Government Procurement Certification Budget Planning & Reporting 3 — Questions and Answers
Question 1: Under the Anti-Deficiency Act, which of the following actions is prohibited?
- Requesting supplemental appropriations from Congress
- Obligating funds in excess of available appropriations (Correct answer)
- Reprogramming funds within the same account
- Using prior-year unobligated balances for current-year needs
Correct answer: Obligating funds in excess of available appropriations
The Anti-Deficiency Act (31 U.S.C. § 1341) prohibits federal employees from obligating or spending more funds than have been appropriated by Congress.
Question 2: Which document formally allocates an agency's appropriated funds to bureaus or offices within that agency?
- Apportionment schedule
- Allotment
- Allocation (Correct answer)
- Continuing resolution
Correct answer: Allocation
An allocation is the formal distribution of funds from a department to its subordinate bureaus or offices after the OMB apportionment process.
Question 3: A program manager needs to move funds between two different budget activities within the same appropriation account. This action is called:
- Reprogramming (Correct answer)
- Transfer
- Rescission
- Supplemental appropriation
Correct answer: Reprogramming
Reprogramming moves funds within the same appropriation account between programs, projects, or activities, often requiring Congressional notification.
Question 4: What is the purpose of the Prompt Payment Act in the context of procurement budget reporting?
- To require contractors to submit invoices within 30 days
- To mandate interest penalties on late government payments to contractors (Correct answer)
- To set maximum payment amounts for small purchases
- To authorize advance payments for long-lead items
Correct answer: To mandate interest penalties on late government payments to contractors
The Prompt Payment Act requires agencies to pay proper invoices on time and pay interest penalties when payments are late, protecting contractor cash flow.
Question 5: In federal budget planning, what is the difference between 'new obligational authority' (NOA) and 'total obligational authority' (TOA)?
- NOA is defense-only; TOA applies to civilian agencies
- TOA includes NOA plus carryover from prior years; NOA is only current-year funds (Correct answer)
- NOA covers operations; TOA covers acquisitions only
- They are interchangeable terms with no practical difference
Correct answer: TOA includes NOA plus carryover from prior years; NOA is only current-year funds
TOA represents all funds available for obligation in a given year, including new appropriations (NOA) plus any prior-year unobligated balances carried over.
Question 6: Which OMB circular governs the cost principles for determining allowable costs under federal contracts with for-profit commercial organizations?
- OMB Circular A-11
- OMB Circular A-21
- FAR Part 31 (Correct answer)
- OMB Circular A-123
Correct answer: FAR Part 31
FAR Part 31 establishes the cost principles and procedures for pricing contracts and determining allowable, allocable, and reasonable costs for commercial contractors.
Question 7: A contracting officer receives a contractor's request for equitable adjustment (REA) citing increased material costs. From a budget planning standpoint, what fund source would typically cover a REA on a firm-fixed-price contract?
- Contingency reserve funds pre-identified in the contract
- Program management reserve in the program office budget (Correct answer)
- Contractor's own G&A overhead pool
- Supplemental appropriations requested from Congress
Correct answer: Program management reserve in the program office budget
Program management reserve (PMR), held at the program office level within the same appropriation, is the typical funding source for REAs and unforeseen cost growth on FFP contracts.
Government Procurement Certification Budget Planning & Reporting 3
Under the Anti-Deficiency Act, which of the following actions is prohibited?