CDFM - Certified Defense Financial Manager Fiscal Law Principles Questions and Answers

Question 1

A program office obligates the entire cost for a new system overhaul and modification contract in FY26, using FY26 RDT&E funds.
The work on the contract is expected to produce a single, final modified system, but performance will cross into FY27.
Which fiscal law principle best justifies this action?

Accepted Answer

The full funding policy for non-severable services.

Answer

The bona fide needs rule for severable services.

Answer

The Anti-Deficiency Act exception for multi-year contracts.

Answer

The Purpose Statute's allowance for incremental funding.

Question 2

A DoD agency receives revenue from recycling used brass casings. The commander directs that this revenue be deposited directly into the installation's Operations & Maintenance (O&M) account to pay for new training equipment. This action is a potential violation of which fiscal principle?

Accepted Answer

Prohibition against augmentation of an appropriation

Answer

The Bona Fide Needs Rule

Answer

The Anti-Deficiency Act

Answer

The Necessary Expense Doctrine

Question 3

Which of the following actions constitutes a violation of the Anti-Deficiency Act (ADA)?

Accepted Answer

Involving the government in a contract for the payment of money before an appropriation is made.

Answer

Reprogramming funds between two projects within the same appropriation account.

Answer

Accepting voluntary services from a civilian organization for a purpose authorized by statute.

Answer

Using annual O&M funds for a severable service contract that crosses fiscal years but lasts less than 12 months.

Question 4

The commander of a forward-deployed unit directs that FY26 Operations and Maintenance (O&M) funds be used to purchase a new, armored tactical vehicle to replace one lost in combat. This action most likely violates which foundational fiscal law?

Accepted Answer

The Purpose Statute (31 U.S.C. § 1301)

Answer

The Feed and Forage Act (41 U.S.C. § 6301)

Answer

The Bona Fide Needs Rule (31 U.S.C. § 1502)

Answer

The Anti-Deficiency Act (31 U.S.C. § 1341)

Question 5

At the start of a new fiscal year, Congress has failed to pass a defense appropriations act, and there is no continuing resolution in place. A deployed naval vessel requires an emergency replenishment of fuel and food to continue its mission. Which statute provides the legal authority to incur an obligation for these necessities?

Accepted Answer

The Feed and Forage Act

Answer

The Economy Act

Answer

The Project Order Act

Answer

The Miscellaneous Receipts Statute

Question 6

A DoD financial manager is determining how to fund a 12-month contract for recurring groundskeeping services that will begin on July 1, FY26 and end on June 30, FY27. The services provide a benefit each month they are performed. According to fiscal law, what is the proper way to fund this contract?

Accepted Answer

Use a single-year appropriation to fund the entire contract, as authorized for severable services crossing fiscal years.

Answer

Fund the entire 12-month contract with FY27 appropriations since most of the performance occurs in that year.

Answer

Fund the contract with a multi-year Procurement appropriation.

Answer

Fund the entire 12-month contract with FY26 appropriations, but only if it's deemed a non-severable service.