Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

GFOA CPFO Compensation & Benefits Exam > GFOA Exam Prep LMS Training: Understanding Government Compensation and Payroll > Flashcards

GFOA Exam Prep LMS Training: Understanding Government Compensation and Payroll Flashcards

1
Q

What principle guides the content of an Official Statement (OS) in municipal securities?

A

Materiality is the guiding principle, indicating the level and content of disclosure provided.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What role does pension obligation play in an issuer’s Official Statement?

A

Pension obligation disclosure should reflect its potential impact on the issuer’s ability to make bond payments.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What does NABL stand for?

A

National Association of Bond Lawyers.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What year did NABL issue guidance on pension funding obligations disclosure?

A

May 2012.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is a Defined Benefit (DB) pension plan?

A

Guarantees a set retirement benefit, with the employer assuming investment risk.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is a Defined Contribution (DC) pension plan?

A

Employees contribute to their retirement funds, bearing the investment risk.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is the significance of ‘materiality’ in the context of an OS?

A

Materiality determines the necessity and extent of information included in the OS.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

How often should issuers review and update the actuarial services contract?

A

At least every five years.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is a Section 218 Agreement with the SSA?

A

Allows for social security coverage under a state plan.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What does FICA stand for?

A

Federal Insurance Contributions Act.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What is the ‘regular’ rate of pay according to the FLSA?

A

An average of all compensation for a defined week or pay period.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

How is overtime calculated under the FLSA?

A

1.5 times the ‘regular’ rate of pay for hours worked beyond the standard threshold.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What are the consequences of not adhering to FLSA overtime regulations?

A

Legal and financial penalties, including back wages and damages.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

How does the Affordable Care Act (ACA) impact payroll processing?

A

Requires employers to provide specific levels of health benefits or face penalties.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What are the limits for retirement plan contributions set by the IRS?

A

Annually set by the IRS; affects tax treatments for contributions.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What benefits does COBRA provide to employees?

A

Temporary health coverage after employment ends.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Define the ‘vesting’ in pension and retirement plans.

A

The right of ownership to a retirement benefit after meeting certain criteria.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What is a Summary Plan Description (SPD)?

A

Describes plan benefits, essential for participant knowledge and compliance.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What impact does ERISA have on pension and retirement plans?

A

Sets standards for retirement and health benefit plan information disclosure.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What are the key components of a pension and retirement plan audit?

A

Ensures valuation accuracy and reasonableness of methods and assumptions.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

How does the ‘Cadillac’ tax affect healthcare plans under the ACA?

A

Imposes a tax on high-cost healthcare plans to encourage cost control.

22
Q

What is the role of an actuarial audit in pension plan management?

A

Verifies the quality and compliance of actuarial services.

23
Q

How can governments address health care costs without reducing employee benefits?

A

Strategies include rebidding insurance contracts and promoting wellness programs.

24
Q

What strategies can be used to mitigate the risks associated with layoff or reductions in force?

A

Consider service level impacts, employee morale, and potential cost savings.

25
Q

What considerations should be taken into account when determining the level of disclosure about pension obligations in an OS?

A

Funding status, budget impact, legal restrictions, and trends material to investors.

26
Q

What are some techniques for reducing personnel costs in the near term?

A

Vacancy control, overtime monitoring, and addressing health care costs.

27
Q

How can vacancy control help manage personnel costs?

A

Ensures staffing does not exceed budgeted positions, controlling personnel costs.

28
Q

What is the purpose of conducting eligibility audits in relation to healthcare benefits?

A

Identifies ineligible dependents, reducing unnecessary health care expenditures.

29
Q

Why might governments use comp time instead of paying overtime?

A

Offers flexibility and can reduce overtime costs, subject to policy restrictions.

30
Q

What factors contribute to the need for more extensive disclosures about pension funding obligations in an OS?

A

Financial impact, revenue sources, legal constraints, and significant trends.

31
Q

What benefits are considered ‘qualified’ under a Section 125 Cafeteria Plan?

A

Health, adoption, dependent care benefits, among others, on a pre-tax basis.

32
Q

How do Defined Benefit and Defined Contribution plans differ in terms of employer risk?

A

DB plans guarantee benefits with employer risk; DC plans offer portability with employee risk.

33
Q

What are some examples of non-taxable fringe benefits?

A

Examples include employer-provided cell phones and qualifying meals.

34
Q

Why is the demographic diversity of state and local public finance a strength?

A

Enhances recruitment and mirrors public sector diversity.

35
Q

What challenges are associated with procuring actuarial services for OPEB?

A

Consider qualifications, experience with health benefits, and compliance requirements.

36
Q

What are ‘deferred retirement option plans’ (DROPs), and what is GFOA’s recommendation regarding them?

A

Discourages their inclusion in benefit plans due to cost and sustainability concerns.

37
Q

Why is it recommended to conduct actuarial audits at least every five years?

A

Ensures actuarial work quality and plan’s fiscal health.

38
Q

How does the ‘silver tsunami’ impact state and local public finance?

A

Increases workforce turnover and strains talent pipelines.

39
Q

What role does USERRA play in military leave for government employees?

A

Guarantees reemployment rights after military service.

40
Q

What are the main reasons for tracking time in payroll processing?

A

Pay calculation, compliance, accountability, and internal service cost tracking.

41
Q

What are the advantages and disadvantages of remote work policies?

A

Adjusts management planning, employee expectations, and IT infrastructure.

42
Q

How does FMLA impact payroll processing and employee benefits?

A

Requires unpaid leave for specified conditions, affecting staffing and benefits.

43
Q

What are the implications of not meeting IRS requirements for fringe benefits?

A

Taxable income adjustments and compliance with tax regulations.

44
Q

Why is a payroll processing checklist important?

A

Ensures accuracy, consistency, and compliance in payroll processing.

45
Q

What are the key findings from GFOA’s report on public finance jobs?

A

Demand exceeds supply, creating staffing challenges in public finance.

46
Q

What strategies can governments employ to attract finance professionals?

A

Targeted recruitment, enhanced benefits, and highlighting public service importance.

47
Q

What is the ‘Cadillac’ tax and how does it affect health care plans?

A

Taxes high-cost plans to reduce health care expenses and encourage cost-effective benefits.

48
Q

What are the challenges and solutions for pension funding obligations disclosure?

A

Clarify the impact of pension obligations on financial health and bond creditworthiness.

49
Q

Why is monitoring and reporting crucial in payroll management?

A

Facilitates effective payroll management and compliance with laws and regulations.

50
Q

What are the benefits of tuition assistance programs, and how are they regulated?

A

Offers financial aid for education, subject to tax laws and organizational policies.

GFOA CPFO Compensation & Benefits Exam (53 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions