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CDFM - Review for all Modules
Terms in this set (115)
Federal Managers' Financial Integrity Act of 1982 (FMFIA) requires submission of an
Annual Statement of Assurance Report addressing whether there is reasonable assurance an agency's internal controls are achieving their intended objective report on material weaknesses.
The report is due 15 November to OMB and Congress
Government Management Reform Act of 1994 requires
24 CFO executive Branch agencies to submit Audited Financial Statements
What requires the Audited Financial statements to be submitted to OMB and Congress by 15 November?
OMB Circular A-136 (FM Reporting)
GRPA Modernization Act of 2010 requires the head of each Executive Branch agency to submit to OMB and Congress what report and when is it due?
Annual Performance Report
15 February (150 days after end of fiscal year)
Most reports, except APP and APR, are due to OMB when?
Who has the statutory right to seek and obtain an advance decision from the Comptroller General regarding the lawfulness of any payment to be certified and what statute is it under?
Advanced decision authority has been delegated to who?
31 USC 3529
the DoD general Counsel
What are the three duties a certifying officer has for illegal or improper payments?
1. Responsible for existence and correctness of the facts stated in the certificate, voucher, and supporting documentation
2. Responsible for correctness of computations on the voucher
3. Responsible for legality of a proposed payment under the appropriation involved
What are the two liabilities a certifying officer has for illegal or improper payments?
1. Liable for the amount of any illegal or improper payment
2. Liable for the moment an improper payment is made as the result of an erroneous certification
Most of fiscal law is found in what sections of Title 31?
Sections 13 and 15
In fiscal law, what are you allowed to do?
What the law authorizes you to do.
Absence of a law prohibiting you from doing something with your funding does not give you the authority to do it; it must be authorized by law in order for you to obligate funds.
GAO Principles of Federal Appropriations Law is also known as
The Red Book
Two additional principles on top of the GAO Principles of Federal Appropriations Law:
1. Specific over general appropriations
2. Do not do indirectly what you can do directly (careful with misappropriation)
Article I, Section 7
Empowers the Congress to pass bills for the raising of revenue and delineates how bills will pass from Congress to the President
Article I, Section 8, Clause 1
Empowers Congress to collect taxes
Article I, Section 9, Clause 7
Requires appropriations (broad) in law before money may be spend from the Treasury
Budget and Accounting Act of 1921 (3)
1. Annual budget from President to Congress
2. Created a budget office for the President (OMB)
3. Established an oversight org for Congress (GAO)
Who audits the executive branch?
Who is the head of the GAO?
Congressional Budget and Impoundment Act of 1974 (4)
1. Governs congressional budget process
2. Establishes the House and Senate budget committees and the CBO
3. Changed FY from 1 Jul-30 Jun
4. President may withhold appropriated amounts from obligation (Deferral and Rescission)
31 USC 13 and 15
The overarching statutory requirement for the use, control, and accountability of funds are found here
OMB Circular A-11 provides instructions on what?
Provides instructions on preparation, submission, and execution of the budget
Governs all federal agencies
Congressional Balanced Budget and Emergency Deficit Control Act of 1985 is also known as
Congressional Balanced Budget and Emergency Deficit Control Act of 1985 (2)
1. All about trying to balance the budget
Fiduciary Certifier is responsible for
Appropriated funds as to the proper Purpose, Time, and Amount
Usually happens up front
Pecuniary Certifier is responsible for
The accuracy of the disbursement of funds and the repayment of any disbursement made not in accordance with proper Purpose, Time, and Amount
Usually happens at the end
Anti-deficiency Act (ADA) Violation
Violation of Purpose statue may lead to ADA because you have to fix it
There is no relief from an ADA violation
Certifying officers will be held personally liable for erroneous payments resulting from
This happens the second the payment is made
USC for Purpose
31 USC 1301
USC for Time
31 USC 1502
USC for Amount
31 USC 1341/1342/1517
USC 31 is
Money and Finance
Funds may be obligated and expended only for the purposes authorized in appropriations acts or other laws
The period of time during which budgetary resources may be used to incur new obligations is different from the period of time during which the budgetary resources may to incur expenditures
Annual Authority examples
O&M and MILPERS
Multiple Year Authority examples
RDT&E, Procurement, and MILCON
No-Year Authority examples
BRAC and WCF
No year authority doesn't expire
Obligations and expenditures may not exceed the amounts established in law (Ceilings)
Definite authority (3)
1. A specified amount of budgetary authority available
2. "Not to exceed"
3. Most appropriations fall under this type of authority
Indefinite Authority (3)
1. If the law does not specify an amount of budget authority available
2. "Must pays"
3. Anything that is an entitlement
What availability of budgetary resources statute leads to the greatest number of ADA violations?
The Purpose statute
Can you use appropriated funds to purchase items that are deemed personal or to promote an individual (e.g., coins with name of an individual)?
What Act authorizes an agency head to recognize superior performance with awards of cash, time off, or merchandise, and to incur expenses determined necessary to enhance the recognition of the awardee?
Government Employees Incentive Awards Act (5 USC 4503)
Purpose - Necessary expense Doctrine
1. Logical relationship AND
2. Not prohibited by law AND
3. Not funded elsewhere
"The balance of a fixed-term appropriation is available only for payment of expenses properly incurred during the period of availability or to complete contracts properly made within that period" is part of what availability of budgetary resources statute?
31 USC 1502
Time - Bona Fide Needs Rule does not prevent what?
Maintaining a legitimate inventory at reasonable and historical levels (as to avoid disruption of operations)
Agencies normally maintain inventories of common-use items
When does the Bona Fide Needs Rule permit obligation in one fiscal year and delivery in a subsequent fiscal year?
If production lead-time of the material requires obligation in one fiscal year in order for the material to be available for installation in a later fiscal year
When does the Bona Fide need occur?
In the year the order is placed, not when the goods or services are delivered
Supplies should be stocked with a ___ day supply
Services are typically characterized as: (2)
Severable and non-severable
The Government receives something useful immediately upon the expenditure of funds or by the end of the fiscal year
What is the rule for severable contracts?
The Government will obligate for no more than 12 of a severable service using annual appropriations since it will be receiving something useful at the end
Can pass over fiscal years but not longer than 12 months total
Services that cannot be separated into increments that will provide something useful at the end of the fiscal year
Training tends to fall under what type of service?
Change in contract scope is paid for when?
The year the change happens
Permissible Actions (2)
1. "Contracts may be entered into upon enactment and before the start of the fiscal year, provided no payments or expenditures are made under them until the start of the fiscal year"
2. "Subject to Availability" clause - allows final negotiation of contract but prohibits contractor from starting work
Government may obligate same year funds previously obligated for a replacement contract for amount less, same, or greater than originally obligated if (3)
1. Bona fide need still exists
2. Same or lesser scope of work
3. Replacement contract awarded in a timely manner
When may the Government not use funds previously obligated on terminated contracts?
If the funds are expired or cancelled
When can an agency issue a replacement contract using expired funds? (Only exception)
If an agency is directed to terminate the contract by a court, a Board of Contract Appeals, or the GAO, per Comptroller General Decisions
Single year appropriations are also called
Multiyear appropriations are also called
except RDT&E paying for salaries
O&M can pay for minor construction up to
O&M can be used for purchase of items with investment item unit cost of no more than
What color of funds do you normally use for Depot Maintenance?
Operation and Maintenance
Can you use RDT&E for Research and Development dedicated installations, including salaries?
What color of funds do you use to purchase initial issue of spares for research and development items?
What color of funds do you use to purchase an usable end item?
When should a no-year account be closed? (2)
1. Agency head or President determines its purpose has been fulfilled AND
2. No disbursements have been made for two consecutive years
No-year appopriations are available until when?
Until they are fully expended
How long do funds remain in the expired account?
How are adjustments and payments of cancelled funds charged?
They are charged to currently available appropriation of the same type, up to the lesser of 1% of currently available appropriation or the unexpended balance of the closed appropriation
Where does cancelled funding go?
Back to the Treasury
31 USC 1553 requires that approval be sought from the head of the agency (USD(C) was delegated authority) if obligations from an expired appropriation during a fiscal year exceed what amount for any program?
If obligations from an expired appropriation during a fiscal year exceed $25M at the program level, who else must you get approval from?
The authorization and appropriation committees
Congress must be given ____ days notice for obligations from expired funds over $25M.
Who monitors the obligations during an expired phase if approved?
31 USC 1341
You may not obligate or expend in advance or in excess of the appropriation
31 USC 1342
You may not accept voluntary services for the US
31 USC 1517
You may not obligate or expend in excess of the apportionment or reapportionment
the specific statutory authority to incur obligations in anticipation of either receipts or an appropriation of liquidating cash with which to pay the obligations.
The term "collections" includes: (3)
When can an officer or employee of the US Government accept voluntary services exceeding that authorized by law?
Only in emergencies involving the safety of human life or the protection of property
To do this, you have to prove imminent danger
What are the four interpretations and decisions that pertain to 31 USC 1342 (Voluntary Services)?
1. If compensation for a position is fixed by law, the appointee may not serve without compensation.
2. If the level of compensation is discretionary AND the compensation be set at zero, THEN appointment without compensation is permissible
3. A service offered clearly and distinctly as gratuitously with a proper record made does not violate this statute
4. Examples of statutorily authorized gratuitous services: Red Cross, Candy stripers in hospitals, museum volunteers
Voluntary Creditor is
reimbursement if proven work couldn't get done without
Can interns work for free?
Yes, if there is written approval
Can you work for free if you're furloughed?
Accounting systems have to track down to what level?
The apportionment level
31 USC 1514 requires the agency in control of an apportionment to prescribe, by regulation, what system?
What will that system do? (3)
A system of administrative control consistent with accounting procedures prescribed under law.
These procedures (1) restrict obligations or expenditures to the amount apportioned, (2) fix responsibility for obligations or expenditures exceeding apportionment, and (3) provide financial reports on status of funds administered.
Who apportions budget authority to agencies?
An augmentation of an appropriation is considered what?
An unauthorised transfer of funds
"No Money shall be drawn from the Treasury but...
in Consequence of Appropriations made by Law"
What section of what NDAA started to allow Federal employees to retain travel promotional items, such as frequent flyer miles earned while on official travel?
Section 1116 of NDAA FY 2002
ADA Penalties (2)
Administrative discipline (written reprimand, suspension or removal)
Criminal: No more than $5,000, imprisoned for not more than 2 years, or both.
ADA Reporting Requirements
Report suspected ADA violation to Agency head within two weeks
If real violation, OMB, Congress, and Comptroller General reports it to President
Do you still have to report an ADA violation for factors such as a mistake, inadvertent oversight, lack of intent, or the minor nature of the violation?
Yes, you still have to report
An ADA preliminary review should be completed within how many months from the date of initial discovery?
An ADA preliminary review should include what information? (11)
1. Accounting classification of funds involved
2. Name and location of activity where the alleged violation occurred
3. Name and location of the activity issuing the funds authorization
4. Amount of fund authorization or limitation that allegedly was exceeded
5. Amount and nature of the alleged violation
6. Date the alleged violation occurred and date discovered
7. Means of discovery
8. Description of the fact and circumstances of the case
9. Anticipated dates of completion of the investigation and submission of the report
10. Names and work phone numbers for members of the preliminary investigation team
11. Corrective action taken
When does an obligation occur?
Once the contract is signed or a MIPR is accepted
Does the failure to record a valid obligation in the financial/fund records of an agency negate the fact that a valid obligation exists?
No, plus it could lead to an ADA violation
Continuing Resolutions are enacted as what and are under what Act?
Enacted as Joint Resolutions and Temporary Appropriations Acts
Most continuing resolutions contain provisions restricting what?
Sequestration was first included in what Act?
Balanced Budget and Emergency Deficit Control Act of 1985
Four statements about Certifying Officers
1. Their job includes certifying vouchers for payments
2. Has no public funds in their possession
3. Responsible for legality of proposed payments
4. Liable for amount of illegal or improper payments
Factors that do not affect the duty to report an illegal or improper payment (6)
1. A mistake
3. Lack of intent
4. Minor violation
5. Difficult working conditions
6. Lack of personnel
Who can provide a certifying officer, disbursing officer, or agency head when acting as a certifying officer with an advance decision as to the propriety of certifying a payment or making a payment using appropriated funds?
The DoD Defense General Counsel
The DoD General Counsel can provide who (3) an advance decision as to the propriety of certifying a payment or making a payment using appropriated funds?
1. Certifying officer
2. Disbursing officer
3. Agency head acting as certifying officer
Who can grant relief to a certifying officer for an illegal, improper, or incorrect payment or as if the proper circumstances apply?
The Comptroller General (also cannot overrule the determine by DoD)
Who determines if the proper circumstances apply that allow relief from an illegal, improper, or incorrect payment or physical loss?
The Director of DFAS (Delegated to he/she by the Secretary of Defense)
What is budgetary accounting?
The system that measures and controls the use of resources according to the purposes for which budget authority was enacted.
What are budgetary resources?
The forms of authority given to an agency allowing it to incur obligations
41 USC 6301 Feed and Forage Act authorizes the DoD to:
Incur obligations in excess of available appropriations in procuring or furnishing clothing, subsistence, forage, fuel, quarters, transportation, or medical and hospital supplies not to exceed the necessities of the current fiscal year.
41 USC 6301 Feed and Forage Act does not include costs for:
Military construction or military personnel
41 USC 6301 Feed and Forage Act is used during what times?
Time of war
What is proprietary accounting?
A process that supports accrual accounting and financial reporting that attempts to show actual financial position and results of operations
(AKA Financial accounting)
What is a revolving fund?
A fund established to finance a cycle of operations through amounts received by the fund
Can you buy bottle water with government funds in most circumstances?
Sets with similar terms
CDFM Module 3.1 Fiscal Law
Module 3_Fiscal Law
Fiscal Law: Competency Area 1
CDFM 3.1 Fiscal Law
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