FIN 515 FISCAL LAW EXAM question and answers

Which of the following is a correct statement of Fiscal Law Philosophy: If the law is silent as to whether a purchase can be made, it is probably safe to spend appropriated funds. Expenditure of appropriated funds is proper only when authorized by Congress. If the commander says buy it, don’t worry about Fiscal Law Regulations. Absent a specific prohibition, expending appropriated funds is permitted. 20 points QUE ST ION 2 1. It is July 2010. The contracting officer at Fort Mason is about to award a contract for a computer system that the Post Engineer will use to track work orders and inventory. This $15,000 computer system is readily available within a few days from any of several local vendors. The Post Engineer intends to place the system in a warehouse for which construction will begin in December 2010. The contract cites FY 2010, Operations and Maintenance, Army (OMA) funds. What should you advise the contracting officer? The contracting officer may award the contract citing FY 2010 OMA funds. Obligating funds in July 2010 will not violate the Antideficiency Act. The Post Engineer, however, may not pay for the system until the warehouse is completed. Because the Post Engineer will use the system to perform installation operations, and because the "lead time" exception clearly permits use of FY 2010 funds for the system, the contract award is proper. The contracting officer should not award this contract. To do so would violate the bona fide needs rule. Award now is proper if the installation later obtains Procurement funds to replace the funds obligated for the computer system. None of the above. 20 points QUE ST ION 3 1. If a particular expenditure is not p