Certified Government Financial Manager (CGFM) Practice Exam

Certified Government Financial Manager (CGFM) Practice Exam

The Certified Government Financial Manager (CGFM) program, administered by the Association of Government Accountants (AGA), is a prestigious professional certification designed to elevate your expertise in government finance.  Earning the CGFM designation demonstrates your proficiency in the core principles and practices of governmental accounting, auditing, budgeting, and financial management within the public sector.

Who Should Take This Exam?

This certification caters to a wide range of professionals seeking to excel in government finance, including:

• Government accountants and auditors
• Budget analysts and financial managers
• Public administration specialists
• Individuals aiming to advance their careers in government finance

Prerequisites for CGFM Exam Eligibility

• The AGA outlines specific requirements for CGFM program participation:
• Education: A bachelor's degree in any field from an accredited U.S. college or university is mandatory.
• Experience: While not required to sit for the exams, at least two years of professional-level experience in government financial management is necessary to achieve the CGFM designation.
• Ethics: Abiding by the AGA's Code of Ethics is a core program requirement.

Roles and Responsibilities

• Lead and Manage Complex Financial Operations: Effectively manage and oversee government financial activities, ensuring compliance with regulations and best practices.
• Develop and Analyze Financial Reports: Prepare and interpret comprehensive financial reports that provide valuable insights for informed decision-making.
• Implement Sound Budgeting Strategies: Craft and execute sound budgeting strategies that optimize resource allocation within government entities.
• Navigate the Regulatory Environment: Demonstrate a strong understanding of the intricate regulatory landscape governing government finance.
• Promote Accountability and Transparency: Contribute to a culture of accountability and transparency within government financial operations.

Exam Details

• Number of Questions: 115
• Length of Time:  135 minutes 
• Passing score: 500 (on a scale of 200-700)

Course Outline

The Certified Government Financial Manager (CGFM) Exam covers the following -

Examination 1: Government Environment (GE)

1. The organization, authority and structure of government (15%)

• An understanding of the levels of government: federal, state and local
• An understanding of the outlets of government – executive, legislative, judicial including:
• Ascertain an understanding of the elements of the state, federal, and local governments (e.g., accountability agencies and central management, departments, bureaus, agencies, commissions, divisions).
• Gives an understanding of the responsibilities and authorities of the government (for e.g., and departmental and government-wide)

2. The legally-based significance of the government financial environment (15%)

• Demonstrating an understanding of the significance of sovereignty in the grades of the government
• The knowledge related to the budget
• Giving an insight into how establishing funds or dedicated revenues helps to fulfil legal requirements.
• Also, an understanding of the legislative “earmarking”.

3. Government management unicycle (16%)

• The components of government management include strategic planning, budgeting, programming, operations, reporting, accounting, and auditing. 
• The interrelationships across the factors of the government management system.
• Also, the importance of the data in the government management system..

4. Governmental financing procedure (24%)

• A comprehension of the part of taxation
• Knowledge of intergovernmental revenues
• Demonstrating an understanding of forms of financing
• An understanding of the debt

5. Identifying definitions, and the notions of public accountability (12%)

• The signification and aim of accountability in the government environment.
• The key attributes of accountability (e.g., organization structure, disclosure reporting), and their interrelations.
• Components for which the government should be responsible (e.g., financial, performance, compliance, effectiveness and efficiency, stewardship of assets).
• The basic stakeholders in accountability (e.g., taxpayers, other governments, creditors, investors, legislators, future generations, underwriters).
• The communities that help to build and sustain accountability (e.g., media, legislative bodies, management, employees, analysts, taxpayers).
• The techniques used to manifest, prove and assess accountability and transparency (e.g., performance reports, audit reports, oversight hearings, program evaluations, electronic reports, service efforts and accomplishment reports).
• The techniques used to assess fiscal sustainability and solvency.
• Concepts of open government, data transparency and citizen-centric reporting.

6. Ethics as implemented to the governmental environment (10%)

7. Delivering government information and services electronically (8%)

Examination 2: Governmental Accounting, Financial Reporting and Budgeting (GAFRB)

1. Governmental financial reporting, accounting, and budgeting general knowledge (40%)

• Influences, concepts of financial reporting and standards-setting.
• Cost accounting.
• Budgeting.
• General principles.

2. Local and State  financial reporting and accounting (30%)

• Financial reporting and accounting standards. 
• Reporting and fund accounting. 
• Government throughout financial reporting.
• Accounting for a specific asset and reporting for liability transactions.
• Revenue, expenditures and other operating statement proceedings.

3. Federal financial reporting and accounting (30%)

• Federal budgeting.
• Federal budgetary accounting.
• Federal reporting foundations and financial accounting. 
• Federal financial management and statements discussion and analysis.
• Federal financial accounting illustrations and standards. 

Examination 3: Governmental Financial Management and Control (GFMC)

1. Financial management (25%)

• Cash management.
• Investment management.
• Credit management.
• Acquisition management and procurement.
• Property management.
• Supply and Inventory management.
• Financial management systems.

2. Managerial and Financial Analysis Techniques (15%)

3. Internal dominance (25%)

• The regulatory and legal history of internal controls.
• The frame of the internal controls.
• Management and responsibilities.

4. Performance management//service attempt and accomplishments (15%)

• The principle for performance measurement.
• Characteristics, types, and limitations of the performance measures.
• The record of performance measures, including current guidelines and requirements. 

5. Auditing (20%)

• What is an audit?
• Audit procedure.
• Other audit issues.