Budget Execution - FMF1136 Questions with Correct Solutions Rated A+

Out of the two recommendations that the President makes in the budget request, which one becomes the basis for an Appropriation Act? - Spending recommendations Authorization Act - An act of Congress that establishes or continues individual programs and establishes the rules for how they will operate. Authorizing legislation can recommend the maximum amount to be subsequently appropriated for these programs, as well as military end strength levels and training levels. It does not convey authority to obligate or expend funds Department of Defense (DOD) portion of the President's budget is referred to the Armed Services committees (House Armed Services Committee (HASC) and Senate Armed Services Committee (SASC)). - DOD Appropriations Acts are typically effective for: - One year An "appropriation account" is commonly referred to as an "Appropriation Act."? - false. An appropriation account is commonly referred to as appropriation. An Appropriation Act is a statute that provides budget authority for Federal agencies to incur obligations and to make payments out of the US Treasury in specific amounts for specific purposes and within specified time frames True or False? The "Purpose Statute" specifies that it is a fundamental principle of fiscal law that an appropriation available for a definite period may be obligated only to meet the legitimate needs of the fiscal year for which the appropriation is made. - False. The "Purpose Statute", Section 1301(a) of Title 31 of the United States Code specifies, "Appropriations shall be applied to the objects for which the appropriations were made except as otherwise provided by law." The Marine Corps' operation and maintenance is funded by: - An annual appropriation. The Marine Corps' operation and maintenance is funded by an annual appropriation. Such items as equipment maintenance, civilian personnel pay, travel and transportation, training, consumable supplies, recruiting and advertising, base operation, facility maintenance and minor construction are funded through this appropriation Are supplemental requests part of the regular budget cycle? - No. Supplemental requests are not part of the regular budget cycle or authority; they are considered "out-of-cycle." Put the organizations below in the correct funds flow order. - 1) Congress 2) OMB 3) DOD 4) ASN (FM&C) 5) Responsible offices 6) PAO •After the President has submitted the budget, approval by Congress involves a two-track process for authorization (for legislative statutory changes and a funding outline approved) and appropriation (actual funds approved and any implementation guidance issued). •The authorization bill falls under the jurisdiction of the House and Senate Armed Services Committees, and the appropriation bills fall under the jurisdiction of the Appropriations Committees of both the House and Senate. •Authorizing legislation does not convey authority to obligate or expend funds. Such authority is contained in Appropriation Acts. - •The final phase of the DON budget process entails the execution of appropriations by the DON after the President signs the authorization and appropriation bills. •DON appropriations can be annual (one-year), multi-year, no-year, or combination type accounts. •Certain operations of the DON are financed through the use of revolving funds, trust funds, non-appropriated funds, and management funds - •When an appropriation is not timely, the DON may receive funding through a Continuing Resolution Act, which limits spending to prior year levels, and may include other restrictions. - •When an additional funding need based on an emergency or military contingency arises, DON may receive additional funding through a supplemental appropriation. - •The basic funds flow for DON budget execution involves an apportionment from OMB to OSD, a release of funds from OSD to DON, and an allocation from DON to its PAOs. - Principal Administering Offices (PAOs) perform the primary execution role for implementing the plans detailed in DON budgets - When is the President required to submit the annual budget to the Congress? - The President is required to submit the annual budget to the Congress on the first Monday in February. The details of the budget accompanying the summary are known as: - The details of the budget accompanying the summary, with each specific appropriation and fund broken down into major categories and line items providing program narratives and schedule and financial details, are known collectively as the Justification Exhibits (commonly called the "J books"). The final consolidated authorization bill is signed by the: - The President signs the final consolidated authorization bill. Whose responsibility is it to pass appropriation bills (commonly referred to as "spending bills")? - Congress generally issues 13 appropriation bills, commonly referred to as "spending bills", which fund all Federal government operations. When do appropriations in an Appropriation Act become available for obligation and expenditure? - Appropriations become available for obligation and expenditure at the beginning of the fiscal year designated in the Appropriation Act. The Bona Fide Need Rule refers to the following statutory restriction - The Bona Fide Need Rule refers to the time restriction. It is a fundamental principle of fiscal law that an appropriation available for a definite period may be obligated only to meet the legitimate, or bona fide, needs of the fiscal year for which the appropriation is made. The Navy's research and development is funded by: - Multi-year appropriations finance efforts such as research and development, procurement items including aircraft, ships, and weapons that will enhance the future capability of the DON. The National Defense Sealift Fund program is funded by: - No-year appropriations are available for obligation and expenditure until the funds are exhausted or until the specific purpose for which they were made available has been accomplished. The National Defense Sealift Fund is an example of a no-year appropriation. Supplemental Appropriations are: - Supplemental Appropriations are appropriations enacted subsequent to a regular appropriations act, when the need for funds is too urgent to be postponed until the next regular annual appropriations act. The DON cannot execute appropriated funding until OMB issues: - Appropriated funds cannot be executed without an apportionment of the funds from OMB on the Apportionment and Reapportionment Schedule, also known as Standard Form 132. After they receive the funds from the Office of the Assistant Secretary of the Navy (Financial Management and Comptroller), Responsible Offices (CNO, CMC, CNR) pass the funds to: - Responsible Offices pass the funds to one of the Principal Administering Offices to begin the budget execution process for approved Navy and Marine Corps programs. Unit 2: PAO Role - Initial Phase - Allocation documents issued to a PAO carry no legal responsibilities - Allocation documents issued by FMB normally also pass 31 USC 1517 responsibility to Principal Administering Offices The program or project manager, along with the comptroller, is responsible for ensuring that funds are used effectively and in accordance with authorized purposes. - The program or project manager (PM) is responsible for program or project content, and the execution of funds officially held by the comptroller. The PM, along with the comptroller, is also responsible for ensuring that funds are effectively used and in accordance with authorized purposes.