CBA CBA Budget Execution & Performance Monitoring 2 — Questions and Answers
Question 1: Which performance measurement framework requires federal agencies to set strategic goals and report progress annually?
- Government Performance and Results Modernization Act (GPRAMA) (Correct answer)
- Chief Financial Officers Act
- Federal Managers' Financial Integrity Act
- Clinger-Cohen Act
Correct answer: Government Performance and Results Modernization Act (GPRAMA)
GPRAMA (2010) requires agencies to establish strategic goals, performance goals, and annual performance plans, and to publicly report results on Performance.gov.
Question 2: A budget analyst finds that program obligations are running 40% below the planned rate at mid-year. The FIRST recommended action is to:
- Conduct a root-cause analysis to determine whether the shortfall reflects delays, rescissions, or program issues (Correct answer)
- Immediately reprogram funds to a higher-priority account
- Submit a supplemental appropriation request to Congress
- Reduce the program's outyear baseline by the same amount
Correct answer: Conduct a root-cause analysis to determine whether the shortfall reflects delays, rescissions, or program issues
Before taking any corrective action, the analyst must diagnose whether the obligation shortfall stems from procurement delays, program restructuring, policy holds, or other causes.
Question 3: In performance-based budgeting, 'cost per outcome' measures are used primarily to:
- Link resource inputs directly to program results to assess value for money (Correct answer)
- Calculate agency overhead as a proportion of direct program costs
- Determine the minimum staffing levels needed to achieve a target
- Identify which budget line items should be subject to zero-based review
Correct answer: Link resource inputs directly to program results to assess value for money
Cost-per-outcome measures integrate financial and performance data, allowing decision-makers to assess whether resources are producing results efficiently.
Question 4: What is the primary purpose of a 'variance analysis' in budget execution monitoring?
- To identify and explain differences between planned and actual budget performance (Correct answer)
- To reallocate unspent balances across program areas
- To project future spending based on historical obligation patterns
- To document agency compliance with OMB Circular A-11
Correct answer: To identify and explain differences between planned and actual budget performance
Variance analysis compares budgeted versus actual obligations and outlays, explaining the reasons for differences so management can take corrective action.
Question 5: Under OMB Circular A-11, agencies must submit their President's Budget data through which system?
- MAX Federal Community (MAX Budget) (Correct answer)
- USASpending.gov
- FPDS-NG (Federal Procurement Data System)
- FAADS (Federal Assistance Award Data System)
Correct answer: MAX Federal Community (MAX Budget)
Agencies submit budget justification data, performance plans, and financial information to OMB through the MAX Federal Community, OMB's primary budget data portal.
Question 6: Which term describes the practice of withholding budget authority from obligation, effectively reducing spending without congressional action?
- Impoundment
- Rescission
- Sequestration
- Deferral (Correct answer)
Correct answer: Deferral
A deferral is an executive branch action that temporarily withholds, delays, or limits the obligation of budgetary resources, subject to congressional notification under the Impoundment Control Act.
CBA CBA Budget Execution & Performance Monitoring 2
Which performance measurement framework requires federal agencies to set strategic goals and report progress annually?