Defense Resource Management Flashcards

Which of the following best describes 'working capital funds' (WCF) in the DoD financial management context?

Answer: Revolving funds that finance business-like operations by charging customers for goods and services provided

DoD Working Capital Funds are revolving funds that operate on a break-even basis, recovering costs from customer orders so that funding recycles without annual appropriations.

Under the Goldwater-Nichols Act, how did resource management authority shift within the DoD?

Answer: Joint duty and combatant command authority were strengthened, increasing the influence of joint requirements on resource decisions

Goldwater-Nichols (1986) strengthened combatant commanders and the Chairman of the Joint Chiefs, shifting resource emphasis toward joint warfighting requirements over individual service priorities.

When a defense program manager receives an 'issue paper' during the programming phase, what does this document typically represent?

Answer: A formal challenge to a service's POM submission identifying resource shortfalls or excesses

Issue papers (also called program issue papers or PIPs) are used by OSD and the Joint Staff to formally challenge or question service POM submissions during program review.

What does 'full funding' policy require for major defense acquisition programs?

Answer: Total procurement cost of a complete, usable end item must be funded in the year of obligation

The full funding policy requires that procurement appropriations include the total cost of a complete and usable item, preventing incremental or partial funding of production units.

In defense resource management, what is 'budget execution' primarily concerned with?

Answer: Managing and controlling the actual obligation and expenditure of appropriated funds during the fiscal year

Budget execution covers the period during which appropriated funds are actually obligated and expended, requiring managers to track spending against authorizations and report variances.

Which report is the primary tool used by Congress to monitor DoD budget execution on a quarterly basis?

Answer: The SF-133 Report on Budget Execution and Budgetary Resources

The SF-133 is the standard OMB/Treasury report on budget execution that tracks obligations, outlays, and unobligated balances, providing Congress and OMB with execution visibility.

What is the purpose of the 'Nunn-McCurdy Act' in defense resource management?

Answer: It mandates congressional notification and potential program termination when a major defense acquisition program exceeds specified unit cost growth thresholds

The Nunn-McCurdy Act (10 U.S.C. § 2433) requires DoD to notify Congress and potentially restructure or terminate programs that breach cost growth thresholds of 15% (significant) or 25% (critical).