CDFM Budget Formulation and Execution 5

Question 1

Which DoD financial management concept ensures that funds are used only for the purposes for which they were appropriated?

Accepted Answer

Purpose Statute (31 U.S.C. § 1301)

Answer

The Purpose Statute (31 U.S.C. § 1301) requires that appropriations be applied only to the objects for which the appropriations were made.

Question 2

In DoD budget execution, what is an 'unfunded requirement' (UFR)?

Accepted Answer

A validated operational need that lacks sufficient budget authority to be addressed

Answer

An UFR is a validated requirement for which funding was not included in the approved program and budget, often submitted during budget execution to compete for available resources.

Question 3

Under the Bona Fide Need Rule, when must O&M funds be obligated?

Accepted Answer

During the fiscal year in which the bona fide need exists

Answer

The Bona Fide Need Rule requires that annual appropriations only be used to meet genuine needs that arise during the fiscal year in which those funds are available.

Question 4

What is the primary purpose of the Future Years Defense Program (FYDP)?

Accepted Answer

To display the DoD resource plan and force structure for the current year plus four additional years

Answer

The FYDP is an automated database that presents DoD's programs, forces, and resources for the budget year plus four additional years, linking strategy to resources.

Question 5

What is a 'below-threshold reprogramming' in DoD budget execution?

Accepted Answer

A fund shift within an appropriation that does not require prior congressional approval due to small dollar amount

Answer

Below-threshold reprogrammings are fund realignments that fall under congressional notification thresholds and can be executed with only notification rather than prior approval.

CDFM - Certified Defense Financial Manager Practice Test

CDFM - Certified Defense Financial Manager Practice Test

CDFM Budget Formulation and Execution 5