CDFM Budget Formulation and Execution 3

Question 1

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

Accepted Answer

Program Objective Memorandum (POM)

Answer

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.

Question 2

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

Accepted Answer

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

Answer

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.

Question 3

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

Accepted Answer

Prior approval reprogramming

Answer

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

Question 4

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

Accepted Answer

A definite commitment that creates a legal liability to pay

Answer

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.

Question 5

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

Accepted Answer

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

Answer

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

CDFM - Certified Defense Financial Manager Practice Test

CDFM - Certified Defense Financial Manager Practice Test

CDFM Budget Formulation and Execution 3