Fiscal Law Principles Flashcards

What is the legal effect of an apportionment issued by the Office of Management and Budget (OMB)?

Answer: It limits the amount of an appropriation an agency may obligate during a specific time period

An OMB apportionment divides an appropriation into amounts available for obligation by time period, program, or project, creating a binding ceiling below the appropriated amount.

A DoD official knowingly violates the Antideficiency Act by obligating funds in excess of an apportionment. What is the maximum criminal penalty?

Answer: Two years imprisonment and a fine

Willful violations of the Antideficiency Act (31 U.S.C. § 1350) carry a criminal penalty of up to two years imprisonment and a fine.

Which document provides the legal basis for an agency to incur obligations by allocating budget authority to a program or project?

Answer: Allotment

An allotment is an authorization granted by the head of an agency to subordinate officials to incur obligations within a specified amount from an apportioned appropriation.

Under what circumstances may DoD accept voluntary services without violating the Antideficiency Act?

Answer: Only when a specific statute authorizes acceptance of such services

31 U.S.C. § 1342 prohibits accepting voluntary services except as authorized by law, such as specific statutes permitting volunteer programs or emergency situations.

A multi-year contract for aircraft maintenance spans FY2026 through FY2028. Which appropriation structure is most appropriate for funding this contract?

Answer: Fund each year's services with the appropriation current at the time services are rendered

For severable services contracts, each fiscal year's portion must be funded by the appropriation current at the time those services are received, consistent with the Bona Fide Needs Rule.

The GAO's 'over a fiscal year' exception to the Bona Fide Needs Rule permits which of the following?

Answer: Using current-year funds for a contract that crosses into the next fiscal year when the contract term is less than 12 months

GAO allows a contract period to span a fiscal year end when the total contract term is 12 months or less and the need genuinely arose in the current year.

Which of the following best describes 'reprogramming' in the DoD budget context?

Answer: Shifting funds within an appropriation account to use them for a different program or purpose than originally planned, often requiring congressional notification

Reprogramming moves funds within an appropriation account and may require prior approval or notification of congressional defense committees depending on thresholds.