CSS CSS Budget & Financial Management 1 — Questions and Answers
Question 1: What is the primary purpose of a federal agency's annual budget request submitted to the Office of Management and Budget (OMB)?
- To justify funding needs and align resources with mission priorities (Correct answer)
- To report prior-year expenditures to Congress
- To approve procurement contracts over $250,000
- To certify payroll and benefits for all employees
Correct answer: To justify funding needs and align resources with mission priorities
Federal agencies submit annual budget requests to OMB to justify their funding needs and demonstrate how resources will be aligned with their mission priorities.
Question 2: Which principle requires that federal agencies spend appropriated funds only for the purposes authorized by Congress?
- The Antideficiency Act
- The Purpose Statute (Correct answer)
- The Prompt Payment Act
- The Economy Act
Correct answer: The Purpose Statute
The Purpose Statute (31 U.S.C. § 1301) requires that federal agencies use appropriated funds only for the specific purposes for which they were appropriated by Congress.
Question 3: What does the term 'continuing resolution' mean in the context of federal government budgeting?
- A multi-year spending authorization for major programs
- Temporary legislation allowing agencies to continue operating at prior-year funding levels (Correct answer)
- A resolution to carry over unspent funds into the next fiscal year
- An amendment to an existing appropriations bill
Correct answer: Temporary legislation allowing agencies to continue operating at prior-year funding levels
A continuing resolution is temporary legislation passed by Congress that allows federal agencies to continue operating at or near prior-year funding levels when a full appropriations bill has not been enacted.
Question 4: Under the Antideficiency Act, what is prohibited for federal civil servants regarding agency spending?
- Requesting supplemental appropriations mid-year
- Obligating or spending funds in excess of appropriated amounts (Correct answer)
- Transferring funds between program accounts without authority
- Submitting budget amendments to OMB
Correct answer: Obligating or spending funds in excess of appropriated amounts
The Antideficiency Act prohibits federal employees from obligating or expending funds in excess of or in advance of the amounts appropriated by Congress.
Question 5: What is an 'obligation' in federal financial management?
- A formal commitment that creates a legal liability to pay for goods or services (Correct answer)
- The act of transferring funds from Treasury to an agency account
- A written request to Congress for supplemental funding
- An internal memo authorizing an employee to make purchases
Correct answer: A formal commitment that creates a legal liability to pay for goods or services
In federal financial management, an obligation is a formal commitment (such as a contract or order) that creates a legal liability requiring the government to pay for goods or services.
Question 6: What is the federal government's fiscal year period?
- January 1 – December 31
- April 1 – March 31
- October 1 – September 30 (Correct answer)
- July 1 – June 30
Correct answer: October 1 – September 30
The U.S. federal government's fiscal year runs from October 1 through September 30 of the following calendar year.
CSS CSS Budget & Financial Management 1
What is the primary purpose of a federal agency's annual budget request submitted to the Office of Management and Budget (OMB)?