CGFM Federal Budget Process and Execution 2 — Questions and Answers
Question 1: What is a 'sequester' in federal budgeting?
- A type of supplemental appropriation
- An automatic, across-the-board spending cut triggered when spending exceeds statutory caps (Correct answer)
- A presidential line-item veto of appropriations
- A transfer of funds between agencies
Correct answer: An automatic, across-the-board spending cut triggered when spending exceeds statutory caps
A sequester is an automatic across-the-board spending reduction triggered when spending exceeds statutory limits, as established under the Gramm-Rudman-Hollings Act and later the Budget Control Act of 2011.
Question 2: Which federal agency prepares the President's budget and oversees federal agency budget execution?
- Government Accountability Office (GAO)
- Congressional Budget Office (CBO)
- Office of Management and Budget (OMB) (Correct answer)
- Department of the Treasury
Correct answer: Office of Management and Budget (OMB)
The Office of Management and Budget (OMB) prepares the President's budget submission and oversees federal agency budget formulation and execution.
Question 3: What is an 'apportionment' in federal budget execution?
- The division of the budget between mandatory and discretionary spending
- The OMB's distribution of appropriated funds to agencies in amounts available for obligation in specified time periods (Correct answer)
- Congressional allocation of funds to committees
- The transfer of unspent funds at fiscal year-end
Correct answer: The OMB's distribution of appropriated funds to agencies in amounts available for obligation in specified time periods
An apportionment is OMB's action distributing appropriated budget authority to federal agencies by time period, program, or activity to prevent over-obligation of funds.
Question 4: What is an 'obligation' in federal financial management?
- A payment made to a vendor
- A legal commitment of the government to make payment, such as signing a contract (Correct answer)
- A budget request submitted to Congress
- An annual appropriation
Correct answer: A legal commitment of the government to make payment, such as signing a contract
An obligation is a legally binding commitment that will result in outlays, immediately or in the future, such as entering into a contract or placing an order.
Question 5: Under the Antideficiency Act, what is prohibited?
- Submitting a budget request late
- Obligating or expending funds in excess of amounts available in an appropriation (Correct answer)
- Using mandatory spending for discretionary programs
- Transferring funds between fiscal years
Correct answer: Obligating or expending funds in excess of amounts available in an appropriation
The Antideficiency Act prohibits federal agencies from obligating or expending funds in excess of available appropriations and requires reporting of violations.
Question 6: What is 'reprogramming' in federal budget execution?
- Changing the computer systems used for budget tracking
- Moving funds within an appropriation from one purpose to another without changing the total appropriation (Correct answer)
- Requesting a supplemental appropriation
- Canceling unobligated funds
Correct answer: Moving funds within an appropriation from one purpose to another without changing the total appropriation
Reprogramming is the use of appropriated funds for purposes other than those originally justified to Congress, within the same appropriation account.
CGFM Federal Budget Process and Execution 2
What is a 'sequester' in federal budgeting?