Budgeting & Financial Oversight Flashcards

What is a 'continuing resolution' (CR) and how does it affect federal procurement?

Answer: A CR provides temporary funding at prior-year levels and typically restricts agencies from starting new programs

A continuing resolution maintains government operations when a full-year appropriation hasn't passed, usually limiting agencies to prior-year spending rates and prohibiting new program starts.

Under the FAR, what is the contracting officer's responsibility when an undefinitized contract action (UCA) is authorized?

Answer: To definitize the contract as quickly as possible, typically within 180 days of award

UCAs authorize work before prices are finalized, and the FAR requires definitization as soon as practicable, generally within 180 days, to protect the government's financial interests.

What is an 'obligation' in the context of federal budgeting?

Answer: A binding legal commitment that will result in an outlay, such as a signed contract

An obligation is a legal action that creates a duty to make a payment, most commonly a signed contract, which reduces the amount of unobligated budget authority available.

A program manager wants to accelerate a purchase to use expiring funds for a requirement that won't be needed for eight months. This is an example of:

Answer: A violation of the bona fide needs rule

Purchasing items eight months before they're needed to spend expiring funds violates the bona fide needs rule, which requires current-year funds to address current-year requirements.

Which financial management report is primarily used to track the status of appropriations, obligations, and expenditures against a contract?

Answer: The SF-133 (Report on Budget Execution and Budgetary Resources)

The SF-133 provides a comprehensive view of budgetary resources, obligations, and outlays and is used for monitoring fiscal execution across appropriation accounts.

What does 'expired funds' status mean for a one-year appropriation after the fiscal year ends?

Answer: The funds can no longer incur new obligations but remain available for five years to liquidate valid prior-year obligations

After a one-year appropriation's period of availability ends, it enters a five-year expired phase where it can only pay legitimate obligations already incurred, not new ones.

What is the primary risk associated with 'invoice bundling,' where a contractor submits one large invoice covering multiple contract line items (CLINs)?

Answer: It can obscure which appropriations are being charged and complicate proper funds accounting

Bundled invoices make it difficult to ensure costs are charged to the correct appropriation type (e.g., O&M vs. procurement), risking improper obligation of funds.