Appendix 7: Answers to Reinforcement Quizzes
Answers to Reinforcement Quiz ñ Section I, Chapter 7
1. Which of the following is not normally a function of a financial management
collect accurate, timely, complete, reliable and consistent
support policy decisions
support budget execution
maintain information on citizen inquiries
facilitate preparation of the financial statements
Answer: (d). Such information is not financial in nature.
2. Explain the following components of a financial management system.
funds management
receivables management
payables management
Answer: Funds management consists of budget preparation, budget
formulation, funds allocation, budget execution, and funds control.
Receivables management consists of customer information
maintenance, receivable establishment, debt management, and
collections and offsets.
Payables management consists of payee information maintenance,
payment warehousing, payment execution, and payment confirmation
and follow-up.
Reporting consists of general reporting, external reporting, internal
reporting, and responding to ad hoc queries.
Define ìa single integrated financial management system.î
Answer: The term ìsingle, integrated financial management systemî
means a unified set of financial systems and the financial portions of
mixed systems encompassing the software, hardware, personnel,
processes (manual and automated), procedures, controls, and data
necessary to carry out financial management functions, manage
financial operations of the agency, and report on the agency's financial
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Appendix 7: Answers to Reinforcement Quizzes
Which of the following are the responsibilities of the financial manager in
the implementation of a new financial management system?
establishing an understanding both within and outside the financial
management organization that it is the user of the system and what
that entails
b. developing and strengthening the interface among the system
developer, the procurement activity and the user activities
defining user requirements
d. communicating and monitoring user requirements
ensuring that all functional requirements can be supported by the
new system
all of the above
Answer: (f).
What is COTS and what are the pros and cons of a COTS solution?
Answer: COTS is an acronym for commercial off-the-shelf systems.
There are three important realities of user requirements in COTS
procurements. One is that in all likelihood, no COTS product will exactly
meet the identified requirements. The second is that any COTS product
designed for government will most likely support the accomplishment of
the financial managerís objectives. The third is that the acquisition of a
COTS product will only lead to success if the financial manager is
willing to revise the way his or her financial information is processed in
order to take maximum advantage of the capabilities of the acquired
system (i.e. process redesign). The easiest transitions come about
when the COTS product that causes the least change is procured.
What are key responsibilities of the financial manager in implementing a
new financial management system?
Answer: Requirements definition, training, account cleanup, data
clean-up and conversion, and training.
7. In the System Development Life Cycle process, the step that defines what
the new system must do is called:
a. general design.
b. implementation.
c. detailed design.
d. requirements definition.
Answer: (d). General design and detailed design are the two steps that
define how the system will operate in order to meet the requirements.
Implementation occurs after the system is designed, coding is modified
or completed, and the system is tested for bugs.
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Appendix 7: Answers to Reinforcement Quizzes
8. Enterprise resource planning systems can be characterized as:
a. large-scale integrated systems.
b. systems that are designed to perform a single application for a
single entity.
systems that rethink how an organization operates in order to
improve service and reduce costs.
systems that are obtained from an organization that provides
systems for several entities.
Answer: (c). By definition, an enterprise resource planning system is
more than a large scale integrated system. It typically encompasses
multiple systems, performing multiple applications. And the system can
be operated internally or by an external party.
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Appendix 7: Answers to Reinforcement Quizzes
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AGA CGFM Study Guide 3: Governmental Financial Management and Control