CDFM Resource Management Environment 4 — Questions and Answers
Question 1: What document communicates the Secretary of Defense's fiscal guidance to the Military Departments and Defense Agencies at the start of the programming phase?
- Defense Planning Guidance (DPG)
- Fiscal Guidance (FG) (Correct answer)
- Strategic Portfolio Review
- Program Decision Memorandum (PDM)
Correct answer: Fiscal Guidance (FG)
Fiscal Guidance provides the Services with specific resource levels and constraints to use when building their Program Objective Memoranda during the programming phase.
Question 2: Under DoD financial management, 'expired' appropriations differ from 'cancelled' appropriations in that expired funds:
- Cannot be used for any purpose and are immediately returned to Treasury
- Can still be used to adjust or liquidate valid obligations from the period of availability (Correct answer)
- Are permanently rescinded by Congress at the end of each fiscal year
- Can be transferred to current-year accounts without restriction
Correct answer: Can still be used to adjust or liquidate valid obligations from the period of availability
Expired appropriations have passed their period of availability for new obligations but can still be used for up to five years to adjust or liquidate valid prior-year obligations.
Question 3: Which of the following scenarios would most likely constitute an Antideficiency Act violation?
- Obligating O&M funds for supplies before the fiscal year begins
- Entering into a contract that commits funds in excess of available appropriations (Correct answer)
- Submitting a budget request that exceeds the previous year's enacted level
- Reprogramming funds without congressional notification
Correct answer: Entering into a contract that commits funds in excess of available appropriations
Entering into a contract that commits funds beyond the available appropriation is the classic Antideficiency Act violation, as it creates a legal obligation without budget authority.
Question 4: In the resource management environment, what is an 'unfunded requirement' (UFR)?
- A program that has been cancelled by Congress during the authorization process
- A validated need that has not been allocated funding in the approved budget or program (Correct answer)
- Funds that were appropriated but not yet obligated at the end of the fiscal year
- A requirement that cannot be funded due to an Antideficiency Act restriction
Correct answer: A validated need that has not been allocated funding in the approved budget or program
An unfunded requirement (UFR) is a validated operational or programmatic need that was not included in the approved budget due to resource constraints.
Question 5: What is the primary function of the Defense Finance and Accounting Service (DFAS) within the DoD resource management environment?
- To develop the Defense budget and submit it to OMB
- To provide finance and accounting services, and produce financial statements for DoD components (Correct answer)
- To conduct audits and investigations of potential Antideficiency Act violations
- To set resource allocation policy for all DoD appropriations
Correct answer: To provide finance and accounting services, and produce financial statements for DoD components
DFAS provides finance and accounting services, processes payments, maintains financial records, and produces financial statements for DoD components.
Question 6: Which of the following best describes 'working capital funds' (WCF) as used in DoD?
- Revolving funds that recover costs from customers through user charges rather than direct appropriations (Correct answer)
- Direct appropriations that fund operation and maintenance activities
- Supplemental appropriations provided during wartime to fund contingency operations
- Emergency reserve funds set aside for unforeseen operational requirements
Correct answer: Revolving funds that recover costs from customers through user charges rather than direct appropriations
Working capital funds are revolving funds that finance goods and services provided to DoD customers, recovering costs through charges to user organizations rather than receiving direct annual appropriations.
Question 7: In DoD resource management, the 'bona fide needs' rule requires that:
- All procurement actions be competitively bid regardless of dollar threshold
- Appropriated funds be obligated only for genuine needs that arise during the appropriation's period of availability (Correct answer)
- Reprogramming actions must address needs identified in the current budget submission
- Funds transferred between accounts must serve needs verified by the Inspector General
Correct answer: Appropriated funds be obligated only for genuine needs that arise during the appropriation's period of availability
The bona fide needs rule states that a fiscal year's appropriation may only be obligated to meet genuine needs that arise during that fiscal year's period of availability.
CDFM Resource Management Environment 4
What document communicates the Secretary of Defense's fiscal guidance to the Military Departments and Defense Agencies at the start of the programming phase?