Budget Formulation and Execution Flashcards

In the DoD Planning, Programming, Budgeting, and Execution (PPBE) system, what is the primary output of the Programming phase?

Answer: Program Objective Memorandum (POM)

The primary output of the Programming phase is the POM, which details how each military department proposes to allocate resources across programs over the FYDP.

What is the significance of a 'continuing resolution' for DoD budget execution?

Answer: It allows DoD to obligate funds at a rate generally not exceeding the prior year enacted level

A continuing resolution (CR) allows agencies to continue operations when a new appropriation is not enacted, generally limiting obligations to the prior year's rate.

Which type of reprogramming action requires prior approval notification to congressional defense committees before execution?

Answer: Prior approval reprogramming

Prior approval reprogramming requires formal congressional notification and a waiting period before DoD can execute the fund shift.

Under DoD financial management policy, what is an 'obligation'?

Answer: A definite commitment that creates a legal liability to pay

An obligation is a definite commitment that creates a legal liability of the government to make a payment when the conditions of the contract or agreement are met.

What is the primary difference between 'authorization' and 'appropriation' in the federal budget process?

Answer: Authorization provides legal authority for programs while appropriation provides the actual funds to operate them

Authorization legislation establishes, continues, or modifies a program or agency, while appropriations legislation provides the actual budget authority to incur obligations.

In DoD budget execution, what is the purpose of an Expenditure Transfer Account (ETA)?

Answer: To record appropriation disbursements and receipts in Treasury accounts

ETAs are Treasury accounts used to record the disbursement of appropriated funds and the collection of reimbursements during budget execution.

What does the '80/20 rule' refer to in the context of DoD O&M fund management?

Answer: Services must spend at least 80% of O&M funds in the year appropriated

DoD policy generally requires that at least 80% of O&M funds be obligated within the year of appropriation to ensure funds are used for their intended purpose.