Module 3 Competency 1: Fiscal Law Flashcards
What does it mean when you can only do what the law authorizes?
Fiscal Law
What article and section of the constitution empowers congress to pass bills for raising revenue and delineates how bills will pas from Congress to the President for signature and veto?
Article 1, Section 7
What article, section, and clause of the constitution empowers congress to collect taxes?
Article 1, Section 8, Clause 1
What article, section, and clause of the constitution requires appropriation in law before money may be spent from the treasury?
Article 1, Section 9, Clause 1
What is the most authoritative source of information on the proper use of appropriated funds? It is also the primary source of law and comptroller rulings.
GAO Principles of Federal Appropriation Law (The Red Book)
Which act required the president to submit an annual budget to congress for all three branches of the Federal Government?
Budget and Accounting Act of 1921
Which act created the budget office for the president?
Budget and Accounting Act of 1921
What year did Bureau of Budget change to Office of Management and Budget
1970
What are the three constitution authorities to obligate and expend funds?
1) Article 1, Section 7
2) Article 1, Section 8, Clause 1
3) Article 1, Section 9, Clause 1
Which act established the General Accounting Office now Government Accountability Office (GAO)?
Budget and Accounting Act of 1921
Who is the head of the GAO?
Comptroller General
What act governs the congressional budget process?
Congressional Budget Act of 1974
What act developed rules regarding constraining spending and receipts legislations (including sequestration)?
Congressional Balanced Budget and Emergency Deficit Control Act of 1985
What act established House and Senate Budget Committees and the Congressional Budget Office (CBO)?
Congressional Budget Act of 1974
The Congressional Budget Act of 1974 is also known as which public laws?
PL 93-344 and PL 100-119
The Congressional Balanced Budget and Emergency Deficit Control Act of 1985 is also known as which public law?
PL 99-177
The Congressional Balanced Budget and Emergency Deficit Control Act of 1985 is also known as what?
Grumm-Rudman-Hollings-Act
What act defines key budget terms?
Congressional Budget Act of 1974
What act significantly amended the Congressional Balanced Budget and Emergency Deficit Control Act of 1985?
Budget Enforcement Act
What US Codes provides guidance on rules and regulations for budget execution?
31 USC 13 and 15
What regulation provides instruction on budget execution and GAO Federal Appropriations Law?
OMB Circular A-11
The overarching statutory requirements for use, control, and accountability of funds are found where?
31 USC 13 and 15 Rules and Regulations for Budget Execution
Which section of revised statues is also known as the Anti-Deficiency Act?
Section 3679
Which act is constrained in the same act of the Congressional Budget Act and prescribes rules and regulations under which the president may withhold appropriation amounts from being obligated (deferrals and recessions)?
Budget Impoundment Control Act of 1974
The Budget Impoundment Control Act of 1974 is also known as which public law?
PL 93-344
The Budget Impoundment Control Act of 1974 is also known as which US Code
2 USC 682-688
Which regulation provides instruction on budget execution?
OMB Circular A-11
What does it mean when Federal officials are conveyed a confidence or trust and are required to care for the funds of the people and as such, have the responsibility to hold the public funds in trust and confidence, assuring they are used only for the purpose for which it intends??
Fiduciary Responsibility
Who certifies that funds are legal under purpose, time, and amount?
Certifying Official
An erroneous, willfull, and/or knowing violation of fiduciary responsibility may lead to what?
Anti-Deficiency Violation
What are the three dimensions of the availability of Budgetary Resources?
1) Purpose
2) Time
3) Amount
Which dimension means that funds may be obligated and expended only for the purposes authorized in the appropriation acts or other laws?
Purpose
Which dimension means that the period of time during which budgetary resources may be used to incur new obligations (e.g. the order of new goods or services) is different from the period of time during which the budgetary resources may be used to incur expenditures (e.g. pay bills)?
Time
Which dimension means what the amounts obligated may not exceed the amounts established in law?
Amount
If amount is not specified on the budgetary authority then it is considered what?
Indefinite Authority
Which US Code(s) can you find more information on the purpose dimension?
31 USC 1301
Which US Code(s) can you find more information on the amount dimension?
31 USC 1341, 31 USC 1342, and 31 USC 1517
Which US Code(s) can you find more information on the time dimension
31 USC 1502
What type of authority is available for new obligation for an indefinite period (until the purpose for which they were provide is carried out? It does not expire
No-Year Authority
True or False:
Appropriation funds may be used to purchase items that are deemed personal or to promote an individual?
False
What is considered when an appropriation is made for a particular object, therefore, it confers authority to incur expenses that are necessary to the execution of object?
Necessary Expense Doctrine
What is the three part test to the Necessary Expense Doctrine?
1) Must bear logical relation to APPN
2) Must not be prohibited by law
3) Must not be funded within another APPN
What are the two uses of an appropriation?
Obligations and Expenditures
What are legal reservations of funds for which payments, or expenditures will be made in the future?
Obligations
What are cash payments to liquidate an obligation?
Expenditures
True or False:
You may only make an obligation during the period of availability of the Appropriation?
True
True or False:
It is legal to make expenditures to obligations as long as the obligation was made during the period of availability, but not completed until after the appropriation expired?
True
What can occur if you make an obligation outside the period of availability or make an expenditure to an obligation made outside the period of availability?
Anti-Deficiency Violation
What is a test to determine when to obligate and for how much consumption or effort the obligation should cover?
Bona Fide Needs
When procuring materials if requirements are defined as the number of items consumed in a FY, than you can only procure how many items?
Items Consumed
Which rule states that you can maintain an inventory more than the amounts of items consumed in order to avoid disruptions of operations?
Bone Fide Needs
Bona Fide needs rule permits obligations in one FY and delivery in a subsequent FY only if
Production lead time of material requires obligation in one FY in order for material to be available for installation in later FY
True or False:
Bona Fide need occurs in the year when goods and services are delivered
False
What kind of services are those for which the Government receives something useful immediately upon the expenditure of funds or by the end of the FY?
Severable Services
What kind of services are those that cannot be separated into increments that will provide something useful at the end of the FY? (e.g. Overhaul of a ship takes two or more years)
Non-Severable Services
Severable services can cross FYs as long as what?
Contract is not greater than 12 months
How long does the government obligate funds for a severable service?
12 months
Trainings tend to be what type of service?
Non-Severable
If a college class starts in September of 2021 and is not complete until February of 2022, which FY funds should you charge the classes cost to and why?
FY 21; because you charge the costs to the year the training was incurred
Which exception to the Bona Fide needs rule provides you with the authority to contract up to five years for a severable service?
Multi-Year service contracting authority
In order to use the multi-year service contracting authority exception to the bona fide needs rule, you must ensure what is in the contract?
Five one year increments in a single contract
Changes in quantity, mission, contract time period or other controllable such as warranty is known as what?
Changes in Contract Scope
If appropriations act is enacted prior to the start of the FY for which the appropriation is being made, contract may be entered into upon enactment and before the start of the FY as long as what?
No payments or expenditures may be made under them until that start of the FY
A violation of _______ will occur if an obligation was entered into before the receipt of an apportionment or sub-apportionment of the appropriation
31 USC 1517 Amount Dimension
Which clause on a contract allows final negotiation of contract but prohibits contractor from starting work (i.e. incurring costs)?
Subject to Availability
What are the two methods for terminating a contract?
1) Contractor Default
2) Convenience of Government
If a contractor defaults on a contract the government agencies is permitted to what?
Reobligate same year funds to a replacement contract
You may reobligate same year funds to a replacement contract if a contractor defaults only if?
1) Bona Fide Need still exists
2) Same or Lesser Scope
3) Replacement contract is to be awarded in a reasonable period of time after termination of the original contract
If a contract is terminated for the convenience of the government, an agency may only issue a replacement contract using expired funds only if?
The contract was terminated at the direction of a court, a Board of Contract Appeals, or the GAO or if the original contract was defective
O&M funds are what type of appropriations
1 Year Expense Appropriations
You may use O&M funds to procure items only if cost does not exceed?
$250,000
You may use O&M funds for Military Construction only if it does not exceed?
$2,000,000
What type of funds are used for Headquarter operations?
O&M Funds
RDT&E funds are what type of appropriations?
2 year Expense or Investment
Procurement funds are what type of approprations?
3 year Investments
Military Construction funds are what type of appropriations?
5 year Investments
Shipbuilding and Conversion funds are what type of Appropriations?
5 year Investments
What is the primary no-year appropriation used in DoD?
Working Capital Fund
Which US Code outlines No-Year Appropriations?
31 USC 1555
When do No-Year Appropriation funds expire?
1) When the agency head or president determines the purpose has been fulfilled
2) No disbursements have been made for two consecutive FYs
Budgetary authority will remain on agency’s books for how many FYs after an appropriation enters expired status?
5 years
After the 5 year period passes, expired appropriation funds are return where?
General Fund of the Treasury
_________ requires that approval be sought from the head of the agency if obligation from an expired appropriation during a FY exceeds _______
31 USC 1553; $4 Million
What requires a footnote to be appended to each apportionment that says “Pursuant to 31 USC 1553 (b) not to exceed one percent of the total appropriation for this account, is apportioned for the purpose of paying legitimate obligations related to cancelled appropriations”
One Percent Requirement
Obligating in advance or in excess of appropriations is discussed in which US code?
31 USC 1341
Accepting voluntary services for U.S. is discussed in which US Code?
31 USC 1342
Obligating or expending in excess of the apportionment or reapportionment or obligating or expending in excess of an administrative subdivision of an apportionment to the extent provided in the agency’s fund control regulations is discussed in which section of which US code
31 US 1517 Section 1514
What are the six different types of Budget Authority?
1) Appropriation
2) Contract Authority
3) Borrowing Authority
4) Monetary Credits
5) Offsetting collections and receipts
6) Loan and Loan Guarantee Authority
Which budgetary authority allows you to incur obligations in anticipation or advance of appropriation?
Contract Authority
Which budgetary authority allows you to borrow from the treasury through promissory notes or monetary credits to other agencies?
Borrowing Authority
Which budgetary authority allows the government agency to issue monetary credits in lieu of checks to acquire property such as land or mineral right?
Monetary Credits
Which budgetary authority includes tax receipts, custom duties, fines, fees, penalties, reimbursements and revenue?
Offsetting collections and receipts
The term collection includes which three methods?
1) Receipts
2) Reimbursements
3) Refunds
Which statue states that an officer or employee of the US Government or the District of Columbia Government may not accept voluntary services for either Government or employ personal services exceeding that authorized by law except for emergencies involving the safety of human life or the protection of property?
31 USC 1342
If the level of compensation is ________ AND the compensation can be set at ________, THEN an appointment without compensation is permissible.
Discretionary; Zero
What are three examples of statutorily authorized gratuitous services?
1) Red Cross Volunteers
2) Candy Stripers in Hospitals
3) Museum Volunteers
Which US Code States that an officer or employee of the US Government or District of Columbia government may not make or authorize an expenditure or obligation exceed an apportionment or the amount permitted by regulations prescribed under section 1514(a) of this title?
31 USC 1517
________ requires the agency in control of an apportionment to prescribe, by regulation, a system of _________ consistent with accounting procedures prescribed under law
Section 1514; Administrative Controls
Which agency is in charge of apportionments?
OMB
31 USC 1517 Section 1514 procedures will restrict obligations or expenditure from each appropriation to the ______________ and fix responsibility for an obligation or expenditure exceeding apportionment or reapportionment
Apportionment or reapportionment of the appropriation
What does it mean when an agency may not augment its appropriations from outside sources without some statutory authority to do so?
Augmentation
What are the three statues that cover augmentation?
31 USC 3302(b)
31 USC 1301
18 USC 209
Which US Code is the miscellaneous receipts statue as it relates to augmentation ?
31 USC 3302(b)
Which US Code is the purpose statue as it relates to augmentation?
31 USC 1301(a)
Which US Code is provides information on employee compensation prohibition from outside sources as it relates to augmentation?
18 USC 209
Which US statue states that an official or agent of the Government receiving money for the Government from any source shall deposit the money in the Treasury as soon as practicable without deduction for any charge or claim?
31 USC 3302(b) Miscellaneous Receipts Statue
True or False:
The courts have long held that the US may receive and accept gifts. Gifts may be real or personal property
True
True or False:
An agency may accept a gift in the name of the U.S. but if a gift is given in the name of the agency the agency must deposit the gift within the agency.
False
If an agency receives a gift in the name of the agency, where must the agency deposit the gift?
The Treasury
What allows an agency to keep a gift if it is provided in the name of an agency?
Statutory authority
Which DoD Regulation discusses gift to employees?
DoD 5500.7-R
What allows federal employees to retain travel promotional items, such as frequent flyer miles earned while on travel?
NDAA of FY2002
What are the two different types of penalties for Anti-Deficiency Violations?
1) Administrative Penalties
2) Criminal Penalties
Which US Code(s) outlines administrative penalties?
31 USC 1349 and 31 USC 1518
What is the most common type of penalty in regards to ADA violations?
Administrative
Which US Code(s) outlines criminal penalties?
31 USC 1350 and 1519
Criminal penalties for ADA violations include:
1) A fine not more than $5000
2) Imprisonment not greater than 2 years
or both
Criminal penalties can result from which type of ADA violation?
Amount; 31 USC 1341, 31 USC 1342, and 31 USC 1517
Which regulation provides guidance on how to report suspected ADA Violation?
FMR Volume 14 Paragraph 030101
Within how many days should you report a suspected ADA Violation?
10 Days
If an ADA Violation per 31 USC 1351 and 1517(b) occurs , to whom shall you report the violation?
The president through OMB, Congress and Comptroller General
Which statue holds that there is no private right of action for declamatory, mandatory, or injunctive relief under ADA?
31 USC 1351
Recording an obligation in the financial/fund records of an agency does what?
Evidences the obligation; it does not create it
True or False:
If a transaction is not sufficient to constitute a valid obligation under the statutory authority 31 USC 1501, recording it will make it one
False; recording it will not make it one
What is an appropriation act that permits an agency to continue operations for a specific period of time?
Continuing Resolution
When are continuing resolutions enacted?
When action on appropriations is not completed by the beginning of the FY
Continuing resolutions have been used as what from the late 1880?
Stop-Gap Funding Measures
Continuing resolutions are also known as what?
Temporary Appropriations Acts
It is common for continuing resolutions to require that funds be obligated at a _________ not to exceed the prior year ____________
rate of operations
When funds were provided to begin a program or project in the middle of a FY year you need to ________ to determine the current rate
Annualize
If $500 million were provide for a project/program that was to commence on 1 April for the Present Year (PY) how much would the current rate of operations be for the continuing resolution in the Current Year (CY)?
$1 Billion
Rate of Operations refers to what?
The Sum of Money Rather than a program level
True or False:
Congress’s intention is an agency may not have more funds in the current year under a continuing resolution than they did in a prior year
True
If $1 Billion was given in RDT&E APPN last year and $750 Million was obligated as of the end of the prior fiscal year, how much would the amount of the continuing resolution be?
$750 Million
True or False:
An agency may determine its pattern of obligations under a CR so long as it operates Under a plan that will keep it within the rate of operations limit set by the resolution.
True
If an agency obligates most of its annual budget within the first month or quarter of the FY, may it continue with the same spending pattern?
Yes
In determining the spending pattern for a CR, if an agency usually obligates funds uniformly over the entire year what will happen?
It will be limited to that pattern under the resolution unless it present convincing reasons for what pattern must change
Most CRs contain previsions restricting what?
New Starts
What term refers to the restriction on the use of funds for “any project or activity for which appropriations, funds, or other authority were not available” during the preceding FY?
New Starts
A government officer or official who is responsible or has custody of government funds is known as what?
Accountable Individual
A government official who receives or collects money for government is known as what?
Collecting Officer
A government official who certifies vouchers for payment and has no public funds in their possession is known as what?
Certifying Officer
What are the six factors that do not affect the duty to report?
1) Mistake
2) Inadvertency
3) Lack of Intent
4) Minor Violation
5) Difficult Working Conditions
6) Lack of Personnel
True or False:
A certifying officer may not refuse to certify a voucher if they feel inadequate safeguards have not been provided in voucher preparation.
False; they may refuse
What two things should a certifying officer do if items do not look right?
1) Perform close review of supporting documentation
2) Should question the items
Which statue provides certifying officer the statutory right to seek and obtain an advance decision from a Comptroller General regarding lawfulness of any payment to be certified?
31 USC 3529
For DoD, who can provide a departmental accountable official, certifying Officer, Disbursing Officer, or agency head when acting as a certifying officer with an advanced decision as to the propriety of certifying a payment or making a payment when using appropriated funds?
DoD General Counsel
Which act authorizes DoD to incur obligation in excess of available appropriation in procuring or furnishing clothing, subsistence, forage, fuel, quarters, transportation or medical and hospital supplies not to exceed the necessities of the current FY?
41 USC 6301 Feed and Forage Act
The funds authorized within the Feed and Forage Act does not include funds for what?
Military Construction or Military Personnel
Who may authorize the use of 41 USC 6301: Feed and Forage Act?
DoD
41 USC 6301 cannot circumvent provisions of what?
31 USC 1517(a)
