Certified Government Financial Manager (CGFM) Practice Exam

Performance accountability in government financial management primarily involves the obligation of governmental entities to ensure that resources are used in a manner that is efficient, effective, and economical. This concept emphasizes responsible management of public funds by assessing the actual outcomes against set objectives, thereby ensuring that government programs achieve their intended results and provide value for the taxpayers' money.

In this context, efficiency relates to the optimal use of resources to achieve desired outcomes; effectiveness refers to the degree to which programs achieve their goals; and economy refers to minimizing costs while maintaining quality. This framework allows for greater scrutiny and improvement of government programs, enhancing public trust and fostering a culture of continuous improvement in service delivery.

While the other options may relate to aspects of government operations, they do not encapsulate the core of performance accountability in the same comprehensive way. Transparency and reporting to citizens are important, but they are more about communication and disclosure rather than the performance measurement and resource management that defines performance accountability. Generating revenue is also crucial but focuses on financial aspects rather than the accountability of performance related to resource use and program outcomes.