CGFM study guide
CGFM · Work through your exam, one topic at a time.
The Certified Government Financial Manager (CGFM) is a professional credential for people who work in public-sector finance. It is administered by the Association of Government Accountants (AGA) and is built around three separate examinations, one for each domain the credential covers: Examination One - Governmental Environment; Examination Two - Governmental Accounting, Financial Reporting and Budgeting; and Examination Three - Governmental Financial Management and Control. The credential suits accountants, auditors, budget and program analysts, grant and contract specialists, and financial managers working in federal, state, and local government, as well as private-sector consultants and CPA firm staff who serve public-sector clients. Candidates pass all three exams and also satisfy AGA's education and experience requirements. Topics on this exam: Governmental Environment, Governmental Accounting, Financial Reporting and Budgeting, and Governmental Financial Management and Control. The CGFM study guide has 3 sections and about 1,410 words.
01Governmental Environment
Governments are creatures of constitutions, not of markets. Constitution creates a federal system: enumerated federal powers (to tax, spend, regulate interstate commerce, declare war) and powers reserved to the states under the Tenth Amendment. Police power - authority to protect health, safety, and welfare - resides with the states, which may delegate it to local governments. Local authority flows from state law: Dillon's Rule (a local government has only powers expressly granted, implied, or essential to its purpose) versus home rule (broader local autonomy).
343 words, about 2 min02Governmental Accounting, Financial Reporting and Budgeting
Governments use fund accounting because legal restrictions - earmarking, debt covenants, grant terms - require separate accountability. GASB defines three fund categories and eleven fund types: Governmental - general, special revenue, debt service, capital projects, permanent. Measurement focus: current financial resources; basis: modified accrual . Proprietary - enterprise and internal service.
678 words, about 3 min03Governmental Financial Management and Control
The GAO Green Book ( Standards for Internal Control in the Federal Government ) sets five components - control environment, risk assessment, control activities, information and communication, monitoring - supported by 17 principles; COSO is the private-sector analogue. Control activities include segregation of duties, authorization, reconciliation, physical safeguards, and system access. Distinguish preventive from detective controls, and know the deficiency hierarchy: deficiency, significant deficiency , material weakness . The Yellow Book (GAGAS) governs government audits - financial, attestation, and performance audits - with independence, continuing education, and quality-control requirements.
389 words, about 2 min