Budget Formulation and Execution Flashcards

Which DoD financial management concept ensures that funds are used only for the purposes for which they were appropriated?

Answer: Purpose Statute (31 U.S.C. § 1301)

The Purpose Statute (31 U.S.C. § 1301) requires that appropriations be applied only to the objects for which the appropriations were made.

In DoD budget execution, what is an 'unfunded requirement' (UFR)?

Answer: A validated operational need that lacks sufficient budget authority to be addressed

An UFR is a validated requirement for which funding was not included in the approved program and budget, often submitted during budget execution to compete for available resources.

Under the Bona Fide Need Rule, when must O&M funds be obligated?

Answer: During the fiscal year in which the bona fide need exists

The Bona Fide Need Rule requires that annual appropriations only be used to meet genuine needs that arise during the fiscal year in which those funds are available.

What is the primary purpose of the Future Years Defense Program (FYDP)?

Answer: To display the DoD resource plan and force structure for the current year plus four additional years

The FYDP is an automated database that presents DoD's programs, forces, and resources for the budget year plus four additional years, linking strategy to resources.

What is a 'below-threshold reprogramming' in DoD budget execution?

Answer: A fund shift within an appropriation that does not require prior congressional approval due to small dollar amount

Below-threshold reprogrammings are fund realignments that fall under congressional notification thresholds and can be executed with only notification rather than prior approval.

In DoD, what is the purpose of the Mid-Year Review (MYR) during budget execution?

Answer: To assess execution against the approved budget and identify adjustments needed for the remainder of the year

The MYR assesses how well programs are executing against their approved funding levels at the midpoint of the fiscal year and identifies areas requiring corrective action.

Which financial management term describes the process by which OMB divides a Congressional appropriation into amounts available for obligation by time period or project?

Answer: Apportionment

Apportionment is the OMB action that divides appropriated amounts into categories by time period, programs, projects, or activities to prevent premature obligation of all funds.