Budgeting & Financial Oversight Flashcards
7 cards from real FAC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Budgeting & Financial Oversight flashcards as text
Under the Antideficiency Act, what occurs when an agency obligates funds in excess of the amount available in an appropriation?
Answer: A violation occurs and the responsible officer may face criminal penalties
The Antideficiency Act prohibits obligations exceeding available appropriations, and violations can result in administrative or criminal sanctions for responsible officials.
What is the primary purpose of a Budget Object Classification (BOC) code in federal procurement?
Answer: To classify the type of goods or services being purchased for accounting purposes
BOC codes categorize expenditures by object type (e.g., supplies, services, equipment) to support uniform financial reporting across federal agencies.
When must a Contracting Officer's Representative (COR) document a potential Anti-Deficiency Act violation?
Answer: Immediately upon discovery, notifying the contracting officer and finance office
Potential ADA violations must be reported immediately through proper channels, as delayed reporting can compound the legal and financial risk.
What is 'color of money' in federal budgeting?
Answer: The restrictions on using specific appropriations for specific purposes
'Color of money' refers to the fact that different appropriation types (O&M, procurement, RDT&E) have distinct restrictions and cannot be freely interchanged.
An agency receives a supplemental appropriation mid-year. Which statement about obligating these funds is correct?
Answer: Funds must be obligated in accordance with the purpose, time, and amount restrictions of the supplemental appropriation
Supplemental appropriations are subject to the same legal rules as regular appropriations, including purpose, time, and amount limitations.
What is the fiscal law concept known as the 'necessary expense doctrine'?
Answer: An expenditure not specifically authorized may be made if it is necessary and incident to a proper purpose of the appropriation
The necessary expense doctrine allows expenditures not explicitly named in an appropriation if they are reasonably necessary to carry out the appropriation's authorized purpose.
Which type of funds is typically used to purchase major end-items of equipment with a unit cost above a threshold set by Congress?
Answer: Procurement appropriations
Procurement appropriations are designated for acquiring capital equipment and systems above the investment threshold, distinguishing them from O&M expenses.