CDFM Exam Questions And Answers Latest 2023/2024 | Graded A+

What are the three tests that must be met for use of the Necessary Expense doctrine? - Answer Must bear a logical relationship Not prohibited by law Not funded elsewhere (p 3.1.17) Who grants relief of liability to a certifying officer for erroneous or illegal payments in the Department of Defense? - Answer The Defense Finance and Accounting Service (*DFAS*) (p. 3.1.51) What type of budgetary resources remains available for new obligations for more than one fiscal year? - Answer Multi-year authority (p. 3.1.24) What type of Congressional resolution can be thought of as a temporary appropriations act? - Answer Continuing Resolution (*CR*) (p. 3.1.41) What agency apportions funds for a working capital fund? - Answer The Office of Management and Budget (*OMB*) (p. 2.1.71) What is the acronym for disbursing office identification numbers? - Answer Disbursing Station Symbol Numbers (*DSSN*) (p. 3.2.30) What three primary types of officials are accountable Individuals in the DoD? - Answer Certifying Officers (*CO*), Disbursing Officers (*DO*), Departmental Accountable Officials (*DAO*) (p. 2.2.21, 2.2.64) What is the normal collection method for debts owed by active military members and civilian employees who are still in service? - Answer Salary Offset garnishing (p. 3.2.38) When collecting debts owed by vendors that have failed to properly respond to the demand letters, what is the next step? - Answer Do Not Pay List (p. 3.2.40) When in doubt about the proper use of an appropriation, what may the disbursing officer request form the OSD General Counsel on the propriety of the prospective payment? - Answer An Advance Decision (p. 3.2.12) When a civilian employee moves from a job overseas to a job in the states, which organization pays for the Permanent Duty Travel? - Answer The "*losing*" activity (the *OCONUS* activity) (p. 3.2.22) Name the supporting documents required in the DoD Payment Package? - Answer Contract Invoice Proof of Receipt Acceptance Document (p. 3.2.24) Name two key forms that provide accountability and control by Disbursing Officers? - Answer Standard Form *1219*, Statement of Accountability (monthly) DD Form *2657*, Daily Statement of Accountability (p. 3.2.44) What term is used to describe Federal Government funds that have been paid but have not yet been identified to a specific organization? - Answer Undistributed Disbursement (p. 3.3.39) The aggregate amount of an entity's funds in the Treasury is in what account? - Answer Fund Balance with Treasury (p. 3.3.39) Which three Federal agencies established the FASAB? - Answer The Government Accountability Office (*GAO*), the Department of Treasury, and the Office of Management and Budget (*OMB*) (p. 3.3.13) What is the Federal law that specifically required existing CFO agencies to have financial statements that successfully pass a financial audit? - Answer The Government Management Reform Act of 1994 (p. 3.4.5) Which standards generally apply to all Federal Government audits? - Answer GAO Standards or GAGAS (p. 3.4.10) How many hours of continuing professional education must an auditor complete every 2 years? - Answer 80 hours in 2 years (p. 3.4.14) What is the minimum number of hours that must be completed in any year of the 2- year period? - Answer 20 hours minimum each year (p. 3.4.14) The auditor is restricted access to essential data necessary to satisfy the audit objective. What type of impairment would this be? - Answer External Impairment (p. 3.4.12) Which type of audit is expected to determine whether: - The financial information is presented in accordance with established stated criteria; - The entity has adhered to specific financial compliance requirements; and - The entity's internal control structure over financial reporting and/or safeguarding of assets is suitably designed and implemented to achieve the control objective? - Answer Financial Audit (p. 3.4.22) Which type of audit is expected to determine whether: - The entity is acquiring, using, and protecting its resources economically and efficiently; - The entity's programs are achieving the desired results or benefits; and - The entity is accomplishing its mission in accordance with applicable laws, regulations, and public policies. - Answer Performance Audit (p. 3.4.22) What does Title 31 do? - Answer Provides statutory authority for the use, control, and accountability of public funds. The established rule is that the expenditure of public funds is proper only when authorized by Congress, not that public funds may be expended unless prohibited by Congress. - Answer Basic Axiom of Fiscal Law What are the sources of Fiscal Law? - Answer - The Constitution - Authorization Acts - Appropriation Acts - General Statutes - CG Decisions & Courts Which part of the constitution empowers the Congress to pass bills for the raising of revenue, and delineates how bills will pass from the Congress to the President for signature or veto? - Answer Article 1, Section 7 Which part of the constitution empowers Congress to collect taxes? - Answer Article 1, Section 8, Clause 1 Which part of the constitution requires appropriations in law before money may be spent from the Treasury? The term appropriation applies broadly to any law that permits a Government employee to spend money, not just to the regular appropriation bill. - Answer Article 1, Section 9, Clause 7 CDFM - Module 3 Questions And Answers What did the Budget and Accounting Act of *1921* provide? - Answer - Required the President to submit an annual budget to Congress for all three branches of the Federal Government - Created a budget office for the President (chgd to OBM in 1970) - Established the General Accounting Office (now called the Government Accountability Office) This law: - Governs the congressional budget process - Defines some key budget terms, such as budget authority, that are used in all phases of the budget process - Establishes the House and Senate Budget committees and the Congressional Budget Office (CBO) - Answer P.L. 93-344 and P.L. 100-119 Congressionl Budget Act of *1974* This law prescribes rules and procedures designed to constrain spending and receipts legislation. - Answer P.L. 99-177 Congressional Balanced Budget and Emergency Deficit Control Act of *1985* These sections prescribe rules and procedures for budget execution. The overarching statutory requirement for the use, control and accountability of funds are found here. - Answer 31 USC 13 and 15 Responsible for use of appropriated funds as to the proper Purpose, Time and Amount and for those US Codes pertaining thereto. - Answer Fiduciary Certifier Responsible for the accuracy of the disbursement of funds. - Answer Pecuniary Certifier (True/False) There is relief from ADA violations in certain circumstances. - Answer False Disbursing officers, cashiers, and collecting officers all have pecuniary responsibility for the monies entrusted to their case and will be held ____ ____ for any loss or theft of these funds. - Answer personally liable (True/False) Relief can be granted for either a loss of cash or miscertification when certain conditions are met. - Answer True What are the 3 dimensions of the availability of budgetary resources? - Answer Purpose / Time / Amount Funds may be obligated and expended only for the *purposes* authorized in appropriations acts or other laws. - Answer Purpose The period of *time* during which budgetary resources may be used incur new obligations is different from the period of time during which the budgetary resources may be used to incur expenditures. - Answer Time CDFM - Module 3 Questions And Answers Obligations and expenditures may not exceed the *amounts* established in law. Examples are interest on the debt, Federal retirement, social security, and the judgement fund. - Answer Amount Appropriations control by purpose are part of what? - Answer 31 USC 1301 - Appropriations shall be applied only to the objects for which the appropriations were made except as otherwise provided by law. The various purposes for which funds are authorized are found in general and specific authorization bills passed by ____ and codified in the statues. - Answer Congress The _______ authorizes an agency head to recognize superior performance with awards of cash, time off, or merchandise, and to incur expenses determined necessary to enhance the recognition of the awardee. - Answer Government Employee Incentive Awards Act (5 USC 4503) What are the 3 test for necessary expense doctrine? - Answer - Logical Relationship - Not Prohibited by Law - Not Funded for Elsewhere Where is the necessary expense doctrine defined? - Answer 6 Comp. 619 (March 25, 1927) Appropriations control by Time are part of what? - Answer 31 USC 1502 - The balance of a fixed-term appropriation is available only for payment of expenses properly incurred during the period of availability or to complete contracts properly made within that period. What are the 2 basic uses of appropriations? - Answer Obligations and Expenditures ___ are legal reservations for which payments, or expenditures, will be made in the future. - Answer Obligations ___ are the cash payments made to liquidate an obligation. - Answer Expenditures A violation of the time code will results in? - Answer ADA What is the Bona Fide Needs Rules? - Answer a Test to determine when to obligate and for how much consumption or effort the obligation should cover. When an agency maintains inventories of commonly used items, does the Bona Fide Needs Rule prevent maintaining legitimate inventories at reasonable levels? - Answer No CDFM - Module 3 Questions And Answers Does the Bona Fide Needs Rules permit an obligation in one fiscal year and delivery in a subsequent fiscal year even when the production lead-time of the materials requires obligation in one fiscal year in order for the material to be available for installation in a later fiscal year. - Answer Yes The bona fide needs occurs in which year (when the order is placed or when the goods and services are delivered)? - Answer When the order is placed ___ services are those for which the the Government receives something useful immediately upon the expenditure of funds or by the end of the fiscal year, e.g. routine maintenance, housekeeping services, and trash collection. - Answer Severables ___ services are those that cannot be separated into increments that will provide something useful at the end of the fiscal year, e.g. overhaul of a ship that takes two or more years or development of a software program that will result in a definite end product after more than one year of work. - Answer Non-severable Severable services are paid... - Answer month to month The qualification to the rules on severable services is that the *12*-month contract can cross fiscal years as long as it is for no more than ___ months. - Answer 12 What reference indicates the qualifications of a 12-month severable contract? - Answer 10 USC 2410(a) Training that begins in the following year can be charged to the current year if the Government must make: - Answer 1) a payment or deposit in the current year 2) the scheduling is beyond the Governments control 3) the time between obligation and performance is not excessive What is an important exception to the Bona Fide Needs Rules? - Answer Multi-year service contracting authority The multi-year service contract authority permits the contracting up to how many years? - Answer 5, one year increments What 2 situations cause a change in contract scope? - Answer Out-of-Scope In-Scope What happens if a contract modification exceeds the general scope of the original contract? - Answer the modification amounts to a new obligation and is chargeable to funds current at the time the modification is made. When an upward price adjustment is required in a subsequent year, if the answer to the question is yes, - Answer then a with-in scope price adjustment, which is requested and approved in a subsequent year will normally be charged against the CDFM - Module 3 Questions And Answers appropriation current at the time the contract was awarded, even though the appropriation may now be expired When do agencies have to reimburse the Judgement Fund (current year funds used)? - Answer 1) Contract Disputes 2) No fear act 3) EEO Settlements & Claims What is it called when it becomes necessary to terminate a contract because the contractor defaults? - Answer Contractor Default What is it called when an agency voluntarily acts to reduce the scope of a contract or termination of the contract for its own convenience will not entitle the agency to obligate expired funds to issue a replacement contract. - Answer Convenience of the Government Government may obligate same year funds previously obligated for a replacement contract for amounts less, same or greater than originally obligated if: - Answer - bona fide need still exists - same or lesser scope of work - replacement contract awarded in a timely manner What are the types of appropriation lifes? - Answer - Single Year - Multi-Year - No Year Military Personnel (MILPERS) has a ____ expense appropriation type. - Answer 1 year Research, Development, Test & Evaluation (RDT&E) has a ____ expense appropriation type. - Answer 2 years Operation & Maintenance (O&M) has a ___ expense appropriation type and up to ____ amount limitation. - Answer 1 year; minor construction up to $1,000,000 or unit cost of $250k Shipbuilding and Conversion, Navy (SCN) has a ___ expense appropriation type - Answer 5 years No-Year Appropriations are covered by? - Answer 31 USC 1555 - Agency head or President determines its purpose has been fulfilled, and no disbursements have been made for two consecutive fiscal years In the Appropriation Life Cycle, the adjustments and payments are charged to currently available appropriation of same type, up to lesser of ___% of currently available appropriation or unexpended balance balance of closed appropriation - Answer 1% CDFM - Module 3 Questions And Answers At the end of ___ after the expiration of the appropriation year, all unliquidated obligations and expired budget authority are cancelled and deposited into the Misc Receipts of the Treasury and what is the reference? - Answer 5th year; 31 USC 1552 What requires that approval be sought from the head of the agency if obligations from an expired appropriation during a fiscal year exceed $4 million for any program? - Answer 31 USC 1553 31 USC 1553 requires that approval be sought from the Authorization and Appropriation committees if obligations from an expired appropriation during a fiscal year exceed ___ at the program level. The Congress must be given ___ days notice. - Answer $25 million; 30 days After an appropriation is cancelled, what happens with any outstanding obligations? - Answer any obligations or adjustments to obligations would have been properly chargeable to that appropriation may be paid from the unexpired appropriation that is available for obligation for the same purpose as the closed account. What is the 1% requirement? - Answer Pursuant to 31 USC 1553(b), not to exceed 1% of the total appropriations for this account, is apportioned for the purpose of paying legitimate obligations related to cancelled appropriations. DCAA has to audit prior to closeout. On April 3, 2012, an agency receives an invoice properly invoiced that obligates in 2005 using their 2005 rate appropriation from which account? a) FY2005 Rate b) Any c) 2012 d) Either 2011 or 2012 - Answer d) Either 2011 or 2012 Obligating or expending in advance or in excess of the appropriation is covered by - Answer 31 USC 1341 Accepting voluntary services for the United States is covered by - Answer 31 USC 1342 Obligating or expending in excess of the apportionment or reapportionment or obligating or expending in excess of an administrative subdivision of an apportionment to the extent provided in the agency's fund control regulations prescribed under Section 1514 is covered by - Answer 31 USC 1517 Appropriation control by amount are part of what? - Answer 31 USC 1341 - Obligating or expending in advance or in excess of the appropriation 31 USC 1342 - Accepting voluntary services for the United States 31 USC 1517 - Obligating or expending in excess of the apportionment or reapportionment or obligating or expending in excess of an administrative CDFM - Module 3 Questions And Answers subdivision of an apportionment to the extent provided in the agency's fund control regulations prescribed under Section 1514 What are the key provisions of the ADA 31 USC 1341 - Answer - Make or authorize an expenditure or obligation exceeding an amount available in an appropriation or fund for the expenditure or obligation - Involve either Government in a contract or obligation for the payment of money before an appropriation is made unless authorized by law Authority in appropriations acts and other provisions of law provide authority to incur new obligations - Answer Appropriations An authorization for an agency to pledge to pay a part or all the loan principal and interest to a lender in the event of default by a third party borrower. - Answer Loan and Loan Guarantee Authority The Concept of Earmarking includes: - Answer - Not to Exceed (ceilings) - Not Less Than (floors) - Exclusively for (fences) What is the exception of 31 USC 1342 - Voluntary Services law? - Answer for emergencies involving the safety of human life or the protection of property What are some of the interpretations and decisions pertaining to the Voluntary Services law? - Answer - If the compensation for a position is fixed by law, then an appointee may not agree to service without compensation - If the level of compensation is discretionary AND the compensation can be set at zero, THEN an appointment without compensation is permissible - Example of statutorily authorized gratuitous services are (red cross, candy stripers, & museum volunteers) What does section 1514 require? - Answer agency in control of an apportionment to prescribe, by regulation, a system of administrative control consistent with accounting procedures prescribed under law. What is the funding flow? - Answer Appropriation Apportionment Allotment Commitment (Certify) Obligation Outlay (Payment) What 3 statues cover the concept of augmentation? - Answer - 31 USC 3302(b) The miscellaneous receipts statute - 31 USC 1301(a) the purpose statute - 18 USC 209 Employee Compensation Prohibition from outside sources When can the agency accept gifts? - Answer May accept contributions of - money or real property from any person, foreign Government, or international organization - services, supplies, real property, or the use of real property under a mutual defense or similar agreement CDFM - Module 3 Questions And Answers What is a recent change to what an employee can accept as a gift? - Answer Employees can retain travel promotional items, such as frequent flyer miles earned while on official travel. What are the ADA Penalties - Answer Administrative - up to and including, when circumstances warrant, suspension from duty without pay or removal from office Criminal - *$5k fine, 2 years imprisonment, or both* ADA requires the reporting of an incident with how many days? - Answer 10 days of discovery The ADA preliminary review should be completed with how many weeks from the date of the initial discovery. - Answer 14 weeks Is there any relief from ADA? - Answer In view of the explicit provisions of 31 USC 1351, it has been held that there is no private right of action for declaratory, mandatory, or injunctive relief under the Anti-deficiency Act. A legal liability of the Government for the payment of appropriated funds for goods and services ordered or received. - Answer An Obligation What are the recording principles? - Answer - must have an Obligation - over/under-recording of an obligations are equally improper - recording only evidences the obligation but does not create it Will recording of an obligation make it an legally binding obligation? - Answer Not under statutory authority of 31 USC 1501 An appropriation act that permits an agency to continue operations of the previous year at a specific level of funding for a specific period of time. - Answer Continuing Resolution (*CR*) What are the statutory exceptions permitting employees to conduct operations? - Answer involving safety of life and protection of property (e.g. air traffic controllers) When funds were provided to begin a program or project in the middle of a fiscal year, you need to what? - Answer annualize the funds to determine the current rate. If $1 billian was provided in an R&D appropriation last year and $750 million was obligated as of the end of the prior fiscal year, the amount of the appropriation under the continuing resolution would be? - Answer $750 million Most continuing resolutions contain provisions restricting what? - Answer new starts Who is an Accountable Individual? - Answer Departmental Accountable Official (*DAO*) CDFM - Module 3 Questions And Answers Certifying Officer (*CO*) Disbursing Officer (*DO*) Others An ___ is any Government officer or employee who, by the reason of his or her employment, is responsible for or has custody of Government funds. - Answer accountable individual A ___ is a Government officer or employee whose job is or includes certifying vouchers for payment and has no public funds in his/her possession. - Answer certifying officer A certifying officer has the statutory right (31 USC___) to seek and obtain an advance decision from the Comptroller General regarding the lawfulness of any payment. - Answer 3529 For DoD, the advance decision authority has been delegated to who? - Answer DoD General Counsel Relief of Accountable Individual is covered by 31 USC ___ & ___ - Answer 3527 & 3528 What does the relief in 31 USC 3527 & 3528 cover? - Answer Physical Loss Illegal, Incorrect, or Improper Payments Relief from Physical Loss includes - Answer - SECDEF determines that the official was carrying out official duties when the loss occurred - The loss was not the results of an illegal, improper, or incorrect payment - The loss was not the result of fault or negligence of the official Relief from Illegal, Incorrect, or Improper Payment includes - Answer - Payment was not the result of bad faith or lack of reasonable care - The certification or payment was based on official records - No law specifically prohibited the payment - The US Government received value for the payment What happens if the SECDEF determines that all the ADA relief criteria has been met? - Answer The Comptroller General must grant relief and cannot overrule the determination by DoD What is the Statute of Limitations for ADA? - Answer 3 years for errors No time limit for fraud ___ is an existing condition, situation, or set of circumstances involving uncertainty as to possible gain or loss to an entity that will ultimately be resolved when one or more future events occur or fail to occur. - Answer Contingency CDFM - Module 3 Questions And Answers ___ permits an agency to obligate funds in advance of appropriations. - Answer Contract Authority ___ is the dollar amount of appropriations used to fund goods and services received or benefits or grants provided. - Answer Expended Appropriations Expenditures = - Answer Outlays Outflows or other using up of assets or incurrences of liabilities during a period from providing goods, rending services, or carrying out other activities related to an entity's programs and missions, the benefit from which do not extend beyond the present operating period. - Answer Expense ___ are ___ accounts in which the balances are no longer available for incurring new obligations because the time available for incurring such obligations has expired - Answer Expired Appropriations / appropriation ___ are the net amount of obligations in a given account for which payment has not yet been made. - Answer Obligated Balances The ___ authorizes the DoD to incur obligations in excess of available appropriations in procuring or furnishing clothing, subsistence, forage, fuel, quarters, transportation, or medical and hospital supplies not to exceed the necessities of the current fiscal year. - Answer Feed and Forage Act (41 USC 6301) DFAS stands for - Answer Defense Finance and Accounting Service SECDEF has designated ___ as the principal agency responsible for DoD finance. - Answer DFAS Entitlement regulations can be found in - Answer FMR Volumes 7, 8, 9, & 10 Payment regulations can be found in - Answer FMR Volume 5, Chapter 11 Collection regulations can be found in - Answer FMR Volume 5, Chapter 10 Control of Public Fund regulations can be found in - Answer FMR Volume 5, Chapter