CDFM Budget Formulation and Execution 2

Question 1

Which DoD planning document translates strategic guidance into specific program and budget recommendations across the Future Years Defense Program (FYDP)?

Accepted Answer

Program Objective Memorandum (POM)

Answer

The POM is the military department's primary document that translates planning guidance into specific program and budget recommendations for the FYDP period.

Question 2

What is the primary purpose of a Reprogramming Action in federal budget execution?

Accepted Answer

To shift funds within an appropriation for different purposes than originally intended

Answer

Reprogramming moves funds within an appropriation account to use them for purposes other than those originally contemplated when the funds were appropriated.

Question 3

Under the Antideficiency Act, which action is prohibited without proper authority?

Accepted Answer

Obligating funds before they are apportioned

Answer

The Antideficiency Act prohibits agencies from obligating or expending funds in advance of or in excess of an appropriation or apportionment.

Question 4

In DoD budget formulation, what does the term 'color of money' refer to?

Accepted Answer

The specific appropriation category that funds must be spent within

Answer

Color of money refers to the specific appropriation type (O&M, RDT&E, Procurement, etc.) that restricts how funds can be legally spent.

Question 5

What is the purpose of the Overseas Contingency Operations (OCO) budget designation?

Accepted Answer

To fund extraordinary costs associated with contingency operations not in the base budget

Answer

OCO funding covers extraordinary costs of contingency operations that are unpredictable and not included in the regular base budget request.

CDFM - Certified Defense Financial Manager Practice Test

CDFM - Certified Defense Financial Manager Practice Test

CDFM Budget Formulation and Execution 2