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CDFM - MODULE 3 EXAM (4 DIFFERENT SUB MODULE 3.1 - 3.4) QUESTIONS AND ANSWERS VERIFIED 100%CORRECT

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CDFM - MODULE 3 EXAM (4 DIFFERENT SUB MODULE 3.1 - 3.4) QUESTIONS AND ANSWERS VERIFIED 100%CORRECT CDFM MODULE 3.1 _____ is an exception to the Bona Fide Need rule. This authority permits up to five years of severable service in five one-year increments included in a single contract. - ANSWER- Multi-year Service Contracting Authority While the US Code gives the DoD the latitude and authority to obligate the full five years at the time of award, DoD policy, as reflected in the DoD Financial Management Regulation, requires funding _____. - ANSWER- year by year _____ applies to the following situations: Change in quantity; change in mission; change in time period; change in controllable (warranty) - ANSWER- Change in Scope If a contract modification exceeds the general scope of the original contract (example quantity increase) the modification amounts to a ___ ______ and is chargeable to funds current at the time the modification as made. - ANSWER- new obligation When an upward price adjustment is required in a subsequent year, the general approach is to ask whether the adjustment is related to a provision in the original contract. If the ANSWER is yes, (ex. Changes clause) then a within-scope price adjustment, which is requested and approved in a subsequent year, will normally be charged against which appropriation ? - ANSWER- the appropriation current at the time of contract award, even though the appropriation may now be expired. If the appropriation act is enacted prior to the start of the fiscal year for which the appropriation is being made, may contracts be entered into upon enactment and before the start of the fiscal year, provided that no payments or expenditures are made under them until the start of the fiscal year? - ANSWER- Yes, Since an appropriations act has been enacted, no violation of 31 USC 1341 occurs. A violation of 31 USC 1517 would still occur if the obligation was entered into before the receipt of an apportionment or sub apportionment of the appropriation. This clause contained on documents before an appropriation is enacted. The vendor is not to perform on the contract until the appropriation is enacted or it would violate 31 USC 1341. - ANSWER- "Subject to the Availability of Funds" Government can terminate contracts for two reasons - ANSWER- Contractor Default and Convenience When a contract is terminated by default, may the government obligate the same year funds previously obligated for the replacement contract for an amount less, same or greater than the original contract even if the funds are in expired status? - ANSWER- "Yes, provided that 1. the bona fide need still exists; 2. same or lesser scope of work; 3. replacement contract is awarded in a timely manner. A voluntary act on the part of the agency to reduce the scope of a contract or terminate the contract for its own convenience ___ ___ entitle the agency to obligate expired funds to issue a replacement contract. - ANSWER- will not The KO has the authority to terminate a contract an re-award that contract with expired funds IF the KO has determined the original to be ______. - ANSWER- defective 3 types of Appropriation Life - ANSWER- 1. Single Year - expense 2. Multi year - Investment 3. No-year - Continuing Support Name two One Year appropriations - ANSWER- MILPERS and O&M This appropriation is for one year and funds the following: Day to Day Operations, civilian salaries, travel, fuel, Minor Construction up to $1,000,000; purchase of investment items up to $250,000; training, education, and recruiting - ANSWER- O&M This appropriation is for 2 years used for development of equipment, material or computer application software. Developmental Test and Evaluation. Initial Operation Test and Evaluation. Operational costs for R&D dedicated installations. - ANSWER- RDT&E This appropriation is for 3 years and is used to purchase major end items and defense systems; initial issue of spares, all costs necessary to deliver a useful end item intended for operational use or inventory - ANSWER- PROCUREMENT This appropriation is for 5 years and is used to fund: major military construction projects; construction of schools, military facilities and bases - ANSWER- MILCON This appropriation is for one year and is used to fund the following: pay and allowances of active duty and reserves; PCS moves; training in conjunction with PCS, subsistence, bonuses and retired pay accrual. - ANSWER- MILPERS What is the primary no-year appropriation used in DoD ? - ANSWER- Defense Working Capital Fund (DWCF) available without fiscal-year limitations; remain available until fully expended - ANSWER- No Year Appropriations No year appropriations would be closed or cancelled if: - ANSWER- "1. head of the agency or the President determines that the purpose for which the appropriation was made have been carried out 2. No disbursement has been made for two consecutive years" The _________ account is available for new obligations for 1 fiscal year, increase scope on existing obligations, payments, and adjustments. - ANSWER- Current Account (1-5 years) The _______ account is available for payments and adjustments (up to down) to existing obligations made when account was current. Not available for new obligations or increased scope on existing obligations. FY appropriation and line item identity remains to enable charging original obligation fund cite - ANSWER- Expired Account (5 years) The ______ account is no longer available for payments and obligations adjustments. Adjustments and payments are charged to currently available appropriations of the same type, up to lesser than 1% of currently available appropriation or unexpended balance of closed appropriation. FY, appropriation, and line item identity remain only for accounting purposes. - ANSWER- Closed/Cancelled > 10 years

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CDFM - MODULE 3
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CDFM - MODULE 3 EXAM (4 DIFFERENT
SUB MODULE 3.1 - 3.4) QUESTIONS AND
ANSWERS VERIFIED 100%CORRECT

CDFM MODULE 3.1

_____ is an exception to the Bona Fide Need rule. This authority permits up to five
years of severable service in five one-year increments included in a single contract.
- ANSWER- Multi-year Service Contracting Authority

While the US Code gives the DoD the latitude and authority to obligate the full
five years at the time of award, DoD policy, as reflected in the DoD Financial
Management Regulation, requires funding _____. - ANSWER- year by year

_____ applies to the following situations: Change in quantity; change in mission;
change in time period; change in controllable (warranty) - ANSWER- Change in
Scope

If a contract modification exceeds the general scope of the original contract
(example quantity increase) the modification amounts to a ___ ______ and is
chargeable to funds current at the time the modification as made. - ANSWER- new
obligation

When an upward price adjustment is required in a subsequent year, the general
approach is to ask whether the adjustment is related to a provision in the original
contract. If the ANSWER is yes, (ex. Changes clause) then a within-scope price
adjustment, which is requested and approved in a subsequent year, will normally
be charged against which appropriation ? - ANSWER- the appropriation current at
the time of contract award, even though the appropriation may now be expired.

If the appropriation act is enacted prior to the start of the fiscal year for which the
appropriation is being made, may contracts be entered into upon enactment and
before the start of the fiscal year, provided that no payments or expenditures are
made under them until the start of the fiscal year? - ANSWER- Yes, Since an
appropriations act has been enacted, no violation of 31 USC 1341 occurs. A
violation of 31 USC 1517 would still occur if the obligation was entered into
before the receipt of an apportionment or sub apportionment of the appropriation.

,This clause contained on documents before an appropriation is enacted. The vendor
is not to perform on the contract until the appropriation is enacted or it would
violate 31 USC 1341. - ANSWER- "Subject to the Availability of Funds"

Government can terminate contracts for two reasons - ANSWER- Contractor
Default and Convenience

When a contract is terminated by default, may the government obligate the same
year funds previously obligated for the replacement contract for an amount less,
same or greater than the original contract even if the funds are in expired status? -
ANSWER- "Yes, provided that 1. the bona fide need still exists; 2. same or lesser
scope of work; 3. replacement contract is awarded in a timely manner.

A voluntary act on the part of the agency to reduce the scope of a contract or
terminate the contract for its own convenience ___ ___ entitle the agency to
obligate expired funds to issue a replacement contract. - ANSWER- will not

The KO has the authority to terminate a contract an re-award that contract with
expired funds IF the KO has determined the original to be ______. - ANSWER-
defective

3 types of Appropriation Life - ANSWER- 1. Single Year - expense 2. Multi year -
Investment 3. No-year - Continuing Support

Name two One Year appropriations - ANSWER- MILPERS and O&M

This appropriation is for one year and funds the following: Day to Day Operations,
civilian salaries, travel, fuel, Minor Construction up to $1,000,000; purchase of
investment items up to $250,000; training, education, and recruiting - ANSWER-
O&M

This appropriation is for 2 years used for development of equipment, material or
computer application software. Developmental Test and Evaluation. Initial
Operation Test and Evaluation. Operational costs for R&D dedicated installations.
- ANSWER- RDT&E

This appropriation is for 3 years and is used to purchase major end items and
defense systems; initial issue of spares, all costs necessary to deliver a useful end
item intended for operational use or inventory - ANSWER- PROCUREMENT

,This appropriation is for 5 years and is used to fund: major military construction
projects; construction of schools, military facilities and bases - ANSWER-
MILCON

This appropriation is for one year and is used to fund the following: pay and
allowances of active duty and reserves; PCS moves; training in conjunction with
PCS, subsistence, bonuses and retired pay accrual. - ANSWER- MILPERS

What is the primary no-year appropriation used in DoD ? - ANSWER- Defense
Working Capital Fund (DWCF)

available without fiscal-year limitations; remain available until fully expended -
ANSWER- No Year Appropriations

No year appropriations would be closed or cancelled if: - ANSWER- "1. head of
the agency or the President determines that the purpose for which the appropriation
was made have been carried out 2. No disbursement has been made for two
consecutive years"

The _________ account is available for new obligations for 1 fiscal year, increase
scope on existing obligations, payments, and adjustments. - ANSWER- Current
Account (1-5 years)

The _______ account is available for payments and adjustments (up to down)
to
existing obligations made when account was current. Not available for new
obligations or increased scope on existing obligations. FY appropriation and
line item identity remains to enable charging original obligation fund cite -
ANSWER-
Expired Account (5 years)

The ______ account is no longer available for payments and obligations
adjustments. Adjustments and payments are charged to currently available
appropriations of the same type, up to lesser than 1% of currently available
appropriation or unexpended balance of closed appropriation. FY, appropriation,
and line item identity remain only for accounting purposes. - ANSWER-
Closed/Cancelled > 10 years

, Budget Authority will remain on the agency's books for ___ years after an
appropriation enters expired status, at which time all unobligated and un-liquidated
balances will be cancelled and deposited into the Miscellaneous Receipts of the
_______ and are no longer available to the agency for any purpose. 31 USC 1552 -
ANSWER- 5 years, Treasury

At the beginning of the first expired year, the expired unobligated balance is placed
in an account titled, "_________"? - ANSWER- Unobligated Balance: Brought
Forward October 1

31 USC 1553 requires that approval be sought from the head of the agency if
obligations from an expired appropriation during a fiscal year exceed _______ for
any program. - ANSWER- $4 Million

31 USC 1553 requires that approval be sought from the Authorization and
Appropriation Committee if obligations from an expired appropriation during a
fiscal year exceed _______ at the program level. Congress must be given ____
days notice. - ANSWER- $25 Million; 30 days notice

After an appropriation is cancelled, any obligations or adjustments to obligations
may be paid from ______? - ANSWER- current appropriations for the same
purpose as the closed account

A note should be appended to every apportionment that says: "Pursuant to 31 USC
1553(b), not to exceed ______ of the total appropriations for this account is
apportioned for the purpose of paying legitimate obligations related to cancelled
appropriations. - ANSWER- 1%

Prohibits obligating or expending in advance of the appropriation
Make or authorize an expenditure or obligation exceeding an available amount in
an appropriation; or entering into a contract or obligation for payment before an
appropriation is made. - ANSWER- 31 USC 1341

Prohibits accepting voluntary services for the US - ANSWER- 31 USC 1342

Appropriations; Contract Authority; Borrowing Authority; Monetary Credits;
Offsetting Receipts; Loan & Loan Guarantee - ANSWER- Forms of Budget
Authority

Authority in _________ acts and other provisions of law provide authority to incur
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