CDFM All Modules FISCAL LAW

T/F? A working capital (Revolving) fund or part of that fund cannot violate the Anti Deficiency Act? FALSE Agencies are responsible for maintaining a system of accounting and internal controls to avoid violations of the? 31 USC 1341, 1342, and 1517 ADA The 2 provisions of the US Constitution that provide the underpinning for the budget process are? Article 1 Section 8 clause 1, Article 1 Section 9 clause 7 T/F? Article 2 section 8 empowers Congress to collect taxes and Section 9 requires appropriations in law before money can be spent from the Treasury? FALSE The penalty for willfully and knowingly violating the Anti Deficiency Act is? Up to 2 years and a $5,000 fine or both Over obligation of an appropriation or funds and obligations or contracts in advance of an appropriation is a violation of? 31 USC 1341a ________ appropriations is (are) no longer available for adjustments or payments any adjustments will be charged to current same appropriation (1% max)? Cancelled Over-obligations of apportionments, allotments or other subdivision of funds are a violation of? 31 USC 1517 T/F? Not knowingly or willfully committing a violation of the Anti-Deficiency Act does not, by itself, justify a decision to not impose disciplinary action against the individual? TRUE It is the responsibility of the _____ to review and approve the agency systems of administrative control of funds to prevent violations of the Anti-Deficiency Act? OMB Acceptance of voluntary service is a violation of? 31 USC 1342 Prescribe rules and procedures for budget execution. Many of the specific provisions were previously enacted as Section 3679 of the revised statutes also known as the Anti-Deficiency Act? Chapters 13 and 15, 31 USC The Basic substantive legislation enacted by Congress that sets up or continues the legal operation of a Federal program or agency either indefinitely or for a specific time frame or sanctions a particular type of obligation or expenditure within a program is? Authorization T/F? For no year and unexpired multiyear contracts, apportioned recoveries of prior year obligations are available for new obligations? TRUE Is the shift from one purpose or activity to another within the same appropriations? Reprogramming Is the shift from one purpose or activity to another between different appropriations? Transfer The Package that lists all of the reprogramming actions and all sources and increases is the? Omnibus Reprogramming Request The amount of obligational authority transferred from one agency bureau or account that is set aside in a transfer appropriation account to carry out the purpose of the parent appropriation is a (n)? Allocations The issuance of Treasury Warrants are the _____ ______ action taken after the President signs the bill into law? 1st legal The 3 Dimensions of Budget Resource Availability are? Purpose, Time and Amount ______is required for reprogramming that result in increases in procurement quantities of major program end items, changes to Congressional Interest Items in an Authorization Act, movement of funds between appropriations involving General Transfer Authority? Congressional Prior Approval T/F? For expired accounts recoveries of prior year obligations are available for new obligations incurred in current year? FALSE The system that measures and controls the use of the resources according to the purposes for which budget authority was enacted and that records receipts and other collections by source? Budgetary Accounting ______ is (are) the authority provided by Federal law to incur financial obligations that will result in immediate or future outlays. Budget Authority Are the reduction or cancellation of new budget authority; unobligated balances, new loan guarantee commitments or limitations? Sequestration appropriations A footnote to apportionments should specify that, "Pursuant to 31 USC 1553(b) not the exceed 1% of the total appropriations for this account is apportioned for the purpose of paying legitimate obligations related to canceled appropriations" This is called the? One Percent Requirement Is any organizational, functional, programmatic, or other applicable subdivision, used to delineate responsibilities under management control assessment procedures? Assessable Unit The time frame for investigations of potential violations of the Anti deficiency Act, including submission of the final report to the Under Secretary of Defense Comptroller is? 9 months The formal program management control was established in DoD with the? Federal Managers Financial Integrity Act of 1982 T/F? One goal of the Federal Managers Integrity Act is to establish internal controls that make it easier to determine misuse and waste of agency funds or property and to assure the accountability of assets? TRUE Establishes guidelines for reviewing internal controls? Director OMB Evaluates internal controls annually and submits to Congress and the President as a report. The reports are to be available to the public, excluding classified information? Head of each Agency OMB Circular that provides guidance on improving the accountability and effectiveness of Federal programs and operations by using management controls? A-123 Organization, policies, and procedures used to reasonably ensure that certain events take place? Management Controls The ________ environment is the management and employees attempt to establish and maintain an environment throughout the organization that sets a positive and supportive attitude toward internal control and conscientious management? Control Statement on whether there is reasonable assurance that the agency's control are achieving their intended objectives? Statement of Assurance Prescribes rules and procedures under which the President may withhold appropriated funds from obligation? Impoundment Control Act of 1974 A form of budget authority provided by law that permits Federal agencies to incur obligations and make payments out of the Treasury for specified purposes is? Appropriations Governs the congressional budget, defines key budget term and establishes house and senate budget committees and the Congressional Budget Office? Congressional Budget Act of 1974 Is responsible for policy oversight of a particular functional area? DoD Functional Proponent T/F? The Feed and Forage Act authorizes the military departments to incur obligations in excess of available appropriations in procuring or furnishing clothing, subsistence, fuel, quarters medical and hospital supplies not to exceed the necessities of the current fiscal year. TRUE Process that supports accrual accounting and attempts to show actual financial position and results of operations by accounting for assets, liabilities net position revenues and expenses. Proprietary Accounting The reduction or cancellation of new budget authority; unobligated balances, new loan guarantee commitments or limitations. Sequestration The Anti-Deficiency Acts are? 31 USC 1341, 1342, and 1517 A law that extends the availability of unobligated budget authority that has expired is called? Reappropriation The most authoritative source of information on the proper use of appropriated funds is a volume published by the GAO, Office of the General Counsel, titled Principles of Federal Appropriation Law, better known as? Red Book The Sec Def must receive a signed statement of material weaknesses from each principle DoD component by? 15 Nov Three forms that a statement of reasonable assurance must take are? Unqualified, qualified, no assurance A material ______ in DoD system of management controls may result from a lack of an applicable control, or more frequently, an inadequate compliance with existing controls. Weakness Prescribe rules and procedures (including sequestration) designed to constrain spending and receipts legislation. When originally enacted, the act was known ad the Gramm-Rudman-Hollis Act. Balanced Budget and Emergency Deficit Control Act of 1985 The Management Control Program, DoD Instruction _____ states that each DoD component shall develop a Management Control Program? 5010.40 Probable or potentially adverse effects from inadequate management controls that may result in the loss of Government resources or cause an agency to fail to accomplish significant mission objectives through fraud, error, or mismanagement? Risk ________ weakness is one that is recognized by a functional proponent as occurring in several other components because of the components' ineffective implementation or failure to adequately identify or define the internal controls required. Systemic Control A brief, written plan indicating accomplished management control evaluations, assessable units, and progress toward meeting planned requirements is called? Management Control Plan Procedures used to determine through observation, examination, verification, sampling, or other procedures whether management control systems are working as intended (in accordance with management control objectives). Testing Management controls should be implemented by each manager and consistent with the (5) five standards which are: Control Environment, Risk Assessment, Control Activities, Information and Communications, Monitoring Management and employees positive and supportive attitude toward internal control and conscientious management is called? Control Environment Management controls should provide for an assessment of the risks that the agency faces from both external and internal sources. This is called? Risk Assessment Policies, procedures, techniques, and mechanisms that enforce management's directives, such as the process of adhering to requirements for budget development and execution. They help ensure that actions are taken to address risks. Control Activities _______ should assess the quality of performance over time and ensure that the findings of audits and other reviews are promptly resolved. Monitoring Specific aim, goal, condition, or level of control established by a manager for an assessable unit that provides reasonable assurance that the resources allocated to that activity are safeguarded or protected adequately against waste, fraud or mismanagement, and that organizational, operational, or administrative objectives are accomplished. Control Objective Any form of organization procedure or document flow that is being relied on to accomplish a control objective. Control Technique Having some end-of-year money to spend, the Fort Tiefort contracting officer awarded a contract on 15 August 2011 for 50 off-the-shelf computers. The contract price totaled $200,000 and cited FY 2011 O&M funds. The computers were to be used in a warehouse complex that would be completed (i.e., ready for installation of the computers) sometime in November 2011. Any fiscal issues here? On 3 August 2011, the Fort Tiefort contracting officer awarded a contract for 100 computers at a total price of $260,000. The funds certified as available were FY 2011 O&M funds. The computers were to be used in a newly completed warehouse complex. Any fiscal issues here? On 30 August, Fort Tiefort had $170,000 remaining in its O&M allowance. On 2 September, the contracting officer awarded a contract for $170,000 using these funds, but the Defense Accounting Office recorded this obligation as $120,000. As a result, the Directorate of Resource Management believed erroneously that the Fort still had $50,000 left in the O&M allowance. To avoid losing this money, the contracting officer awarded a contract on 20 September obligating $50,000 in O&M. Is there an ADA violation? Who heads the GAO, an investigative arm of Congress charged with examining all matters relating to the receipt and disbursement of public funds? Comptroller General GAO was established by the? Budget and Accounting Act of 1921 Where a particular expenditure is not specifically provided for in the appropriation act, it is permissible if it is necessary and incident to the proper execution of the general purpose of the appropriation. Necessary Expense Doctrine The GAO applies a three-part test to determine whether an expenditure is a "necessary expense" of a particular appropriation: 1. The expenditure must bear a logical relationship to the appropriation sought to be charged. 2. The expenditure must not be prohibited by law 3. The expenditure must not be otherwise provided for; that is, it must not be something that falls within the scope of some other appropriation or statutory funding scheme. What if you have two equally available appropriations to fund an acquisition? I.e., neither appropriation is more specific? The GAO's Election Doctrine states that if two or more appropriations are equally available, then the agency may choose which appropriation to use. Expenses are normally financed with? O&M Are costs that result in the acquisition of, or an addition to, end items. These end items benefit current and future periods and generally are of a long-term character? Investments The Investment/Expense Threshold exception allows the DOD to purchase investment items, not exceeding a certain threshold, with Operations and Maintenance funds. The current threshold is $250,000