Certified Government Financial
Manager (CGFM)
Governmental Accounting, Financial
Reporting and Budgeting
Study Guide
2016 Edition
Pete Rose, CGFM
Wendy M. Payne, CGFM, CPA

Governmental Accounting, Financial Reporting and
Budgeting Study Guide
2016 Edition
The views expressed in this book are those of the authors and not of their
Portions of Codification of Governmental Accounting and Financial Reporting
Standards, copyright by Governmental Accounting Standards Board, 401 Merritt 7,
Norwalk, Connecticut 06856, USA, are reproduced by permission.
Portions of the GASB User Guide, What Else You Should Know About a
Government's Finances, copyright by the Governmental Accounting Standards
Board, 401 Merritt 7, PO Box 5116, Norwalk, CT 06856-5116, are reprinted with
permission. Complete copies of this document are available from the GASB.
Copyright © 2016 by the Association of Government Accountants, 2208 Mount
Vernon Avenue, Alexandria, VA 22301. All rights reserved. Printed in the United
States of America. No part of this publication may be reproduced, stored in a
retrieval system, or transmitted in any way by any means ñ electronic, mechanical,
photocopying, recording or otherwise ñ without prior written permission of the
This publication is proprietary to the Association of Government Accountants
(AGA) and is protected by federal copyright law. This publication may not be
copied in whole or in part by any person, including any AGA chapter, nor may any
portion of this publication be incorporated into another work, or any work created
that is derivative of this publication, without the express written permission of AGA.
Federal law imposes severe civil and criminal penalties for infringement, including
fines of up to $250,000 per violation and imprisonment for a period of up to five
years. No copyright is claimed to material that, by virtue of having been created by
a governmental entity, is in the public domain.

Governmental Accounting, Financial Reporting and
Budgeting Study Guide
2016 Edition
AGA wishes to acknowledge the following people for their valuable suggestions,
comments and/or contribution to this study guide (original and revised editions):
Eric S. Berman, MSA, CPA
Gerry Boaz, CGFM, CPA
Robert W. Bramlett
WA ìBillî Broadus Jr., CGFM, CPA
Jonathan Breul, MPA
Philip T. Calder, CGFM-Retired
Diane L. Dudley, CGFM, CPA
Steven H. Emerson, CGFM, CPA, CGAP, CFE, CITP, CGMA
Richard Fontenrose, CGFM
Carol M. Henn, CGFM
John Herko, MBA, CGFM, CPA (Retired)
Charles Hester, CGFM, CPA, CFE, CFIP
Martin Ives, CGFM-Retired
Robert W. Kilpatrick
Mitch Laine, CGFM, CPA
Mark B. Mitchell, CGFM
Armando M. Mieles, CGFM
Lela Dale Pumphrey, CGFM
Virginia B. Robinson, CGFM, CPA, DABFA
Helena Sims, MA
Harold I. Steinberg, CGFM, CPA
Jon A. Wise, CGFM-Retired, CPA

Governmental Accounting, Financial Reporting and
Budgeting Study Guide
2016 Edition
About this publication and the CGFM program
This study guide has many purposes:
It is a self-study guide for those interested in studying on their own for
Certified Government Financial Manager (CGFM) examination 2:
Governmental Accounting, Financial Reporting and Budgeting.
It serves as the training material used in AGAís CGFM course 2,
Governmental Accounting, Financial Reporting and Budgeting.
It offers a wealth of knowledge and learning for todayís government
financial managers, whether or not they are studying for the CGFM
If you have any feedback on the study guide, please email AGA at
For more information on the CGFM program, please visit the CGFM pages of the
AGA website at www.agacgfm.org/cgfm.
Notes for CGFM candidates:
AGA CGFM study guides and courses are separate from CGFM examinations and
are based on the publicly available examination content outlines.
The AGA study guides are not intended to offer answers to individual examination
questions, but instead provide a general review of the topics covered in the
examination content outlines that dictate the content of the CGFM examinations.
While many CGFM candidates find the study guides to be sufficient preparation for
the CGFM examinations, some may need to go beyond the study guides and
review additional materials. There are reference materials listed at the end of each
study guide and the list of study references on AGAís website
(www.agacgfm.org/cgfm/prepare) provides additional resourcesóthese
publications were used as references by examination question writers.
Whatever preparation method is used, AGA recommends that CGFM candidates
start by reviewing the examinations' content outlines, as well as the list of
acronyms and sample examination questions found on
www.agacgfm.org/cgfm/exams. Candidates can also purchase online practice
exams on this site. The reinforcement quiz questions and end-of-course review
questions found in each study guide are not designed to serve as sample CGFM

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AGA CGFM Study Guide 2: Governmental Accounting, Financial Reporting and Budgeting