Budget Formulation and Execution Flashcards

In federal budgeting, what is the distinction between 'discretionary' and 'mandatory' spending?

Answer: Discretionary spending is controlled through annual appropriations while mandatory spending is governed by permanent law

Discretionary spending is funded through annual appropriations acts subject to congressional control, while mandatory spending is controlled by authorizing legislation and paid automatically.

What is the role of the Program Budget Decision (PBD) in the DoD PPBE process?

Answer: It is an OSD document that records decisions made during the budget review to adjust the BES

PBDs are issued by OSD to document the Secretary of Defense's decisions that adjust the military departments' Budget Estimate Submissions during the OSD budget review.

Which appropriation type funds the research, development, test, and evaluation of new defense systems prior to procurement?

Answer: Research, Development, Test and Evaluation (RDT&E)

RDT&E appropriations fund the development of new weapons systems, equipment, and technologies through the research and testing phases before full-rate production.

Under DoD financial management regulations, what constitutes an 'Antideficiency Act violation'?

Answer: Obligating or expending funds in excess of amounts available in an appropriation

An Antideficiency Act violation occurs when an agency obligates or expends funds beyond the amount available in the applicable appropriation or apportionment.

In the DoD budget process, what is a 'fence' or 'fenced funds' restriction?

Answer: A congressional restriction limiting the use of specific appropriated funds

Fenced funds are appropriated amounts that Congress has restricted to specific programs or purposes, preventing DoD from reprogramming or using them for other purposes.

What is the function of the Defense Finance and Accounting Service (DFAS) in budget execution?

Answer: To process financial transactions, make disbursements, and maintain accounting records for DoD

DFAS provides finance and accounting services including processing payments, maintaining general ledger accounts, and producing financial statements for DoD components.

What does the term 'scoring' mean in the context of federal budget formulation?

Answer: How OMB or CBO assesses the budget authority and outlays associated with legislative proposals

Scoring refers to the official accounting of the budget impact of proposed legislation or budget actions by OMB or the Congressional Budget Office.