CBS Regulatory Compliance & Ethics 3 — Questions and Answers
Question 1: Which of the following best describes 'reprogramming' in federal budget management?
- Transferring funds between appropriation accounts requiring congressional approval
- Moving funds within an appropriation account to use them for a different purpose (Correct answer)
- Rescinding previously enacted appropriations
- Deferring the obligation of funds to a future fiscal year
Correct answer: Moving funds within an appropriation account to use them for a different purpose
Reprogramming moves funds within the same appropriation account to cover different purposes, while transfers move funds between separate accounts.
Question 2: Under GAAP for governmental entities, which fund type accounts for activities similar to private-sector businesses?
- General Fund
- Special Revenue Fund
- Enterprise Fund (Correct answer)
- Capital Projects Fund
Correct answer: Enterprise Fund
Enterprise funds use accrual accounting similar to private businesses and account for government activities that charge fees to external users, such as utilities.
Question 3: A budget analyst who knowingly certifies an inaccurate financial report to secure grant funding violates which fundamental ethical obligation?
- Confidentiality
- Integrity (Correct answer)
- Professional competence
- Due care
Correct answer: Integrity
Integrity requires budget professionals to be honest and truthful; knowingly certifying false information is a direct breach of this core ethical obligation.
Question 4: Which federal statute requires agencies to report Antideficiency Act violations to both Congress and the President?
- The Government Performance and Results Act
- The Anti-Deficiency Act itself (Correct answer)
- The Chief Financial Officers Act
- The Improper Payments Elimination and Recovery Act
Correct answer: The Anti-Deficiency Act itself
The Anti-Deficiency Act requires agencies to report violations to the President and Congress, as well as OMB and the Government Accountability Office.
Question 5: In budgetary ethics, 'independence in appearance' means a budget specialist must:
- Always work without supervision to demonstrate competence
- Avoid situations that could make a reasonable observer doubt their objectivity (Correct answer)
- Refrain from discussing budget matters with external stakeholders
- Maintain separate offices from program managers
Correct answer: Avoid situations that could make a reasonable observer doubt their objectivity
Independence in appearance requires avoiding circumstances that would cause a knowledgeable third party to question the professional's impartiality, even if no actual bias exists.
Question 6: What is the primary purpose of an apportionment issued by OMB?
- To authorize agencies to hire additional staff above approved FTE levels
- To distribute appropriated funds over time or activities to prevent premature exhaustion (Correct answer)
- To transfer funds between different cabinet-level departments
- To rescind unused budget authority at fiscal year end
Correct answer: To distribute appropriated funds over time or activities to prevent premature exhaustion
OMB apportionments divide appropriated funds into allotments by time period or program to ensure agencies do not spend their entire annual appropriation too early.
Question 7: Which scenario would most likely constitute an improper augmentation of appropriations?
- Accepting a congressional add to an existing program
- Using fees collected from agency services to supplement a direct appropriation for operating costs (Correct answer)
- Requesting a supplemental appropriation from Congress mid-year
- Receiving a transfer from another agency under the Economy Act
Correct answer: Using fees collected from agency services to supplement a direct appropriation for operating costs
Augmentation of appropriations occurs when agencies use collections from non-appropriated sources to supplement their direct appropriations without statutory authority.
CBS Regulatory Compliance & Ethics 3
Which of the following best describes 'reprogramming' in federal budget management?