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CGFM Test 2 > Section 3, Chapter 1 > Flashcards

Section 3, Chapter 1 Flashcards

1
Q

The budget process has three main phases, what are they?

A
  1. ) Formulation of Presidents Budget
  2. ) Congressional action on budget
  3. ) Budget execution
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2
Q

When does planning for a fiscal year begin?

A

18 months before the fiscal year begins

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3
Q

What is a fiscal year?

A

an entitys accounting period.

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4
Q

When is the fiscal year for the federal government?

A

Oct 1 - Sep 30th

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5
Q

What time period does the Presidents budget cover?

A

Primary focus on budget year and also covers at least the 4 years following the budget year to show the effect of the budget decisions over a longer term.

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6
Q

What is another name for the presidents budget?

A

Budget of the US Government

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7
Q

What are the 6 steps in the formulation process of the presidents budget?

A
  1. ) budget and fiscal policy guidelines provided to agencies
  2. ) agencies confer with the officials within the executive office of the president and prepare their requests
  3. ) agency requests are submitted to the Office of Management and Budget (OMB).
  4. ) OMB analyzes requests, identifies issues and confers with officials to resolve issues
  5. ) Agency proposals are finalized and a comprehensive package is prepared
  6. ) the Presidents budget is submitted to congress
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8
Q

Who continually exchange information during the budget process?

A

president, director of OMB, other executive office of president officials.

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9
Q

What are the 6 key assumptions while making the presidents budget?

A
  1. ) GDP
  2. ) shares of wages and salaries in GDP
  3. ) the rate of inflation
  4. ) unemployment rate
  5. ) interest rates
  6. ) number of people eligible for various benefit programs
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10
Q

When is the president to transmit the proposed budget to congress?

A

Not later than the first Monday in February of each year following the fiscal year.

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11
Q

How are budgetary decisions made by congress presented?

A

Not as a single enacted budget, but as a number of appropriations.

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12
Q

What 2 steps are required for a program to operate?

A
  1. ) authorization

2. ) appropriation

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13
Q

What is authorization?

A

Congress establishes and sets the requirements for a program or activity.

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14
Q

What is appropriation?

A

required for an agency to begin spending.

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15
Q

What is a budget resolution?

A

concurrent resolution on the budget, meaning that both the Senate and the House agree. Sets levels for total receipts and for budget authority and outlays by total and functional category. Also sets levels for surplus and debt.

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16
Q

Is a budget resolution law?

A

no - and is not submitted to the president for approval.

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17
Q

What is authorizing legislation?

A

sets up or continues the operation of a federal program or agency, either indefinitely or for a specified period of time, or that sanctions a particular type of obligation or expenditure within a program.

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18
Q

What is appropriation bills?

A

initiated in the House, appropriation bills provide budget authority. The Senate may disagree with provisions of the House appropriation bills/

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19
Q

What are Conference Committees?

A

resolve differences between House and Senate appropriation bills. revised appropriations bills are then approved in both the House and Senate.

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20
Q

What is Presidential Approval?

A

jointly approved bills are submitted to the president for approval or veto.

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21
Q

What if appropriations are not provided at the beginning of the budget year?

A

If appropriations are not provided at the beginning of the budget year, authority to continue operations may be provided through a continuing resolution.

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22
Q

What is continuing resolution?

A

similar to an appropriations bill. They are law and congress must present them to the president for approval or veto. Provides authority for the affected agencies to continue operations at some specified level up to a specific date, or until regular appropriations are enacted.

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23
Q

What percentage of spending do appropriations control?

A

1/3

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24
Q

What makes up the other 2/3 of government spending?

A

Permanent laws, also known as mandatory spending

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25
Q

What are examples of mandatory spending?

A

social security, medicare, Medicaid, unemployment insurance

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26
Q

What is the 1/3 of spending that appropriations control called?

A

discretionary

27
Q

What is reconciliation?

A

a 2 step process designed to bring existing law governing mandatory spending in conformity with the most recent adopted concurrent resolution of the budget.

28
Q

What established the reconciliation process?

A

Congressional Budget and Impoundment Control Act of 1974

29
Q

What are the rules of debate for the reconciliation process?

A

bills considered cannot be debated for more than 20 hours in either the house or the senate and are not subject to filibuster in the senate.

30
Q

Why is it important that bills considered as part of the reconciliation process cannot be filibustered in the senate?

A

means a simple majority vote of 51, rather than 60 needed to stop a filibuster, is sufficient for the Senate to pass a bill in reconciliation.

31
Q

What are the 2 steps in the reconciliation process?

A
  1. ) the language found in concurrent resolution on the budget instructing House and Senate committees to determine, and recommend changes in laws or bills that will achieve constraints established in the concurrent resolution on the budget.
  2. ) involves the combination of the various instructed committees recommendations into an omnibus reconciliation bills.
32
Q

What is the Anti Deficiency Act?

A

prohibits government agencies from spending or obligating the government to spend in advance of an appropriation - unless specific authority to do so has been provided in law.

33
Q

When can an agency begin spending?

A

When an appropriation warrant has been issued by the treasury.

34
Q

What does the treasury warrant signify?

A

that an account has been established in the treasury equal to the amount of the appropriation.

35
Q

What three elements make up a warrant?

A
  1. ) agency code
  2. ) period of appropriation
  3. ) account symbol
36
Q

What are the 5 mechanisms that are used to control spending?

A
  1. ) Treasury Warrant
  2. ) Apportionment
  3. ) Allotment
  4. ) Supplemental appropriation
  5. ) Deferral/Recission
37
Q

What is an apportionment?

A

distributes amounts available for obligation in an appropriation

38
Q

What is the purpose of the apportionment process?

A

to centralize the administrations approval of agency spending plans to:

  1. ) prevent agencies from obligating funds in a manner that would result in a deficiency or require supplemental appropriations
  2. ) achieve the most effective and economical use of amounts made available.
39
Q

What are allotments

A

The agencies distribute their spending authority to the organizational units and locations with allotments.

40
Q

What are supplemental appropriations?

A

when the government has to spend more money than congress has appropriated for the fiscal year because of circumstances not anticipated when the budget was formulated.

41
Q

What are deferrals?

A

temporary withholdings of budget authority, that take effect immediately, unless overturned by an act of Congress.

42
Q

What are rescissions?

A
  • permanently cancel budget authority, and take effect only if congress passes a law approving them.
  • law may approve only a part of a rescission
  • if congress does not pass law in 45 days, the president must make the funds available
  • rescissions can be proposed for any reason
43
Q

Once funds are appropriated, the ability to spend the appropriated funds for something depends on what three things?

A
  1. ) the purpose of the obligation or expenditure of the funds must be consistent with the appropriation
  2. ) the obligation must occur within the time limits applicable to the appropriation
  3. ) the obligation and expenditure must be within the amounts congress has established
44
Q

What are the three time periods that are used for appropriations?

A
  1. ) one year/annual
  2. ) multi year - with definite end time
  3. ) no year - when purpose of program is complete or there are no more recipients
45
Q

What expenditures are associated with multi year appropriations?

A

construction projects, major procurements, etc

46
Q

What expenditures are associated with no year appropriations?

A

social security, medicare, etc

47
Q

What is the name for appropriations that have a definite amount?

A

definite appropriations

48
Q

What is the name for appropriations that do not have a definite amount?

A

indefinite appropriations

49
Q

What are the three periods that make up the life cycle of an appropriation?

A
  1. ) current
  2. ) expired
  3. ) closed
50
Q

What is current period?

A

the total appropriation is available for the establishment of new obligations

51
Q

What is the expired period?

A

when the fiscal year ends, the unobligated amount cannot be used to make new obligations. An agency has 5 years to make payments against amounts that have been obligated.

52
Q

What is the closed period?

A

after 5 years, an agency can no longer make any payments against obligations or use unobligated amounts.

53
Q

What are the 2 ways that the budget records money?

A
  1. ) receipts

2. ) offsetting collections

54
Q

What are receipts?

A

collections that result from the governments exercise of its sovereign power to tax or compel payment.

55
Q

What do receipts result from?

A

taxes, duties, fines, fees

56
Q

Offsetting collections result from what two kinds of transactions?

A
  1. ) business like or market oriented activities

2. ) intragovernment transactions

57
Q

What is budget authority?

A

authority provided in law to enter into legal obligations that will result in immediate or future outlays of government funds.

58
Q

What are the 4 forms of budget authority?

A
  1. ) appropriations
  2. ) authority to borrow
  3. ) contract authority
  4. ) spending authority from offsetting collections
59
Q

What is the Budget and Accounting Act 1921

A
  • created the OMB and GAO
  • allows president to submit a single budget
  • assigned GAO the role of investigating all matters relating to public funds.
60
Q

What is the Supplemental Appropriation Act of 1950

A
  • defined what constitutes a legal obligation against an appropriation.
  • required each agency to report its unliquidated obligations and unobligated appropriations at end of year.
61
Q

What is Budget and Accounting Procedures Act 1950?

A
  • authorized and directed the president to develop plans for organization, coordination and mgt of exec branch
  • est responsibilities for GAO
62
Q

What is the Congressional Budget and Impoundment Control Act of 1974?

A
  • Established budget committees in each house of congress and required them to coordinate and agree on revenue and expenditure levels through budget resolution.
  • established CBO
63
Q

What is the Federal Credit Reform Act 1990

A

governs federal loan programs

64
Q

What is the Budget Control Act 2011

A
  • increased debt limit

- contains measures intended to reduce the deficit by at least 2.1 trillion over FY12-21

CGFM Test 2 (8 decks)

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