CDFM MODULE 3 EXAM SCRIPT 2026
COMPREHENSIVE QUESTIONS WITH
DETAILED SOLUTIONS GRADED A+
⩥ Basic Axiom of Fiscal Law. Answer: Expenditure of public funds is
proper only when authorized by Congress, not that public funds may be
expended unless prohibited by Congress 3.1.7
⩥ What gives fiscal authority?. Answer: Constitution
Authorization Acts
Appropriation Acts
General Statutes (i.e. GAO Red Book)
CG Decisions and Courts 3.1.7
⩥ Constitutional Authority to Obligate and Expend Funds. Answer: -
Article 1, Section 7, empowers 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.
-Article 1, Section 8, empowers Congress to collect taxes
-Article 1, Section 9, requires appropriations in law before money may
be spent from the Treasury. 3.1.8
,⩥ The Red Book. Answer: Published by the GAO, information on
proper use of appropriated funds 3.1.8
⩥ 1921 Budget and Accounting Act. Answer: -Established GAO 3.1.8
-Requires President to submit annual budget to Congress for all 3
branches of Government
-Created a budget office for the President (OMB) 3.1.9
⩥ Congressional Budget Act of 1974. Answer: Established House and
Senate budget committees and the Congressional Budget Office (CBO)
3.1.10
⩥ 31 USC 13 and 15. Answer: Contains requirements for use, control,
and accountability of funds 3.1.10
⩥ Fiduciary Certifier. Answer: responsible for using appropriated funds
properly 3.1.12
⩥ Pecuniary Certifier. Answer: responsible for accuracy of disbursement
of funds 3.1.12
⩥ 31 USC 1301. Answer: Purpose of obligation 3.1.13
⩥ 31 USC 1502. Answer: Time of obligation 3.1.13
,⩥ 31 USC 1341, 1342, 1517. Answer: Cornerstone of Anti Deficiency
Act 3.1.29 Amount of obligation 3.1.13
⩥ Annual Authority. Answer: Budgetary resources available for
incurring new obligations for one fiscal year or less 3.1.13
⩥ Multi-year authority. Answer: Budgetary resources available for new
obligations in excess of one fiscal year 3.1.13
⩥ No year authority. Answer: Budgetary resources available for new
obligations for an indefinite period , until the purposes for which they
were provided are carried out. 3.1.13 Account can be closed if purpose
has been fulfilled AND no disbursements have been made for two
consecutive fiscal years. It goes from current to cancelled; it never
expires. 3.1.25
⩥ Amount. Answer: definite authority versus indefinite authority
-definite specifies amount of authority available
-indefinite does not specify - amount is based on other factors 3.1.132
⩥ Purpose. Answer: If you have no money for the purpose, you are
violating the anti deficiency act. We can only use the appropriations for
the purpose authorized by the Congress. 3.1.14
, Necessary Expense Doctrine - 3 tests
-Logical relationship to the appropriation sought to be changed (trash
bags for trash cans)
-Not prohibited by law
-Not funded elsewhere 3.1.17
⩥ Personal use of Appropriations. Answer: Appropriated funds cannot
be used to purchase items that are deemed personal or to promote an
individual, e.g., coins with the picture or name of an individual. 3.1.16
⩥ Command Coins. Answer: Authorized for distinguished citizens,
military officers, and government officials from foreign countries,
prominent federal non-DoD, state and local officials 3.1.18
⩥ Services - Severable versus Non-Severable. Answer: Severable
services are for services that can be completed within one fiscal year
(i.e. maintenance and trash collection)
Non-Severable services cannot be separated into increments that will
provide something useful before the end of the fiscal year, i.e.
overhauling a ship. The government will obligate the entire amount at
the outset. 3.1.20
⩥ Termination for Default. Answer: Expired funds may be used for a
new contract if bona fide need still exists, same or lesser scope,
replacement contract awarded in a timely manner. 3.1.223.1.22
COMPREHENSIVE QUESTIONS WITH
DETAILED SOLUTIONS GRADED A+
⩥ Basic Axiom of Fiscal Law. Answer: Expenditure of public funds is
proper only when authorized by Congress, not that public funds may be
expended unless prohibited by Congress 3.1.7
⩥ What gives fiscal authority?. Answer: Constitution
Authorization Acts
Appropriation Acts
General Statutes (i.e. GAO Red Book)
CG Decisions and Courts 3.1.7
⩥ Constitutional Authority to Obligate and Expend Funds. Answer: -
Article 1, Section 7, empowers 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.
-Article 1, Section 8, empowers Congress to collect taxes
-Article 1, Section 9, requires appropriations in law before money may
be spent from the Treasury. 3.1.8
,⩥ The Red Book. Answer: Published by the GAO, information on
proper use of appropriated funds 3.1.8
⩥ 1921 Budget and Accounting Act. Answer: -Established GAO 3.1.8
-Requires President to submit annual budget to Congress for all 3
branches of Government
-Created a budget office for the President (OMB) 3.1.9
⩥ Congressional Budget Act of 1974. Answer: Established House and
Senate budget committees and the Congressional Budget Office (CBO)
3.1.10
⩥ 31 USC 13 and 15. Answer: Contains requirements for use, control,
and accountability of funds 3.1.10
⩥ Fiduciary Certifier. Answer: responsible for using appropriated funds
properly 3.1.12
⩥ Pecuniary Certifier. Answer: responsible for accuracy of disbursement
of funds 3.1.12
⩥ 31 USC 1301. Answer: Purpose of obligation 3.1.13
⩥ 31 USC 1502. Answer: Time of obligation 3.1.13
,⩥ 31 USC 1341, 1342, 1517. Answer: Cornerstone of Anti Deficiency
Act 3.1.29 Amount of obligation 3.1.13
⩥ Annual Authority. Answer: Budgetary resources available for
incurring new obligations for one fiscal year or less 3.1.13
⩥ Multi-year authority. Answer: Budgetary resources available for new
obligations in excess of one fiscal year 3.1.13
⩥ No year authority. Answer: Budgetary resources available for new
obligations for an indefinite period , until the purposes for which they
were provided are carried out. 3.1.13 Account can be closed if purpose
has been fulfilled AND no disbursements have been made for two
consecutive fiscal years. It goes from current to cancelled; it never
expires. 3.1.25
⩥ Amount. Answer: definite authority versus indefinite authority
-definite specifies amount of authority available
-indefinite does not specify - amount is based on other factors 3.1.132
⩥ Purpose. Answer: If you have no money for the purpose, you are
violating the anti deficiency act. We can only use the appropriations for
the purpose authorized by the Congress. 3.1.14
, Necessary Expense Doctrine - 3 tests
-Logical relationship to the appropriation sought to be changed (trash
bags for trash cans)
-Not prohibited by law
-Not funded elsewhere 3.1.17
⩥ Personal use of Appropriations. Answer: Appropriated funds cannot
be used to purchase items that are deemed personal or to promote an
individual, e.g., coins with the picture or name of an individual. 3.1.16
⩥ Command Coins. Answer: Authorized for distinguished citizens,
military officers, and government officials from foreign countries,
prominent federal non-DoD, state and local officials 3.1.18
⩥ Services - Severable versus Non-Severable. Answer: Severable
services are for services that can be completed within one fiscal year
(i.e. maintenance and trash collection)
Non-Severable services cannot be separated into increments that will
provide something useful before the end of the fiscal year, i.e.
overhauling a ship. The government will obligate the entire amount at
the outset. 3.1.20
⩥ Termination for Default. Answer: Expired funds may be used for a
new contract if bona fide need still exists, same or lesser scope,
replacement contract awarded in a timely manner. 3.1.223.1.22
