CDFM Module 1.1._1.2 Flashcards
Congress. Gov website
How lawss are made, who senators are
US Fiscal laws are under what title?
Title 31 Money and Finance
OMB Circular A-76
Commercial Activities (contracting out)
OMB Circular A-94
Discount Rates
OMB Circular A-123
Internal Controls
OMB Circular A-136
Financial Statements, Accounting and authority
Date of first congress and constitution took effect
March 4 1789.
Date of Articles of confederation
March 1 1781, ratified by all 13 states
Separatation of power established by…
Articles of Confederation
Constitution ratified by how many states
9 states
Essential principle of the constitution
Government must be confined by rule of law
Article 1 of constitution
Congress and the legislative branch
President of the senate
Vice President but has no vote unless a tie
All bills USUALLY originate in…This is the ____ clause in article ____ section ____
House of representatives (origination clause), but Senate can sometimes. Artilcle 1 section 7
What vote is required to override presidntial veto
2/3 vote
How many days to president have when receiving a bill
10 days but sundays are exempt
(Who approves lower court system, tribunals inferior to superior court)
Congress
Article 2 of the constitution
Executive Branch
Process of treaties, appoint ambassadors, supreme court
president with 2/3 confirmation of the senate
Article 3 of constitution
Judicial Branch
State of the Union
Once a year address by president to justify his budget
Joint resolution
Can original in house or sentae, really no difference between bill and joint resolution
Change to constitution
Through joint resolution and takes 2/3 vote from senate and house. Then GSA submits to states for a vote, 3/4 of the states “ratify.” Never goes to the president
Concurrent Resolution
Matters affecting the OPERATIONS of BOTH house and senate.
Simple Resolution
A matter concerning the operation of house or senate but only affects ONE chamber
How can president initiate bill
Championed by congressman, or through OMB
Three ways to originate legislation
Recommended by president, members or committees
How an appropriation becomes a law
- Bill introduced in house 2. Referred to Appropriations Committee 3. Committee Hearing 4. Committee adopts bill 5. House adopts bill 6. similar process in Senate 7. Conference committee resolves differences 8. House and senate pass in identical form 9. President signs into law
A “Clean Bill”
An orginal bill goes to committee and is marked up so much, they just decide to submit a new bill
Committee report
Committee report is not normally part of the bill but does show the background discussion of the committee
“Engrossed” bill
Has been passed by one chamber of congress but not the other
“the third chamber” of congress
conferrence committee that is hashing out the difference between house and senate bills before going to president as unified bill
Conference committee restricted by
Cannot change what has already been agreed to, cannot insert new matter or leave out matter that was previously agreed to
“Enrolled” measure
Has been agreed upon by house and senate and is headed to POTUS
4 Actions POTUS can take on a bill
- Approve and sign 2. Does not sign but allows bill to become law 3. Pocket Veto 4. Veto
Pocket Veto
If president does not sign bill during 10-day period and congress is adjurned. Bill does not become law
If president doesn’t sign bill and congress is in session
It becomes law
Line item Veto and established by what act?
between 1996-1998 president had this authority but supreme court ruling said it was unconstitutional. 1996 Line item veto act
Phases of the Federal budget process
- Budget Formulation 2. Congressional Action 3. Budget Execution
When is presidents budget due to congress
1st Monday in February
This law requires POTUS to submit budget to congress
1974 Congressional Budget impoundment Act
Guidance for budget submission comes from this
OMB circulat A-11
What is an allowance letter?
OMB’s issued guidance as the first step in OMB Circular A-11. Based on a five year cycle
6 steps of budget formulation from OMB Circular A-11
- OMB Issues guidance 2. Organization develops draft 3. Agency submits budget estimates to OMB (Not DOD) 4. Beginning of September, OMB Holds hearings (DOD holds their own) 5. President makes final decisions on agency budgets 6. President transmits to congress
“Fall Review”
The internal DOD review by OSD that OMB has granted DOD an exception to do on their own. Normally between SEP and DEC. Still subject to OMB passback after this
OMB Passback
Results from OMB review of agency budget. Provided by letter. Each agency can appeal to POTUS if they disagree with OMB
What is budget authority and what provides it
An appropriation provides budget authority - the legal authority to incur obligations and make payments out of the treasury for specified purposes
Congessional Budget and Impoundment Act 1974
- Congress to focus on overall budget totals 2. created HBC (House budget committee) and SBC (Senate) 3. New congressional budget office (CBO) 4. Shifted fiscal year from 1JUL - 30JUN to 01OCT 5. Prohibits president from withholding funds without sufficient reason aka impoundment (deferral or rescission) 6. Sets president’s budget due date as 1st Monday of February
Processes during Congresional Action Phase
- The budget resolution process 2. Authorization Process 3. Appropriation Process
Concurrent Budget Resolution and when is it due
Sets caps on pieces of the presidents budget. Done by 15APR
Who manages the budget resolution process
HBC (House Budget committee) and SBC (Senate), they use the CBO analysis
CBO determines
- Total Budget Outlays 2. Total new budget authority 3. Public Debt 4. Surplus or defict 5. Federal Revnues
Scorekeeping
Tracks data such as budget authority ,receipts, outlays, the surplus or deficit, and the public debt limits
The annual appropropriation bill may not exceed the ceilings set in the ____ without ____
the CBR (Concurrent budget resolution)without a 60% majority vote of congress
Authorization provides authority for
- Programs to exist 2. Sets funding ceilings 3. Sets DOD policy 4. Sets MDAP Quantities 5. Sets End Strength Levels
Does authorization provide authority to obligate
No
Who manage authorization process for DOD and what is end result
House Armed Services and Senate Armed Services Committees, National Defence Authorization Act
Which Appropriations provide DOD funding
- Energy and Water Development 2. Defense 3. Military Construction, Veterans Affairs
Three Steps on enactment process
- Concurrent Budget Resolution 2. Authorization 3. Appropriation
DOD Appeals process for authorization and appropriation process. What is limit of your appeal
USD Comptroller appeals to Sentate, since House marks first. If Senate has marked then appeal to Conference. First limit is presbud, but if H and S have marked, you are limited by the max of those.
If you are appropriated more than authorized, how much can you obligate
The appropriated amount
Budget Amendments
Amends the budget submission prior to completion of congressional action, but after PRESBUD submitted
Supplemental Request
Normally transmitted to congress as request to provide funds in addition to amount already appropriated (contingncy, natural disaster, etc.)
Continuing Resolutions
Temporary appropriations act that is only in place until the regular appropriation is enacted; Passed by congress, signed by president. Since it is an appropriation, it must be apportioned by OMB
What type of resolution is a CR
Joint resolution and signed by president
Appropriation Warrant
Treasury appropriations warrant
What is the flow of funds
Appropriation signed by president 2. Treasury issues Treasury Warrant 3. Agencies submit SF-132 to OMB 4. OMB apportions to Departments (OSD) 5. OSD allots to Services
How do agencies request their apportionment and what is timeline. How long does ____ have to respond
Request from OMB on SF-132 within 10 days of appropriations act. OMB has 30 days after approprtions act to effect apportionment
What is an SF-133
OSD reports status of appropriations, obligations and outlays on cumulative basis to OMB using SF-133
Who prepares warrants during a CR? During normal Ops?
Agency submits temporary appropriations warrants in CR. During normal times, treasury does warrant
This statute requires apportionment
31 USC 1512
It is a violation of law for an agency to incur obligations or make expenditures in excess of the amount _______
apportioned (NOT appropriated)
What is a deferral
President notifys appropriations committee of proposed deferral (withholding funds) congress has 45 days to say otherwise, OMB must still apportion with sufficinet time for agency to execute before funds expire
What is a rescission
President requests Cancellation of budget authority, congress has 45 days to say otherwise
What statute requires agency to have an accounting system
31 USC 1514; OMB Circular A-123 requires executive branch to implement this law; FMR Volume 14 issues DOD actions to implement this law
Commitment accounting is required for
The following appropriations: Procurement, MILCON, Research Development Test and evaluation (RDT&E). But DOD does it anyway for O&M and MILPERS
Obligation definition
The amounts of orders placed, contracts awarded, services received, and similar transactions during an accounting period that will require payment during the same or future periods.
What is the number of the DOD FMR? And what does it do
7000.14, establishes DOD policy and procedures of administative controls
Budget totals
On budget totals account for items that are appropriated. Off budget portion is excluded from the budget totals (social security trust fund and postal service). Off budget does NOT count to annual deficit
Commitment definition
administrative reservation of funds. Obligation is a LEGAL reservation of funds
Contract Authority
The specifc authority to incur obligations in anticipation of an appropriation. Legally over obligate
Discretionary spending vs entitlement authority
Discretionary is signed in the appropriations acts, not guaranteed. Entitlements are not decided upon on annual basis, they just happen (Federal retirement)
Statute required POTUS submit annual budget to congress
1921 Budget and accounting act
Statute established OMB and GAO
1921 Budget and accounting act
Act established Discretionary and Mandatory spending
1990 Budget enforement act
Act established CFOs
1990 Chief Financial officers act
Act required strategic plans every ____ years and reporting _____
1993 Government Performance and Results Act. 4 years with annual reports
Act raised debt ceiling and automatic sequestration
2011 Budget Control Act
Definition manpower management
Process for determining manpower requirements for budgetary purposes and reporting manpower strengths to OMB
1st and second order prioirites of DOD manpower guidelines
- major combat commands based on joint chief of staff guidance 2. Remaining forces are manned to SUPPORT combat forces
Civilian manpower overarching guidance is
minimum necessary to accomplish required tasks
Civilian personnel can be used only in positions that
do not require military incumbents
Indigenous personnel are to be used
to the max extent possible consistent with security and readiness
Peacetime strength
end of FY programmed strength of active forces, selective reserve, appropriated fund civilian employees in the FYDP (future year defense program) database. DOESN’T include NAF (non-appropriated) personnel
DOD manpower utilization policy
During wartime mobilization, terminate activites non-essential to the war;
Under DOD manpower utilization policy, Assign military personells only to those jobs that contribute to war unless:
Miltary incumbent required by law; possessing military unique skills or experince essntial for success; Military authority or discipline is requisite to position; alternate manpower is not available.
Mobilization Civilian Plan
War emergency mobilization plan for civilians since there will be civilians who are leaveing because they are 1. reservists being activated or 2. are being drafted
DOD total force policy
Execution of contingency operations may require: Mobilization of all or part of reserve components; augmentation of active and activated reserve units by non-unit reservists, recalled retirees, volunteers, draftees. Replacing non EE civilians in theater with active duty or recalled reserve
Emergency Essential (E-E)
Position based designation to support the success of combat operations or the avaialbility of combat essential systems. Specifically designated E-E positon.
Master Mobilization Plan
Plan for assembling, organizing and unsing manpower and resources in preparation for war or other emergency
Title 10 USC 12304
Gives president authority to activate reserve forces, without consent of congress, and order to Active Duty (other than for training) for not more than 365 days
Limits of Title 10 USC 12304
200,000 Seleted Reserve and Individual Ready Reserve on active duty; Not more than 30,000 Individual Ready Reserve
Crisis Situation
civil insurrection, civil war, terrorism, wartime, or hostile condition that threatens physical harm or imminent danger to the health or well being of the E-E civilian employee
Non Combat essential
Support the expeditionary requirements in other than combat situations
Where do you find guidance on budget estimate preparation for FTE
OMB Circular A-11
Full Time Equivalent
2080 hours per year. 80 hours every two weeks
Turnover Rate
Number of employyes who left in a year / total number of positions
Fill Rate
Average number of days between position left to filled, divided by workdays in year
Lapse Rate
Turnover Rate X Lapse Rate
Number of positions to budget
100 - lapse rate
DOD Separation Incentives
Permanent DOD Authority: 1. Voluntary Separation Incentive Pay (VSIP) up to $40K 2. Voluntary Early Retirement Authority (VERA)
Federal Activites Inventory Reform Act (FAIR) of 1998
Establishes fair system of competition for activites not inherently governmental. If it makes sense, hire a contractor instead of a Federal Employee. 1. Lists required - annual activities that could POSSIBLY be performed by contractors, submitted to OMB and made publically available with POCs, list DUE end of Q3
Who must review the lists submitted under Federal Activites Inventory Reform Act (FAIR)
OMB does final review annuallt
FAIR Act Requires
Competition and Realistic and fair cost comparisons
OMB Circular A-76
Currently on hold. Defined Rules and policies for implementing FAIR act. Two categories: 1. Commercial Activity 2. Inherently Governmental Activities (Act of governing, monetary transactions and entitlements)
Defined Inherenty Governmental Activity and two categories
Mandate Federal Employee hold the position. Two categories are: The Act of Governing; Monetary Transactions and Entitlements. Long list of examples include, contracting, budget requests, selection for gov employment, foreign relations, intel, agency policy, criminal investigations, command military forces
OMB Circular A-76 guiding principles
- Achieve economy/enhance productivity 2. Retain inherently government functions in house 3. Rely on commercial sector
Most efficient organization (MEO) and what is it element of
Element of OMB Circular A-76; idea of the govermentment’s ideal mix of federal employees and contract support to perform a commercial activity. Best product at least cost and drives how you should hire. Cost estimates formed off of this.
Performance Work Statement and what element of
OMB Circular A-76; Statement of technical, functional and performance characteristics. Detailed description for contract bidding.
Management study
Is mandatory; identifies the most efficient and cost-effective in-house organization for accomplishing the PWS. The MEO is the basis for the government estimate
What is the threshold for non-incumbent beating incubent according to A-76
10 percent
All direct personnel costs must be estimated based on…
civilian performance
Required notifications for A-76
USD(P&R) 5 days before Congress is notified of plan to do it. Employees must be notified also. Only required for over 46 personnel.
Core ethics concepts
- No use of public office for private gain 2. No favoritism to any non-gov organization or individual
Prohibited gift sources
- Anyone who seeks official action by your agency 2. Do or seek business with your agency 3. Are regulated by your agency 4. Have interests that may be substantially affected by performance
Gift prohibition exception
- Value less than $20 or not to exceed $50 annually 2. Gift based on family/personal relationship 3. Gift based on an outside business relationship (part time job) 4. Gift is in connection with certain political activities (given at political rally) 5. Is it in the best interest of the agency NOT you
Prohibited gifts BETWEEN employees
Nothing to a supervisor. Gifts cannot exceed $10. Transferred leave provided that it is not to an immediate supervisor, give to “leave bank” instead. Aggregate gift from group of employees cannot exceen $300
Which Office oversees financial disclosures
Office of Government ethics
What are the remedies for avoiding potential conflict of interest
Recusal, Request waiver (due to insignificance), Certificates of divestiture (sell off interests), blind Trusts
Post employment ethics restrictions
Two year cooling off period for working in area of employees official responsibility. Senior level officials 1 year cooling off
Force structure
Totality of units in a DOD component
End strength
Strength at end of FY
USC ADA for advance or in excess of appropriation
31 USC 1341
USC ADA for accepting voluntary services
31 USC 1342
USC ADA for Excess of an apportionment
31 USC 1517
Types of Contract Termination and can expired funds be used
contractor default: expired funds available if 1. Bona fide need exists 2. Scope does not exceed original 3. Replacement awarded in reasonable time. Convenience of governemnt: only available if ordered to terminate
Act established OMB and GAO, POTUS must submite annual budget to congress
1921 Budget and Accounting act
Rules and procedures for budget execution
31 USC 13 and 15
Instructions for preparation, submission and execution of budget & records
OMB Circular A-11
