CGFM Federal Budget Process and Execution 2

Question 1

What is a 'sequester' in federal budgeting?

Accepted Answer

An automatic, across-the-board spending cut triggered when spending exceeds statutory caps

Answer

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?

Accepted Answer

Office of Management and Budget (OMB)

Answer

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?

Accepted Answer

The OMB's distribution of appropriated funds to agencies in amounts available for obligation in specified time periods

Answer

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?

Accepted Answer

A legal commitment of the government to make payment, such as signing a contract

Answer

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?

Accepted Answer

Obligating or expending funds in excess of amounts available in an appropriation

Answer

The Antideficiency Act prohibits federal agencies from obligating or expending funds in excess of available appropriations and requires reporting of violations.

CGFM - Certified Government Financial Manager Practice Test

CGFM - Certified Government Financial Manager Practice Test

CGFM Federal Budget Process and Execution 2