CDFM 3.1 Flashcards
In which Title of the law is the majority of fiscal law covered?
31
The Budget and Accounting Act of 1921 established what 3 things?
An annual budget
Created the OMB
Established GAO
What type of certifier, certifies Purpose, Time and Amount (PTA)?
Fiduciary
Funds may be obligated and expended only for the purposes authorized by what?
Appropriation acts or other laws
The bona fide need occurs when?
When the order is placed
Do no-year appropriations ever move into the expired account?
No
Who must receive notification before a bill is paid when in the expired phase, if the bill is greater than $25M?
Congress
“Funds must not be made available in excess of or in advance of an appropriation” is in which of the following USC codes?
31 USC 1341
When are Federal employees allowed to keep a travel voucher from an airline if they are bumped from their Government flight?
Federal employee volunteered to be bumped
Continuing Resolution is considered
A Joint Resolution signed by the President
Sequestration refers to
Automatic spending cut of Gov’t programs
An advanced decision for DoD employees can be provided to a certifying official prior to a payment by which of the following
DOD General Counsel
What is the # of the DOD Financial Management Regulations?
7000.14R
What is the first function of finance?
Entitlement
Military members are entitled to __________days of leave per year and can sell back ___ days of leave during their career.
30, 60
Civilians can use up to how many hours of sick leave for the care of a family member each year?
104
Variations Authorized is a statement that is required on all travel orders:
True of False
False
A proper payment package should consist of a copy of what documents?
Purchase order
Contract
Invoice
Receipt
Acceptance Document
Who prescribes the interest rates paid under the Prompt Payment Act?
Treasury
Which method of the disbursement of Government funds is the most preferred method?
EFT
GOALS II is the government wide network by which agencies provide automated _____ reports to the Treasury and OMB.
Financial
DNP (Do Not Pay) initiative is a list of entities or people that should not be paid.
True or False
False
What Act requires the Government receive a claim against it within 6 years?
Barring Act
What type of Federal Accounting reflects Assets and Liabilities?
Proprietary
What 3 Federal organizations have a significant impact on DOD financial management?
OMB, GAO, Treasury
The Director of Defense Contract Audit Agency reports directly to which of the following organizations?
USD (C)
An example of a multi-year appropriation is:
RDT&E
A legal reservation of funds is considered a/an:
Obligation
Resources = the Status of Resources is the accounting equation for which of the following accounting?
Budgetary
Assets = Liabilities plus what?
Net Position
What of the following is considered an Asset account?
Funds Balance with the Treasury
The process of accumulating, measuring, analyzing, interpreting and reporting costs describes what type of accounting?
Managerial
The DoD strategic long-term plan used to produce DoD auditable financial statements is called?
FIAR
There are 3 types of impairment to auditor independence; Personal, External and ?
Organizational
What is an element of auditor professional judgement?
Reasonable Care and Diligence
The DOD Inspector General Office is responsible for which of the following?
investigate and audit
The objective of a financial audit is?
Pre-determined and not defined by the Audit Agency
he 3 phases of an audit are:
Plan, review, report
DoD is seeking to obtain the best audit opinion at the conclusion of its financial audit. Which of the following is it attempting to obtain?
Unmodified
What are the 4 major functions in DoD Finance?
Entitlements, Payments, Collections, Control of Public Funds
What is the primary organization in DoD with the responsibility for Finance requirements?
DFAS - Defense Finance and Accounting Services
What is the acronym for disbursing office identification numbers?
DSSN - Disbursing Station Symbol Number
What three primary types of officials are accountable individuals in the DoD?
Certifying Officers, Disbursing Officers, Departmental Accountable Officials
Debt collection includes collection of debts from what three groups?
Current employees and Military Members, Former Employees and MIlitary Members, Vendors
What is the normal collection method for debts owed by active military members and civilian employees who are still in service?
Salary Offset
When collecting debts owed by vendors that have failed to properly respond to the demand letters, what is the next step?
Do not pay list
When in doubt about the proper use of an appropriations what may the disbursing official request from the OSD General Counsel on the propriety of the prospective payment?
An advance decision
To what, along with accountability, does certification equate?
Liability
Who, besides the disbursing officer, is likely to be held accountable for an improper payment?
The certifying officer
If a civilian employee moves from a job overseas to a job in the states, which organization pays for the Permanent Duty Travel?
The “losing” activity (the OCONUS activity)
Name the supporting documents required in the DoD Payment Package.
Contract, Invoice, Proof of Receipt, Acceptance Document
Name two key forms that provide accountability and control by Disbursing Officers.
SF 1219, Statement of Accountability (monthly)
DD Form 2657, Daily Statement of Accountability
Which individuals hold personal and pecuniary liability for their actions in financial transactions?
Certifying Officers, Disbursing Officers, and Departmental Accountable Officials
How often does the disbursing officer need to inspect and document office security measures?
Semi-annually
The Budget Accounting Act of 1921 established the GAO (legislative branch) to audit financial transactions of which branch of the Government?
Executive
The GPRA requires agencies to define goals, set performance targets m and report what?
Actual performance
Any enforceable agreement between an agency and a business concern for the acquisition of property of services is called what?
A contract
What term is used in SFFAS #4 to describe the process of accumulating, measuring, analyzing, interpreting, and reporting cost?
Managerial Cost Accounting
What term is used to describe Federal Government funds that have been paid but have nit yet been identified to a specific organization?
Undistributed Disbursements
What are the two self-balancing sets of accounts in the U.S. Standard General Ledger (USSGL)?
Budgetary and Proprietary
In proprietary accounting, assets equal liabilities plus what?
Net position
The aggregate amount of an entity’s funds in the Treasury is in what account?
Fund Balance with Treasury
PP&E defines tangible assets with an estimated useful life of more than what number of years?
Two Years
What is the Statement of Budgetary Resources equation?
Budgetary Resources = Status of Budgetary Resources
Which financial statement shows the components of the net cost of the reporting entity’s operation for the period?
Statement of Net Cost
What DoD accounting entity maintains a central general ledger?
The Defense Finance and Accounting Service (DFAS)
Which three federal agencies establish the FASAB?
GAO, OMB, and the Department of Treasury
What is the Federal Law that specifically required existing CFO agencies to have statements that successfully pass a financial audit?
The Government Management Reform Act of 1994
What is the definition of a “successful financial audit”?
Achieving an unmodified audit opinion (An unmodified opinion denotes that the audit was adequate in scope and that the financial statements are present fairly in all material respects and results of operations in conformity with generally accepted accounting principals applied on a consistent basis.)
In which of the four waves of the FIAR process would a DoD entity expect to have an auditable Statement of Budgetary Resources, to include its Fund Balance with Treasury?
Wave 2
Government audits provide essential elements of public accountability and what?
Control
Which standards generally apply to Federal Government audits?
GAO Standards od GAGAS
Who conducts, supervises, monitors and initiates audits and investigations relating to DoD programs and operations?
Department of Defense Inspector General (DoDIG)
Which is the DoD document that provides policy for DoD audit and internal review offices to use for conducting audits of DoD operations, systems, programs, and functions?
DoDIG Audit Handbook
Auditors auditing with personal impairments violate which general standard?
Independence
How many hours of conducting professional education must an auditor complete every 2 years? What is the minimum number of hours that must be completed in any year of the 2 year period?
80 hours in 2 years
20 hours minimum each year
The auditor is restricted access to essential data necessary to satisfy the audit objective. What type of impairment would this be?
External Impairment
Which type of audits are expected to determine whether:
The financial information is presented in accordance with established or stated criteria.
The entity has adhered to specific financial compliance requirements
The entity’s internal control over financial reporting and/or safeguarding of assets is suitably designed and implemented to achieve the control objectives?
Financial Audit
Which types of audits are expected to determine whether:
The entity is acquiring, using, and protecting its resources economically and efficiently
The entity’s programs are achieving the desired results or benefits
The entity is accomplishing its mission in accordance with applicable laws, regulations, and public policies?
Performance Audit
Which audit phase involves gathering evidence and determining materiality and significance of the findings?
Review phase
During which audit phase would the auditor select the most important areas for audit coverage?
Planning Phase
What document includes the audit objectives, findings and (when appropriate) recommendations?
The Audit Report
What should be considered when evaluating the effectiveness of DoD audit organizations?
Audit benefits
What is the name of the GAO Standard that. provides reasonable assurance that the DoD auditors comply with the applicable auditing standards and DoD policies?
Quality Control and Assurance
Inspection of the office security, separate and secure storage of records and equipment, and restricted system access are examples of what kind of controls?
Internal Controls
If auditors are deterred from acting objectively and exercising professional skepticism by pressures, actual or perceived, from management of the entity being audited, what would this be called?
External Impairment
Who is the head of the GAO? Who does this position report to?
The Comptroller General
Congress
What does Article 1 Section 7 of the Constitution state?
Empowers congress to pass bills for the raising of revenue, and delineates how bills will pass from congress to POTUS for signature or veto.
What does Article 1 Section 8 of the Constitution state?
Empowers Congress to collect taxes
What does Article 1 Section 9 of the Constitution state?
Requires appropriations signed into law before money can be spent from the Treasury.
What is the common name for the GAO, ‘Principles of Federal Appropriations of Law’?
The Red Book
What did the Budget act of 1921 require?
POTUS to submit an annual budget
Established OMB
Established GAO
What is 31 USC 1341, 1342, and 1517 known as?
The Antideficiency Act
What type of 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 or Amount?
Pecuniary Certifier
Which US Code states “Appropriations shall be applied only to the object for which the appropriations were made except as otherwise provided by law” (Purpose)
31 USC 1301
What document contains the Necessary Expense Doctrine? “ It is a well-settled rule of statutory construction that where an appropriation is made for a particular object, by implication it confers authority to incur expenses that are necessary or proper or incidental to the proper execution of the object”
6 Comp Gen 619 (March 25, 1927)
What US Code States; “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”? (Time)
31 USC 1502
What rule provides that you will only obligate for the material requirements of the period of fund availability?
The Bona Fide Needs Rule
What type of appropriation can be used for minor construction up to $2M, and purchases of items with investment unit costs of not more than $250K?
O&M
What are the obligation periods of the following Appropriations
Military Personnel
Operations and Maintenance
RDT&E
Procurement
MILCON and SCN
MILPERS 1 year
O&M 1 Year
RDT&E 2 Years
Procurement 3 Years
MILCON and SCN 5 Years
What type of appropriation is the Defense Working Capitol Fund
No Year Appropriation
What can be done with when an appropriation is in the Expired phase?
Adjustments to existing obligations
Not available for new obligations
Available for payments
What can be done with when an appropriation is in the Closed phase?
Not available for obligations or adjustments
Adjustments and payments are charged to currently available appropriations
Appropriation remains only for accounting tracking purposes
What happens in the 5th year after the expiration of an appropriation?
The account is closed and any remaining balances (obligated or unobligated) shall be cancelled and no longer available for any purpose.
What are the canceled/closed phases of the following Appropriations
Military Personnel
Operations and Maintenance
RDT&E
Procurement
MILCON and SCN
Military Personnel 6 Years
Operations and Maintenance 6Years
RDT&E 7 Years
Procurement 8 Years
MILCON and SCN 10 Years
If funds were not available in a closed appropriation and funds are payed out of an available appropriation, then an ADA violation occurs. True or False?
True
What 3 codes form the cornerstone of the Anti-deficiency Act?
31 USC 1341 Obligating or expending in advance or in excess of the approriation
31 USC 1342 Accepting voluntary services for the United States
31 USC 1517 Obligating or expending in excess of the apportionment
True or False. A judgment fund is a permanent indefinite appropriation
True
Can an employee purchase 10 reams of paper with personal funds, and file a claim for reimbursement?
Yes
If an agency receives funds for damages to government property what can be done with the funfds?
What about real property?
The funds must be forwarded to the Treasury
DoD can retain funds for damage to real property
Can Federal Employees retain travel promotional items earned on official travel?
Yes, according to the FY2002 NDAA.
FMR Volume 14 030102 requires what when an ADA violation is discovered
notice of the ADA violation to be sent to higher headquarters within two weeks of discovery
When should an ADA violation preliminary review happen?
Within four months of the initial discovery.
What are the responsibilities of a Certifying Officer
Correctness of facts on the document
Correctness of computations
Legality of payment under the appropriation involved
The CO is NOT responsible for Timeliness
Prior to paying/disbursing Government funds, the paying office must confirm what?
Eligibility to the entitlement
What are some type of “authorizing” documents that become back-up documentation for a disbursement?
Travel Orders
Contract
Purchase request
Training orders
Who approves the use of disbursement forms?
Comptroller General of the United States
Certifying Process
Fiduciary
When:
What:
Who:
Pecuniary
When:
What:
Who:
Fiduciary - Upfront
When: During commitment process
What: Purpose, Time, Amount
Who: Comptroller/Resource Manager
Pecuniary - Backend
When: Prior to payment
What: Proper payment
Who: Departmental Accountable Official, Certifying Officer, and Disbursing Officer
What is a Departmental Accountable Official
Provide source information to a disbursing or certifying officer during the payment process. Held Pecuniary liable. Do not certify documents.
Who has the ability to get an advance decision from the General Counsel of the DoD on the propriety of a payment?
The DO or Certifying Official
A customer can not.
If a military member dies on AD, how long can their family remain in quarters?
365 days
A reservist with no dependents who has been mobilized and assigned Gov quarters is entitled to what?
partial BAH
How many discretionary allotments can a member elect to have?
How many Non-discretionary?
Six
Unlimited
What are types of Premium Pay for Civilians?
Overtime
Night Pay
Holiday Pay
Hazard Pay
Travel Pay is not Premium pay
Can leave donors under the Federal Leave Sharing Program contribute directly to a supervisor?
No
What is the amount of withholding for cash awards to civilian employees?
25%
When are 1099s due to contractors?
When are they due to the IRS?
31 Jan
28 Feb
What is the form number for a Travel Voucher
DD Form 1351-2
Do verbal orders provide a basis for reimbursement?
No
Can non-appropriated fund employees use Invitational Orders?
No
For a Civilian PDS who pays?
The gaining unit. Except from OCONUS to CONUS. OCONUS to Hawaii
When can advance payments to contractors be made?
If;
the contractor gives adequate security
it is in the best interest of National Defense
the advance is no more than the unpaid contract price
What should be included in a proper payment package?
PO or contract
Invoice
Receipt of service/product
Acceptance of the service/product
LOA is not needed
What is the term for acceptance under the Prompt Payment Act when acceptance documents have not been received in a timely manner?
Constructive acceptance
If you receive a bad invoice how long do you have to return it?
7 calendar days
With purchase card invoices when does the 30 days for payment begin?
When the invoice is received.
What are 4 reasons that an invoice payment can be accelerated?
Invoices under $2500
Payments to small businesses
Payments for Emergencies/Disasters
Deployments
Is prompt payment interest due if a late payment occurs as a result of a contract dispute?
What would be the settlement date for a payment by check?
For EFT?
No
Date on check
Date funds hit the payee’s account
Interest rates for late payments are set by whom?
How often are they updated?
Where are they published?
Secretary of the Treasury
Every 6 months
In the Federal Register
What is the identification number that indicates the authority to receive and disburse funds and issue Treasury checks?
Where must this number appear?
DSSN - Disbursing Station Symbol Number
Must appear on all documents and reports processed by the Disbursing Office
DSSNs are assigned by _______ to _______ .
Treasury DFAS
What payment method is required for Federal payments?
EFT
What program electronically transfers money and remittance information through ahe ACH network?
Vendor Express
What is the collection and processing service provided by certain financial institutions called?
General Lockbox Network (GLN)
What form is used to collect receipts into the DO’s accoutability?
DD Form 1131 (Cash Collection Voucher)
Where are reimbursements applied?
To the appropriation used for the work.
What percentage of Military or Civilian member’s pay can be offset to collect a debt?
15%
If a debt is owed by a former Mil or Civ employee, who can the debt be referred to for collection?
The IRS
If a debt is owed and involves fraud or false claims where should the debt be referred?
to the Dept of Justice
What law requires agency’s to refer debt more than 180 days delinquint to the Bureau of Fiscal Services?
The Debt Collection Improvement Act of 1996
Can the same person input both contract and invoice data?
No
What term describes and irregularity in the financial accountability of a DO’s account?
Out of Balance
What is the term for when a check amount is greater than amount reported by the DO, or the amount of the payment voucher?
Check Issue Overdraft
For an undeliverable check, what form credits the funds back to the appropriation originally charged to issue the check?
SF 1098
How long is a US Treasury check payable for?
up to one Year.
Who has the authority to reissue a check?
The Disbursing Officer
Is there a prescribed format for submitting an invoice to DoD?
No
What must be prepared by the DO for each day business is transacted?
DD 2657, Daily Statement of Accountability
What is the monthly form that needs to be prepared by the DO for transactions that occured or didn’t occur?
Who is it submitted to and when is it due?
SF 1219, Statement of Accountability
Must be submitted to Treasury no later than three working days following the end of the month
What are the three accounting systems in the Federal Government?
Budgetary - (Fund Control), Flow and use of funds - Appropriation through Outlay
Propriety - (Financial) Assets, Liabilities, Net Position, Revenue, Expenses - CFO act
Managerial Cost - Cost of doing business to provide goods and services. - Federal Financial Management Improvement Act of 1996
What is Net Position?
The difference between assets and liabilities
What law requires Chief Financial Officers in 24 major Federal Agencies and requires financial reports for business operations
1990 Chief Financial Officers Act
What legislation required a consolidated financial statement for the entire Executive Branch?
Who prepares it?
Who audits it?
1994 Government Management Reform Act (GMRA)
Treasury Dept
GAO
What organization enforces the law, manufactures coins and currency, compiles the consolidated federal financial statements, and publishes the US Standard General Ledger
The US Treasury
What publication feeds to all financial reports and makes the consolidated financial statements possible?
What org produces it?
The US Standard General Ledger
US Treasury
What two Statements of Federal Financial Accounting Standards form the basis of the Federal GAAP (Generally Accepted Accounting Principals)?
What body recommends them?
Statement of Federal Financial Accounting Concept (SFFAC)
Statement of Federal Financial Accounting Standard (SFFAS)
Federal Accounting Standards Advisory Board (FASAB)
What links appropriations to specific budget accounts?
Accounting Classification Codes
What are the objectives of SFAC (Statement of Federal Financial Accounting Concept)?
Budgetary Integrity
Operating Performance
System Control
Stewardship
What is the source implementation for SFFAC NO.2 (Statement of Federal Financial Accounting Concept)?
OMB Circular A-136 Federal Financial Reporting Requirements
What is used to classify all financial transactions as to, assets, liabilities, income, expenses, in order to control summarize and report results?
The General Ledger
Who directs DFAS and DCAA?
USD(C)
What volume of DoD FMR 7000.14R covers Travel?
Administrative Control of funds and ADA violations?
Vol 9
Vol 14
What is a commitment?
and what type of certification is required for one?
An administrative reservation of funds
Fiduciary certification
What type of account holds funds that have been paid, but have not been identified to an organization?
Undistributed disbursements
What is the term for the total cost of the amount paid for an asset, plus transportation, installation and other related costs?
Acquisition Value
For fixed assets, what is the amount expected to be recovered from asset disposal called?
Residual Value
Excess, obsolete, and unserviceable inventory should be valued at what?
Net Residual Value
What is the basis for recording Accounts Payable?
Receiving reports showing quantity received and accepted
What law mandates auditor independence?
The IG act of 1978
What are the four standards for audits?
Auditor Indepence
Auditor Professional Judgement
Auditor Competence
Quality Control and Assurance
True or False
Auditors should exercise reasonable care and diligence
True
Who is responsible for ensuring that staff members collectively have the necessary knowledge, skill, and discipline needed to conduct each audit?
The audit agency
How often must an audit agency have a external peer review?
Once every three years
What organization’s purpose is to conduct, supervise, monitor and initiate audits and investigations related to DoD programs and ops?
DoD IG
Who heads the GAO?
How long is their term?
Comptroller General
15 Years
True or False
Auditors must report illegal acts to external partners?
True
in attestation engagements, who reviews for errors, fraud, illegal acts violations or abuses?
The practitioner
What are the 3 phases of a government audit?
Plan
Review
Report
What is the basic tool used by auditors to organize and control audits?
The audit program
What portion of the audit plan contains the particular aspects of a program to be reviewed, period of time, and locations?
The scope
What is the begins the audit review phase?
Gathering audit evidence
Audit evidence should be both…
Sufficient-quantity
and
Appropriate-quality
Auditors should document their evidence in…
audit documentation aka working papers
True/False
Auditors using client provided data must validate the data
True
True/Flase
The audit report must comply with standards for form, content and distribution
True
