PFMC-Exam 2 Flashcards
(123 cards)
1
Q
What is the purpose of a UTC?
A
Identifies a potential capability focused on accomplishment of a specific mission the military service provides.
2
Q
Why we do an economic analysis?
A
It is an approach to decide how to use scarce resources to meet a given objective, weighs costs, benefits and uncertainly for each alternative.
3
Q
What are we evaluating when we conduct an economic analysis?
A
to weigh costs, benefits, and uncertainty for each alternative
4
Q
What do we mean by a cost benefit analysis?
A
Cost analysis is depicted in dollars, reflect the monetary
impacts (good/bad) of the status quo or alternatives.
Benefit analysis- limited to non-monetary impacts (good and bad) of the status Quo and alternatives.
5
Q
What is inflation?
A
a rise in the general level of prices unaccompanied by a rise in output.
6
Q
Why do we normalize costs that occurred over time?
A
If we are examining costs that occurred over different time periods, we need to normalize them in order to make
an “apples to apples: comparison among alternatives.
7
Q
What is the purpose of the PPBE?
A
The objective is to provide the best mix of forces, equipment, manpower, and support attainable within fiscal constraints.
The goal is to achieve defense objectives established by the President and Secretary of Defense. The Ultimate Product is the President’s budget.
8
Q
What are the three things needed in order to develop the POM.
A
Baseline, fiscal guidance and program guidance.
9
Q
What does the budget baseline contain?
A
Those things already in the budget…..things to which resources are currently allocated.
10
Q
What is the primary function of the Air Force Corporate Structure?
A
The primary function in the budget build is to evaluate the relative importance of currently funded activities compared to competing new requirements. Make resource realignment recommendations to senior leadership - e.g. rack and stack.
11
Q
What do we mean by floor?
A
A minimum amount required to spend for a specific purpose.
12
Q
What do we mean by ceiling?
A
Maximum amount that can be spent in a certain area. Can’t be exceeded without prior approval.
13
Q
Who legally imposes floors and ceilings on us?
A
Congressional Appropriation or Authorization Acts, the DoDFMR, OSD or AF policy or local management.
14
Q
What does GAAP do for us?
A
Standard framework of guidelines for financial accounting that guides accountants in recording & reporting financial information
15
Q
What is the budgetary accounting code?
A
Facilitates compliance with legal constraints and controls over the use of federal funds.
16
Q
High level of Planning Phase
A
ID capability requirements
17
Q
High level of Programming Phase
A
Match requirements to available resources
18
Q
High level of Budgeting Phase
A
Translate programs into budget proposals
19
Q
High level of Execution Phase
A
Expend resources and evaluate how we achieve desired capabilities.
20
Q
Final document & purpose of Programming Phase
A
Program Objective Memorandum for framing program proposals, analysis of mission, objectives, alternate methods, and allocation of resources.
21
Q
Final document & purpose of Planning Phase
A
Plan to Program Guidance for linking planning to programming.
22
Q
Final document & purpose of Budgeting Phase
A
Budget Estimate Submission for submitting Defense Service/Agency budgetary detailed information, such as program’s pricing, phasing and overall capability to be executed on time/budget.
23
Q
Final document & purpose of Execution Phase
A
Operating Budget Authority Documents (OBAD) that IDs annual/cumulative quarterly program and limitation.
24
Q
3 things that happen in preparation for submitting the PB to Congress?
A
1) AF Budget Analysts ID situations where programs have put AF resources at risk of OSD/Congressional reduction (“marks”) 2) AF Comptroller applies inflation from OSD guidance (flying hours/manpower rates) 3) Reconfigure POM in OSD Budget “Exhibits” and prepare budget “J-Books”
25
What role does Corporate Structure play?
Evaluate the relative importance of currently funded activities compared to competing new requirements and Make resource realignment recommendations to Senior Leadership
26
What AF submits to Congress as support for the budget request?
Justification Books.
27
What is Defense Authorization Act?
Defines scope/content of programs and authorizes their appropriation level, providing statutory authority to establish or maintain a government program/agency
28
What is Defense Appropriations Act?
Authorizes DOD to obligate funds for a specified period
29
Who legally imposes Floors/Ceilings?
Congress imposes Floors/Ceilings
30
What is a proprietary accounting code?
It supports accrual based financial reporting. Recorded when revenue earned/expense incurred....regardless of actual payment date.
31
What is purpose of budgetary account code?
Facilitates compliance with legal constraints/controls over federal fund use (e.g. budget authority, commitment, obligation, and disbursement).
32
What is purpose of proprietary account code?
Supports accrual-based financial reporting (e.g. recorded revenue earned/expense incurred—5 elements of asset, liability, net position, revenue, and expense)
33
What are ways to limit after-the-fact accounting system adjustments?
Prevent errors at transaction input by education/training/system & internal controls and reduce reimbursement actions by "Cross org" LOAs in DEAMS if both orgs in DEAMS
34
APPROPRIATED funds of U.S. Treasury
Congress/limited life
35
REIMBURSABLE funds of U.S. Treasury
Word (7010) Basic familiarity with REIMBURSABLE funds of U.S. Treasury Definition Customer provided/Congress authorized and work performed above normal mission work
36
NONAPPROPRIATED funds of U.S. Treasury
Not Congress/Sales for good/services to DOD MWR
37
GENERAL funds of U.S. Treasury
Ordinary Gov't business & most used by AF
38
MANAGEMENT & CONSOLIDATED WORKING funds of U.S. Treasury
Combined projects i.e. F-35
39
REVOLVING funds of U.S. Treasury
No-year appropriation/TWCF to break even over time & operates on continuous cycle
40
SPECIAL funds of U.S. Treasury
No period of availability, collect/incur expenses, law-earmarked for specific purposes, & receipt accounts i.e. hunting/fishing licenses
41
DEPOSIT funds of U.S. Treasury
Temp accounts to transfer i.e. state taxes
42
TRUST funds of U.S. Treasury
Specific accounts FMS, retirement, VSI, etc
43
CLEARNING ACCOUNTS funds of U.S. Treasury
Clears 30-60 days/Temp accounts
44
What does SFIS do?
Standardizes financial reporting across DOD/Aids efficient MX, and links program info to performance; DEAMS PTEO returns the SFIS LOA
45
1921 Budget and Accounting Act
Est'd GAO/OMB
46
1950 Accounting & Auditing Procedures Act
Req'd apportionment/allocation systems, expanded anti-deficiency reporting, & est'd Joint Financial Management Improvement Program (JFMIP
47
1990 Chief Financial Officers (CFO) Act
Req'd CFO appointment and financial reports
48
1994 Government Management Reform Act (GMRA)
* Amended CFO Act
* Required a consolidated financial statement for the entire executive branch
(prepared by Treasury / audited by the GAO) beginning FY97
* Required 24 Agencies to submit audited financial statements
49
1996 Federal Financial Management Improvement Act (FFMIA)
Req'd DoD to est/mx financial management systems that comply with Federal financial mgmt sys reqs
50
2010 NDAA
Req’d validation of financial statement for audit readiness by 30 Sep 17
51
2018 NDAA
Req’d dev/mx a Financial Improvement & Audit Remediation (FIAR) Plan (e.g., CFO Act, etc.)
52
Start point for DoD audit
Combined Statement of Budgetary Resources
53
Why Combined Statement of Budgetary Resource is start point for DoD Audit?
Only document where obligations are recorded for the period, including Budgetary resources available, Status of resources, Changes in obligated balance, & Net budget authority and net outlays
54
Key Player: Office of Management and Budget (OMB)
Improving accounting and financial reporting
55
Key Player: Government Accountability Office (GAO)
Audits Executive Branch's financial performance
56
Key Player: Dept of Treasury
Publishes US Standard General Ledger, makes consolidated financial statements possible, and compiles the consolidated Federal financial statements
57
Key Player: Federal Accounting Standards Advisory Board (FASAB)
Est'd Generally Accepted Accounting Principles (GAAP) for Federal Gov't
58
Key Player: Undersecretary of Defense-Comptroller
USD-C: DOD CFO and advises SecDEF and DepSecDEF for fiscal and budgetary matters
59
Key Player: Defense Finance & Accounting Service (DFAS)
DOD accounting entity and maintains central ledger
60
Key Player: DODFMR 7000.14-R
DODFMR 7000.14-R: Policy and procedures within responsibility of Undersecretary of Defense—Comptroller
61
Key Player: Standard Financial Information Structure (SFIS)
SFIS: Standardizes financial reporting across DOD, allows detailed analysis at ALL levels, and supports efficient mx of business systems
62
What organization maintains the US Standard General Ledger?
Dept of Treasury maintains US Standard General Ledger
63
Purpose of implementing Standard Financial Information Structure (SFIS)
Standardizes financial reporting across DOD/Aids efficient MX, and links program info to performance
64
What kind of capability requirement to enter into acquisition life cycle?
User Needs/Capability Gap--JCIDS Process warfighter requirements
65
What is a Phase?
Period of time with specific set of objectives & detailed plan to achieve those objectives
66
What is a milestone?
Decision point made by MDA, separating phases, and reviews program status, plan for next phase, and plan for remainder of program
67
What phase does Milestone A decision allow us to enter next?
Milestone A enters Technology Maturation & Risk Reduction Phase;
68
What phase does Milestone B decision allow us to enter next?
Milestone B enters Engineering & Manufacturing Development Phase
69
What phase does Milestone C decision allow us to enter next?
Milestone C enters Production & Deployment Phase (e.g. LRIP, full production, or procurement)
70
What makes for good performance indicators?
Can be measured against a standard, i.e. GTC delinquencies, in-house training, travel pay rejects, CMS cases, dormant obligations, resource advisor training, etc
71
What does the QA function do?
Gathers data, prepares trend reports, and facilitates discussion with FM personnel
72
Key legislation for Internal Controls
Federal Managers' Financial Integrity Act (FMFIA--1982)
73
1 of 5 GAO standards for internal controls
Control Environment—positive leadership, mission, people, & resources, sets foundation
74
2 of 5 GAO standards for internal controls
Risk Assessment—provide assessment of internal/external risks, e.g. mismanagement of mission/resources, erroneous reports/data/processes, bribes/kickbacks, etc
75
3 of 5 GAO standards for internal controls
Control Activities—policies, procedures, & mechanisms, e.g. Directive (laws/OIs) and Preventative (training/education/accesses/barriers/security clearances), Detective (cash counts/program reviews/inventories), & Corrective (JVs/rework/repairs)
76
4 of 5 GAO standards for internal controls
Information & Communication—relevant, reliable, timely info/communication enables people to execute responsibilities
77
5 of 5 GAO standards for internal controls
Monitoring—assesses quality of performance over time, e.g. self-inspections, SAVs, AFAA/IG/GAO/EPA/OSHA
78
What might constitute a material weakness?
Deficiency in internal controls significant enough to be reported outside agency, e.g. DTS controls, Reimbursable programs, DCMA contracts, & General Funds FM Systems
79
What does enterprise risk management involve?
Identifying, assessing, and managing risks
80
Concept of Lean?
Lean is standardized method and mindset for reducing waste in all of the processes we use to execute our mission, by identifying and eliminating waste in processes by simplifying how materials and information flow; [lean culture] reduce costs per unit, dramatically improve quality and quickly respond to consumers’ desires, while at the same time providing employees with ever more challenging work
81
Concept of Waste?
Non-value added from customer/business perspective, such as delay, rework, redirection, leaders changing products at end instead of beginning
82
Purpose/Necessary expense rule
Appropriations can only be applied to the objects for which the appropriation was made,
83
Time/Bona fide need rule
Finite period funds may be obligated only for payment of bona fide needs of the requiring agency arising during the period of availability
84
Amount/Anti-deficiency act
Making or authorizing an expenditure or obligation exceeding an amount available in an appropriation or fund for the expenditure of the obligation, or involving the government in a contract or obligation for payment of money before an appropriation is made
85
What we can do with Current funds?
Available Current Year Funds
86
What can we do with Expired funds?
Funds being expired after the end of the funding period
87
What can we do with Cancelled funds?
Funds become canceled/closed
88
What is meant by affirmative authority?
Established rule is that the expenditure of public funds is proper only when authorized by Congress, not that public funds may be expended unless prohibited by Congress (Commander's authority!)
89
What drove transition from audit readiness to audit remediation?
AUDIT REMEDIATION BECAUSE audit execution due to 2018 NDAA with corrective action plan/recurring status report
90
Purpose of AF Audit Agency?
Assessing and improving AF fiduciary stewardship and the accuracy of financial reporting
91
What is a MISCAP?
Describes what the UTC brings to the fight
(i.e. AFSC skill level, grade, equipment, etc.)
92
What can an FM UTC consist of?
Can consist of manpower only, equipment (LOGDET) only, or both (currently there are no FM UTCs that require both.)
93
What is a XFFA1 UTC?
6F051- SrA/SSgt- Cashier/Customer Service/Paying Agent- Provide all facets of military and travel financial services at any type of operating locating to include Air Reserve Component support.
94
What is a XFFA2 UTC?
Financial Management NCO - 6F071 - TSgt/MSgt - May be augmented by XFFA1 UTC, may deploy with Contracting or independently, able to provide disbursing and budget capabilities
95
What is a XFFA7 UTC?
Budget Technician- 6F051 - SrA/SSgt - Establish and maintain financial records and files. Prepare vendor payments, receive funding authority. Determine funds propriety. Determine proper use of ORF funds. Determine fund status/availability and proper use of line of accounting. Collect, prepare, review and analyze report data. Maintain account balances. Executes operating budget. Serves as a focal point for all budget matters.
96
What is a XFFA9 UTC?
6F091- SMSgt/CMSgt - Financial Management Senior Enlisted Leader - Performs all management and leadership functions specific to the financial management enlisted career field. Lead/manage FM personnel establishing ndependent disbursing agent operations, military pay and travel pay financial services, deployed budget/accounting activities for deployed population greater than 2K or servicing multiple site simultaneously. Leads multiple FM enlisted UTCs.
97
What is a XFFA3 UTC?
Major/Lt Col - Administers comptroller activities to include financial advice to the commander. Manages Budget, Financial Services operations, and all other FM Issues.
98
What is a XFFA4 UTC?
Lt/Capt - Postured to implement and manage financial services function. Provides commander advice on financial management issues. Duties include - Develop budget estimates, administer and executes operating budgets, serve as the focal point for budget matters pertaining to Financial Management at all types of operating locations. Determine funding propriety IAW appropriation law.
99
What is a XFFAG UTC?
Logdet kit - Contains the minimum supplies and equipment to establish a FM function in a bare base environment to operate for 30 days. Contains: field safe, computer equipment software, forms, office supplies, regulations, and other items
needed to operate in the field for at least 30 days. Complete list of the contents of the LOGDET kit can be found on the FICS (RTC)
100
Military Family Housing Construction, AF
* General Funds- 0740- 5 years availability; 0001 - 3899
101
Military Family Housing Maintenance, AF
*General Funds-0745-1 year avalibaility, 0001 - 3899
102
Aircraft Procurement, AF
*General Funds-3010-3 year availability, 0001 - 3899
103
Missile Procurement, AF
*General Funds-3020-3 year availability- 0001-3899
104
Space Procurement, AF
*General Funds-3021-3 years availability- 0001-3899
105
Other Procurement, AF
*General Funds-3080-3 years availability- 0001 - 3899
106
Military Construction, AF
*General Funds-3300-5 years availability- 0001-3899
107
Operations and Maintenance, AF
*General Funds-3400-1 years availability- 0001 - 3899
108
Military Personnel, AF
*General Funds, 3500, 1 years, 0001-3899
109
Research, Development, Test and Evaluations, AF
*General Funds, 3600, 2 years availability, 0001 - 3899
110
Root Cause Analysis
Ensures the corrective action addresses the root cause of the discrepencies and not merely a symptom of the problem using RCA
111
What is performed to ensure ULOs and commitments are recorded in the proper stages of accounting, amounts are valid and correct, they are not dormant, documentation exists to support the amount balance?
DAR-Q
112
Which functions gathers the data, prepares trend reports, and facilitates discussion with FM personnel?
-Quality Assurance Manager
-Quality Assurance
-QA
-QAM
113
Help to identify root causes of discrepencies, a method to track discrepencies, and recommendations to fix problems
Processing tools
114
Provide management with the means to properly assess areas within the FM organization.
Performance indicators
115
Coordinate the schedule for the DAR-Q.
AFAFO and DFAS
116
Only commanders/directors can accept risk. (True/False)
True
117
Identifies, assesses, manages risks to organizational objectives.
ERM
118
FMFIA-1982
Internal controls are processes that provide reasonable assurance an organization will achieve its objectives.
119
Defines minimum level of quality acceptable for internal control in government.
GAO standards
120
Positive control environment sets the foundation for all other standards. (True/False)
True
121
1981 Federal Employee survey
45% said they observed waste or illegality in last 12 months. Most wasteful or illegal activities went unreported based on belief “nothing would be done.
122
OMB Circular A-123
Provides guidance on improving the accountability and effectiveness of programs and operations by establishing, assessing, correcting, and reporting on internal controls.
123
