CDFM Fiscal Law Principles 4

Question 1

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

Accepted Answer

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

Answer

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.

Question 2

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

Accepted Answer

Two years imprisonment and a fine

Answer

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

Question 3

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

Accepted Answer

Allotment

Answer

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.

Question 4

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

Accepted Answer

Only when a specific statute authorizes acceptance of such services

Answer

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

Question 5

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

Accepted Answer

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

Answer

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.

CDFM - Certified Defense Financial Manager Practice Test

CDFM - Certified Defense Financial Manager Practice Test

CDFM Fiscal Law Principles 4