3072 Financial Fundamentals for Contracting Professionals

Question 1

The appropriation and authorizations process is a two-step sequential process governed by ___________

Answer 1

Congress, House and Senate rules

Question 2

Authorizing Legislation establishes what?

Answer 2

What you can buy with the money allocated

Establish, continue or modify an agency or program for a fixed or indefinite period of time

Authorizes the enactment of appropriations for an agency or program

Question 3

An Appropriation Act does what?

Answer 3

Provides budgetary authority for a particular purpose

Allows federal agencies to incur obligations and authorize payments from the Treasury.

(Done on an Annual Fiscal Year (FY) Basis)

Question 4

What are the 5 “colors” of money and how long can they be obligated?

Answer 4

Procurement Monies – 3 years

Research, Development, Test and Evaluation (RDT&E) – 2 years

Operations & Maintenance – 1 year

Military Personnel – 1 year

Military Construction – 5 years

Question 5

What does the Anti-Deficiency Act prohibit?

Answer 5

Never exceed the amount listed on the purchase request when you award a contract

Question 6

What does the Bona Fide Need Rule prohibit?

Answer 6

Example: Using 2002 monies to procure 2003 products or services

Question 7

What does the Misappropriation Act Prohibit?

Answer 7

Using the wrong “color” of money ie using R&D funds on Procurement