DoD Finance Operations and Pay Systems Flashcards

Which agency serves as the primary provider of finance and accounting services for the Department of Defense, including military and civilian pay?

Answer: Defense Finance and Accounting Service (DFAS)

DFAS is the centralized DoD finance and accounting agency responsible for pay services for military personnel, civilians, retirees, and vendors. It was established in 1991 to consolidate DoD finance functions.

Under the Joint Travel Regulations (JTR), the 'constructive cost' principle limits travel reimbursement to:

Answer: What the government would have paid for the authorized mode of transportation

The constructive cost rule caps reimbursement at what the government would have paid using the authorized or more economical transportation option, even if the traveler used a different method at higher personal cost.

A Disbursing Officer (DO) who makes an erroneous payment of government funds is subject to:

Answer: Personal pecuniary liability unless formally relieved by the Comptroller General or Secretary of the Treasury

Disbursing Officers bear strict personal pecuniary (financial) liability for improper payments. Relief from this liability requires formal action by the Comptroller General (GAO) or Secretary of the Treasury and is not granted automatically.

Which of the following is NOT included in a military member's Regular Military Compensation (RMC)?

Answer: Hazardous Duty Special Pay

RMC is defined as Basic Pay + BAH + BAS + the tax advantage of the allowances. Special pays such as hazardous duty pay, flight pay, and diving pay are supplemental and are excluded from the RMC calculation.

Under the Debt Collection Improvement Act (DCIA), the primary method for collecting a federal civilian employee's debt to the government is:

Answer: Salary offset against the employee's federal pay

The DCIA of 1996 requires agencies to use salary offset (administrative garnishment of the debtor's federal pay) as the primary collection tool for current federal employees before pursuing litigation or other collection mechanisms.

Under the Prompt Payment Act, if the federal government fails to pay a valid contractor invoice by the required due date, the agency must:

Answer: Automatically pay interest penalties from the due date without requiring contractor demand

The Prompt Payment Act requires the government to pay interest penalties automatically when payments are late — the contractor is not required to request the interest. This incentivizes timely payment and compensates vendors for the time value of money.