FISCAL LAW PRACTICE EXAM 2025/2026 QUESTIONS WITH
ANSWERS GRADED A+
✔✔Investment items that would normally be funded with procurement can be funded
with O &M if - ✔✔Less than $350K
✔✔What is a system? - ✔✔A system is a combination of related parts organized into a
complex whole that work together
✔✔If investment items are used in a system added together to exceed the
expense/investment threshold you must use what funds? - ✔✔Procurement funds
✔✔Use O&M funds (regarding expenses and investments) when - ✔✔For expenses
regardless of cost
Investment items less than $350K
✔✔Use procurement funds (regarding expenses and investments) when -
✔✔Investment items over $350K
✔✔RTD&E items use what funds - ✔✔Both procurement and O&M funds
✔✔Time - Bona Fide Need do not obligate funds - ✔✔Before the appropriation
✔✔Appropriations are expired for how long before they close or cancel? - ✔✔5 years
expired
✔✔Bona Fide Need Rule - ✔✔A fiscal year appropriation may be obligated only to meet
a legitimate, or bona fide, need arising in, or in some cases arising prior to but
continuing to exist in, the fiscal year for which the appropriation was made.
✔✔What must you determine you are buying in regards to Bona Fide need? -
✔✔Supply or service
✔✔Bona Fide need - supply - ✔✔Procure when government will actually use or
consume the item
✔✔What are the exceptions to Bona Fide need regarding supplies - ✔✔Long lead time
Stick level exception
✔✔What is the Bona Fide need rule for services - ✔✔The Bona Fide need does not
exist for services until services are rendered you must use funding for year they are
rendered
ANSWERS GRADED A+
✔✔Investment items that would normally be funded with procurement can be funded
with O &M if - ✔✔Less than $350K
✔✔What is a system? - ✔✔A system is a combination of related parts organized into a
complex whole that work together
✔✔If investment items are used in a system added together to exceed the
expense/investment threshold you must use what funds? - ✔✔Procurement funds
✔✔Use O&M funds (regarding expenses and investments) when - ✔✔For expenses
regardless of cost
Investment items less than $350K
✔✔Use procurement funds (regarding expenses and investments) when -
✔✔Investment items over $350K
✔✔RTD&E items use what funds - ✔✔Both procurement and O&M funds
✔✔Time - Bona Fide Need do not obligate funds - ✔✔Before the appropriation
✔✔Appropriations are expired for how long before they close or cancel? - ✔✔5 years
expired
✔✔Bona Fide Need Rule - ✔✔A fiscal year appropriation may be obligated only to meet
a legitimate, or bona fide, need arising in, or in some cases arising prior to but
continuing to exist in, the fiscal year for which the appropriation was made.
✔✔What must you determine you are buying in regards to Bona Fide need? -
✔✔Supply or service
✔✔Bona Fide need - supply - ✔✔Procure when government will actually use or
consume the item
✔✔What are the exceptions to Bona Fide need regarding supplies - ✔✔Long lead time
Stick level exception
✔✔What is the Bona Fide need rule for services - ✔✔The Bona Fide need does not
exist for services until services are rendered you must use funding for year they are
rendered
