CGFM Terms Flashcards

Question

Covenant (bond)

Answer 1

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.

Answer 2

Independent organization that assesses the credit worthiness of borrower. Three major rating agencies are Standard & Poors, Moody's Investor Service and Fitch Ratings.

Answer 3

Using special, computer-based techniques, such as filters and algorithms, to extract meaningful information from large bodies of data.

Answer 4

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.

Answer 5

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.

Answer 6

Occurs when government expenditures for a specific fiscal period exceed revenues and other financial resource inflows.

Answer 7

Pursuing an event, action or assignment to a timely and sufficient end or close.

Answer 8

A term sometimes used to mean "project grant." (See " project grant.")

Answer 9

Voluntary contribution that confers no rights or benefits on the giver

Answer 10

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.

Answer 11

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.

Answer 12

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.

Answer 13

Form of wealth tax. Levied on the deceased person's estate before his or her assets are distributed to heirs.

Answer 14

A complex system of discipline that civilized societies impose on themselves through laws, customs, standards, social etiquette, and other rules to govern moral conduct.

Answer 15

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.

Answer 16

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.

Answer 17

Free from self-interest, prejudice, or favoritism. Implies eliminating one's feelings, prejudices, and desires to achieve a proper balance of conflicting interests.

Answer 18

Defines GAAP for federal government entities; this includes the national government as a whole plus distinct components.

Answer 19

The principle that government authority and responsibility are shared among different levels of government. (in practice, people often use the term "federal' when referring to the national level of government)

Answer 20

Defines GAAP for private sector entities. Occasionally, GASB and FASAB make FASB standards applicable to state, local, or national governments, respectively.

Answer 21

Organize means for collecting, processing, transmitting, and disseminating financial information. Includes policies and procedures, trained personnel, and any applicable computer hardware and software.

Answer 22

External report that depicts the financial position and financial results of an entity.

Answer 23

A type of intergovernmental grant that includes both categorical and block grants, in which the grant amount is based on a formula contained in law or regulation that determines the total amount each recipient will receive if basic eligibility requirements are satisfied.

Answer 24

"Forensic" implies that the results will be admissible as legal evidence. Forensic auditing combines the skills of auditors and accountants with investigative techniques, which are useful for detecting and preventing fraud.

Answer 25

Name often applied to the legislative branch at the state level

Answer 26

Form of government debt that is backed by the full faith and credit of the government. Contrasts with revenue bonds.

Answer 27

Entity at the national, state or local level that provides a broad range of services

Answer 28

Issued by the Government Accountability Office (GAO), to define the expected levels of performance for the conduct of an audit or attestation of a government organization, program, activity, or function (also called Government Auditing Standards or Yellow Book)

Answer 29

Defines GAAP for state and local government entities

Answer 30

Quasi-government entity formed to support businesslike functions where most, if not all, operating expenses are expected to be covered through revenues and fees, rather than from appropriated budget authority.

Answer 31

U.S. Law passed in 1993; requires federal agencies to create long-term strategic plans. The strategic plans are followed by annual performance plans (currently performance budgets), and annual performance reports. (The law has been updated with the Government Performance and Results Act Modernization Act, enacted in 2010)

Answer 32

Funds transferred from one level of government to another for specific or broad purposes

Answer 33

Lack of favoritism. The absence of favor or prejudice. Not partial or biased. Treating of affecting all equally.

Answer 34

Tax based on income and levied on individuals or corporations. Used most often at national and state levels, though some states allow local government ot impose income taxes.

Answer 35

Free of relationships that may impair, one's ability to act with objectivity. Independence is the quality of being free of any obligation to particular parties or interests.

Answer 36

Form of wealth tax. Levied on the person receiving a bequest.

Answer 37

Process that enables citizens to present their view of a problem and a proposed solution, rather than depending on a solution devised and enacted by the legislative branch. Allows direct citizen action to affect laws.

Answer 38

Form of wealth tax. Applied to intangible assets such as stocks and bonds, savings accounts, trademarks, and accounts receivable (in the case of a business)

Answer 39

Organization and activites designed to ensure programs achieve their intended results; resources are used efficiently and effectively; programs and resources are protected from waste, fraud and mismanagement; laws and regulations are followed; and reliable and timely information is obtained, maintained and reported.

Answer 40

Principle by which the judicial branch may review actions by the legislative and executive branches and, if appropriate, declare them unconstitutional or illegal. Flows from the separation of powers.

Answer 41

Practice by which a government entity assumes a long-term lease on a capital asset and, at the end of the lease period, the asset may transfer to the government. Usually, these long-term obligations do not require voter approval.

Answer 42

Practive by which a government entity assumes a long-term lease on a capital asset and, at the end of the lease period, the asset may transfer to the government. Usually, these long-term obligations do not require voter approval.

Answer 43

Fee paid to the government for a specific privilege, often related to an activity. Ranges from recreation (fishing license) to business (real estate license)

Answer 44

Authority that allows the chief executive, such as a governor or mayor, to strike individual line items from the budget without vetoing the entire budget bill. U.S. presidents do not have line-item veto authority.

Answer 45

State-controlled gambling, used by many states as a source of revenue.

Answer 46

Refers to the sequence of activities entailed in managing a government and/or its operations. The activities include planning, programming, budgeting, operations, accounting, reporting and auditing.

Answer 47

Form of conflict resolution that involves an objective, third-party mediator who tries to bring the disputants closer together. Unlike arbitration, mediation is usually voluntary and non-binding.

Answer 48

Form of government debt used as a short-term financing source. Due to the short maturity period, the principle and interest for a note are frequently retired simultaneously upon maturity ( that is, no periodic interest payments)

Answer 49

A budget or accounting category that defines the resources to be applied to specific types of inputs, such as personnel, travel, tools or supplies.

Answer 50

Imposes the obligation to be impartial, intellectually honest, and free of conflicts of interest. Public officials are objective when they uphold the expectation of fairness, make decisions on merit, and do not allow prejudice or bias to influence their decisions or behavior

Answer 51

Defines level of resources to be applied in providing government programs and services; usually covers periods of one to two years.

Answer 52

Law enacted by a legislative body below the state level, such as a county, city or town.

Answer 53

Results of government programs, such as the number of gainfully employed graduates or reduction in road accidents. May take many months or years to achieve. Outcomes are often more difficult to measure than outputs.

Answer 54

The goods or services produced, such as number of students trained or number of road miles repaired.

Answer 55

A single report that combines financial results and performance results. Recent requirement for federal executive agencies, but may be practiced at other levels of government.

Answer 56

External report that indicates what has been accomplished with the resources consumed by a government.

Answer 57

Form of wealth tax. Personal property differs from real property in that it is not attached to the ground and can be transferred from one location to another.

Answer 58

Condensed form of external financial report that provides basic financial information and other performance data in a short, essay-to read format.

Answer 59

Principle that, while governments are sovereign entities, in a democracy, ultimate sovereignty rests with the people.

Answer 60

A type of grant that provides funding for specific purposes for limited periods of time. In contrast to formula grants, project grants are competitive and receipt of funding is less assured. Project grants are sometimes referred to as "discretionary grants."

Answer 61

Entities that blend characteristics of governments and the private sector

Answer 62

Process that enables voters to remove elected officials from office. Usually involves collecting signatures on a petition. If enough legitimate signatures are collected, the proposal is put to the vote.

Answer 63

Process by which certain legislative actions are presented to voters before taking effect.

Answer 64

10th Amendment to the U.S.Constitution. "The powers not delegated to the United States by the Constitution, nor prohibited by it to the states, are reserved to the states respectively, or to the people. "

Answer 65

Form of debt that is secured by a specific source of financing, such as revenue from the project being funded. Contrasts with general obligation bonds, which are backed by the full faith and credit of government.

Answer 66

Form of consumption tax based on individual sales transactions; usually collected at point of sale by the vendor who then remits the tax to the government.

Answer 67

Principle that each branch of government (legislative, executive and judicial) possesses certain powers with regard to the other branches and acts in some ways to constrain the other branches. Checks and balances and judicial review flow from this principle.

Answer 68

A bond issue featuring maturities, every year, over a period of several years. Contrasts with term bonds in which the entire issue matures on the same date or near the same date.

Answer 69

A generic term for a program to measure performance, including the inputs to government programs (such as financial resources, work hours or supplies) and the outputs and outcomes achieved through application of those resources (such as number of students graduated or the number of students moving to the next level).

Answer 70

Usually associated with revenue sharing between the state and local governments. In most instances, shared revenue funds are provided with few constraints so that local entities can use the funds as needed.

Answer 71

Leadership model developed by Ken Blanchard and Paul Hersey. Encourages leaders to diagnose developmental level of employees and vary their leadership style accordingly.

Answer 72

Means"possessed of supreme power." One consequence of federal government sovereignty is that the federal government cannot be sued without its permission.

Answer 73

Special-purpose governments are organized for a single purpose or a few closely related purposes. Examples are school districts and conservation districts.

Answer 74

Principle that government is accountable for safeguarding assets and promoting long-term economic security of citizens.

Answer 75

Principle that taxes should treat taxpayers fairly. When applied to income taxes, horizontal equity means different taxpayers with the same income level pay the same amount of taxes, and vertical equity means taxpayers with different income levels pay different amounts of taxes.

Answer 76

Provision of tax law or regulation that uses tax deductions, tax credits, or income exemptions to encourage certain behavior by individuals or businesses. Called tax expenditure because it achieves, through the tax system, certain political, economic or social goals that the government would otherwise have to expend monies to accomplish.

Answer 77

A block of bonds in which all bonds in the issue mature on the same date or near the same date, usually many years after issuance. Contrasts with serial bonds.

Answer 78

Tax charged on goods purchased from out-of state and used within the state. Tax is levied for the right to use the item in the state. One form of consumption tax.

Answer 79

Fee imposed on the specific beneficiary of a good or service. User fees range from the admission charge for a museum, to tuition at a municipal day-care center.

Answer 80

An indirect tax on consumption that resembles a sales tax, but is paid at each stage in the development, manufacturing or distribution process by the person or organization adding value to the product.

Answer 81

A negotiable monetary instrument issued by a state or local government or the federal government.

Answer 82

Category of taxation that includes real property, personal property, intangibles, estate and inheritance taxes.

CGFM Terms Flashcards

(107 cards)