an event, action or assignment to a timely and sufficient end or close.
Discretionary Grant
A term sometimes used to mean “project grant.” (See “ project grant.”)
Donation
Voluntary contribution that confers no rights or benefits on the giver
Due care
To discharge professional responsibilities with competence and diligence, to the best of one’s ability, and with the same level of ability and skill as others in similar positions. It also means to act in the best interest of those served.
Earmarking
Variation on use of special funds. Revenue from specific taxes or other sources is the earmarking of gasoline taxes for highway improvements. Also referred to as “dedicated collections”. The term also signifies the legislature reserving a portion of an appropriation for a specific, limited purpose.
Enterprise resource planning (ERP) system
Major “end-to-end” computer system that links many functions and departments. Used to simplify and streamline financial management and to integrate operations with financial management.
Estate Tax
Form of wealth tax. Levied on the deceased person’s estate before his or her assets are distributed to heirs.
Ethics
A complex system of discipline that civilized societies impose on themselves through laws, customs, standards, social etiquette, and other rules to govern moral conduct.
Exercise Tax
Form of consumption tax. Levied on consuming a particular type of good or participating in a certain type of activity. Whereas general sales taxes are broad-based, excise taxes are more narrowly targeted.
Executive Order
An order issued by the president, governor, or a local government’s chief executive that does not violate laws or statutes and substantially impacts policy and procedures of government. It carries less weight than a law because the legislature or next chief executive may overturn the previous order.
Fair
Free from self-interest, prejudice, or favoritism. Implies eliminating one’s feelings, prejudices, and desires to achieve a proper balance of conflicting interests.
Federal Accounting Standards Advisory Board (FASAB)
Defines GAAP for federal government entities; this includes the national government as a whole plus distinct components.
