Government Financial Management and Cash Management Flashcards

What is a 'revolving fund' in the federal government?

Answer: A fund that sustains its operations by charging other agencies for goods or services and using the proceeds to cover its costs

A revolving fund finances a continuing cycle of operations, recovering costs through charges to customers and using the receipts to finance continuing operations without annual appropriations.

What is the Treasury's Financial Management Service (now Bureau of the Fiscal Service) primarily responsible for?

Answer: Disbursing federal payments, collecting federal revenue, and managing the federal government's cash

The Bureau of the Fiscal Service (formerly FMS) manages the government's finances by disbursing payments, collecting revenue, producing financial reports, and managing federal debt.

In government financial management, what is 'debt management'?

Answer: Managing the federal government's outstanding debt obligations including issuance, interest payments, and retirement of securities

Federal debt management involves issuing Treasury securities, making interest payments, retiring maturing debt, and managing the overall composition and maturity structure of the public debt.

What is 'float' in the context of government cash management?

Answer: The amount of money in transit between payer and payee

Float is the amount of money in transit — disbursement float occurs when a check is issued but not yet cleared; collection float is when a payment is received but not yet available.

Which electronic system does the federal government primarily use to disburse payments to employees and vendors?

Answer: Electronic Funds Transfer (EFT) through ACH

The federal government uses Electronic Funds Transfer (EFT) through the Automated Clearing House (ACH) network as the primary method for disbursing payments, reducing paper check costs.

What is an 'allotment' in the context of federal budget execution?

Answer: An agency's subdivision of an apportionment to subordinate organizational units for obligation

An allotment is the agency's internal distribution of an apportionment to program offices or organizational units, authorizing them to obligate funds up to a specified amount.