Practice Test GeeksCDFM - Certified Defense Financial Manager Practice Test
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Budget Formulation and Execution Flashcards

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  1. Which DoD planning document translates strategic guidance into specific program and budget recommendations across the Future Years Defense Program (FYDP)?

    Answer: Program Objective Memorandum (POM)

    The POM is the military department's primary document that translates planning guidance into specific program and budget recommendations for the FYDP period.

  2. What is the primary purpose of a Reprogramming Action in federal budget execution?

    Answer: To shift funds within an appropriation for different purposes than originally intended

    Reprogramming moves funds within an appropriation account to use them for purposes other than those originally contemplated when the funds were appropriated.

  3. Under the Antideficiency Act, which action is prohibited without proper authority?

    Answer: Obligating funds before they are apportioned

    The Antideficiency Act prohibits agencies from obligating or expending funds in advance of or in excess of an appropriation or apportionment.

  4. In DoD budget formulation, what does the term 'color of money' refer to?

    Answer: The specific appropriation category that funds must be spent within

    Color of money refers to the specific appropriation type (O&M, RDT&E, Procurement, etc.) that restricts how funds can be legally spent.

  5. What is the purpose of the Overseas Contingency Operations (OCO) budget designation?

    Answer: To fund extraordinary costs associated with contingency operations not in the base budget

    OCO funding covers extraordinary costs of contingency operations that are unpredictable and not included in the regular base budget request.

  6. Which budget execution document authorizes a federal agency to incur obligations and make expenditures from a Treasury appropriation account?

    Answer: Apportionment

    An apportionment issued by OMB authorizes an agency to incur obligations and make expenditures from a Treasury appropriation account at a specified rate.

  7. What happens to Operations and Maintenance (O&M) appropriations that are not obligated by the end of the fiscal year?

    Answer: They expire and are no longer available for new obligations

    O&M is a one-year appropriation, so unobligated balances expire at fiscal year end and are no longer available for new obligations.

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