CDFM MODULE 3 COMPLETE STUDY GUIDE
WITH SOLVED QUESTIONS
◉ 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.
WITH SOLVED QUESTIONS
◉ 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.
