CDFM - Certified Defense Financial Manager Budget Formulation and Execution Questions and Answers

Question 1

During the Budgeting phase of the Planning, Programming, Budgeting, and Execution (PPBE) process, what is the primary document submitted by DoD Components to the Office of the Secretary of Defense (OSD)?

Accepted Answer

Budget Estimate Submission (BES)

Answer

The Budget Estimate Submission (BES) is the key document submitted during the budgeting phase. It details the funding requirements for the first two years of the Program Objective Memorandum (POM) and serves as the basis for the DoD's portion of the President's Budget.

Question 2

A DoD agency is operating under a Continuing Resolution Authority (CRA) for the first quarter of the fiscal year. Which of the following actions is most likely restricted under the CRA?

Accepted Answer

Initiating a new major weapons system program.

Answer

Continuing Resolutions typically provide funding at the previous year's level and prohibit the start of 'new programs' or initiatives. Paying salaries, continuing existing contracts, and funding mission-critical operations are generally allowable to maintain government function.

Question 3

Which of the following represents the correct flow of budgetary authority from the Office of Management and Budget (OMB) down to an executing activity within the DoD?

Accepted Answer

Apportionment -> Allotment -> Commitment -> Obligation

Answer

After Congress appropriates funds, the OMB apportions them to the DoD. The DoD then allots the funds to lower-level commands or activities. Those activities then commit the funds for a specific purpose before finally obligating them through a binding agreement like a contract.

Question 4

A program manager has identified a need to shift funds within the same appropriation account from one project to another to cover an unforeseen cost increase. This action is best described as:

Accepted Answer

A reprogramming.

Answer

Reprogramming is the process of shifting funds within an appropriation or fund account for purposes other than those originally intended at the time of appropriation. This allows for flexibility in budget execution.

Question 5

The execution review phase of the PPBE process primarily focuses on what activity?

Accepted Answer

Translating programming decisions into detailed budget justifications.

Answer

The execution review occurs concurrently with other phases and involves evaluating how well funds are being used and whether programs are achieving their intended outcomes by comparing planned performance to actual performance. This feedback informs future planning and programming decisions.

CDFM - Certified Defense Financial Manager Practice Test

CDFM - Certified Defense Financial Manager Practice Test

CDFM - Certified Defense Financial Manager Budget Formulation and Execution Questions and Answers